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.

A man wearing a black shirt is smiling for the camera
Dean Garrett

Mortgage Professional

Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart

By Dean Garrett • April 15, 2026
Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart There’s no denying it—buying a home is an emotional journey. In a competitive market, it can feel like you need to stretch beyond your comfort zone or bid above asking just to have a chance. That pressure can make it hard to separate what you want from what you can realistically afford. One of the biggest pitfalls buyers face is falling in love with a home that’s outside their price range. Once that happens, every other property seems like a compromise—even the ones that might have been a perfect fit otherwise. The best way to avoid this heartache? Get pre-approved before you start shopping. What a Pre-Approval Does for You A mortgage pre-approval gives you more than just a number—it provides clarity, confidence, and protection: Know your buying power : Shop within your true price range and avoid disappointment. Spot potential roadblocks : Uncover issues like credit bureau errors before you make an offer. Get organized : Learn exactly what documentation you’ll need so there are no surprises. Lock in a rate : Many lenders hold your rate for 30–120 days, giving you peace of mind if rates rise. Save yourself heartache : Protect yourself from falling for a home you can’t afford. Head vs. Heart Buying a home is about balance. Your head tells you what’s financially sound, your heart tells you what feels right—and both matter. A pre-approval helps bring those two sides together, so you can make confident choices without emotional stress clouding your judgment. The Bottom Line Looking at properties for fun is one thing—but if you’re serious about buying, a pre-approval is the smartest first step you can take. It sets realistic expectations, saves time, and protects your emotions along the way. If you’d like to explore your options and get pre-approved, I’d be happy to walk through the process with you. Let’s make sure you’re ready to shop with confidence.

Is Alternative Lending the Right Choice for Your Mortgage Needs?

By Dean Garrett • April 8, 2026
Alternative Lending in Canada: What It Is and When It Makes Sense Not everyone fits into the traditional lending box—and that’s where alternative mortgage lenders come in. Alternative lending refers to any mortgage solution that falls outside of the typical big bank offerings. These lenders are flexible, creative, and focused on helping Canadians who may not qualify for traditional financing still access the real estate market. Let’s explore when alternative lending might be the right fit for you. 1. You Have Damaged Credit Bad credit doesn’t have to mean your homeownership dreams are over. Many alternative lenders take a big-picture approach . While credit scores matter, they’ll also look at: Stable employment Consistent income Size of your down payment or existing equity If your credit has taken a hit but you can demonstrate strong income and savings—or have a solid explanation for past credit issues— an alternative lender may approve your mortgage when a bank won’t. Pro tip: Use an alternative mortgage as a short-term solution while you rebuild your credit, then refinance into a traditional mortgage with better terms down the line. 2. You're Self-Employed Being your own boss has its perks—but mortgage approval isn’t usually one of them. Traditional lenders require verifiable, consistent income—often two years’ worth. But self-employed Canadians typically write off significant expenses, reducing their declared income. Alternative lenders are more flexible and understanding of self-employed income structures. If your business is profitable and your personal finances are healthy, you may qualify even with lower stated income. Even if interest rates are slightly higher, this option is often worth it—especially when balanced against tax planning and business deductions . 3. You Earn Non-Traditional Income Today’s income sources aren’t always conventional. If you earn through: Airbnb rentals Tips and gratuities Rideshare or delivery apps (like Uber or Uber Eats) Commissions or contracts You might face challenges with traditional lenders. Alternative lenders are often more willing to work with these non-standard income streams , especially if the rest of your mortgage application is strong. Some will consider a shorter income history or evaluate your average earnings in a more flexible way. 4. You Need Expanded Debt-Service Ratios Canada’s mortgage stress test has made it harder for many borrowers to qualify with big banks. Alternative lenders can offer more generous debt-service ratio limits —meaning you might be able to qualify for a larger mortgage or a more suitable home, especially in competitive markets. While traditional GDS/TDS limits typically sit at 35/42 or 39/44 (depending on your credit), some alternative lenders will go higher, especially if: You have a larger down payment Your loan-to-value ratio is lower Your overall financial profile is strong It’s not a free-for-all—but it’s more flexible than bank lending. So, Is Alternative Lending Right for You? Alternative lending is designed to offer solutions when life doesn’t fit the traditional mold . Whether you're rebuilding credit, running your own business, or earning income in new ways, this path could help you get into a home sooner—or keep your current one. And here’s the key: You can only access alternative lenders through the mortgage broker channel . Let’s Explore Your Options Not sure where you fit? That’s okay. Every mortgage story is unique—and I’m here to help you write yours. If you’re curious about alternative mortgage products, want a second opinion, or need help getting approved, let’s talk . I’d be happy to help you explore the best solution for your situation. Reach out anytime. It would be a pleasure to work with you.