First-Time Homebuyer: What a Broker Does

If you're buying your first home in Canada, you've probably heard that you should "talk to a mortgage broker." But what does that actually mean? Here's a plain-language guide to what mortgage brokers do and why they matter.

What is a mortgage broker?

A mortgage broker is a licensed professional who helps you find and secure a mortgage. Unlike a bank, which can only offer its own mortgage products, a broker works with 30+ lenders to find the best rate and terms for your situation.

Think of it like a travel agent for mortgages — they shop the market so you don't have to.

What does a mortgage broker do?

Assesses your financial situation: Income, debts, credit score, down payment
Shops multiple lenders: Compares rates and terms from 30+ lenders
Recommends the best option: Based on your specific situation, not the bank's sales targets
Handles the paperwork: Submits your application, gathers documents, coordinates with the lender
Negotiates on your behalf: Uses their volume and relationships to get you the best rate
Guides you through closing: Ensures everything goes smoothly until keys are in your hand

How much does a mortgage broker cost?

For standard residential mortgages through A lenders (major banks, credit unions), the broker is paid a commission by the lender — you pay nothing. For B lender or private mortgages, a broker fee may apply, but it's always disclosed to you in writing upfront. For the vast majority of homebuyers, using a broker is free.

This is one of the most misunderstood things about brokers — 55% of Canadians incorrectly believe that brokers charge fees.

First-time buyer programs a broker can help with

As a first-time buyer in Canada, you may qualify for several programs. A good broker will know about all of these and help you take advantage of them:

First Home Savings Account (FHSA): Tax-free savings for your down payment
Home Buyers' Plan (HBP): Withdraw up to $60,000 from your RRSP for a down payment
First-Time Home Buyer Incentive: Shared-equity program from CMHC
Land Transfer Tax Rebates: Available in Ontario and some other provinces
5% minimum down payment: For homes under $500,000

How to find a good mortgage broker

The most important step: verify they're licensed. Every province regulates mortgage professionals, and you can check their licence for free.

Look for brokers who specialize in first-time buyers, speak your language, and serve your area. On Brkrr, you can filter by all of these.

Questions to ask your mortgage broker

How many lenders do you work with?
What's the best rate you can get for my situation?
What are the total costs beyond the interest rate (fees, penalties, etc.)?
Can I make extra payments without penalty?
What happens when my term is up?

First-time homebuyer guide: what a mortgage broker actually does