Which mortgage broker should I use? It’s an important question because choosing the right mortgage broker can save you thousands. Here’s how to pick the perfect partner.
On a $500,000 mortgage, every 0.10% you shave off your rate saves you $500 annually. That’s $12,500 over a 25-year amortization. A great broker might help you land a rate that’s 0.30% lower than what you’d get directly from a big bank.
That adds up to $1,500 in yearly savings or $37,500 over the life of your mortgage. And those are real savings, money you can put back into your home, support your family with, or tuck away for your future.
Understanding the Role of a Mortgage Broker
Not sure what a mortgage broker actually does? They’re your shortcut to better rates, less stress, and smarter decisions.
What a Broker Does vs a Bank Specialist
Bank Specialist: Limited to one institution’s products. May offer volume-tier discounts but cannot shop the market.
Broker: Access to 50 to 100 or more lenders. Can mix and match to your needs such as fixed vs. variable, open vs. closed, high-ratio vs. conventional. Brokers negotiate rate buy-downs, lender credits and fee waivers on your behalf.
Example
Jane, a self-employed consultant, was declined by her bank because her income didn’t fit their pay-stub model. Her broker secured financing through a monoline lender at 3.85% variable, compared to the bank’s declined application.
Licensing and Regulation in Canada
Mortgage brokers must be licensed in each province where they operate:
| Province | Regulator | Key Requirements |
| Ontario | FSRA | Education, exam, errors and omissions insurance, binding code of conduct |
| BC | BCFSA | Licensing exam, annual renewal, trust accounting oversight |
| Quebec | AMF | Certificate of competence, continuing education, client trust fund |
These regulators enforce consumer protection rules, handle complaints and discipline brokers for misconduct. Always verify a broker’s licence status before engaging.
Typical Fee and Commission Models
Lender-paid commission: 0.5% to 1.2% of mortgage principal (e.g. $2,500 to $6,000 on $500K).
Borrower-paid fee: Rare, but may apply for private or alternative financing. Usually a flat fee ($500 to $1,500).
Yield maintenance or trailing fees: Small ongoing fees built into the rate, disclosed in your agreement.
Most brokers are fully compensated by lenders, so you pay no direct fees. Always get a written fee disclosure that explains who pays what.
Which Mortgage Broker Should I Use?
Choosing the right broker matters. The right one saves you thousands, while the wrong one costs you more than just money.
Key Selection Criteria
With so many brokers out there, choosing the right one can feel overwhelming. But the right fit makes all the difference when it comes to rates, service, and peace of mind.
Lender Panel Breadth
50 or more lenders: Provides diversity including big banks, credit unions, monoline mortgage companies, and private funds.
Alternative options: Access to B-lenders and private lenders for non-prime scenarios.
Case study: A first-time buyer with 5% down accessed a no-CMHC-premium program through a monoline lender that her bank didn’t offer.
Rate Negotiation Track Record
Average discount off posted rates (e.g. “We averaged 0.25% below posted five-year fixed in 2024”).
Volume metrics: “We arranged $200M in mortgages last year” since higher volume often means stronger lender leverage.
Client savings examples: Real-life stories showing dollars saved.
Expertise with Your Borrower Profile
First-time buyers: Knowledge of down-payment assistance and First-Time Home Buyer Incentive.
Self-employed: Comfort with bank statement funding and alternative income verification.
Investors: Understanding of rental income calculations and multi-unit financing.
Renovators: Access to purchase plus improvement mortgages and construction draws.
Transparency and Fee Disclosure
Get a written disclosure before you commit.
Disclosure should list all commissions, lender fees, appraisal costs, legal fees and any potential trailer fees.
Brokers who hesitate or verbally dodge fee questions are a red flag.
Turnaround Time and Communication Style
Standard timelines: 10 to 15 business days from application to commitment.
Expedited options: Some broker teams can turn around in 5 to 7 days for an extra fee.
Communication: Weekly status reports, secure online portals, direct phone access. Clarify expectations up front.
Client Reviews and Testimonials
Look for 4.5 or more star averages with 20 or more reviews.
Read for themes like “always available,” “clear explanations,” and “saved me money.”
Ask the broker for references and speak directly to past clients in your borrower category.
Broker Types and Specialties
Not all brokers are the same. Find the right type to match your needs and unlock the best deals.
Large National Brokerage vs. Regional Boutique
| Feature | National Brokerage | Regional Boutique |
| Lender leverage | Very high | Moderate |
| Technology platform | Advanced client portals | Basic to moderate |
| Personalization | Standardized processes | Highly customized |
| Fees | Often built into rate | May charge flat service fee |
Independent Solo Brokers vs. Team-Based Firms
Solo: You deal directly with the expert but may face capacity constraints.
Team: Dedicated underwriters, processors and admin staff for faster service but less direct interaction.
Niche Specialists
Self-Employed: Bank statement programs and alternative income approaches.
Low Down Payment: First-time buyer incentives and 5% down conventional products.
Bad Credit: B-lenders, private lender networks and credit repair guidance.
Researching and Shortlisting Brokers
Picking the right broker starts with research. A little effort upfront can lead to big savings down the road.
Checking Provincial Regulator Registries
Ontario FSRA lookup: Verify licence number, expiry and disciplinary record.
BCFSA IRIS portal: Check for compliance events or warnings.
AMF register: Confirm certificate and past consumer complaints.
Reading Third-Party Review Sites
Google Reviews: Look for detailed client stories.
Trustpilot: Check for broker responses to negative reviews.
BBB: Note complaint resolution ratings.
Asking for Referrals
Realtors: Work with brokers daily and know which deliver reliably.
Accountants/Financial Planners: Know brokers who handle complex incomes.
Friends/Family: First-hand experiences are helpful. Ask about service, stress and savings.
Interview Questions to Vet Competence and Fit
Lender mix: “Which lenders do you place most of your volume with, and why?”
Rate options: “How many quotes will you present, and what’s the typical spread?”
Fallback plan: “If my file is declined, what next steps do you take?”
Communication: “How often and by what method will you update me?”
Guarantees: “Do you offer rate re-quote guarantees or satisfaction guarantees?”
Comparing Proposals Side-by-Side
Don’t settle for the first offer. Compare proposals side-by-side and find the deal that works best for you.
Rate Quotes and APR Comparison
| Proposal | Interest Rate | Fees | APR | Notes |
| Broker A | 4.79% | $1,500 | 4.95% | 120-day rate hold |
| Bank B | 4.99% | $0 | 5.00% | 90-day rate hold |
| Broker C (private lender) | 5.25% | $500 | 5.35% | Flexible credit criteria |
Fee Schedules and Hidden Cost Checks
Pre-Approval Terms and Conditions
Rate hold: 90 vs. 120 days. Longer is safer in a rising market.
Conditions: Income verification, property type restrictions, debt ratios.
Commitment letter: Ensure it’s fully underwritten, not just conditional.
Service Guarantees and Fine Print
Re-quote guarantee: If rates drop before closing, you get the lower rate.
Money-back: Some brokers refund fees if you walk away.
Exclusivity: Can you switch if you find a better deal? Know the penalty if any.
Red Flags and Warning Signs
Spotting red flags early can save you a lot of trouble. Know the warning signs before you commit.
High Upfront Fees or Pressure to Sign Quickly
Demand for large retainer fees above $500 is unusual.
Hard sell tactics such as “sign now or rates go up” are manipulative.
Vague or Missing Disclosure Documents
No written fee disclosure shows lack of transparency.
Missing lender list means you don’t know your options.
Poor Responsiveness or Evasive Communication
Slow replies in the interview phase predict delays in funding.
Evasive answers on basic questions are a red flag.
Promises That Seem Too Good to Be True
“Guaranteed lowest rate” is a false claim since no one can guarantee market movements.
“No credit check” likely refers to high-fee private lender products.
Leveraging a Dual-Track Strategy
Two paths, one goal. Leverage a dual-track strategy to maximize your mortgage options and secure the best deal.
Running Simultaneous Broker and Bank Applications
Submit both at once. Use the bank offer as a baseline.
Compare rate, fees and service level.
Using a Broker Quote to Negotiate with Your Bank
Present broker’s rate sheet to your bank specialist.
Banks often match to retain your other accounts.
When to Switch Gears Mid-Process
If broker can’t improve within 7 to 10 days, pivot to bank.
Check exclusivity. Most brokers only lock you in after appraisal is ordered.
Making the Final Decision
The decision is yours. Weigh your options carefully and choose the mortgage that’s right for your future.
Weighing Cost vs. Service
A 0.10% higher rate might be worth 24/7 support and faster close.
Quantify stress savings: fewer calls, fewer surprises, peace of mind.
Trust and Rapport Factors
Mortgage is often your largest debt. You want someone who explains, listens and acts in your best interest.
Locking in Your Rate and Next Steps
Next Steps and Resources
Ready to take the next step? Explore helpful resources and start your mortgage journey with confidence.
Document Checklist to Prepare
Regulator Registries
Book a Free Consultation with AJP Mortgage
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
What questions should I ask a mortgage broker?
Which lenders do you work with most, and why?
What average discount do you achieve off posted rates?
How long does your process take?
What fees will I pay, and who pays them?
What if my application is declined?
Can I switch brokers mid-application?
Yes. Provided you haven’t signed an exclusivity agreement or ordered the appraisal. Always read the commitment letter’s fine print.
Will using a broker delay my closing?
No. Experienced brokers close in 10 to 15 business days, on par with banks. Many offer expedited service if needed.
