How Much Does a Mortgage Broker Cost

Joel Olson • December 2, 2021

The best things in life are free?

 

Okay, a really great question that we get a lot is that, how much do we charge as brokers?

 

How much does it cost for you to come to us, have us move around you to lenders to lenders, and present your borrowing request in front of different banks, credit unions, and other types of trust lenders, and that type of thing.

 

 Mortgage broker services are 100% free.

 

How it works is that if you go into the TD Bank or you go into your local credit union, you don't actually pay to talk to the teller, you don't have to pay to talk to the loans person, but you know some way, somehow those folks are getting paid from operational costs.

 

They're getting a wage, all that type of thing.

 

So, that operational cost goes towards us as a broker because you're not going to go inside of a branch in the vast majority of cases.

 

You're not going to need to have them do the work, so that's not an additional cost.

 

 

So when you're using us, we are charging you nothing whatsoever and the bank's paying as a separate transaction.

 

But it's not something where you're getting paid for, it's getting slid in, or it's affected your rate.

 

It is a situation where we are getting that cost that would normally go towards a bank employee.

 

Now here's where it gets really, really great.

 

When you legally go and talk to an independent financial planner or you're going inside of your bank, they are not legally obligated to work or look out for your best interests.

 

 If you go inside TD, they can't tell you to go to CIBC because they're going to be a better deal.

 

That would make them lose their job.

 

However, the opposite is true of a mortgage broker.

 

If we are always favoring one lender over another lender, that means that we are in violation of what our licensure recalls.

We have to be looking for the best possible deal for the lender.

 

This is why we will often hear us talk about the idea that even if you think or even if we're going to place you with your existing lender, your existing bank, it's worth it to come to us because we have to make sure that they are actually offering the best deal.

 

It's very common for people to get better deals to their own bank through us than it is when they go directly into the branch.

 

Anyway, I hope that helps you out to know that our services are free.

 

There are certainly some private loans we do that we charge broker or lender fees, but those are the vast majority and very, very extreme circumstances, and those cases truly we can do what no one else can do.

 

So if you have any questions, please reach out to us.

 

We have loved to answer any of your mortgage questions as well as if you could subscribe to this channel, like our post, and share with anybody you know.

 

We'd really appreciate that.

 

Thanks so much, have a great day.


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Joel Olson
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Fixed vs. Variable Mortgage Rates in Canada

By Joel Olson • March 3, 2026
Fixed vs. Variable Rate Mortgages: Which One Fits Your Life? Whether you’re buying your first home, refinancing your current mortgage, or approaching renewal, one big decision stands in your way: fixed or variable rate? It’s a question many homeowners wrestle with—and the right answer depends on your goals, lifestyle, and risk tolerance. Let’s break down the key differences so you can move forward with confidence. Fixed Rate: Stability & Predictability A fixed-rate mortgage offers one major advantage: peace of mind . Your interest rate stays the same for the entire term—usually five years—regardless of what happens in the broader economy. Pros: Your monthly payment never changes during the term. Ideal if you value budgeting certainty. Shields you from rate increases. Cons: Fixed rates are usually higher than variable rates at the outset. Penalties for breaking your mortgage early can be steep , thanks to something called the Interest Rate Differential (IRD) —a complex and often costly formula used by lenders. In fact, IRD penalties have been known to reach up to 4.5% of your mortgage balance in some cases. That’s a lot to pay if you need to move, refinance, or restructure your mortgage before the end of your term. Variable Rate: Flexibility & Potential Savings With a variable-rate mortgage , your interest rate moves with the market—specifically, it adjusts based on changes to the lender’s prime rate. For example, if your mortgage is set at Prime minus 0.50% and prime is 6.00% , your rate would be 5.50% . If prime increases or decreases, your mortgage rate will change too. Pros: Typically starts out lower than a fixed rate. Penalties are simpler and smaller —usually just three months’ interest (often 2–2.5 mortgage payments). Historically, many Canadians have paid less overall interest with a variable mortgage. Cons: Your payment could increase if rates rise. Not ideal if rate fluctuations keep you up at night. The Penalty Factor: Why It Matters More Than You Think One of the biggest surprises for homeowners is the cost of breaking a mortgage early —something nearly 6 out of 10 Canadians do before their term ends. Fixed Rate = Unpredictable, potentially high penalty (IRD) Variable Rate = Predictable, usually lower penalty (3 months’ interest) Even if you don’t plan to break your mortgage, life happens—career changes, family needs, or new opportunities could shift your path. So, Which One is Best? There’s no one-size-fits-all answer. A fixed rate might be perfect for someone who wants stable budgeting and plans to stay put for years. A variable rate might work better for someone who’s financially flexible and open to market changes—or who may need to exit their mortgage early. Ultimately, the best mortgage is the one that fits your goals and your reality —not just what the bank recommends. Let's Find the Right Fit Choosing between fixed and variable isn’t just about numbers—it’s about understanding your needs, your future plans, and how much financial flexibility you want. Let’s sit down and walk through your options together. I’ll help you make an informed, confident choice—no guesswork required.

Home Reno Dreams? Let’s Talk Mortgage Financing

By Joel Olson • February 17, 2026
How to Use Your Mortgage to Finance Home Renovations Home renovations can be exciting—but they can also be expensive. Whether you're upgrading your kitchen, finishing the basement, or tackling a much-needed repair, the cost of materials and labour adds up quickly. If you don’t have all the cash on hand, don’t worry. There are smart ways to use mortgage financing to fund your renovation plans without derailing your financial stability. Here are three mortgage-related strategies that can help: 1. Refinancing Your Mortgage If you're already a homeowner, one of the most straightforward ways to access funds for renovations is through a mortgage refinance. This involves breaking your current mortgage and replacing it with a new one that includes the amount you need for your renovations. Key benefits: You can access up to 80% of your home’s appraised value , assuming you qualify. It may be possible to lower your interest rate or reduce your monthly payments. Timing tip: If your mortgage is up for renewal soon, refinancing at that time can help you avoid prepayment penalties. Even mid-term refinancing could make financial sense, depending on your existing rate and your renovation goals. 2. Home Equity Line of Credit (HELOC) If you have significant equity in your home, a Home Equity Line of Credit (HELOC) can offer flexible funding for renovations. A HELOC is a revolving credit line secured against your home, typically at a lower interest rate than unsecured borrowing. Why consider a HELOC? You only pay interest on the amount you use. You can access funds as needed, which is ideal for staged or ongoing renovations. You maintain the terms of your existing mortgage if you don’t want to refinance. Unlike a traditional loan, a HELOC allows you to borrow, repay, and borrow again—similar to how a credit card works, but with much lower rates. 3. Purchase Plus Improvements Mortgage If you're in the market for a new home and find a property that needs some work, a "Purchase Plus Improvements" mortgage could be a great option. This allows you to include renovation costs in your initial mortgage. How it works: The renovation funds are advanced based on a quote and are held in trust until the work is complete. The renovations must add value to the property and meet lender requirements. This type of mortgage lets you start with a home that might be more affordable upfront and customize it to your taste—all while building equity from day one. Final Thoughts Your home is likely your biggest investment, and upgrading it wisely can enhance both your comfort and its value. Mortgage financing can be a powerful tool to fund renovations without tapping into high-interest debt. The right solution depends on your unique financial situation, goals, and timing. Let’s chat about your options, run the numbers, and create a plan that works for you. 📞 Ready to renovate? Connect anytime to get started!