CHOOSING A BROKERAGE

How to compare mortgage brokerages

Most recruiting pitches compete on one number. The number that matters is what lands in your account after everything else.

Brokerages are usually compared on the headline split, because it is the one figure everybody quotes. It is also the figure most easily made to look good by moving costs somewhere else. This is a framework for comparing offers on the same basis.

The six things to line up side by side

  • Split structure. Not just the headline percentage but the tiers, what triggers a move between them, and whether it resets annually
  • Everything deducted before you are paid. Desk fees, technology fees, franchise or membership fees, per file fees, E and O insurance, compliance charges, annual dues
  • Lender access. Which lenders you can submit to directly, whether status is yours or the brokerage's, and whether top tier status applies from day one or has to be earned
  • Technology. What is included, what costs extra, and whether you keep your data if you leave
  • Compliance and operations. Who handles underwriting support, payroll, audits and file review, and whether that is included or billed
  • Exit terms. Notice period, what happens to files in progress, trailing compensation, and whether your client list is contractually yours

Where offers most often diverge

The all in number

Ask each brokerage to model your actual last twelve months of volume through their structure, with every deduction shown. Two offers with the same headline split can differ by thousands once fees are included.

Whose status is it

Lender status can sit with the brokerage rather than the individual. It determines your compensation on every file, so establish whether status travels with you or resets when you move.

What happens to your book

Who owns the client relationship, who owns the data, and what you may take with you. This is a contract question, not a culture question, and the answer should be in writing.

Support you will actually use

Underwriting help on a difficult file, someone who answers the phone on a compliance question, and training that is scheduled rather than promised. Ask how it is delivered and how often.

Compare like with like

Put every offer on one page, use the same twelve months of your own volume for each, and date the comparison. Terms change. A number quoted in conversation six weeks ago is not a number you can rely on at signing.

Common questions

What is a typical mortgage broker commission split in Canada?
There is no published typical figure. No major Canadian network publishes its splits, fees or royalty rates, so any number quoted online is unsourced. The only reliable comparison is written offers from the brokerages you are actually considering.
Should I choose on split alone?
The split is one input. Fees deducted before payment, whether lender status is yours or the brokerage's, and what happens to your book when you leave can each be worth more than a few points of split.
What should I get in writing?
The split and its tiers, every recurring and per file fee, who holds lender status, notice period, and what happens to files in progress and to your client data if you leave.

Want a real number to compare against?

Bring your last twelve months and we will model it honestly, including what comes off before you are paid.

Book a discovery call