What Fees Do Mortgage Brokers Charge?

Understanding the fees Mortgage Brokers charge can help you make better decisions when seeking a loan. They charge Some fees such as broker commission fees, origination fees, application fees, rate lock fees, and other potential fees.


5 TYPICAL fees a Mortgage Broker charges are outlined below:

  1. Broker Commission Fees
  2. Origination Fees
  3. Application Fees
  4. Rate Lock Fees
  5. Other Potential Fees


1. Broker Commission Fees

Mortgage Brokers firstly earn their money through commission fees.

It can generally be:

  1. Lender-Paid: Most commonly, the lender pays the broker a commission based on the loan amount.
  2. Borrower-Paid: Sometimes, the borrower pays the fee upfront or includes it in the loan.


2. Origination Fees

This fee is for processing your new loan application and can specifically vary based on the loan amount and complexity.

These particularly include:

  1. Percentage-Based: Typically ranges from 0.5% to 1% of the loan amount.
  2. Flat Fees: Some brokers charge a flat fee regardless of the loan size.


3. Application Fees

Some brokers also charge an application fee to cover the cost of processing your initial application which can be:

  1. Non-Refundable: These fees are usually non-refundable, even if the loan is not approved.
  2. Varied by Broker: Not all brokers charge this fee, so ask upfront.


4. Rate Lock Fees

A rate lock fee particularly ensures your mortgage rate stays the same for a set period, protecting you from rate changes.

This basically is:

  1. Time-Sensitive: Lock periods typically range from 30 to 60 days.
  2. Market Conditions: Fees can be higher for longer lock periods.


5. Other Potential Fees

There are a few other fees you might encounter; such as:

  1. Underwriting Fees: Covers the cost of evaluating your loan application.
  2. Processing Fees: Covers administrative costs.
  3. Credit Report Fees: Small fee for pulling your credit report.



By understanding these fees, you can certainly make better choices and potentially save money. A good mortgage broker will be transparent about their fees and answer any questions you have.