The questions to ask a mortgage broker before you sign anything.
A good broker welcomes hard questions. Use this checklist to confirm they’re licensed, working for you, and getting you the right lender — not just the fastest approval.
Are you FSRA licensed?How many lenders?How are you paid?Best rate or just approval?What’s my rate hold?Which lender fits me?
Choosing a mortgage broker is one of the most consequential financial decisions most Canadians make, yet borrowers often ask more questions when buying a used car. The stakes are high: the wrong broker might place you with a single familiar lender, take a rate that’s fine for them, or gloss over a penalty clause that costs you thousands three years later. The good news is that a handful of direct questions separates a broker who works for you from one who works for the deal. You don’t need to be a mortgage expert — you just need to know what to ask, and what a straight answer sounds like.
What you get
Why Canadians choose Mortgage Squad Advisors.
Confirm your broker is licensed with the right provincial regulator before you share a single document
Understand exactly how your broker is paid — and whether any fee ever lands on you
Learn how many lenders they actually access, and why a wider network means better fit
Tell the difference between a broker getting you the best rate and one just getting an approval
Know your rate-hold length and what happens if rates move before you close
Get the reasoning behind the recommended lender — not just a name on a page
Surface penalty and prepayment terms before signing, not at renewal or when you need to break
Test whether the broker can handle your situation — self-employed, new to Canada, or bruised credit
Spot the red flags: vague answers, pressure to sign, or reluctance to put fees in writing
Walk into every conversation informed, so the broker earns your business on substance
Maya · 24/7 AI advisor
Question about mortgage broker? Maya answers instantly in 50+ languages.
Start here: ask “Are you licensed, and with which regulator?” In Ontario that’s FSRA — we operate under brokerage licence #13737. Then ask how many lenders they work with. An independent broker with 100+ lender relationships can shop your file widely; someone tied to one or two lenders is closer to a single bank branch.
2
Ask how they’re paid and what it costs you
Ask plainly: “How are you paid, and is there any fee to me?” On most prime deals the lender pays the broker’s commission and you pay nothing. On some alternative or private files a fee applies — a straight broker discloses it in writing, up front, every time. If the answer is fuzzy, that’s your answer.
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Pressure-test the recommendation
Ask “Why this lender, and is this the best rate or just an approval?” A good broker explains the trade-off between rate, penalty terms, and fit for your situation — and can say why a slightly higher rate with flexible prepayment might beat the lowest sticker rate. Then confirm your rate hold and what happens if rates move before closing.
The questions to ask a mortgage broker, and why each one matters
The point of interviewing a broker isn’t to catch them out — it’s to confirm that the person arranging six figures of debt on your behalf is licensed, independent, and working for you. A good mortgage broker expects these questions and answers them without hesitation. The list below is short on purpose; each question does real work.
Start with “Are you licensed, and with which regulator?” Licensing is the foundation everything else sits on. A licensed broker is registered with a provincial regulator, accountable to disclosure rules, and carries a traceable licence number. In Ontario the regulator is FSRA, and we operate under brokerage licence #13737. Next: “How many lenders do you work with?” A broker with access to 100+ lenders can shop your file across banks, credit unions, monolines, and alternative options; a broker tied to one or two is closer to a single bank branch wearing a broker’s badge.
How are you paid — and is there any fee to me?
This is the question borrowers are most nervous to ask and the one a good broker most wants to answer. On the majority of prime mortgages, the lender pays the broker’s commission when your deal funds, which means the broker’s advice costs you nothing directly. That’s the model most Canadians use a broker under, and it’s why comparing brokers rarely comes down to price.
The honest nuance: on some alternative, private, or genuinely complex files, a broker fee can apply — and a trustworthy broker discloses it in writing, before you commit, never as a line item that appears at closing. So ask directly: “Is there any fee to me, and if so, how much and why?” A specific answer is a green light; a vague one is a reason to slow down. If you want the full mechanics before you meet anyone, our explainer on how mortgage brokers get paid lays out commissions, fees, and where your interests and the broker’s line up.
Best rate or just an approval? Testing whether the broker works for you
The most important distinction in this whole conversation is between a broker who gets you an approval and one who gets you the right mortgage. Those are not the same thing. Any broker can find a lender willing to say yes; the value is in comparing rate, penalty structure, prepayment privileges, portability, and fit for your situation, then explaining the trade-offs in plain language.
So ask: “Is this the best rate available to me, or just a lender that approved me?” and “Why this lender over the others?” A broker working for you can explain why a slightly higher rate with flexible prepayment terms might beat the lowest sticker rate, or why a particular lender suits a self-employed borrower better than a big bank. That reasoning is exactly the difference a broker is supposed to add over walking into your own bank — the theme we cover in bank vs mortgage broker. And because we’re confident in the shopping, we back it with a rate-beat guarantee: bring us a valid competing offer and we’ll beat it or tell you honestly that it’s already excellent.
Rate holds, lender fit, and penalties — the questions that pay off later
Three questions protect you well after the ink dries. First, “What’s my rate hold, and what happens if rates move?” Most pre-approvals hold a rate for 90 to 120 days; if rates fall many lenders honour the lower rate, and if they rise you’re protected. Knowing your hold length tells you how long you can house-hunt with certainty — and it’s worth understanding the difference between a pre-approval and a pre-qualification before you rely on either.
Second, “Which lender fits my situation, and why?” The right answer references your income type, credit, down payment, and goals — not a house-favourite lender. Third, and most overlooked, “How is the prepayment penalty calculated?” Fixed-rate mortgages can carry an interest-rate-differential penalty far larger than borrowers expect; variable rates usually cost three months’ interest to break. A broker who raises penalty math before you sign is thinking about your entire term, not just closing this file. If you want to go deeper on the shopping itself, see how to get the best mortgage rate and current mortgage rates.
Can you handle my situation? Complex files and the red flags to watch
One question quietly reveals more than any other: “Have you placed files like mine, and which lenders would you approach?” If you’re self-employed, new to Canada, or carrying bruised credit, this is exactly where a wide lender network earns its keep — the bank that declines you may be the only lender a limited broker can reach. A broker who lights up at your complexity, rather than steering you toward a single default lender, is one who can actually solve the problem.
Finally, know the red flags. Walk away from vague answers on licensing or fees, pressure to sign quickly, reluctance to put anything in writing, or a broker who only ever names one lender. A professional welcomes scrutiny. When you’re ready, you can put these questions to us directly — ask Maya any time, or start an application with no credit check and no obligation. We’re a FSRA-licensed brokerage (#13737) with access to 100+ lenders, and we’d rather earn your business on straight answers than sidestep the questions.
FAQ
Common questions, answered.
Don’t see yours? Ask Maya — instant answer, any time.
What is the single most important question to ask a mortgage broker?
Ask whether they’re licensed and with which regulator, because it’s the one answer that protects everything else. A licensed broker is registered, accountable to a provincial regulator, and bound by disclosure rules. In Ontario that regulator is FSRA (the Financial Services Regulatory Authority) and every brokerage carries a licence number — ours is #13737. If a broker can’t or won’t give you theirs, stop there.
How many lenders should my mortgage broker work with, and why does it matter?
There’s no magic number, but more is generally better because it widens the odds of a genuine fit. A broker connected to 100+ lenders — banks, credit unions, monoline lenders, plus alternative and private options — can match your specific situation to the lender most likely to approve you at the best terms. A broker tied to one or two lenders is functionally a single sales channel, which is fine until your file doesn’t fit their narrow box.
How are mortgage brokers paid — and will it cost me anything?
On most prime mortgages the lender pays the broker a commission when your deal funds, so you pay nothing directly. The exception is some alternative, private, or complex files where a broker fee applies; a trustworthy broker discloses that fee in writing before you commit, never as a surprise at closing. Ask the question directly — “Is there any fee to me, and if so how much?” — and expect a specific answer. For a fuller breakdown see our page on how mortgage brokers get paid.
How do I know if my broker is getting me the best rate or just an approval?
Ask them to explain the recommendation, not just state it. A broker chasing the easy approval places you with whichever lender says yes fastest. A broker working for you compares rate, penalty structure, prepayment privileges, and fit, then explains why one option beats the others for your situation. If the only justification you hear is “they approved you,” push further — approval and best value are not the same thing.
What should I ask about my rate hold?
Ask how long the rate is held and what happens if rates move before you close. Most lenders hold a pre-approval rate for 90 to 120 days; if rates fall in that window many lenders will honour the lower rate, and if rates rise you’re protected at the held rate. Knowing your hold length tells you how long you can shop for a home with certainty, and a good broker will flag when a hold is about to expire.
Which lender fits my situation, and how will the broker decide?
Ask the broker to walk you through why a particular lender suits your file. The right answer references your actual circumstances — income type, credit profile, down payment, property, and goals — not a generic “this is who we usually use.” Different lenders reward different borrowers: some price aggressively for salaried buyers, others specialize in self-employed income, newcomers, or credit repair. The reasoning is the tell.
What should I ask about penalties and prepayment before signing?
Ask how the prepayment penalty is calculated and what you’re allowed to pay down each year. This is the clause borrowers regret most: fixed-rate mortgages can carry an interest-rate-differential (IRD) penalty that’s far larger than most people expect, while variable rates usually cost three months’ interest to break. A broker who raises penalty terms before you sign — rather than at renewal — is one who’s thinking about your whole term, not just the sale.
Can a broker still help if I’m self-employed, new to Canada, or have bad credit?
Yes, and it’s a smart question to ask up front because it exposes the depth of a broker’s lender network. Self-employed applicants, newcomers without Canadian credit history, and borrowers with bruised credit are exactly the files where a wide network earns its keep — the bank that declines you may be the only bank a limited broker can access. Ask whether they’ve placed files like yours and which lenders they’d approach.
What are the red flags that I should walk away from a broker?
Watch for vague answers on licensing or fees, pressure to sign quickly, reluctance to put anything in writing, or a broker who only ever mentions one lender. A professional welcomes your questions and answers them plainly; evasiveness on the basics — who regulates them, how they’re paid, why this lender — is the clearest signal to keep looking.
