Brokerage and opening fees
Who charges them, when they are paid and how they are negotiated.
Opening fees
The lender charges them at the start. They are a percentage of the loan amount.
Brokerage fees
They pay for preparing the request. They are agreed in writing beforehand.
When they are paid
- Deducted from the amount advanced, usually
- Paid separately at signing, sometimes
- Refundable or not if the deal does not close
What each fee covers
Opening fees pay for the review and setting up the loan.
Brokerage fees pay for preparing the request and finding lenders.
When they really apply
- Always on a private loan
- Often on a complex commercial request
- Rarely on a standard residential loan
- Never before a written agreement exists
The question to ask upfront
Ask for the total amount and when it is due, before providing your documents.
Getting the breakdown in writing
Ask for a breakdown of each fee before providing your documents.
A single figure with no detail often hides several items.
This request is normal and weakens your position not at all.
What happens if the request fails
Some fees remain payable even without financing obtained.
Others are paid only when the transaction closes.
That distinction must appear in writing before any work begins.
