East Kootenays Mortgage FAQ

How much do mortgage brokers cost in BC and Alberta?

You shouldn’t pay your mortgage broker anything, except in a few, special circumstances. Instead, brokers usually get paid a referral fee/commission from the bank or lender you end up using.

You’ll only pay a fee for:

1. Mortgage planning session(s) without a purchase attached. I’m always here to help you find the best mortgage for your lifestyle. But, for those who come in for advice without the intent to purchase, I may charge a fee, as I won’t be compensated by a bank/lender.
2. Private Mortgages come from private lenders, who don’t pay commissions. So, the fee is usually paid by the mortgage holder.
3. Commercial Lending sometimes comes with a fee depending on loan details, mortgage size, building type, etc.

Are mortgage brokers worth it?

Based on my experience both as a mortgage broker and an (ex)bank employee, I fully believe mortgage brokers are worth it. I wouldn’t have quit my job at the bank to become a mortgage broker if I didn’t think so.

While a bank may give you a mortgage, a good broker will:

• Walk you through the application process
• Customise a mortgage to fit your lifestyle
• Be with you at every step along the way

And, you won’t have to pay for it (in most cases). That’s a lot of service for free!

How do mortgage brokers make money?

In the vast majority of cases, we are paid a fee by the bank or lender we recommend to our clients. Sometimes, as outlined above, our clients will pay us for our services.

What’s the difference between a mortgage advisor and a mortgage broker?

There is no difference. In fact, there are a variety of titles mortgage brokers go by, including mortgage agent, associate, broker, advisor and mortgage professional. Whatever you choose to call it, the service is the same.

Can I negotiate realtor fees in Alberta or BC?

Realtor fees are not set in stone. They range from 1% all the way up to 5%. And, if your realtor is open, they are negotiable throughout Canada, including BC and Alberta.

Do mortgage brokers get paid more when they recommend a variable rate mortgage?

No. The commissions we receive from recommendations are regulated to ensure we make decisions based on your best interests and not our financial interests.

Is working with a mortgage broker better than going to a bank?

There are a lot of different banking institutions and a lot of different brokers, and not all will work with the same commitment. But, when you find a mortgage broker you trust, you’ve found the perfect partner to get you the right mortgage.

A good broker is better than the best bank, because:

1. Our advice is custom and you focused. Our recommendations are always driven by your needs, not what makes the bank the most money.
2. We have access to more lenders. When you go to a bank for a loan, you only get one option – theirs. Mortgage brokers approach a variety of lenders on your behalf to find one that fits your needs and situation better.
3. We make lenders compete. When we approach various lenders, they are forced to compete for your business. Often that means giving you the best interest rate they can afford.
4. You are our client. Bankers work for the bank. We work for you.