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How Much Does a Mortgage Broker Cost in Canada?
Rate and fee ranges below are CreditReboot’s working ranges as of November 9, 2026. Rates move — everything here is a range, not a quote.
Ask most people what a mortgage broker costs and they will tell you it’s free. For a buyer with perfect credit and a bank-ready file, that is often true. For a homeowner who has been turned down by the bank, it usually isn’t — and nobody explains why.
Here is what an alternative mortgage actually costs, line by line, and how to tell whether the fees are worth paying.
On a standard bank-type mortgage, the lender usually pays the broker, so there is no fee to you. In alternative lending — the B-lender and private mortgages CreditReboot arranges — the borrower pays. On a B-lender mortgage, total lender and broker fees typically run 1–2% of the amount borrowed. Private mortgage fees depend on the deal, location, lender and loan-to-value, so they are quoted for each file.
The short version
- Prime mortgages are often free to you because the lender pays the broker.
- B-lender mortgages: total lender and broker fees of typically 1–2% of the amount borrowed.
- Private mortgages: fees are quoted per file — they depend on the deal, location, lender and loan-to-value.
- Third-party costs: appraisal $450–$500, legal fees, plus any penalty to break your existing mortgage.
- Compare offers on cash in hand and total cost, not the rate alone. Every CreditReboot file is quoted in writing before you commit.
Why some broker mortgages are free and alternative ones aren’t
When a broker places a prime mortgage with a bank-type lender, that lender pays the brokerage a commission. The borrower sees no fee, which is where the “brokers are free” idea comes from. All of these mortgages are placed in 3-5 year terms.
Alternative lenders work differently. B-lenders and private lenders take on files the banks decline — bruised credit, self-employed income, high debt, arrears — and price that work into fees rather than paying the broker out of the rate. That is why the alternative route carries a cost, and why it should be shown to you up front.
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The full cost of an alternative mortgage, line by line
| Cost | B-lender mortgage | Private mortgage |
|---|---|---|
| Lender and broker fees | Typically 1–2% of the amount borrowed, in total | Quoted for your file — depends on deal, location, lender and loan-to-value |
| Appraisal | $450–$500 | $450–$500 |
| Legal fees | $1,500-$2,000 (not including ILR) | $1,500-$2,000 (not including ILR) |
| Penalty on your existing mortgage | Only if a refinance breaks it — a second mortgage avoids it | Same |
| Rate | First 4.99–5.99%; second/HELOC 7.99–11.99% | First 5.99–9%; second 9–14% |
Example: what a $300,000 B-lender first mortgage costs
Illustrative file — your numbers will differ
| Line | Amount |
|---|---|
| Amount borrowed | $300,000 |
| Total lender and broker fees | $4,000-$6000 |
| Appraisal | $550–$500 |
| Legal | $1,500-$2000 |
| Title Insurance | $300-$400 |
If that $300,000 pays off credit cards charging around 20%, it removes significant interest.
Why private mortgage fees are quoted per file
Private lenders price each mortgage on its own facts: how much you borrow, where the property is, which lender takes it, how much of the home’s value is already borrowed against, and how long the term runs. A small rural second at high loan-to-value is priced very differently from a large first mortgage in a major city.
So any fixed private-fee number you read online is a guess. CreditReboot quotes the private fee for your specific file, in writing, before you decide.
How to compare two mortgage offers
- Cash in hand. What reaches you or your creditors after every fee and payout.
- Total cost over the term. Interest plus every fee, for the period you will actually hold it.
- Monthly payment. Against what it replaces, not in isolation.
- The exit. How and when the mortgage gets replaced with cheaper money.
The lowest rate is not always the cheapest mortgage. A refinance that breaks a low first-mortgage rate can cost far more than a second mortgage at a higher rate. We put every route side by side so you can see the difference.
What you never pay CreditReboot for
There is nothing to pay to find out your options, and no minimum credit score to get a review. There are no upfront fees or retainers. We review the file and provide you complete cost breakdown in writing prior to signing the commitment.
Send your mortgage statement and the amount you need. You get each route side by side — rate, total fees and monthly payment — before you commit to anything. Call 1-866-329-8801 or start online.
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Schedule a Call or TextMortgage broker cost: FAQ
Is a mortgage broker free in Canada?
For many prime mortgages, yes, because the lender pays the broker. For alternative mortgages, no: on a B-lender mortgage, total lender and broker fees typically run 1–2% of the amount borrowed, and private fees are quoted per file.
Why do B-lender mortgages charge fees when banks don’t?
B-lenders approve files the banks decline and price that risk partly through fees. You pay a small one-time cost to get approved at a rate far below private lending.
How much are private mortgage fees?
They depend on the deal, location, lender and loan-to-value, so there is no honest single number. CreditReboot quotes the private fee for your file before you decide.
Do I pay anything just to see my options?
No. Reviewing your file and showing you the routes costs nothing.
Does bad credit make the fees higher?
Credit mainly affects which lender and rate fit your file. Fees follow the lender and mortgage type, and you see them in writing before you commit.
This article is general information, not mortgage advice. Examples are illustrative and not a commitment to lend; approval depends on the property, equity, income and lender policy. Rate and fee ranges were reviewed on November 9, 2026 and change frequently. Speak with a licensed mortgage broker about your own file.
