Bank vs. Mortgage Broker: Which Is Right for You?

When it comes to getting a mortgage, you have two main options: go directly to your bank, or work with a mortgage broker. Both can get you a mortgage, but the experience and outcomes can be very different. Here's how to decide which is right for you.

How Banks Work

When you apply at a bank, you're dealing with one lender offering their products:

Advantages:

• You already have a relationship there
• Convenient if you want all finances in one place
• May offer loyalty discounts

Disadvantages:

• Only see their own products
• Rate negotiation is limited
• May miss better options elsewhere

How Mortgage Brokers Work

Brokers work with multiple lenders (often 50+) to find you the best mortgage:

Advantages:

• Access to dozens of lenders and products
• Can find specialized solutions for unique situations
• Negotiating power from volume
• Cost you nothing (lenders pay broker fees)

Disadvantages:

• One more person in the process
• Quality varies between brokers

The Cost Question

Do brokers charge fees?
For most mortgages, no. Lenders pay brokers a commission. The borrower pays nothing extra.

Exceptions: Some specialized or private mortgages may involve broker fees, always disclosed upfront.

Find Out What a Broker Can Do for You

Get a free rate comparison and see how we can help you find the best mortgage for your situation.

When a Bank Makes Sense

Consider going direct if:

• You have an existing relationship with strong loyalty benefits
• Your mortgage needs are straightforward
• You value having all finances with one institution
• You've already compared and your bank truly has the best rate

When a Broker Makes Sense

Consider using a broker if:

• You want to compare multiple lenders easily
• Your situation is non-traditional (self-employed, credit challenges, etc.)
• You're refinancing or have complex needs
• You want someone negotiating on your behalf
• You don't have time to shop around yourself

The Rate Comparison Reality

Banks often offer their "posted" rate first, expecting negotiation. Brokers access lenders' best rates from the start.

Example:

• Bank posted rate: 5.5%
• Bank negotiated rate: 5.2%
• Broker rate: 4.9%

Over a 5-year term on $500,000, that 0.3% difference = $7,500+ in savings.

FAQ

Q: Do brokers only work with smaller lenders?
A: No. Many brokers access the same major banks plus additional lenders you can't access directly.

Q: Will using a broker affect my credit score more?
A: No. One application to a broker typically results in one credit inquiry, just like applying to a bank.

Q: Can I use a broker if I already started at a bank?
A: Yes. You can get pre-approved with multiple sources. Just don't sign anything yet.

Q: How do I choose a good broker?
A: Look for experience, reviews, and someone who takes time to understand your situation—not just push the fastest approval.

What's Next

Connect with our team to see what rates and options we can access for your specific situation. There's no obligation, and it costs you nothing to compare.