How Mortgage Brokers Get Paid in Canada

Ashleigh Holtman
Jun 8
3 min read

This is one of the most common questions I get as a mortgage broker in Canada—how do mortgage brokers get paid? Like, are we just really helpful for free? (Kinda!) Are you going to get hit with a surprise invoice after I find you a mortgage? (Nope.) Do I moonlight as a financial wizard who thrives off caffeine and spreadsheets? (Yes, but that’s a separate issue.)

Let’s break it all down.

So... How Do Mortgage Brokers Get Paid in Canada?

In most cases, mortgage brokers in Canada get paid a finder’s fee or commission from the lender who ends up funding your mortgage. That means you, the client, don’t usually pay anything out of pocket for our services.

Here’s how it works in plain English:

You come to me because you want a mortgage, and you don’t feel like rate shopping across 60 lenders on your own (understandable).
I gather your info and figure out which lender and product best suits your situation, goals, and budget.
I submit your application to that lender, handle the communication, conditions, back-and-forth, and make sure it closes smoothly.
The mortgage closes, and the lender pays me a commission based on the size and type of your mortgage.

That’s it.

What’s the Commission Based On?

The amount I get paid is based on a percentage of your mortgage amount. Every lender pays slightly differently, but here’s a ballpark idea:

Let’s say your mortgage is $500,000.
A typical broker commission might be 0.8% to 1.1% of that amount (varies by lender and mortgage type).
So, I might earn $4,000 to $5,500 from the lender after everything is signed, sealed, and funded.

Keep in mind, that’s before taxes and split with my brokerage (yes, we share the pie), and it's only paid once the deal is fully closed. If your deal falls apart at the last minute, I don’t get paid for the hours (sometimes weeks) of work I put in.

What About Renewals or Refinances?

Good question. Here’s how it usually breaks down:

Renewals: If you’re just renewing with your current lender, and not switching or negotiating through a broker, I don’t get paid. If you come to me to find you a better deal, it’s paid as normal!
Refinances: Yep, we get paid on those too. As long as the mortgage funds through a lender, we’re compensated for our work.

Are There Any Situations Where You’d Pay Me Directly?

There can be. It’s rare, but here are a few situations where clients might pay a broker fee:

Your credit is bruised, and you need private or alternative lending.
You need something super customized that requires going to a private lender (who doesn’t pay brokers directly).

In those cases, I’m upfront about any fees from the start — and I’ll explain exactly why, how much, and what it covers. No surprises. No sketchiness. You’ll always know what’s what.

Why Do Lenders Pay Us?

Think of mortgage brokers as a lender’s sales team—except we’re not exclusive to one brand. Instead of hiring thousands of in-house mortgage reps, lenders rely on us to bring them qualified, well-packaged mortgage clients. In return, they pay us for doing the legwork.

It’s actually a win-win-win:

You get options and expert guidance without extra cost.
We get paid for our time and knowledge.
The lender gets a ready-to-go deal with minimal hassle.

So, What’s the Catch?

There isn’t one. Seriously. You’re not paying me more because the lender is paying me. It doesn’t increase your interest rate, and my job isn’t to “sell” you on a specific lender—it’s to find what works best for you.

I have access to dozens of lenders. Banks, credit unions, monoline lenders (you may have never heard of them, but they’ve got killer rates).

Final Thoughts: How Mortgage Brokers Get Paid in Canada

If you’ve made it this far, congrats—you now know how mortgage brokers get paid in Canada, and why working with one is kind of a no-brainer.

We hustle hard, we advocate for you, and we don’t charge a dime 99% of the time. If we do need to charge a broker fee, I’ll walk you through it upfront so you’re never caught off guard.

Still have questions? Reach out anytime. This is what I do—and I genuinely love helping people get into the right mortgage with the least amount of stress.

Let's Chat!