Have questions? Call:



Toronto Mortgage

Why Use a Mortgage Broker?

Is it really better to use a broker?

The short answer is ABSOLUTELY!  An independent mortgage broker is not tied to any one financial institution which means they work for you, the borrower. Who uses a mortgage broker? Is this a growing trend in Canada? Currently more than 25% of Canadians are using mortgage brokers for their financing needs and the percentage is growing every year as people realize the time and money saved by going the broker route.

So what exactly does a mortgage broker do?

Your home is your single biggest investment and you will be paying down on it for many years. You spend countless hours finding the perfect house and it is as important to do your research and shop around for the best financial solution as well. This is where a mortgage broker comes in. An experienced broker works to understand their clients needs, and will shop all the banks and come back with options that best meet the long…. and the short-term objectives of the client.

Does this save you time – money?

Definitely! Mortgage Brokers do the legwork for you which saves you time.  Plain and simple.  By shopping your mortgage to the lending institutions who bid on your business, and obtaining the best rate, you save money.

Does the broker work for the bank or the client?

Unlike a bank employee, who has no choice but to offer you their bank’s products, an independent mortgage broker is exactly that: independent. They are not tied to any one financial institution thus offering true unbiased advice with nothing but the clients best interests in mind. We work for you, the client and have one goal: to find our clients the best product at the best rate.

Does that mean you are middle-men?

We are actually not middlemen at all. Again, unlike the banks, brokers have direct access to lending institutions – over 40 major lenders across the country in fact with whom we have very strong relationships – and get instant approvals. This grants a greater likelihood of approvals of higher mortgage amounts as well as access to unique products – many only offered through the mortgage broker channel. And because of these relationships and access to hundreds of products, we have greater leverage in negotiating extremely competitive mortgage products, terms and rates.

Sounds great, but how much does all this service cost the client?

Using the services of a mortgage broker costs the client nothing in the vast majority of cases. Lenders pay the broker for placing the mortgage with their institutions.  How can lenders pay brokers and still offer low rates?  Since brokers are independent, and not employees, it costs  a bank much less to fund mortgages through a brokers than if they had to hire their own agents to do so.  Another important point is that a broker is paid on the size of the mortgage, not the rate. Unlike the banks, whose employees may need to meet certain rate related targets, a mortgage broker will always work hard to secure the best rate for their clients.

Are there many mortgage products on the market?

Currently, there are over 400 mortgage products on the market each with their own features, benefits, terms and rates. Plus, there are new products launching very day – many specialized products for the self-employees, first time buyers and 0% down programs to name a few – it’s a very dynamic industry.

So what’s the bottom line? – a mortgage broker will give you a better deal than your own bank?

Many consumers believe that their own bank will offer them the best rate and product.  The usual first statement is: “I have a great relationship with my bank”. The reality however is that, although you may have a great relationship with your account manager, they are bound solely by what their employers offer.  They typically have a limited number of pre-packaged mortgages available to them. They do not have access to all the lenders and products on the market. 

Still not completely sure what a mortgage broker does?  Imagine, as an example, that you were in the market for a new car but didn’t know what vehicle you wanted or needed.  Would your first thought be to go straight to one dealer and quickly settle for whatever they had available in the lot?  Or, would you shop around at an auto mall to compare your options? Now, imagine having a knowledgeable person there with you, to take you around, point out all the differences in the vehicles, available dealer services, warranties, and also to negotiate on your behalf – all at no extra charge. That is exactly what mortgage brokers do when it comes to your mortgage.