Also called: Broker fee, Origination fee
Brokerage fee
A brokerage fee is an amount charged by a finance broker for arranging a facility, separate from any commission the lender pays. Where one applies, it must be disclosed to you before you proceed and is often capitalised into the loan.
What is a brokerage fee?
A brokerage fee is an amount charged by a finance broker for arranging a facility, separate from any commission the lender pays. Where one applies, it must be disclosed to you before you proceed and is often capitalised into the loan.
Example
A complex low-doc equipment deal might carry a brokerage fee expressed as a percentage of the amount financed, quoted in dollars before submission.
Why it matters
Knowing both the brokerage fee and the lender commission lets you judge the total cost and any conflict of interest.