Mortgage Broker vs Bank: Which is Better in Canada?

The Key Difference

A bank can only offer you their own mortgage products. A mortgage broker works with 30+ lenders — banks, credit unions, trust companies, and alternative lenders — to find you the best rate for your profile.

Mortgage Brokers

• Cost: Free to use — brokers are paid by the lender (finder's fee), not you
• Rate access: Often 0.25–0.75% below your bank's posted rate
• Best for: Self-employed, complex situations, bruised credit, best rate shopping
• Speed: Can sometimes approve faster than a big bank
• Regulation: Licensed by provincial regulators (FSRA in Ontario, BCFSA in BC, etc.)

Banks

• Cost: Free (built into your rate)
• Rate access: Typically higher than broker rates, but negotiable
• Best for: Existing banking relationship, convenience, simple applications
• Perks: Bundle discounts if you have other products with them

Our Recommendation

Always get at least one mortgage broker quote alongside your bank's offer. It takes 30 minutes and could save you thousands. If your bank wants to keep your business, they'll often match a competing offer.

For self-employed borrowers, those with less than perfect credit, or anyone with a complex financial situation — a mortgage broker is almost always the better choice.

⚠️ This article is for informational purposes only. Not financial advice. Canada Mortgage Rates is not a licensed mortgage broker. Always verify with a licensed professional.