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 WorkWhat Banks Offer
Bank Advantages
Experience the Broker AdvantageGet 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 BrokerYou're a First-Time Buyer
Your Situation Is Complex
You Want the Best Rate
You're Refinancing
When to Choose a Bank DirectlyYou Have a Strong Existing Relationship
Your Situation Is Straightforward
You Want Convenience
You're Bundling Products
The Rate QuestionCommon misconception: Banks always have the best rates. Reality:
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 QuestionBeyond 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.
Experience the Broker Advantage
Get pre-approved through our team and access 50+ lenders.
Get StartedFAQ
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.
Experience the Broker Advantage
Access 50+ lenders with one application. Our team will find your best mortgage option.
