Mortgage Agent Commission Rates in BC

Mortgage Agent Commission Rates in BC

When you’re looking for a mortgage, a mortgage broker can help you get the best deal possible. They have access to many different lenders and can match you with the right lender for your needs.

Broker commission rates vary from lender to lender, but are typically between 0.5% and 1.2% of the full mortgage amount.

Graduated Commissions

In BC, you can expect to see commission rates that are a bit lower than what’s found in other regions. This is largely because of the graduate commission system that’s common in BC. Typically, commissions will be a minimum of seven percent for the first $100,000 and two to three percent for the remainder of your home sale price. The exact percentage that a mortgage agent will charge you will depend on the specific property value and market. For example, in Vancouver, you’ll often see commissions that are 7% on the first $100,000 of your home sale and 2% on the remaining amount. This is a good deal for your realtor since it covers the costs of marketing and preparing your home for sale, as well as brokerage fees and advertising expenses.

Marketing Costs

In addition to paying commissions, real estate agents in BC are responsible for marketing expenses, which can include professional photography, copywriting services, market research tools, and online and physical advertising. These costs can be significant and can significantly reduce the amount of money that a homeowner can sell their home for. In the Metro Vancouver area, for example, a seller of a $1,235,900 property could expect to pay around $37,167 in commission fees. This amount is based on 7% charged on the first $100,000 of the home’s sale price and 2.5% on the remaining portion.

It’s important to keep in mind that mortgage agent commission rates are always negotiable. However, standard commissions are a common practice across BC and will typically be adhered to by most real estate professionals. These percentages are often graduated, which means that the rate changes after certain property value thresholds. These rates can make it difficult for a homeowner to receive an accurate estimate of the costs associated with selling their home.


In BC, mortgage agents usually earn a commission at the time of loan closing. This can range from 0.5% to up to 1.2%, depending on the lender and loan amount. Brokers also typically pay brokerage fees and advertising expenses, which can add to the overall cost of a home sale.

Typical commissions in British Columbia are graduated, meaning the percentage decreases after certain property value thresholds. In Vancouver, for example, buyers can expect a 3.1% commission on the first $100,000 of the purchase price and around 1.2% on the remainder. Sellers, meanwhile, will be charged 2.5% on the remaining portion of the home sale.

While many brokers adhere to standard commissions, it is possible to negotiate a lower fee. This can be particularly helpful if the house you’re selling is high-valued. For example, if you’re selling a $2 million home, you might be able to negotiate a reduction of up to 25%. However, top agents with lots of experience tend to be more rigid on fees than less-established agents.

A proposal by the B.C. government to make mortgage agents reveal their commissions is sparking fierce opposition from the industry. Brokers say the move will only put them in an unfair position and play into the hands of banks and other lenders, which are more likely to push for higher commissions. They also argue that such disclosures don’t go far enough in describing how much money they and their affiliated parties are earning from real estate transactions.

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