Ontario ยท alternative lending
Private and B-lender closing costs
Lender, broker, administration and appraisal fees, refundable or not, and what actually gets advanced to your lawyer.
On a private or B-lender deal, lender and broker fees are usually deducted from the advance rather than paid in cash, so your lawyer receives less than the face amount of the mortgage. Refundable retainers are held separately and are not a closing cost, though you still have to produce them.
Questions
What is the difference between a deducted fee and a payable fee?
A deducted fee is netted off the mortgage advance before it reaches your lawyer, reducing the funds available. A payable fee is billed to you and must be paid in cash on closing.
Are private lender fees refundable?
Commitment and retainer fees are sometimes refundable if the deal does not proceed, while lender and broker fees generally are not. The commitment letter governs.