Mortgage Broker Fees in Ontario: What Homebuyers Need to Know

If you’re searching for mortgage broker fees in Ontario, you’re not alone. Many homebuyers want clarity on when brokers can charge fees, how much they can charge, and what Ontario’s regulations actually allow.

Here’s the truth:

Mortgage brokers in Ontario cannot charge broker fees on bank or prime‑lender mortgages.

This rule is enforced by the

Financial Services Regulatory Authority of Ontario (FSRA)

to protect consumers and ensure full transparency.

Below is the definitive 2026 guide to mortgage broker fees in Ontario — including when fees are allowed, how they must be disclosed, and why every fee must appear on your lawyer’s trust ledger.

Are Mortgage Broker Fees Allowed in Ontario?

1. No Fees on Bank (“A‑Lender”) Mortgages

For all standard residential mortgages placed with banks, credit unions, and monoline lenders, brokers cannot charge the borrower any fee. The lender pays the broker directly through a finder’s fee, so the borrower pays $0.

This applies to:

• RBC

• TD

• Scotiabank

• BMO

• CIBC

• National Bank

• First National

• MCAP

• RFA …and all other prime lenders.

When Mortgage Broker Fees Are Allowed in Ontario

Although fees are prohibited on bank deals, FSRA allows broker fees in specific situations:

A. Alternative (“B‑Lender”) Mortgages

B‑lenders pay lower commissions, so brokers may charge a 0.5%–1% fee to the borrower.

B. Private Mortgages

Private lenders do not pay broker commissions. Borrowers typically pay:

• 1%–3% broker fee, plus

• Lender fees disclosed upfront.

C. Commercial Mortgages

Commercial lenders do not pay finder’s fees. Borrowers usually pay ~1% of the mortgage amount.

Ontario’s Golden Rule: Broker Fees Must Never Exceed Lender Fees

FSRA’s consumer‑protection guidelines follow a simple principle:

If the lender charges a fee, the broker may charge an equivalent or lesser fee — never more.

This prevents inflated or unnecessary borrower costs.

Mandatory FSRA Disclosure Requirements (Ontario‑Specific)

This is where most borrowers — and even some brokers — misunderstand the rules.

In Ontario, any fee charged to a client must:

• Be clearly disclosed in the mortgage commitment or brokerage fee agreement

• Be included in FSRA Form 3.0 (Cost of Borrowing Disclosure)

• Never be collected separately (no e‑transfers, no cash, no side payments)

• Be paid through the lawyer’s trust account at closing

• Be reflected on the lawyer’s trust ledger as part of the official closing costs

If a fee is not disclosed in writing and not shown on the trust ledger, it should not be charged — period.

This protects borrowers and ensures brokers remain compliant with Ontario’s licensing standards.

Why This Matters for Ontario Borrowers

Understanding Ontario’s fee rules helps you:

• Avoid hidden or unauthorized charges

• Compare lenders and brokers confidently

• Know when a fee is legitimate

• Ensure every cost is documented and accounted for

• Protect yourself from non‑compliant practices

Final Thoughts: Mortgage Broker Fees in Ontario

Mortgage brokers play a crucial role in helping Ontarians secure competitive mortgage solutions — often at no cost to the borrower.

On bank deals, brokers cannot charge fees. On alternative, private, or commercial deals, fees must be reasonable, disclosed, and always processed through the lawyer’s trust account.

Transparent fee practices aren’t just good business — they’re required by FSRA and essential for building trust with Ontario homebuyers.