How mortgage brokers get paid in Ontario, and what they must tell you
Checked against primary sources
Most Ontario mortgage brokerages are paid by the lender, as a commission tied to the size of your mortgage; some also charge borrowers fees, mostly on alternative and private loans. Ontario requires the brokerage to disclose, in writing and before you sign, what it receives and how it's calculated. FSRA says "the lender pays a commission" alone may not be enough.
What your broker earns on this mortgage
Type the compensation from your brokerage's written disclosure. See it in dollars, and next to what a rate difference is worth to you.
- A 0.10-point lower rate saves you (5 years)
- $3,066
- Lender-paid compensation equals a rate gap of
- 0.10 pts
Estimate, not advice. Compensation isn't a cost added to your rate by law; it's a conflict to understand. FSRA expects brokerages to disclose it as a percentage, range or other measurable basis.
Brokerage receives about $3,200
What is driving this result
- If two lenders offer you similar terms but pay the brokerage differently, ask why this one was recommended. Ontario requires the brokerage to disclose conflicts of interest (s. 27) and to recommend a suitable mortgage (s. 24).
- A fee you pay directly must be disclosed in the cost of borrowing, at least 2 business days before you commit unless you waive it (O. Reg. 191/08). How brokers are paid.
Assumptions & sources
Assumptions
- Lender-paid compensation is usually a percentage of the mortgage amount; the brokerage must disclose it in writing for each mortgage it presents (O. Reg. 188/08 s. 21).
- The 'rate gap' line converts the dollars into the rate difference that would cost you the same over the term. It shows scale only.
Sources
- Government of Ontario (e-Laws) — O. Reg. 188/08: Mortgage brokerages, standards of practice (effective March 1, 2022). Checked .
- FSRA — Do your clients understand how you're paid? (compensation disclosure). Checked .
- FSRA — Working with a mortgage professional (effective April 1, 2023). Checked .
- Financial Consumer Agency of Canada — Getting preapproved for a mortgage (working with brokers) (effective October 15, 2025). Checked .
Who pays a mortgage broker in Ontario?
Usually the lender. FSRA's consumer page says brokerages "are usually paid by the mortgage lender through a commission" and that some "may charge borrowers additional fees". FCAC says the same nationally: brokers generally don't charge for their services and usually receive a commission from the lender.
The money flows to the brokerage, which then pays the agent or broker. Agents can only be paid by the brokerage they're licensed with (O. Reg. 188/08 s. 44).
Source: FSRA, Working with a mortgage professional, effective April 1, 2023. Checked .
Source: Financial Consumer Agency of Canada, Getting preapproved for a mortgage (working with brokers), effective October 15, 2025. Checked .
What must a brokerage disclose about its pay?
For each mortgage it presents to you, the brokerage must disclose in writing whether it receives a fee or other payment from anyone else (usually the lender), who pays it and the basis for calculating it, and whether the individual agent or broker gets any incentive, its nature and source. You sign to acknowledge it (O. Reg. 188/08 s. 21). Referral fees it pays or receives must be disclosed too (ss. 22–23).
FSRA's supervision note to brokerages is specific: compensation must be described as "a percentage, a percentage range, or another measurable calculation method", covering fees, commissions, incentives and other benefits, before you're obligated under a mortgage.
Source: Government of Ontario (e-Laws), O. Reg. 188/08: Mortgage brokerages, standards of practice, effective March 1, 2022. Checked .
Source: FSRA, Do your clients understand how you're paid? (compensation disclosure). Checked .
When do you pay the broker yourself?
Borrower-paid fees are more common on alternative and private mortgages. Three Ontario rules protect you:
- No advance fee or deposit on a mortgage of $400,000 or less (O. Reg. 188/08 s. 37). Above that, FSRA says any up-front fee can't be paid in cash and goes to the brokerage, not the agent.
- If you pay the brokerage, it must give you its own cost-of-borrowing disclosure, including an annual percentage rate, at least 2 business days before you pay or commit, unless you waive that in writing (O. Reg. 191/08 ss. 1(3), 6–7).
- A brokerage can't say its fees are set or approved by government (s. 20).
Source: Government of Ontario (e-Laws), O. Reg. 191/08: Cost of borrowing and disclosure to borrowers, effective March 1, 2022. Checked .
Does lender compensation create a conflict of interest?
It can. If two lenders offer you similar terms but pay the brokerage differently, the brokerage has an incentive. Ontario's answer is disclosure and duty: the brokerage must disclose conflicts (s. 27) and take reasonable steps to make sure a mortgage is suitable for you (s. 24). Your answer is to ask why this lender, and to compare the offer yourself.
Scale helps. On $600,000, a 0.10-point lower rate saves you about $2,874 over five years. Use the calculator above to set the brokerage's disclosed compensation next to what rate differences are worth to you.
What should you ask about pay?
- "What will your brokerage receive from this lender, as a percentage of my mortgage?"
- "Are there volume bonuses, trips or other incentives tied to this lender?"
- "Would you be paid differently if I chose the other lender you showed me?"
- "Will I pay any fee, and when?"
Frequently asked questions
Do mortgage brokers in Ontario get paid by the bank?
Usually by the lender, which may be a bank, credit union or other lender, through a commission. Some brokerages also charge borrowers fees. The brokerage must disclose what it receives and how it's calculated, in writing.
Is a mortgage broker free in Toronto?
For most standard mortgages the borrower pays no direct fee, but the brokerage is paid by the lender. Fees to borrowers are more common on alternative and private mortgages and must be disclosed before you commit.
Can a mortgage broker charge an upfront fee in Ontario?
Not on a mortgage of $400,000 or less: Ontario's rules prohibit advance fees and deposits on those. Above that, any up-front fee must be disclosed and cannot be paid in cash.
Do I have to sign the broker's compensation disclosure?
Ontario requires you to acknowledge the compensation disclosure in writing. Read it first and ask for the percentage if it only says the lender pays a commission.
Sources
- FSRA — Working with a mortgage professional (effective April 1, 2023). Checked .
- FSRA — Do your clients understand how you're paid? (compensation disclosure). Checked .
- Government of Ontario (e-Laws) — O. Reg. 188/08: Mortgage brokerages, standards of practice (effective March 1, 2022). Checked .
- Government of Ontario (e-Laws) — O. Reg. 191/08: Cost of borrowing and disclosure to borrowers (effective March 1, 2022). Checked .
- Financial Consumer Agency of Canada — Getting preapproved for a mortgage (working with brokers) (effective October 15, 2025). Checked .
- FSRA — Working with a mortgage broker or agent? Know what to expect (PDF). Checked .
Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.