Bank vs mortgage broker:
who actually gets you
a better deal?
A broker shops dozens of lenders on one application — typically free to you. A bank can only offer its own products. Here's the honest comparison, including when your bank still makes sense.
Four reasons the choice matters.
The difference isn't just rate — it's who is shopping for you and how many options they can actually access.
One lender vs. the whole market
Your bank can only offer its own mortgage. A broker submits one application across banks, monolines, credit unions, and alternative lenders — then surfaces the best fit for your situation.
The bank's side vs. your side
A bank advisor works for the bank. A broker is provincially licensed and legally required to act in your interest — with lender compensation disclosed in writing on every file.
Usually free — lender pays
On standard residential mortgages the lender pays the broker a finder's fee. You don't pay extra for using a broker versus approaching that lender directly. FSRA requires full disclosure.
Competitive tension vs. negotiating alone
A broker pits multiple lenders against each other. Monolines — broker-only wholesale lenders — are frequently the rate leaders and aren't available at a bank branch at all.
How to choose
the right path.
Understand your file. Compare on more than rate. Move forward with the full picture.
Understand your situation
Salaried with strong credit? Self-employed? New to Canada? Facing a renewal? Where you fit determines which type of lender — and which product — is the right match for your file.
Compare on the factors that matter
Rate is one factor. Lender access, approval odds for your profile, renewal strategy, and fee transparency are others. A broker comparison gives you all of them with a single application.
Get pre-approved for the right product
One application, dozens of lenders evaluated, one recommendation with full fee disclosure. You move forward knowing you've seen the market — not just one product from one institution.
Which is right
for you?
Tap any situation below to see how we approach it.
If you’re…Salaried, great credit, 20% down
Salaried, great credit, 20% down
Your bank may be competitive, but a broker creates competition for free. Get both quotes and take the better one — there's no downside to comparing before you commit.
Compare my optionsIf you’re…Self-employed or commission income
Self-employed or commission income
Lender rules on self-employed income vary wildly. A broker routes your file to lenders who understand it — often the difference between approval and decline.
See self-employed optionsIf you’re…Your bank just declined you
Your bank just declined you
A bank 'no' is final at that bank. A broker has dozens more lenders, including alternative options, and knows exactly where your file fits.
Explore alternativesIf you’re…Your renewal letter just arrived
Your renewal letter just arrived
Don't auto-renew. Let a broker shop the whole market against your bank's first offer — the savings over a term routinely run into the thousands.
Shop my renewalIf you’re…New to Canada with limited Canadian credit
New to Canada with limited Canadian credit
Newcomer programs accept international employment history and limited Canadian bureau. Many broker-only lenders have dedicated newcomer paths your bank branch may not even offer.
See newcomer optionsIf you’re…You value banking everything under one roof
You value banking everything under one roof
This is the bank's strongest case. Even here, get a broker quote first — the comparison takes minutes and you can always choose the bank knowing you've seen the full market.
Get a comparisonMortgage broker vs bank —
every factor compared.
The case for using a broker is structural, not just about rate — it's about who's working for you and how many doors they can open.
- ✓Anyone who wants the best rate without shopping each lender themselves
- ✓Self-employed, new-to-Canada, or bruised-credit borrowers
- ✓Renewals — brokers shop instead of auto-renewing you
- ✓Complex deals: rentals, private, alternative lending
- ✓You want banking and mortgage under one roof
- ✓You're a strong borrower who'll negotiate aggressively
- ✓You need a niche product only that bank offers
- ✓You value an existing in-branch relationship
| Factor | Mortgage Broker | Your Bank |
|---|---|---|
| Lenders you can access | Dozens — banks, monolines, credit unions, alternative & private | One — that bank only |
| Who they work for | You: licensed to act in your interest, compensation disclosed | The bank |
| Applications needed | One — the broker shops it to many lenders | One per bank you approach yourself |
| Cost to you | Usually free — paid by the lender on standard deals | No direct fee, but you do the shopping |
| Rate outcome | Competitive tension across lenders | Whatever you can negotiate alone |
| Tricky approvals | Strong — knows which lender fits which situation | One set of rules; declined means declined |
| At renewal | Re-shops the whole market for you | Often a quick auto-renewal letter |
| Regulation | Provincially licensed (FSRA in Ontario) | Federally regulated bank |
Common questions,
clear answers.
Rates, fees, credit impact, and when to use a bank — answered plainly.
Do mortgage brokers really get better rates than banks?
Often, yes — for two reasons. First, brokers create competition by shopping dozens of lenders, including monolines that only work through brokers and are frequently the rate leaders. Second, brokers place high volume and access volume-based pricing a walk-in client typically can't. A bank can sometimes match a broker for a strong, straightforward borrower, but it can only offer its own product — so you'd never know if a better deal existed without shopping.
How do mortgage brokers get paid?
On standard residential mortgages, the lender pays the broker a finder's fee — so the service is usually free to you, and the quoted rate already accounts for it. On harder-to-place deals (alternative, private, or complex commercial) where the lender doesn't pay a fee, a broker fee may apply, and a licensed broker must disclose it to you in writing before you commit.
Is it worth using a mortgage broker?
For most people, yes — you get access to dozens of lenders with a single application, competitive pricing, and expert matching of your file to the right lender, usually at no cost. The advantage is largest if you're self-employed, new to Canada, have bruised credit, or have any non-standard situation. Even strong borrowers benefit from the competition a broker creates.
Will using a broker hurt my credit with multiple applications?
Not meaningfully. A broker usually pulls your credit once and submits that single application to the lender that fits, rather than you applying bank by bank, and scoring models generally treat several mortgage inquiries made close together as one. A hard inquiry stays on your report for about three years with Equifax (FCAC), but its score impact is small and fades within months.
When should I just go to my bank?
If you want all your finances under one roof, you're a strong borrower who'll negotiate hard, or you need a niche product only your bank offers. Even then, the no-cost move is to get a broker quote alongside your bank's offer and compare. Never auto-renew without shopping — that's where banks count on convenience to keep you from checking the market.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
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