How Much Does a Mortgage Broker Cost in BC?

Dean Garrett • March 2, 2026

It is one of the first questions people ask when they start thinking about working with a mortgage broker. The assumption is usually that expert advice comes with a price tag.


In most cases in BC, it does not. Here is exactly how the system works.


How Mortgage Brokers Get Paid

When a mortgage broker helps you secure a mortgage through a bank, credit union, or other institutional lender, the lender pays the broker a fee when your mortgage funds. This is called a finder's fee or origination fee, and it comes entirely from the lender's side of the transaction — not yours.


The fee is typically calculated as a percentage of the mortgage amount, usually somewhere between 0.5% and 1.2% depending on the lender, the mortgage type, and the term length. On a $500,000 mortgage, that might be $2,500 to $6,000 paid by the lender to the broker.

You do not pay this. It does not affect your mortgage rate. Lenders pay brokers because brokers bring them qualified borrowers consistently — it is cheaper for a lender to pay a referral fee than to run the full marketing and branch operation required to find those borrowers themselves.


Does Using a Broker Mean a Higher Rate?

No. This is a common and understandable misconception. Many people assume that because the lender is paying a fee to the broker, that fee must somehow be built into a higher rate for the borrower.


In practice, brokers often access rates equal to or better than posted bank rates. Large brokerages have significant volume with their lender partners, which gives them negotiating power. The competitive environment among lenders for broker-sourced business works in your favour.


When Does a Broker Fee Apply?

There are situations where a broker may charge a fee directly to the borrower. I will always tell you clearly if this is the case before we proceed with anything.


The most common situation is private lending. Private lenders do not pay the same commissions as institutional lenders, and arranging private mortgage financing typically involves both a lender fee and a broker fee paid by the borrower. These are disclosed upfront and are reasonable relative to the work involved and the solution being provided.


Some alternative lenders also have fee structures that result in a cost to the borrower. Again, I will outline this clearly before you commit to anything.


For standard purchases, refinances, renewals, and most other mortgage transactions through institutional or alternative lenders, my services are free to you.


What You Get at No Cost

When I work with you on a standard mortgage transaction, here is what that includes at no charge:

  • A review of your financial situation and mortgage goals
  • Comparison of options across multiple lenders
  • Pre-approval management and rate hold
  • Full mortgage application preparation and submission
  • Lender communication and negotiation
  • Condition management and document coordination
  • Strategic advice on mortgage structure and long-term planning
  • Ongoing support for as long as you have a mortgage


For clients interested in the Smith Manoeuvre, I also provide a free personalized analysis of whether the strategy makes sense for their situation. This involves reviewing their mortgage, income, equity position, and long-term goals, and modeling the potential outcomes. That analysis has real value and costs nothing.


The Real Question: What Does It Cost Not to Use a Broker?

I think about it this way. A homeowner who goes directly to their bank for a mortgage renewal gets one offer from one lender. A homeowner who works with an independent broker gets the full market compared in a single conversation, with someone negotiating on their behalf.

The difference in rate, terms, prepayment privileges, and mortgage structure over a 25-year amortization easily runs into the tens of thousands of dollars. That is the real cost of not using a broker.


I serve homeowners across Courtenay, Comox Valley, Campbell River, Nanaimo, and all of Vancouver Island. Book a free call and let's talk about your mortgage.



Book a free consultation or call (250) 218-4135.

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Dean Garrett

Mortgage Professional

Need Funds Between Buying and Selling? Here’s How Deposit Loans & Bridge Financing Help

By Dean Garrett • August 26, 2026
You’ve outgrown your current home. It no longer fits your life, so moving makes sense. And you’re not interested in juggling two properties. Selling first and buying something new feels like the right move. Ideally, you want possession of the new home before leaving the old one. That overlap makes moving easier, reduces stress, and gives you time to paint, renovate, or settle in before the boxes arrive. But there’s a common challenge. What if the down payment for your next home is tied up in the equity of the one you’re selling? That’s where bridge financing comes in. How bridge financing works Bridge financing temporarily unlocks equity from your current home once it has a firm sale . It bridges the gap between selling your existing property and purchasing your next one, allowing you to use that equity toward your down payment. What about competitive markets? In a hot market, a strong offer often means a larger deposit . If you don’t have that cash sitting in your account, but you do have equity, a deposit loan can help you compete with confidence. The non-negotiable requirement To qualify for bridge financing or a deposit loan, your current home must have a firm, unconditional sale . No firm sale = no bridge or deposit loan. Lenders need certainty to calculate available equity and manage risk. Bottom line A firm sale is the key that unlocks bridge financing and deposit loans. If you’re planning a move and want to understand how these options could work for you, let’s talk. I’m always happy to walk you through your options and help you plan your next step with confidence.

How to Qualify for a Mortgage After Bankruptcy in Canada

By Dean Garrett • August 19, 2026
Financial setbacks happen. Bankruptcies and consumer proposals are more common than most people realize—and they don’t define your future. Going through one doesn’t mean homeownership is off the table forever. It simply means lenders want to see that you’ve taken control, learned from the past, and built a stronger financial foundation moving forward. What lenders look at after a bankruptcy or consumer proposal How long it’s been since your discharge Your discharge date matters. For lenders, this is your reset point. There’s no law that says you must wait a specific amount of time before applying for a mortgage, but the longer your track record after discharge, the stronger your application becomes. What matters most is how responsibly you’ve managed your finances since then. Your credit rebuild Re-establishing credit is critical. After discharge, most people start with a secured credit card and use it consistently and responsibly. To be considered fully re-established, lenders typically want to see: Two active trade lines At least two years of clean payment history Credit limits of around $2,500 on each No late or missed payments Your down payment or equity The more money you can put down—or the more equity you have when refinancing—the lower the risk for the lender. A stronger down payment often opens the door to better terms and more lender options. Your debt service ratios Lenders will also look closely at how much of your income goes toward housing and other debts. The stronger your income relative to your monthly obligations, the easier it is to qualify. Conventional vs. insured mortgage options To access the most competitive mortgage products, lenders typically want to see: At least two years plus one day since discharge Fully re-established credit Minimum down payment requirements met Mortgage insurance in place if your down payment is under 20% (through CMHC, Sagen, or Canada Guaranty) Total debt obligations generally not exceeding 44% of your gross income Alternative lending options Not every situation fits neatly into a bank’s box—and that’s where alternative lending can help. Independent mortgage professionals work with both traditional and alternative lenders, including those who specialize in complex financial situations. These lenders look at the full picture: equity, income stability, and your plan moving forward. While rates and terms may not be as competitive as prime lending, alternative financing can be an effective short-term solution—especially if you need a mortgage before your credit is fully rebuilt. Let’s talk about your next step Whether you’re planning ahead for the best possible mortgage—or need a solution sooner rather than later—there are options available. If you’d like help mapping out a clear path forward, reach out anytime. I’d be happy to review your situation and help you build a plan that gets you back into homeownership with confidence.