What does a mortgage broker cost in New Brunswick?
Who pays a New Brunswick broker, when a fee is allowed, and the written disclosures you must get before you sign — each with the section of the law it comes from.
What does a mortgage broker cost in New Brunswick?
On a standard residential mortgage, nothing: the lender pays the brokerage, and that payment must be disclosed to you in writing. New Brunswick lets a brokerage charge a borrower a fee — in practice on alternative or private lending — but on a personal mortgage not before the lender confirms funding in writing, the agreement is signed and the money is advanced.
What the brokerage must tell you in writing in New Brunswick
| What | The rule | Where it is |
|---|---|---|
| Who owns the brokerage | Whether a lender or private investor owns it, in whole or in part, and which one | Rule MB-001 s. 18(1)(a) |
| Which lenders it can use | How many lenders and investors the brokerage can submit to, and their names | Rule MB-001 s. 18(1)(b)–(c) |
| Conflicts of interest | Any interest the brokerage or a related person has in the mortgage or a related deal | Rule MB-001 s. 18(1)(e) |
| What the lender pays the brokerage | Every fee received or receivable, who pays it and how it is calculated | Rule MB-001 s. 19(1)(a)–(b) |
| Incentives to the individual broker | What they are and who pays them | Rule MB-001 s. 19(1)(c)–(d) |
| Fees the brokerage pays out | Referral and other fees, who receives them and how they are worked out | Rule MB-001 s. 20(1) |
| The suitability assessment | A written assessment of why the mortgage suits you, which you sign | Rule MB-001 s. 17(3) |
| The cost-of-credit statement | APR and total cost of credit, brokerage fees included | Cost of Credit Disclosure Act ss. 16(3), 27 |
| When | At least two business days before you enter into the mortgage agreement; you sign an acknowledgement for each | Rule MB-001 s. 21(1) |
Each disclosure comes with an acknowledgement for you to sign, so you have the lender’s payment to the brokerage, any conflict and the suitability reasoning in writing before the mortgage is signed.
Go deeper
The detail, if you want it
When a fee does apply
Can a brokerage charge you? Yes; the Rule expects any borrower fee to be disclosed, and the law does not ban one (Rule MB-001 s. 18(1)(f)).
When it can be collected: on a personal or household mortgage, not until the lender confirms funding in writing, the agreement is signed and the mortgage is funded (Rule MB-001 s. 26(1)).
Third-party costs: actual costs such as an appraisal can be passed on if you agreed in writing beforehand (Rule MB-001 s. 26(2)).
In the APR: a brokerage fee is shown in the cost-of-credit statement and counted in the APR (Cost of Credit Disclosure Act s. 27).
Waiving the two days: only with independent legal advice, prepayment rights at least as good as the Act’s, or a two-business-day right to withdraw (N.B. Reg. 2010-104 s. 18).
On a bank, credit union or monoline mortgage there is no broker fee to the borrower at all. A fee is the exception, on alternative or private lending, and it is disclosed before you commit.
The duty to act in your best interest
Best interest: The brokerage must act in your best interests (Mortgage Brokers Act s. 26).
Most suitable mortgage: It must find the most suitable loan, weighing rate, term, open or closed, amortization, penalties and its own fees, and give you the assessment in writing (Act s. 28; Rule MB-001 s. 17).
Identity: It must verify the identity of each borrower (Rule MB-001 s. 13(1)).
Private-investor deals: Where the brokerage acts for a private investor, you need your own brokerage (Act s. 27).
How to check a licence, and where to complain
New Brunswick keeps a public register: FCNB: licensed brokers and associates; FCNB: licensed brokerages. Indi, The Independent Mortgage Company Ltd., Mortgage Brokerage, licensed in New Brunswick; your file is completed by Indi’s New Brunswick-licensed mortgage broker; Riley Oickle, Associate Mortgage Broker (Nova Scotia), is your point of contact.
Complaints: With the brokerage first, then FCNB’s online complaint form.
Why a broker
Licensed, independent, paid by the lender
- Licensed across Atlantic Canada Indi Mortgage brokerage licences in NS, NB and NL (PEI has no licensing regime); Riley Oickle, Associate Mortgage Broker, NS 3001134
- $0 broker fee On a standard residential mortgage the lender pays, not you
- 33 lenders, one application Banks, credit unions, monolines; one credit check
Questions people ask
Do mortgage brokers charge fees in New Brunswick?
Not on a standard residential mortgage with a bank, credit union or monoline: the lender pays the brokerage. A fee is possible on alternative or private lending, disclosed in writing at least two business days before you sign and counted in the APR.
Will I see what the lender pays the brokerage?
Yes. Rule MB-001 s. 19 requires the brokerage to disclose in writing every fee it receives, who pays it and how it is calculated, and you sign an acknowledgement.
Can I waive the two-day waiting period?
Only on set terms: independent legal advice, prepayment rights at least as good as the Act’s, or a two-business-day right to withdraw (N.B. Reg. 2010-104 s. 18).
Is a broker’s rate higher in New Brunswick because the lender pays them?
No. The lender pays the brokerage out of what it would otherwise spend finding the borrower itself; the rate is the lender’s, not marked up by the broker.
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