Mortgage Broker vs Mortgage Agent 

While both mortgage agents and brokers deal with mortgages, the main difference is that a mortgage broker employs mortgage agents, which means that mortgage agents work under a mortgage broker.Mortgage brokers and mortgage agents both have the same access to the same lenders. Mortgage brokers supervise their mortgage agents. There are different requirements and licenses between brokers and agents.Terminology can vary depending on the province. In British Columbia, mortgage agents are called sub-mortgage brokers. In Ontario, mortgage brokers need to have at least two years of work experience.

Mortgage Broker Commissions

Mortgage broker commissions range from 0.5% to 1%. This commission is paid by the mortgage lender to your mortgage broker or agent as a finder's fee. You usually will not be able to get a better rate by going directly to the lender or bypassing the broker.Since the mortgage lender pays the commission, mortgage brokers generally do not charge their clients any fees. Mortgage Broker fees are usually only charged for mortgages that are hard to find lenders for, such as for private mortgages.However, having these commissions built into the mortgage rate means that some mortgage brokers that offer “buy downs” can reduce your mortgage rate even further by offering you a portion of their commission. That’s one of the differences between going with a mortgage broker vs. banks.To see how much a mortgage broker or agent would make on a mortgage, let's consider a major bank that is offering a commission of 1%. A borrower approaches the mortgage broker looking for a $500,000 mortgage. After the borrower is approved for a mortgage with that major bank, the bank will pay the broker 1% of the mortgage amount.$500,000x0.01=$5,000TOTAL MORTGAGE1% COMMISSIONGROSS COMMISSIONThis commission is paid to the mortgage brokerage. If you worked with a mortgage agent, they usually get 15% of the total commission, or $750.