• Dean Lawton

Why Pay a Fee?

Updated: May 5


Why would I ever pay a Fee when it comes to getting a Mortgage?

In most cases, you wouldn’t pay a fee.


However, here are 3 reasons why someone getting a mortgage would pay a fee:


Being Self-Employed - At times, it may benefit a business owner to look at a Mortgage Product that carries a one-time fee. Typically a good accountant can write down your income and save you thousands of dollars in CRA Taxes. However this will typically be a detriment to the amount of a Mortgage you qualify for from a Bank or Traditional Mortgage Lender. For Example, paying a fee to get a mortgage from an Alt Lender, otherwise known as a Self-Employed Lender, could be just a fraction of what you would have to pay CRA in Taxes to show enough income to qualify at the Bank or Traditional Lender.


Damaged Credit - A poor credit score or a previously damaged credit history such as a bankruptcy or a series of missed Loan Payments or Collections.


Commercial Property or Buying a Property under a Company Name - This would be considered Commercial Lending or Small Business Lending, and in almost every single case, the Company Borrowing the Mortgage would be charged a Fee. This is commonly considered Business Cost as generally these types of Loans require a lot more work to complete.


Construction Financing - This was not mentioned in the video; however, in some cases, when obtaining a Mortgage for Construction purposes (also known as a Builder’s Mortgage), a fee may be charged to set up the Loan.


If you have any questions about the above reasons or perhaps other reasons where you heard of someone paying a fee, please don’t hesitate to ask. Lastly, it may also be helpful for you to understand whether or not it makes sense for you to pay a fee, so please make sure you reach out to the Team to complete a thorough planning session.


Thrive Team

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