How much does a mortgage broker charge and who pays them?
It depends on the intermediary and the agreement you sign. Law 5/2019 requires that you are informed in writing about fees and commissions, and who pays them, before signing a contract. They can be paid by the client, the bank or split between both; there is no set legal fee. Always check the ICI register of the Banco de España.
Why there is no standard fee for a mortgage broker
Online you will see comparisons with fixed figures, but in Spain the fees of a real estate credit intermediary (ICI) are freely set within the framework of transparency required by law. Each company defines its own model: initial study free of charge, commission per completed transaction, a combination involving bank fees, or fees for specific services (debt consolidation, subrogation, change of terms).
What is uniform is the obligation to provide prior information: you cannot discover the total cost only on the day of signing. If someone avoids specifying who pays and how much before you instruct them, treat it as a red flag.
What Law 5/2019 requires regarding fees
Law 5/2019, on real estate credit agreements, implemented by Royal Decree 309/2019, protects consumers regarding pre-contractual information. Before you enter into an agreement, the ICI must identify itself with its registration details and explain clearly to you:
- Fees, commissions or any remuneration for its services.
- Who pays them: you as the borrower, the credit institution or another party.
- Whether there is exclusivity with any bank or an agreement that could condition the offers.
- The timeframes for receiving the FEIN and other documentation as the transaction progresses towards the loan.
This transparency comes before the intermediation contract and, where applicable, links to the loan's FEIN (European Standardised Information Sheet). It does not replace reading the FEIN and the FiAE, but it allows you to compare business models between intermediaries.
Who pays: client, bank or a combination
All three scenarios are common in the Spanish market:
- Payment by the client: you sign an instruction contract and pay fees when a milestone is met (for example, loan approval). This must be stated in writing from the beginning.
- Payment by the institution: the bank completing the mortgage compensates the intermediary for bringing in the transaction. In many cases, the client does not pay a separate invoice, but the law still requires that you are informed.
- Mixed model: part is covered by the institution and part by the client, or there are additional services with a separate fee. Here, prior clarity avoids misunderstandings at completion.
No model is illegal in itself. What matters is that it matches what was explained to you before providing sensitive data and that there are no hidden conflicts of interest (ties to insurance or products you do not need).
How to check the ICI register
"Mortgage broker" is the colloquial term; the regulated entity is the real estate credit intermediary. Before discussing prices, verify that it is registered to operate:
- Access the official real estate credit intermediary search portal of the Banco de España (or the regional register if the scope is that of an autonomous community).
- Cross-check the registered company name and the registration code provided to you.
- Check that the scope covers your transaction: purchase with a mortgage, subrogation, debt consolidation, etc.
If the number does not match or the company does not appear, stop the conversation. For more context on what an ICI does and how to read the register, consult the article what is a real estate credit intermediary.
Questions you should ask in writing
Before signing any instruction agreement, ask for clear answers to:
- What is the total amount or the fee calculation criteria? (without assuming generic internet figures).
- When are fees incurred and who pays each item?
- What happens if the mortgage is not granted or you cancel the process?
- How many institutions do you work with, and do I have a genuine choice?
- Are there mandatory tied products required to maintain the interest rate or commission fee?
Keep emails or PDF documents containing those responses. In any subsequent claims, prior information is your main evidence.
Relationship with the overall cost of the loan
Intermediary fees are not the APR nor bank charges (arrangement fees, early repayment fees, rate reviews). They are separate items. A mortgage may seem competitive on interest rate but carry poorly explained added costs if you do not separate each chapter. The ICI should help you read the overall cost, not just the margin over Euribor.
Sky Real Estate and ICI D-286
Sky Real Estate acts as a real estate credit intermediary registered in the Banco de España register under code D-286. The mortgage assessment compares offers from numerous institutions for transactions in Spain. Any additional intermediary costs must be explained before you commit, as required by Law 5/2019; the initial assessment is communicated transparently within the service.
If you would like to request an analysis of your financial profile, visit real estate credit intermediaries.
Common mistakes
- Comparing brokers solely on a "list price" without reading the instruction contract.
- Assuming that "free" means zero total cost (it may be integrated into the banking transaction).
- Hiring an intermediary without verifying their registration just because a third party recommended them.
- Signing a deposit agreement (arras) before knowing whether the financing fits your actual borrowing capacity.
In summary: the mortgage broker charges according to their model, and who pays depends on what has been agreed and disclosed by law. Your job is to verify registration, request a written breakdown and align the mortgage with the rest of the purchase.