Mortgage Broker in Ottawa: How to Choose the Right One
Ottawa homebuyers, refinancers and people renewing a mortgage often ask whether a broker is worth using. This guide explains what brokers do, how they are paid, what to ask before you choose one, and when a bank may still be the right choice.
Mortgage broker vs bank
| Mortgage broker | Bank | |
|---|---|---|
| Lender choice | Many banks, credit unions and monoline lenders | Its own products only |
| Who pays | Usually the lender, on funding. Ask about any fees. | Built into the rate and product |
| Best for | Comparing options, complex files, negotiating | Existing relationship, bundled banking |
| Rate negotiation | Brokers can shop your file across lenders | You negotiate with one lender |
| Advice | Independent of any single lender, within licensing rules | Advice is limited to the bank’s products |
What a mortgage broker does for you
- Reviews your income, debts, credit and down payment to see what you qualify for.
- Compares lenders and mortgage types for your situation.
- Arranges a pre-approval and rate hold while you shop for a home.
- Packages your application and manages the lender’s document requests.
- Helps at renewal or refinance to compare your existing lender against the market.
How mortgage brokers are paid
In most cases the lender pays the broker a fee when your mortgage funds, so you pay nothing directly. Some situations, such as private or alternative lending, can involve a broker or lender fee that you pay. In Ontario, brokers must disclose how they are compensated, so always ask before you commit.
How to choose a mortgage broker in Ottawa
- Check the licence. Search for the individual and the brokerage on the FSRA licence register.
- Ask how many lenders they work with and whether they can access monoline lenders and credit unions.
- Ask about fees in writing before you begin.
- Ask about experience with your situation, such as first-time buying, self-employed income or refinancing.
- Compare against your bank. Get one broker quote and one bank quote on the same day and the same mortgage type.
- Check reviews carefully, looking for consistent comments on communication and closing.
When a bank might still be the better choice
If you have a strong relationship with your bank, a simple file and a competitive quote, staying may be fine. Even then, a second quote from a broker gives you leverage to negotiate.
Frequently asked questions
Is a mortgage broker free in Ontario?
For most borrowers, yes. The lender typically pays the broker when the mortgage funds. Some alternative or private lending can involve fees, so ask the broker for a written breakdown before you proceed.
How do I check if a mortgage broker is licensed in Ontario?
Search FSRA’s public licence register for both the individual mortgage broker or agent and their brokerage. Unlicensed brokering is not allowed in Ontario.
Will using a mortgage broker hurt my credit score?
A broker usually pulls your credit once with your consent. Multiple mortgage inquiries within a short period are generally treated as one for scoring purposes, but confirm with the broker how it works for your file.
Can a broker get me a better rate than my bank?
Often a broker can find a lower rate or better terms by comparing multiple lenders, but this is not guaranteed. It is reasonable to compare a broker quote against your bank’s offer.
Can I use a broker to renew or refinance?
Yes. Brokers handle purchases, refinances, renewals and switches. Renewing with a broker can also give you access to a wider range of lenders than your current one.
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Get matched nowImportant: Ottawa Mortgages is an independent information and referral service. We are not a lender, mortgage broker or mortgage brokerage, and we do not give mortgage advice or make credit decisions. If you ask to be connected, your details may be shared with a licensed Ontario mortgage professional, who may compensate us. Rates, rules and eligibility change often. Confirm details with a licensed professional and official sources, and check any Ontario mortgage broker’s licence with FSRA. Read our full disclosure.