Pros and cons of using a mortgage broker

This post was first published on January 1, 2021, and was updated on August 29, 2025.

Pros and cons of using a mortgage broker in Canada

While we think that working with a broker is generally a good option for most Canadians, we’ve broken out the advantages and disadvantages of mortgage brokers so you can answer the question for yourself.

Pros of using a mortgage broker

Let’s go into some more detail on the pros for using a mortgage broker in Canada:

1. Convenience and flexibility: To work with a broker, you usually need one meeting, and it can be in person or over the phone, whichever is easy for you. Most documentation can be handled digitally, which reduces paperwork and makes the process easier to fit into your schedule.
2. No direct cost to you: Mortgage brokers are typically paid by the lender, not the borrower. That means you can benefit from their services without paying a fee out of pocket. In rare cases where a fee might apply, such as with certain private or alternative lenders, a good broker will be transparent about it up front.
3. Better rates: Most mortgage brokers receive volume discounts from their top lenders, which means you’ll have access to lower mortgage rates than you could secure if you try to negotiate yourself.
4. Access to more lenders: When you apply for a mortgage at a bank or credit union, you only have access to the products they offer in house. With a mortgage broker, you’ll have access to dozens of lenders.
5. Expert advice: Mortgage brokers have a deep understanding of how different lenders assess applications, what documentation is needed, and how to navigate complex cases. If you’re self-employed, new to Canada, or have a less-than-perfect credit history, a broker can guide you toward lenders who are more likely to approve your application..
6. Impartial guidance: Since brokers are independent and don’t work for individual lenders, they can offer impartial advice on a broad range of lenders. They can also advise you on which mortgage products are best for you, and tell you how much mortgage you can afford.

Cons of using a mortgage broker

1. Lack of familiarity: If you’ve never used a mortgage broker before, you’ll need to establish a relationship with a new one. It may take a few tries before you find a good fit.
2. No access to some lenders: Not all lenders work with mortgage brokers, so if you have a particular financial institution in mind, double-check that your mortgage broker can work with them before proceeding.
3. More documents may be needed: Since you don’t have an existing relationship with this mortgage broker, you may be required to provide extra documentation – like proof of income – when completing your application.
   
   Read: Bank vs. broker: What is a mortgage broker?

Katat, a past commenter on this article, said this about their experience:

“Not really “cons” in using a broker…Comparing the rates, brokers have always found a better discounted rate for my mortgages. If a main bank is chosen from the best options the broker offers, you can also get access to special offers the bank offers (eg. waived fees in credit cards, special rates on unsecured credit lines)."

Should you use a broker?

Working with a mortgage broker has almost no downside, because you aren’t obligated to move forward with your mortgage application until after you find out what mortgage rate you can secure and from which lender. In the best-case scenario, you’ll save thousands of dollars in interest on your mortgage. The worst-case scenario is that you receive free, unbiased advice that is personalized for your financial situation.

The other thing to remember is that mortgage brokers aren’t a zero sum game. There’s nothing stopping you from speaking to a mortgage broker and one or more mortgage providers. Because every mortgage broker has relationships with different mortgage providers, it can sometimes be worth speaking to multiple mortgage brokers as well. The more offers you get, the more choices you have.

Alternatives to mortgage brokers

If you decide not to work with a mortgage broker, here are other ways to arrange your mortgage in Canada:

1. Your current financial institution

The simplest route is to take a mortgage with your existing bank or credit union. Since it already has your accounts, employment history, and credit information, the process can feel quick and seamless. Some lenders may even offer loyalty perks, such as discounts for holding multiple products.

That said, the rate you’re offered, especially while renewing your mortgage, is rarely the most competitive. Your current mortgage provider will send you a renewal slip automatically. This is a quick and easy route to renewing your mortgage, but that rate will almost always be much higher than what you’re able to be approved for.

2. Approaching a new lender directly

If you’ve seen a promotion or are set on working with a specific financial institution, you can approach a new lender directly. This gives you access to that lender’s products, but you’ll still be limited to what they offer in-house. While it may look convenient, advertised mortgage rates are often higher than what you could get through a broker, since lenders need to factor in their marketing costs.

3. Going directly to a credit union

Another option is to work with a credit union. Some credit unions don’t partner with mortgage brokers, meaning the only way to access their mortgage products is by applying directly. Credit unions can sometimes offer competitive rates and a more community-focused approach to banking. However, the same caveats apply as in the first two alternatives.

The bottom line

So, should you get a mortgage with your local bank, or with a mortgage broker? We recommend you get a quote from both your existing financial institution and at least one mortgage broker. This is only a little extra work, but maximizes your options and gives your the best chance at securing the lowest possible mortgage rate.

Shopping around for mortgages takes a little time, but it’s worth the effort to end up with the best possible product and rate for your financial situation.

Also read: 

• More borrowers than ever are turning to private mortgages
• How to buy a house in Canada in 7 steps
• Should I buy a house in a recession?
• Mortgages and inflation: How do they affect one another? 
• The trigger rate: Everything you need to know
• 7 tips to get approved for a mortgage
• The dos and don'ts of getting a mortgage pre-approval