How many lenders do you work with
A broker who only pitches one or two lenders isn't giving you the full picture. Ask how many lenders are on their panel, including monoline lenders and credit unions, not just the big banks. A wider network usually means more flexibility on rate, term, and approval criteria, especially if your income or credit history is a bit unusual.
How are you paid
Most mortgage brokers in Ontario are paid by the lender once a deal closes, not by you directly. It helps to confirm this in writing and ask whether the commission structure could influence which lender they recommend. A broker who explains this openly is usually one you can trust to prioritize your interests.
What happens if my rate hold expires
Rate holds typically last 90 to 120 days. Ask what your broker does if your closing date slips past that window, whether they can extend the hold, and what it might cost you if rates moved during that time.
- Confirm the exact hold length in writing
- Ask about extension policies before you sign
- Understand how a blend works if rates changed
Can you walk me through the total cost of borrowing
A good broker should be able to explain more than just the monthly payment. Ask about default insurance premiums if your down payment is under 20 percent, prepayment penalties, and any lender fees so you see the real cost of the mortgage over its term.
What is your backup plan if my file gets declined
Not every application sails through underwriting on the first try. Ask what alternatives exist, whether that means a different lender, a larger down payment, or a co-signer, so you are not scrambling if your first choice doesn't work out.
Frequently asked questions
- Do I have to pay a mortgage broker directly?
- In most residential deals in Ontario, the lender pays the broker a commission once the mortgage closes, so there is usually no direct fee to you.
- Is it worth using a broker instead of going straight to my bank?
- A broker can compare multiple lenders at once, which often surfaces options a single bank branch won't offer, particularly for self-employed or credit-challenged buyers.
- How early should I start talking to a broker?
- Ideally before you start house hunting, so you know your budget and have a pre-approval in hand when you make an offer.