Mortgage & Insurance · Edmonton
Mortgage broker bookkeeping in Edmonton, without the guesswork
Lender payouts, brokerage splits, renewals and clawbacks, plus the GST exemption that changes how you record every expense. A plain-English guide for Edmonton brokers and agents.
By the Plum team- Updated Oct 2026
- 7 min read
- Most mortgage commissions are GST-exempt, so you usually don't charge GST or claim it back.
- Record expenses at their full cost, including the GST you paid.
- Track income by lender and by deal, including volume bonuses, renewals and trailers.
- Record clawbacks against the original deal so your numbers stay honest.
Mortgage broker income looks simple until you try to reconcile it. Payments come from different lenders on different schedules, your brokerage takes its split, a renewal pays out on a deal from five years ago, and a clawback lands on a client who refinanced elsewhere. Good mortgage broker bookkeeping in Edmonton turns that into a clear picture of what you earned and where it came from. It also handles GST differently from almost every other client type we see.
1The GST exemption, and why it matters for your books
Arranging a mortgage is a financial service, and financial services are generally exempt from GST. That has three practical effects:
- You don't charge GST on lender commissions, and exempt income doesn't count toward the $30,000 small supplier threshold.
- You usually can't register just to claim GST back, because your income isn't taxable.
- The GST you pay is a cost. Desk fees, software, marketing and your vehicle all carry GST you can't recover, so record expenses at the full amount.
Compare that with a realtor, whose commission is taxable. If you work alongside agents, you'll hear them talk about input tax credits. Those generally don't apply to you. Our GST registration guide explains why exempt income sits outside the threshold.
2Reading lender and brokerage statements
Most agents in Alberta are licensed with a mortgage brokerage and paid through it. A typical month brings several kinds of payment, and each should land in its own income account:
| Income type | What it is | How to record it |
|---|---|---|
| Base commission | Paid by the lender when a mortgage funds | Commission income, tagged by lender and deal |
| Volume bonus | Extra paid for hitting lender volume targets | Separate bonus income account |
| Renewal or trailer | Paid on renewals or ongoing balances, where lenders offer it | Renewal income, linked to the original client |
| Brokerage split | The brokerage's share of your commission | Expense, not netted off income |
| Clawback | Commission repaid when a mortgage is paid out or broken early | Reduction of commission, linked to the original deal |
The key habit is recording gross: the full commission, then the brokerage split and fees as separate lines. If you only record the deposit, you can't match your income to your T4A, and you can't see what your brokerage is really costing you.
3Trailers, renewals and clawbacks
Ongoing income is great, but it needs a little structure. Keep a simple list of funded deals with the lender, funding date, term and commission. When a renewal or trailer payment arrives, you can tie it to the client. When a clawback arrives, you can see which deal it relates to and whether the amount is right.
Clawbacks deserve attention. If a client breaks a mortgage early, the lender may claw back part of your commission, sometimes many months after you've spent it. Recording clawbacks against the original deal (rather than quietly netting them against new commissions) keeps your income by lender accurate and makes errors easier to spot.
4Expenses mortgage brokers can deduct
As an independent agent, you report commission and expenses on form T2125. Common deductions include:
- Brokerage fees, splits and desk fees
- RECA licensing fees and required education
- Errors and omissions insurance
- Credit report and compliance software, CRM and deal platforms
- Marketing: website, ads, realtor partner events, print
- Phone and internet, business share
- Vehicle costs, business share, backed by a log
- Home office, if it's your principal place of business
- Meals and entertainment with clients and referral partners, at 50%
- Bookkeeping and accounting fees
Remember: record each one including GST. A $1,050 software bill is a $1,050 expense for you, not $1,000 plus a credit.
Your vehicle deserves special attention. Brokers drive to client homes, realtor offices and lender events across Edmonton and towns like Beaumont and Fort Saskatchewan, and those kilometres add up. Keep a log with the date, destination, purpose and distance of each business trip, plus your odometer readings at the start and end of the year. The same goes for your home office: measure it, and keep the household bills that support the claim.
5A monthly mortgage broker bookkeeping routine
That last step matters. No tax comes off your commissions, so income tax and both halves of CPP are on you. Our mortgage agent taxes guide covers how much to set aside and how instalments work.
6Mistakes we see in broker books
- Claiming input tax credits that don't apply. Software or a bookkeeper set up for a typical small business may split out GST on every expense. For exempt income, that understates your costs and can lead to credits you're not entitled to.
- One income account for everything. Commissions, bonuses and renewals behave differently. Lumping them together hides how much of your income is repeatable.
- Mixing personal and business spending. A separate bank account and credit card for the business makes everything faster, from monthly bookkeeping to year-end.
- Ignoring clawback risk. If you've had a big refinance month, expect some of those clients to move again. Don't treat every dollar as permanent.
- Leaving it all until tax time. Twelve months of lender statements are much harder to untangle in April than one month at a time.
Getting these right isn't complicated, but it does need a routine that suits how brokers are paid. If you're already behind, catching up is usually quicker than people expect once the statements are gathered.
We keep the books for mortgage brokers and agents across Edmonton, St. Albert, Sherwood Park and Leduc, on QuickBooks Online or Xero, at a flat monthly fee. Book a free 15-minute call and we'll show you how we'd set up your accounts.
7Questions people ask
Do mortgage brokers charge GST?
Generally no. Arranging a mortgage is an exempt financial service, so commissions from lenders usually carry no GST. Other services, like general consulting or marketing fees, may be taxable, so check anything outside normal commissions.
Do mortgage brokers need a GST number?
If all your income is exempt, you usually don't register, because exempt income doesn't count toward the $30,000 threshold. If you also earn taxable income above the threshold, you may need to register for that part.
How do mortgage brokers record clawbacks?
Record a clawback as a reduction of commission income in the period it's charged, linked to the original deal. Don't net it silently against new commissions, or your income by lender and by deal stops making sense.
Can mortgage agents claim GST paid on expenses?
Not if they're not registered, and not for costs used to earn exempt income. The GST becomes part of the cost, so record expenses at the full amount including GST.
What slips do mortgage agents get?
Many brokerages issue a T4A for commissions paid to independent agents. Your own records should still show every payment, because the slip is a check, not a substitute for bookkeeping.
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Book a free 15-min callThis article is general information for Alberta businesses and isn't tax or legal advice. Rules and thresholds change, so confirm your situation with your accountant or CRA.