Brokerage fees
The broker's compensation for their search-and-negotiation mission, which can legally be collected only after funds are actually released. It sometimes adds to a commission paid by the bank and must be disclosed in advance in the mandate. Its transparency is both an obligation and a mark of trust.
Key points
- Broker fee collected only after funds are actually disbursed.
- Must be disclosed upfront in the signed brokerage mandate.
- May combine with a bank commission, subject to full transparency.
- The amount is set freely by the broker but must be proportionate to the service rendered.
Frequently asked questions
Why are brokerage fees only collected after funds are released?
The law prohibits the broker from collecting fees before the loan is actually released to the client: payment may only occur once the mission is fully accomplished. This protects the client from being charged for a transaction that ultimately falls through. In practice, fees are often collected at notarial signing or at the first disbursement.
What is the difference between brokerage fees and the bank commission?
The bank commission is paid by the credit institution to the broker in return for the business referral; it is built into the offer conditions and does not come directly from the client's pocket. Brokerage fees, by contrast, are billed directly to the borrower for the advisory and structuring service. Both can coexist but must be clearly detailed in the mandate and the ESIS so the client understands the full cost of intermediation.
How do you justify your brokerage fees to a sceptical client?
The best approach is to quantify the value created concretely: a 0.3-point rate difference on a 200,000 € loan over 20 years represents a saving clearly greater than typical brokerage fees. The broker can also highlight the time saved, bank appointments, file assembly, negotiation, and the legal protection provided by the advisory duty. Framed this way, the fee becomes a worthwhile investment rather than a cost.
In practice
For a 300,000 € purchase file, the broker states in the mandate a brokerage fee of 3,000 € ex-VAT payable at notarial signing. Separately, the bank will pay the firm a 0.5% commission. Both amounts are explicitly stated in the ESIS given to the client, who can verify the full cost of intermediation with complete transparency.
Official sources
- Article L519-6 CMF (broker remuneration) · Légifrance
- Article L519-1 of the Monetary and Financial Code · Légifrance
- Prudential supervision and resolution authority · ACPR (Banque de France)