How we are paid
Is a mortgage broker free? Here's exactly how we're paid.
This page explains who pays us as an Ontario mortgage brokerage, when you would pay a fee, and how you see any fee in writing before you commit.
Written by Stonefield Mortgage · Reviewed by David Steinfeld, principal broker · Stonefield Mortgage, FSRA mortgage brokerage licence #13722 · [review pending — before this page is indexed]
Published · Updated
For most mortgages from banks, credit unions, trust companies and monoline lenders, the lender pays the brokerage when your mortgage funds, so our help costs you nothing. A fee to you can apply on some alternative-lender or private mortgages. In Ontario, any fee, and how the brokerage is paid, is disclosed to you in writing before you commit.
When we are paid
We are paid only when your mortgage funds: nothing before funding, and nothing if your mortgage does not close. On a mortgage of $400,000 or less, Ontario's rules also bar a brokerage from asking for, or accepting, any advance payment or deposit (O. Reg. 188/08, s. 37, checked October 2026).
What the payment is for
The brokerage's payment covers three kinds of work:
- arranging and setting up your mortgage;
- the work with the lender, from the application through its conditions to funding;
- the work with you: reading your offer, comparing lenders, explaining the terms and working with your lawyer through to closing.
What you sign, and what it tells you
Before you sign a mortgage, you see how we are paid in writing. Ontario's rules for brokerages (O. Reg. 188/08, checked October 2026) require these disclosures in plain language (s. 33). The disclosures come at the earliest opportunity, and at least two business days before you sign, unless you agree in writing to a later time (s. 35). You sign to acknowledge the disclosures.
What the disclosures tell you
- The brokerage's written disclosure
- The brokerage's disclosure tells you whether we act for you, for the lender or for both (s. 18), how many lenders we acted for last year, and whether we were a lender ourselves (s. 19). The disclosure sets out any fee or payment we receive from the lender or anyone else, who pays it, how it is calculated and any incentive to the broker (s. 21). The disclosure also lists anything we pay others (s. 22), our relationship with the lender (s. 26), the material risks of the mortgage (s. 25) and any conflict of interest (s. 27).
- A referral disclosure, if we refer you
- If we introduce you to another person or business for a fee, such as a partner broker, we tell you in writing first. You learn what the relationship is and whether we receive a fee for it (s. 23).
- The lender's commitment letter
- The commitment letter is the lender's offer: the amount, the rate, the term and the conditions you need to meet before the mortgage funds.
- The cost-of-borrowing disclosure
- The cost-of-borrowing disclosure shows the total cost of borrowing as an annual percentage rate (APR), which equals the interest rate when there is no other cost. A bank, credit union, insurance, trust or loan company gives its own statement under its legislation (O. Reg. 191/08).
What you consent to
- Consent to a credit check
- The credit-check consent is your written permission for the lender to check your credit report.
- Privacy consent
- With the privacy consent, you agree that your information can be collected and shared with the lenders and insurers involved in your mortgage. Our privacy policy sets out everything else about how we handle your information.
You are always free to ask your broker how they are paid on your mortgage and what they are making. If you ask us how we are paid on your mortgage, we answer in writing.
Who pays the brokerage, by type of lender
- Bank, credit union, trust company or monoline mortgage
- For a mortgage from a bank, credit union, trust company or monoline lender, the lender pays the brokerage and you pay us nothing. Most of the mortgages we arrange come from these lenders.
- Alternative (“B”) lender mortgage
- For a mortgage from an alternative (“B”) lender, a lender fee and sometimes a broker fee can apply. You see each fee in writing before you commit.
- Private bridge
- We often refer a private bridge to Stonefield Capital, our private-lending brand, because we believe Stonefield Capital's terms are fair and compete well in the private space. Stonefield Capital sets out its own costs in writing. When a Stonefield Capital bridge does not fit, or another lender offers better terms, we refer you to the more competitive lender. When private makes sense.
Questions about how a mortgage broker is paid
Is a mortgage broker free?
For most mortgages from banks, credit unions, trust companies and monoline lenders, yes: the lender pays the brokerage when the mortgage funds, and you pay us nothing separately. Where a fee would apply, you are told in writing before you commit.
Does the lender's payment affect which lender you recommend?
When you ask, we tell you in writing how we are paid on your specific mortgage and whether that payment differs between the lenders we're comparing. You can ask any broker the same question.
When would I pay a fee?
Typically only on some alternative-lender and private mortgages, where lender and broker fees are common. Every fee is disclosed in writing before you commit, and you can say no to the fee.
What about other costs of getting a mortgage?
Other costs are separate from the brokerage: your real-estate lawyer, an appraisal if the lender asks for one, and, with less than 20% down, the default-insurance premium and the Ontario sales tax on it. The closing-costs tool adds these costs up.
Stonefield Mortgage is a trade name of Stonefield Capital Inc., FSRA mortgage brokerage licence #13722. You can look up any Ontario brokerage, broker or agent on FSRA's public register.
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Ask a mortgage broker to call you back
Tell us what you're planning for a home in Ontario and a good number to reach you. We call back within one business day, usually sooner. We ask for documents only once we know which ones your mortgage needs.
You can also call us at (416) 371-2077.