Mortgage broker vs. bank: which saves you more?

One of the most common questions Canadians ask when getting a mortgage is: should I go to my bank or use a mortgage broker? The short answer: a broker almost always gets you a better rate.

The numbers

Mortgage brokers access rates from 30+ lenders — not just one bank. Banks can only offer their own products. This competition means brokers consistently negotiate lower rates for their clients.

On a typical $500,000 mortgage over 25 years, even a 0.25% rate difference saves you approximately $12,000–$19,000 in interest over the life of the mortgage. That's money that stays in your pocket.

Why do brokers get better rates?

• Volume discounts: Brokers bring lenders a high volume of business, so lenders offer them preferred rates
• Competition: Brokers shop multiple lenders against each other for your business
• Wholesale rates: Some lenders offer rates exclusively through the broker channel that aren't available to walk-in customers
• Specialization: Brokers know which lenders are most competitive for your specific situation

Do brokers charge fees?

For A lender mortgages (major banks, credit unions), no — the agent is paid a commission by the lender. You typically pay nothing. For B lender mortgages, agents may charge an additional broker fee, which is always disclosed to you upfront. For private mortgages, a broker fee is standard since most private lenders don't pay agent commissions.

All fees must be disclosed to you in writing before you proceed. For the vast majority of standard residential mortgages through A lenders, using a broker costs you nothing.

When might a bank be better?

There are a few situations where going directly to your bank might make sense:

• You have a complex banking relationship: If you have business accounts, lines of credit, and investments all with one bank, they may offer a relationship discount
• You need a specialized product: Some niche products (like certain HELOCs) may only be available directly from the bank
• You're already getting the best rate: If you've done your research and your bank's rate is genuinely the lowest available, there's no benefit to switching

Even in these cases, it's worth getting a broker's quote to compare. It costs you nothing and takes minutes.

High satisfaction rates

Industry surveys consistently show that the vast majority of Canadians who use a mortgage broker say they would use one again.* The satisfaction rate speaks for itself.

* Source: Canadian mortgage industry surveys — exact figures vary by year and survey methodology.

How to find a mortgage broker

The most important thing is to verify that your broker is licensed. Every province regulates mortgage professionals, and you can check their licence status for free.

Use Brkrr's free verification tool to check any broker's licence, or get matched with up to 3 verified agents based on your location and needs.