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A finder’s fee is the commission a lender pays a mortgage brokerage when a mortgage the brokerage originated and submitted successfully funds. It is the core source of brokerage revenue on most deals, paid by the lender rather than the borrower, and is separate from any lender fee charged directly to the client.
The lender pays the finder’s fee to the brokerage after the mortgage funds — the borrower does not pay it directly, though it is priced into the lender’s overall cost of doing business. Rates vary by lender, mortgage type, and term, and by whether extra compensation such as a volume bonus or trailer fee also applies.
Because finder’s fee schedules are set commercially and change often, they are described here only in general terms; a broker’s lender agreement is the authoritative source for a specific deal.
Paid on funding, not approval: a finder’s fee is earned once a mortgage actually funds — an approved but unfunded deal does not generate one.
Split by agreement: how a finder’s fee is divided between the brokerage and the individual mortgage agent, mortgage broker, submortgage broker, mortgage associate, or courtier hypothécaire who worked the file is set by that person’s agreement with their principal broker.
Disclosure obligations apply: provincial regulators (FSRA, BCFSA, RECA, AMF) require brokerages to deal fairly with clients regardless of which lender pays the largest fee.
Distinct from client-paid fees: a finder’s fee is a lender-to-brokerage payment; it is separate from any lender fee or broker fee charged to the borrower, which is more common on alternative and private files.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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