One of the first decisions when getting a mortgage: work with a broker or go directly to a bank? The right choice depends on your situation, preferences, and what matters most to you. Here's an honest comparison.
How Mortgage Brokers Work
What Brokers Do
- Submit applications to multiple lenders on your behalf
- Compare rates and products across 30-50+ lenders
- Handle paperwork and negotiation
- Advocate for your interests
How Brokers Are Paid
- Lenders pay commission when mortgage funds
- No direct cost to you (typically)
- Commission varies by lender and product
- Must disclose any fees to you
Broker Access
| Lender Type | Broker Access | Direct Access |
|---|---|---|
| Big 5 banks | Limited/no | Yes |
| Credit unions | Many | Yes |
| Monoline lenders | Yes | Usually no |
| B lenders | Yes | Some |
| Private lenders | Many | Some |
How Banks Work
What Banks Offer
- Their own mortgage products only
- May offer relationship pricing
- Can bundle with other banking products
- Branch convenience
Bank Advantages
- Existing relationship
- Brand familiarity
- All financial products in one place
- May offer loyalty discounts
Experience the Broker Advantage
Get pre-approved through our team and access 50+ lenders with one application.
Head-to-Head Comparison
| Factor | Mortgage Broker | Bank |
|---|---|---|
| Lenders compared | 30-50+ | 1 |
| Rate access | Often better | Must negotiate |
| Complex situations | Specialists available | Limited flexibility |
| Speed | Varies | Often faster |
| Relationship | New | May be existing |
| Bundling | Limited | Strong |
| After-hours service | Often yes | Usually no |
| Product education | Core service | Varies |
When to Choose a Broker
You're a First-Time Buyer
- Need guidance through the process
- Benefit from product comparisons
- Want expert advocacy
Your Situation Is Complex
- Self-employed or non-traditional income
- Credit challenges
- Unique property type
- Need specialized products
You Want the Best Rate
- Brokers compare multiple lenders
- Access to wholesale rates
- Competition drives better pricing
You're Refinancing
- Comparing refinance options is crucial
- Penalty calculations vary widely
- Broker can shop alternatives
When to Choose a Bank Directly
You Have a Strong Existing Relationship
- Private banking client
- Significant deposits/investments
- May get relationship pricing
Your Situation Is Straightforward
- T4 income, excellent credit
- Standard property
- Simple needs
You Want Convenience
- Everything in one place
- Familiar institution
- Branch access important
You're Bundling Products
- Mortgage + line of credit + accounts
- May get package discounts
- Relationship matters more than rate
The Rate Question
Common misconception: Banks always have the best rates.
Reality:
- Brokers often access better rates than bank branches
- Monoline lenders (broker-only) often have lowest rates
- Banks may match competing rates if asked
- Rate isn't everything—features matter too
Rate Comparison Example
| Source | 5-Year Fixed Rate |
|---|---|
| Bank posted rate | 5.49% |
| Bank negotiated rate | 4.29% |
| Broker access (monoline) | 3.99% |
Rates are examples—actual rates vary
The Features Question
Beyond rate, compare:
| Feature | Why It Matters |
|---|---|
| Prepayment privileges | How fast you can pay down |
| Penalty calculation | Cost to break mortgage |
| Portability | Moving to new property |
| Blend and extend | Adding to existing mortgage |
| Skip-a-payment | Flexibility during hardship |
Brokers help you compare these features across lenders.
FAQ
Q: Do brokers work for free?
A: Free to you—lenders pay the broker when your mortgage funds. Some specialty products may have broker fees, which must be disclosed.
Q: Can a broker get me a bank mortgage?
A: Generally no for Big 5 banks. But brokers access equivalent (often better) products from other lenders.
Q: Are broker rates better than bank rates?
A: Often yes, but not always. Brokers access wholesale rates and monoline lenders not available direct.
Q: What if I have questions after closing?
A: Good brokers maintain ongoing relationships. They're available for questions throughout your mortgage and at renewal.
Q: How do I choose a good broker?
A: Look for: experience, reviews/referrals, clear communication, licensing, and willingness to explain options (not just push products).
What's Next
Ready to experience the broker advantage? Get pre-approved with our team—we'll compare 50+ lenders to find your best mortgage option.
Ready to Get Started?
Contact us today for personalized mortgage advice and competitive rates.
