Canada’s housing market is fiercely competitive, with prices topping $1.2 million in Toronto and $1.3 million in Vancouver by early 2025. But in Calgary the average home sits around $550 000 and in Halifax closer to $400 000.
At the same time, interest rates climbed from 4 percent to 5 percent, cutting the average buyer’s budget by about 10 percent. That makes it more important than ever to know the difference between a mortgage broker vs real estate agent.
A mortgage broker compares lenders to find you the best loan, while a real estate agent helps you find and negotiate the right property. By understanding when to call each expert, you can save thousands and avoid costly mistakes.
In this guide we’ll compare their roles and costs, share real Canadian case studies, clear up common myths, and answer your top questions.
Mortgage Broker vs Real Estate Agent
Mortgage broker or real estate agent, which do you need? Let’s break down the key differences to help you choose the right expert for your home-buying journey
Definitions
Not sure what exactly a mortgage broker or real estate agent does? Understanding the role of each expert can help you make the right choice for your home-buying journey. Let’s define what they do and how they can help you!
Mortgage broker
A licensed expert who shops around for the best mortgage rate and terms. They don’t lend money themselves. Instead, they connect you to banks, credit unions, or private lenders.
Real estate agent
A licensed professional who helps you buy or sell a home. They guide you through the process from pricing to negotiation and closing the deal.
Understanding the Roles
Wondering what each expert does? Let’s break down the roles of a mortgage broker and real estate agent to help you understand how they can support your home-buying journey!
Real Estate Agent
A real estate agent represents either the buyer or seller in a home transaction. In Ontario, they’re regulated by RECO. In BC, by the BCREA. Most are also members of CREA, which gives them access to MLS listings across the country.
Key Responsibilities
Listing and marketing: They arrange professional photos, virtual tours, and post listings on the MLS.
Pricing strategy: They do a Comparative Market Analysis (CMA) to help set the right price.
Negotiation and contracts: They handle the offer, counteroffers, and the official paperwork.
Coordination and closing: They help schedule inspections, talk to lawyers, and handle closing details like the Tarion warranty in Ontario.
Licensing and Education
Agents take official courses (like OREA in Ontario or UBC’s Sauder School in BC), pass exams, register with their province, and join CREA. They also need to keep learning through continuing education.
Mortgage Broker
Mortgage brokers are licensed by provincial regulators like FSRA (Ontario), BCFSA (BC), or AMF (Quebec). They don’t help you buy or sell a home. Their only focus is your mortgage.
Key Responsibilities
Financial assessment: They look at your income, credit score, and debts.
Product comparison: They compare rates and options like fixed or variable, open or closed, HELOCs, refinancing, and more.
Rules and regulations: They help you understand things like CMHC insurance and the B-20 stress test.
Applications and negotiations: They fill out your paperwork, get pre-approvals, and negotiate with lenders to get you better rates.
Licensing and Education
Brokers take training through Mortgage Professionals Canada or similar programs, pass a licensing exam, and must follow a strict code of conduct with yearly updates.
Key Differences (Mortgage Broker vs Real Estate Agent)
Mortgage broker or real estate agent, what’s the difference? Let’s break down the key roles so you can choose the right expert for your home-buying journey!
| Criterion | Mortgage Broker | Real Estate Agent |
| Focus | Mortgage and financing | Buying or selling property |
| Works with | Borrower | Buyer or seller |
| How they’re paid | Commission from lender or a fee | Percentage of sale price (about 5 percent) |
| Regulator | FSRA, BCFSA, AMF, etc. | RECO, BCREA, and others |
| Expert in | Mortgage rates, loan products, credit tips | Local market, property negotiations, paperwork |
When to Call Each One?
Not sure when to call a mortgage broker or real estate agent? Let’s simplify it and help you know exactly when to reach out to each expert!
When to Use a Mortgage Broker
Before house hunting: Get pre-approved so you know what you can afford. Pre-approved buyers close 20 percent faster.
Refinancing or HELOC: When switching lenders or using your home equity.
Unique situations: If you’re self-employed, an investor, or have recent credit issues, a broker can find lenders with flexible options.
When to Use a Real Estate Agent
House hunting: Agents give access to MLS listings and local insights.
Offers and negotiation: Agents often help buyers pay less, on average 3 percent lower than unrepresented buyers.
Closing support: They handle inspections, coordinate with lawyers, and ensure a smooth closing.
Pros and Cons in Canada
Wondering about the pros and cons of mortgage brokers and real estate agents in Canada? Let’s break it down so you can make the best choice for your home-buying journey!
Mortgage Broker
Pros
Access to many lenders, including banks, credit unions, and private lenders.
Know the details of CMHC and other mortgage insurance rules.
Save time by comparing multiple mortgage options at once.
Cons
Some lenders pay higher commissions, which could affect recommendations.
They don’t help with property searches or negotiations.
Real Estate Agent
Pros
Knows local areas, schools, zoning changes, and future plans.
Manages all legal documents and deadlines.
Skilled in negotiating better prices and terms.
Cons
Their commission (often 4 to 5 percent) is usually built into the price of the home.
They can’t give detailed advice on mortgage products.
Real-Life Examples
Curious how mortgage brokers and real estate agents work in real life? Let’s look at some real-life examples to see how each expert can make a difference in your home-buying process!
Case 1: First-Time Buyer in Calgary
Profile: Couple in their late 20s, 5 percent down payment.
Challenge: Deciding between fixed and variable rate; low down payment.
Broker result: Found a local credit union offering a variable rate at prime minus 0.35 percent and avoided extra stress test costs.
Agent result: Found a condo priced 7 percent below the city benchmark, saving them $15,000.
Case 2: Seller in Montreal
Profile: Retired homeowner selling a townhouse.
Agent result: Created a great marketing plan, got five offers, and sold it for 8 percent over asking.
Broker result: The buyer’s broker secured a $650,000 mortgage in 48 hours to make sure the deal closed on time.
How Brokers and Agents Work Together?
Ever wondered how mortgage brokers and real estate agents work together? Let’s explore how these experts team up to make your home-buying experience smoother and more successful!
You meet with a mortgage broker to get pre-approved.
Then you work with a real estate agent to find a home.
The agent negotiates the offer and terms.
You return to the broker with your signed offer to finalize your mortgage.
Both professionals help you with closing by coordinating with lawyers and lenders.
New Trends in Canada
Curious about the latest trends in Canada’s housing market? Let’s dive into the new trends shaping how mortgage brokers and real estate agents are helping buyers today!
Online brokerages: Websites like Ratehub and Zolo let you compare rates and get pre-approved fast, often in 10 minutes or less.
AI tools: Some platforms now use AI to suggest the best rate or amortization plan.
Interest rate outlook: The Bank of Canada may start cutting rates later in 2025, so demand for brokers may increase as buyers rush to lock in lower rates.
Clearing Up Common Myths
Heard some myths about mortgage brokers and real estate agents? Let’s clear up the confusion and set the record straight on what each expert really brings to the table
“My agent can get me a mortgage.” Only licensed mortgage brokers or lenders can handle financing.
“Brokers are only for bad credit.” Brokers help all types of buyers, including those with great credit who want better deals.
“One person can do both.” Some people have both licenses, but they must be transparent and can’t unfairly push one service over another.
Picking the Right Expert
Not sure which expert to choose? Let’s break down how to pick the right mortgage broker or real estate agent for your home-buying journey!
Check their license: Use the FSRA registry for brokers or RECO’s site for agents.
Ask questions: Interview at least two brokers and two agents. Ask about their experience with your type of deal.
Look at reviews: Read Google or Ratehub reviews, or ask friends for referrals.
Final Thoughts and Next Steps
Buying a home is really two journeys: getting the right mortgage and finding the right property. A mortgage broker helps you get the best loan. A real estate agent helps you buy smart. Using both, from the start, can save you money and stress.
Want to get started?
Call us at +1 (844) 354-3033 or get in touch with us. Our licensed experts will review your profile, walk you through your options, and show you exactly where you can save.
Frequently Asked Questions
Do I need both a broker and an agent?
Yes, using both early helps align your mortgage with your home search, ensuring a smoother process.
Can my agent get me a better rate?
No, only a mortgage broker can secure better rates. However, agents can connect you with a trusted broker.
How long does each process take?
Pre-approval: 1–3 days
Offers and negotiations: 1–2 weeks
What are typical commission rates?
Ontario and BC: Around 5%
Quebec: Around 4%
Alberta: Varies
