Working with me · 4 min read
Why use a broker instead of going straight to your bank
Your bank shows you one shelf. A broker shops dozens of lenders, and on most residential deals the lender pays the commission, not you.
Fair question, and it deserves a straight answer — including the part where a bank sometimes wins.
One shelf versus the whole store
Your bank has exactly one product line and one set of guidelines. If your file does not fit them, the answer is no — and nobody at the branch is going to tell you which of the other lenders in Canada would have said yes. I place files with big banks, monoline lenders, credit unions, and alternative lenders, and I see the guideline differences every week. The best rate and the best fit are frequently at different institutions.
Who pays me
On virtually every prime residential mortgage, the lender pays my commission when your deal funds. You do not pay me. In the rare case where a file requires an alternative lender who does not pay a commission, the fee is disclosed to you in writing and agreed before any application goes out. You will never find a surprise.
One credit pull, many lenders
I pull your credit once. That single report goes to whichever lenders make sense. Applying at four banks yourself means four hard inquiries and a lower score by the time you reach the fourth.
Where a bank can genuinely win
I would rather tell you this than have you find out later. If you have a long relationship and significant assets at one institution, they can sometimes discount below what is publicly available. Some banks offer blend-and-extend options mid-term that a switch cannot match. And a small number of lenders sell only through their own branches. If your bank's offer is the best one on the table, I will tell you so — I would rather lose that deal than earn it dishonestly.
What to ask any broker
- How many lenders did you actually submit to, and why those?
- What is the prepayment privilege, and how is the penalty calculated?
- Is this rate insured, insurable, or uninsured — and how does that change what I am offered?
- What happens at renewal, and will you contact me before the lender does?
General information only, not financial advice, and not an offer of credit. Figures and program limits are current at the time of writing and do change — confirm the details that apply to your file with me before you act on them.
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