Question:

Who pays mortgage broker fees?

Answer:

There used to be a common misconception about how mortgage brokers worked. Despite the faulty idea, mortgage broker fees are paid by the lender in the form of markup over the wholesale price. It depends whether the mortgage broker will find a loan for the borrower to accept to get paid at all.

However, some mortgage brokers agree to act as exclusive agents for the borrower. In that case they pass the wholesale price of the mortgage to the borrower and receive compensation from them.

Sometimes a borrower will use a mortgage broker to find them the best quote and then go to their own bank and challenge them to beat that offer. And they often do. In this case brokers wasted their time on that borrower.

However, most often than not, a mortgage broker will locate the best unbeatable deal for the borrower. Quite often shopping for a loan turns out to be a tedious work so borrowers should be grateful to mortgage brokers for the assistance and advice they get from them.

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