How Your BC Mortgage Broker Gets Paid, and 7 Questions to Ask Before You Sign
On a $600,000 mortgage, a lender might pay your broker somewhere between $3,000 and $7,200, and you never see an invoice. That range comes from the 0.50% to 1.20% of the loan amount that brokerages typically earn, based on 2025/2026 industry norms. It's a good deal for most BC borrowers, and a few questions make sure it stays that way.
How the money usually flows
On a standard residential mortgage, the lender pays the broker when the deal funds. The broker's agency then splits that with its parent brokerage, often 75/25 or 90/10. Commission usually rises with loan size and term, so a five-year term generally pays more than a two-year.
Brokers handled about 48% of first-time buyer mortgages, according to Mortgage Professionals Canada data reported by Canadian Mortgage Trends (as of 2026-07-24). Many of them place deals with monoline lenders, which only work through brokers and carry less overhead than a branch network.
The BC Financial Services Authority (BCFSA) regulates brokers under the Mortgage Brokers Act. Brokers must give you written disclosure of how they're paid, often on a form called the Form 10. You should receive it at least two business days before you sign, unless you waive that period. Confirm current requirements on bcfsa.ca.
Seven questions to ask
1. Ask: "What will you earn on this deal, in dollars?"
Get the figure in writing, not a percentage. A broker who shows you a $5,000 commission up front is running an open business.
2. Ask: "Why this lender over the other two you considered?"
Some credit unions and niche lenders pay lower commissions. If a broker skips a better-fit product because it pays less, this question surfaces it.
3. Ask: "Do you get a volume bonus or other incentive from this lender?"
Brokers must disclose conflicts of interest, including bonuses tied to volume. Some also hold higher "status" with certain banks, which can mean faster underwriting. That isn't wrong, but you should know about it.
4. Ask: "How would the numbers change on a different term?"
A five-year term pays the broker more. It may also suit you perfectly. Have the broker show you both terms with the prepayment rules side by side.
5. Ask: "Will I pay any fee directly?"
Fees tend to appear on complicated files: self-employed income that's hard to document, damaged credit, or private lending. Private or "B" lending fees often run 1% to 2% of the loan (a 2026 estimate), and they're often negotiable. Any borrower-paid fee must be disclosed in writing and agreed to before the mortgage is registered.
6. Ask: "Is anyone else being paid for sending me to you?"
Referral fees to third parties, such as a Realtor who recommended the broker, must also be disclosed to you.
7. Ask: "Can I have the written disclosure two business days before signing?"
Take the full window. Waiving it is allowed, but a calm weekend with the paperwork is worth more than a rushed Friday.
What "free" does and doesn't mean
The lender's commission cost is built into its business model, so the service isn't free in some absolute sense. You generally won't get a lower rate by walking into the same lender without a broker, though, so for most borrowers the broker's help costs nothing extra.
There's also a built-in check on bad advice. If you break the mortgage early, the lender may be able to claw back some or all of the commission from the broker, depending on its agreement with the broker. That gives your broker a real reason to place you in a mortgage you can live with.
For contractors and tradespeople with variable income, the commission often covers hours of extra paperwork proving earnings that a standard bank file doesn't capture. If a fee applies to your file, ask what work it covers and whether you can compare it with a lender-paid option.
Your next step
Before you sign anything, ask for the disclosure and read it with a pen in hand. If something looks unfamiliar, a good broker will walk you through it line by line. And if you'd like a second set of eyes on a disclosure or a lender comparison, get in touch and we can go through it together.
On a $600,000 mortgage, a lender might pay your broker somewhere between $3,000 and $7,200, and you never see an invoice. That range comes from the 0.50% to 1.20% of the loan amount that brokerages typically earn, based on 2025/2026 industry norms. It's a good deal for most BC borrowers, and a few questions make sure it stays that way.
How the money usually flows
On a standard residential mortgage, the lender pays the broker when the deal funds. The broker's agency then splits that with its parent brokerage, often 75/25 or 90/10. Commission usually rises with loan size and term, so a five-year term generally pays more than a two-year.
Brokers handled about 48% of first-time buyer mortgages, according to Mortgage Professionals Canada data reported by Canadian Mortgage Trends (as of 2026-07-24). Many of them place deals with monoline lenders, which only work through brokers and carry less overhead than a branch network.
The BC Financial Services Authority (BCFSA) regulates brokers under the Mortgage Brokers Act. Brokers must give you written disclosure of how they're paid, often on a form called the Form 10. You should receive it at least two business days before you sign, unless you waive that period. Confirm current requirements on bcfsa.ca.
Seven questions to ask
1. Ask: "What will you earn on this deal, in dollars?"
Get the figure in writing, not a percentage. A broker who shows you a $5,000 commission up front is running an open business.
2. Ask: "Why this lender over the other two you considered?"
Some credit unions and niche lenders pay lower commissions. If a broker skips a better-fit product because it pays less, this question surfaces it.
3. Ask: "Do you get a volume bonus or other incentive from this lender?"
Brokers must disclose conflicts of interest, including bonuses tied to volume. Some also hold higher "status" with certain banks, which can mean faster underwriting. That isn't wrong, but you should know about it.
4. Ask: "How would the numbers change on a different term?"
A five-year term pays the broker more. It may also suit you perfectly. Have the broker show you both terms with the prepayment rules side by side.
5. Ask: "Will I pay any fee directly?"
Fees tend to appear on complicated files: self-employed income that's hard to document, damaged credit, or private lending. Private or "B" lending fees often run 1% to 2% of the loan (a 2026 estimate), and they're often negotiable. Any borrower-paid fee must be disclosed in writing and agreed to before the mortgage is registered.
6. Ask: "Is anyone else being paid for sending me to you?"
Referral fees to third parties, such as a Realtor who recommended the broker, must also be disclosed to you.
7. Ask: "Can I have the written disclosure two business days before signing?"
Take the full window. Waiving it is allowed, but a calm weekend with the paperwork is worth more than a rushed Friday.
What "free" does and doesn't mean
The lender's commission cost is built into its business model, so the service isn't free in some absolute sense. You generally won't get a lower rate by walking into the same lender without a broker, though, so for most borrowers the broker's help costs nothing extra.
There's also a built-in check on bad advice. If you break the mortgage early, the lender may be able to claw back some or all of the commission from the broker, depending on its agreement with the broker. That gives your broker a real reason to place you in a mortgage you can live with.
For contractors and tradespeople with variable income, the commission often covers hours of extra paperwork proving earnings that a standard bank file doesn't capture. If a fee applies to your file, ask what work it covers and whether you can compare it with a lender-paid option.
Your next step
Before you sign anything, ask for the disclosure and read it with a pen in hand. If something looks unfamiliar, a good broker will walk you through it line by line. And if you'd like a second set of eyes on a disclosure or a lender comparison, get in touch and we can go through it together.
Sources
Read Next
Before the October Bank of Canada Decision: 5 Questions to Ask Your Lender
Extend, Adjust or Let It Lapse: Weighing Canada's Foreign Buyer Ban Before Year End
From 6.4% to 6.5%: How a Small Shift Affects Self-Employed Mortgage Approvals
What BC's Wills Variation Law Means When Disinherited Siblings Threaten Court