Access to Multiple Lenders
A mortgage broker works with a network of lenders, including major banks, credit unions, and monoline lenders that do not have retail branches. This means a broker can compare options across many lenders rather than presenting only one institution's products.
How Brokers Are Paid
Brokers are typically paid a commission by the lender once your mortgage closes, so their service usually comes at no direct cost to you as the borrower. This allows them to focus on finding you a good fit rather than selling a specific product.
Personalized Guidance
Because brokers work with many different borrower profiles, from self-employed buyers to newcomers to those with credit challenges, they often have more flexibility in matching you with a lender suited to your specific situation.
What Banks Offer
Going directly to your bank can feel simpler if you already have a relationship there, and some banks offer special rates or perks to existing clients. However, you are limited to that one institution's products and underwriting rules.
- One lender's products only
- Possible existing relationship perks
- Single point of contact
Making the Comparison
It often makes sense to at least speak with a broker even if you plan to check your bank too, simply to see the range of options available before committing.
Frequently asked questions
- Does using a broker cost me money?
- Usually not, brokers are typically paid by the lender once your mortgage closes.
- Can a broker get me a better rate than my bank?
- Often yes, since brokers can compare rates across many lenders, though it depends on your specific file.
- Is it harder to get approved through a broker?
- No, the approval standards are set by the lenders themselves, a broker simply helps match you with the right one.