Buying Real Estate - Fees

What does a Mortgage Brokers service cost?

In most residential transactions a Mortgage Brokers service is free to their client. There are some rare occasions when a fee is charged, usually due to the need of placing secondary financing through a private lender. In most residential transactions, the service is free.

Mortgage Brokers are paid by the lender. The benefit for the borrower lies in the differences between how a broker is paid and how a mortgage officer in a bank is paid. Brokers commissions are not based on rate, therefore there is no need to negotiate. The broker automatically offers the lowest rate possible. Competition within the broker industry ensures this is necessary.

Bank officers at your local branch are paid differently. Their pay is based on the rate they sell. Because of this they can be very reluctant to offer any discounts. Negotiations are necessary, not to mention time consuming and sometimes unpleasant.