Does a mortgage broker compare the entire market?

Do not assume so. Ask which lenders and products the broker can access, then identify relevant direct-lender options outside that range.

Is a broker always cheaper than a bank?

No route guarantees the best offer for every borrower. Compare written rates, charges, conditions and features for the same requested mortgage.

Do borrowers ever pay mortgage-broker fees?

They can. Ask for the complete written compensation and fee arrangement, including any charge if the transaction does not close.

Does every renewal switch require the same uninsured stress test?

No. OSFI describes an exception for eligible straight switches between federally regulated institutions. Ask the new lender whether the transaction meets the conditions; approval is still required.

Is mortgage preapproval a final guarantee?

No. Ask what borrower, property and documentation conditions remain before relying on the financing.

Mortgage Broker vs Bank in Canada: Compare Your

Compare the actual mortgage offers and the work each provider will do for you. Choosing a broker or a bank does not by itself establish which offer has the lowest total cost or the most useful terms. Use the same loan amount and requested features when asking for quotes.

What each route gives you access to

FCAC’s mortgage guidance explains that you can approach lenders directly or work with a broker who arranges financing. Direct lenders include banks, credit unions and other institutions. Some products are available only directly and others through brokers; brokers also differ in the lenders they work with. No single broker should be assumed to compare every available mortgage.

Ask a broker which lenders they can approach for your application and which relevant options fall outside that range.
Ask a direct lender which alternatives it can offer for the amount, term and repayment plan you need.
Request the proposed rate and conditions in writing. Identify anything that remains subject to approval, valuation or other conditions.

Ask who pays, and for what

In its Ontario consumer guidance, FSRA explains that a brokerage is usually paid by the lender, but borrower fees can also apply. Ask for the complete compensation and fee arrangement. Also ask whose interests the brokerage represents and read its written relationship disclosures. Do not assume “no fee” answers every question about compensation or conflicts.

Ask each provider to separate its own charges from appraisal, legal, discharge and other transaction costs included in the proposal. Which costs apply if financing does not close? Obtain an answer for your particular application instead of using a generic broker-fee percentage.

Compare more than the interest rate

FCAC’s mortgage-selection guide distinguishes the term—the period covered by the mortgage contract—from amortization, the repayment period. It also explains that fixed or variable interest, prepayment privileges and penalties affect the choice. Compare these features alongside the rate.

Same basis: Are the loan amount, down payment, term and amortization the same in both offers?
Payments: What could change the payment or the amount going toward principal? Ask for an illustration using the proposed product.
Extra payments: What can you repay without a penalty, and how is an excess payment treated?
Leaving early: Request an explanation of charges if you sell, refinance or transfer during the term.
Conditions: What documents and deadlines remain? Which quoted terms can change before closing?
Service: Who will handle the file after closing and at renewal?

Understand the uninsured mortgage stress test

As checked October 14, 2026, OSFI’s minimum qualifying rate for uninsured mortgages at federally regulated lenders is the greater of the contract rate plus two percentage points or 5.25%. This is a qualifying rule, not the interest rate you necessarily pay. It should not be presented as a universal rule for every lender or mortgage.

OSFI also provides a straight-switch exception for eligible stand-alone uninsured mortgages moving between federally regulated institutions at renewal. The remaining amortization must not increase and there must be no equity takeout; the guidance allows a limited transaction-cost amount. Combined loan plans are outside this exception. The new lender must still assess the application.

Ask the proposed lender whether your transaction qualifies for that exception and which conditions it applies. Do not assume that switching, refinancing and adding borrowing are treated the same way. This guide does not estimate how much the qualifying test changes your borrowing capacity.

Check authorization in the relevant province

FSRA’s Ontario guidance links checks for mortgage professionals and brokerages. It also explains exemptions, including certain financial institutions. An absent brokerage-register result for a bank should not automatically be treated as evidence of improper activity. In another province or territory, check the authority responsible there.

Separate preapproval from the final decision

FCAC cautions that preapproval does not guarantee the final mortgage. Confirm the conditions, documentation and property assessment still required. Ask who will tell you when financing is final and what information would trigger another review.

Keep a comparison sheet containing the written offer, remaining conditions, full cost explanation, credential checks and unanswered questions. Resolve differences before committing. For another financial-provider checklist, see our guide to choosing a financial advisor.

Mortgage Broker vs Bank in Canada: How to Compare