TL;DR
Borrower-paid fees can still appear in some private, alternative, or non-standard files, so written disclosure before commitment is mandatory for a clean decision.
What this FAQ answers
Most borrowers ask the wrong first question: “Is broker or bank cheaper?” The higher-quality question is: “What is my all-in cost, flexibility, and risk in writing?”
This page merges fee-disclosure and channel-comparison guidance so you can prevent surprise charges and choose the right structure for your file.
When borrower-paid broker fees are more common
- Private or alternative-lender placements where compensation structure differs from standard prime channels.
- Complex credit or property files requiring specialized placement and additional work.
- Urgent or non-standard transactions with higher execution risk.
Regulator guidance emphasizes that cost disclosure must be clear and written. If fee timing, amount, or refund rules are vague, pause before signing.
Broker vs bank: all-in cost checkpoints
| Checkpoint | Broker-channel question | Bank-channel question |
|---|---|---|
| Compensation source | Who pays broker compensation in my exact file? | Which non-rate charges apply in this direct offer? |
| Fee timing | Is any borrower-paid fee due before funding, and is it permitted in my province? | Which fees are due upfront versus at closing? |
| Lender universe | Which lenders are included or excluded from your panel? | What alternative lender types should I compare before I accept? |
| Total-cost horizon | Show 24-month and 60-month cost scenarios including fees and penalties. | Show the same horizon with all charges and flexibility limits included. |
| Refund policy | Which fees are refundable, under what condition, and by when? | Which charges are non-refundable if the file changes or collapses? |
5-step fee-disclosure checklist before commitment
- Request written compensation disclosure for your exact file structure.
- List every charge by payer, amount, due date, and refund condition.
- Compare one broker path and one direct-lender path over 24 and 60 months.
- Include break/penalty terms and flexibility features in your total-cost model.
- Do not transfer deposits or pay advance fees unless legal/provincial rules and disclosure are confirmed in writing.
Psychology traps that cause fee surprises
| Mental model | Common trap | Pragmatic correction |
|---|---|---|
| Anchoring | Fixating on one rate quote and ignoring all other costs | Always compare all-in cost over at least two time horizons |
| Present bias | Prioritizing speed over complete disclosure review | Pause commitment until fee timing and refund terms are explicit |
| Authority bias | Assuming “standard process” means no borrower-paid fees | Treat every file as unique and verify compensation in writing |
| Regret aversion | Avoiding questions to keep momentum and not “rock the boat” | Use a written checklist to ask hard questions before signing |
Sources
Best next step
- Use the pre-approval guide to prepare before comparing offers.
- Finalize your documents checklist before asking for fee quotes.
- Run mortgage calculators with all-in cost assumptions.
- Start your pre-approval plan when fee disclosure is complete.
