Looking for a Reputable Mortgage Broker in Ontario?

360Lending is an award-winning mortgage brokerage based in Richmond Hill, Ontario. Over 2,000 homeowners in Ontario have given us 5-star reviews and we have an A+ rating from the Better Business Bureau.

We help homeowners get the lowest rates for home equity loans, home equity lines of credit, refinancing, and other mortgage products.

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When you’re thinking about working with a mortgage broker, one of the first questions that may come to mind is: how do they get paid? It’s a fair question—after all, if someone is helping you find the right loan, it’s natural to wonder if (or how much) they’re charging you for it.

The good news is that most mortgage brokers in Canada don’t charge anything upfront—especially if you qualify with a major bank. But there are some important things to know, especially if your situation means working with a subprime or private lender.

Let’s break it down.

Why Use a Mortgage Broker at All?

Here’s the value a broker brings to the table:

Experience and guidance: They help you understand your options and explain the pros and cons in plain English.

Access to more lenders: Brokers work with a wide range of lenders, including banks, B lenders, and private lenders—so you’re not stuck with just one option.

Competitive pricing: Even with fees, a broker may save you money overall by finding you a lower rate or more suitable product.

Better chances of approval: Brokers know which lenders are more flexible, what documents to provide, and how to present your case.

Saves you time: Instead of applying to 5 different lenders, your broker can shop around and submit the strongest version of your application.

Most Brokers Don’t Charge For Consultations

When you first reach out to a mortgage broker, whether to ask questions or go through a full application, you should not be charged anything just to talk to them.

In fact, most reputable brokers will give you a free consultation, go over your options, and help assess what you qualify for—without asking for any payment.

If someone tries to charge you a fee just to speak with them or look at your situation, that’s a red flag. In Ontario and many other provinces, charging upfront fees for basic mortgage consultations is not allowed for mortgages under a certain size.

Ontario Regulations on Upfront Broker Fees

In Ontario, mortgage brokers are regulated by the Financial Services Regulatory Authority (FSRA). This means they must follow strict rules that protect you, the borrower.

One of these rules says that mortgage brokers cannot charge an upfront fee for arranging a mortgage of $400,000 or less—unless the fee is for a legitimate expense, like a property appraisal or legal service, and it's clearly explained in writing.

For mortgages over $400,000, brokers can charge a service fee or broker fee—but even then, the fee:

Must be fully disclosed before you sign

Must be paid to the brokerage (the company), not directly to the individual broker

Must be part of your official mortgage documents

Any fees you’re expected to pay should be clearly laid out in a document called the Disclosure to Borrower. This is part of the standard compliance paperwork, and it’s designed to make sure you know what you’re getting into—no surprises.

No Broker Fees for Mortgages With Major Banks

If you qualify for a mortgage with a Schedule A bank (like TD, RBC, BMO, Scotiabank, or CIBC), borrowers do not pay brokers a fee for arranging the mortgage. These lenders pay the broker a commission once your mortgage funds.

The commission amount depends on the size of your mortgage, the lender, and sometimes the term you choose—but it doesn't affect your rate or what you pay as the borrower.

From your side, it’s basically free. That’s one of the big advantages of working with a broker: you get access to expert advice and multiple lender options without having to pay anything directly.

Broker Fees for Mortgages With Subprime Lenders

Not everyone qualifies with the major banks. If your credit score is too low, your income is difficult to verify (common for self-employed borrowers), or your debt levels are high, the banks might say no.

That’s where B lenders come in. These are regulated lenders like:

Home Trust

Equitable Bank

Community Trust

They specialize in helping people who fall just outside the banks’ guidelines.

When working with B lenders, it’s common for the borrower to pay a broker fee—because these lenders don’t pay the broker a commission the same way the big banks do, or they pay very little.

The broker fee helps cover the time, work, and expertise the broker puts into getting your deal approved. It’s usually a percentage of the mortgage amount, and again, it must be disclosed upfront in writing.

Broker Fees for Mortgages With Private Lenders

If you don’t qualify with a B lender—maybe because of poor credit, a recent bankruptcy, or a power of sale situation—you may need to go through a private lender.

These are typically individuals or companies that lend their own money. Private mortgages are short-term, interest-only loans that come with higher rates and more fees.

In this case, the broker will charge a broker fee, and the private lender may also charge a lender fee. These fees are often paid from the mortgage proceeds at closing.

This is one of the main reasons it’s important to understand what you're signing and ask questions if anything is unclear. A good broker will explain the total cost, including:

Interest rate

Broker fee

Lender fee

Legal costs

Any other third-party charges (like appraisal or title insurance)

How to Look for a Reputable Mortgage Broker?

Look for these signs:

They provide a free consultation upfront

They don’t pressure you into signing anything quickly

They give you a Disclosure to Borrower document outlining any fees

They clearly explain why a certain product or lender is being recommended

They’re licensed by the province and work for a registered brokerage

If a broker is vague about fees, tries to rush you into signing, or doesn’t provide written documents—walk away.

How Are Broker Fees Calculated?

If you’re working with a major bank, you don’t pay a broker fee—the bank pays the broker a commission based on your mortgage amount. You’ll never see this fee on your paperwork because it doesn’t come from your pocket.

But if your mortgage is through a B lender or private lender, the fee structure is different.

In those cases, a broker fee is usually calculated as a percentage of the mortgage amount. This can range depending on the complexity of your file, how much work is involved, and the type of lender. Some general examples:

B Lender Mortgages:

Broker fees typically range from 1% for first mortgages and can go up to 2-4% of the mortgage amount for smaller second mortgages. So for a $400,000 first mortgage, you might pay around $4,000 in broker fees.

Private Mortgages:

Fees can vary greatly, depending on the size of the mortgage, position of the mortgage, risk level, complexity of the situation, how fast the deal needs to close, and whether the file requires extra work.

In many cases, the fee is deducted from your mortgage proceeds at closing. That means you don’t have to pay it out of pocket, but you do receive a slightly smaller lump sum.

What’s in the “Disclosure to Borrower”?

Whether you’re working with a bank, B lender, or private lender, your broker must provide a document called the Disclosure to Borrower. This is required by law in Ontario and most provinces.

This document clearly outlines:

The mortgage amount

The interest rate and term

All broker and lender fees

Any other charges (appraisals, legal fees, title insurance)

Who is paying the fees and when

The name of the lender and brokerage

You’ll usually receive this document before signing anything, and your broker should walk you through it so there are no surprises.

What to Watch Out For

Most mortgage brokers in Canada are licensed professionals who follow the rules. But here are a few red flags to keep an eye out for:

They ask for payment before showing you any paperwork

They want you to send fees directly to them instead of the brokerage

They avoid giving written breakdowns of costs

They rush you into signing before explaining the terms

If you’re ever unsure, ask for a second opinion—or contact your provincial mortgage regulator to confirm the broker’s license and standing.

How Does a Mortgage Broker Get Paid in Canada?

In most cases, working with a mortgage broker won’t cost you anything upfront, especially if you qualify with a big bank. Even when broker fees apply (like with B or private lenders), those fees should be reasonable, clearly explained, and always disclosed in writing.

A good broker earns their fee by giving you access to more lenders, better solutions, and expert advice you wouldn’t get on your own.

And remember: you’re not just paying for a loan—you’re paying for peace of mind.