Costs & Broker fees
Costs in hiring a mortgage broker in BC & how do they get paid?:
1). The banks pay them (this is primarily for Bank or Institutional lending) or
2) by charging fees for the more challenging deals. (all costs will be disclosed and agreed upon prior to funding. If you decline financing nothing is owed as compensation) Fees can range from 2% to 5% of the mortgage amount and in the most challenging cases even higher. The originating broker & the lending broker will often split the fee depending on their arrangement. Some lenders will also charge a discount.
Renewal fees are part of the Costs
An additional cost is the renewal fee, which comes at the end of your term. Most renewal fees are around $200.00 but check with your mortgage broker to verify.
Home equity loan fees
Possible fees that may apply to your home equity loan: Appraisal fees, Application fees, title insurance fees, lender fee, Broker Fee, Independent Legal Advice, early pay-out
APR (Annual percentage Rate)
When arranging a Private mortgage, there are other costs that increase the annual interest rate. You shouldn’t necessarily accept the lender that offers the lowest interest rate because of the costs in arranging the mortgage has just as much or even more to do with the actual cost of the loan. Some of the other costs to look for: Broker Fees, Lender Fees, Legal Fees, Insurance Fees, Appraisal Fees Simply put, any other cost between the money that you receive and the amount registered as a mortgage will be a part of the APR. (true cost of lending)
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