Who Pays the Mortgage Broker’s Fees?

When it comes to Mortgage Broker fees, figuring out who pays them can sometimes be confusing. It can either be you, the borrower, or the lender covering these costs. Also, there is sometimes a combination of both.


Mortgage Broker’s fees paid in 3 ways are mentioned below:

  1. Borrower-Paid Fees
  2. Lender-Paid Fees
  3. Combination of Borrower-Paid Fees and Lender-Paid Fees


1. Borrower-Paid Fees

The borrower is responsible for paying the Mortgage Broker’s fees which can be in the closing costs of your mortgage.

Here’s what you need to know:

  1. Upfront Payment: Fees are due at mortgage closing, requiring available funds.
  2. Negotiable Fees: Broker fees can often be negotiable.
  3. Detailed Breakdown: Get a transparent cost breakdown before committing to avoid surprises.


2. Lender-Paid Fees

Sometimes, the lender might step in and cover the Mortgage Broker’s fees to sweeten the deal and attract more borrowers.

Here’s how this usually plays out:

  1. No Out-of-Pocket Costs: Borrowers avoid direct broker fees.
  2. Higher Interest Rates: Lenders may increase rates to cover broker fees.
  3. Attractive Loans: Lenders paying broker fees may offer better terms.


3. Combination of Borrower-Paid Fees and Lender-Paid Fees

Borrower and lender can share Mortgage Broker’s fees, easing upfront and overall loan costs.

  1. Flexibility: Allows mortgage structuring to fit borrower’s finances.
  2. Negotiable Terms: Fee split is negotiable and detailed in the loan agreement.



Knowing who pays the Mortgage Broker’s fees helps you make smart decisions and stay on budget. Ask the right questions about costs to confidently navigate the home-buying process and secure the best mortgage terms.