Mortgage Broker

Tax guide for self-employed mortgage brokers and independent mortgage agents in Canada

Allowable Expenses

• Mortgage brokerage fees — Lender association fees, MMS platform costs, and submission system subscriptions
• Professional licensing fees — Annual mortgage broker or agent licence renewal fees (FSRA, BCFSA, AMF, etc.)
• E&O insurance premiums — Mandatory errors and omissions insurance required for mortgage broker licensing
• Marketing and advertising — Lead generation, mortgage comparison site listings, and social media advertising
• Home office — Proportional share of rent, utilities, and internet for client consultations
• Client entertainment — 50% of business meals with referral partners (realtors, financial planners)

Tax Tips

• Your mortgage broker licence renewal fee is a fully deductible professional fee on T2125
• E&O insurance premiums are mandatory and fully deductible as a business expense
• Marketing costs (lead gen, advertising, website) are deductible against commission income
• Referral dinners with realtors and financial planners are deductible at 50%

Frequently Asked Questions

Are mortgage broker commission earnings self-employment income in Canada?

Yes — commission income earned as an independent mortgage broker or agent is self-employment income reported on Form T2125. If you receive a T4A from a brokerage, include that amount in your T2125 income total. All related expenses are deductible against this income.

Do mortgage brokers have to charge GST/HST on fees in Canada?

Most mortgage brokerage services (finding and arranging mortgage financing for clients) are exempt from GST/HST under the financial services exemption in the Excise Tax Act. However, some consulting or advice fees may be taxable — consult the CRA or a tax professional to confirm.