February 14, 20263 min read
Homebuyers often hear a rule of thumb, but prime mortgage underwriting is more detailed than that. For many standard prime residential mortgages, the lender pays the broker a commission and the borrower does not pay a separate broker fee. That is not universal, so compensation should be disclosed clearly.
Where borrowers get tripped up
Here is what matters most:
- Broker compensation can vary by lender, mortgage amount and product.
- Alternative or private lending transactions can involve borrower-paid brokerage or lender fees, but those are different from a typical A-lender mortgage.
- A professional broker should explain any fee before you commit to the transaction.
- Ask whether compensation changes the lender recommendations and how conflicts are managed.
For an A-class mortgage, confirm in writing whether you will pay any brokerage fee and what services are included.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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