Comparison Guide

Mortgage Broker vs Bank — which is better for you?

The short answer: a broker gives you access to more lenders, more rates, and more options at no extra cost. Here's the full comparison so you can decide for yourself.

Work With a Broker Compare Rates
Side by side

Broker vs bank — the real differences

Both can get you a mortgage. But the experience, options, and outcomes are often very different.

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Going to your bank

One lender, one rate. Your bank can only offer its own products. If their rate isn't competitive or they decline your application, you start from scratch elsewhere — often with another credit check.

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Using a mortgage broker

50+ lenders, one application. A licensed broker shops your file across banks, credit unions, monoline lenders, and alternative lenders — finding the best rate and approval without multiple credit inquiries.

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Cost comparison

Broker services are typically free to borrowers — the lender pays the broker a commission (0.6–1.1% of the mortgage). Only private mortgage brokers or specific alt-lending scenarios carry borrower-paid fees.

Speed

Banks often have longer internal approval processes. A mortgage broker working with a monoline lender can sometimes fund in 5–7 business days — critical in competitive markets.

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Complexity & special cases

Self-employed, bad credit, rental properties, private lending — brokers excel where banks decline. We have access to lenders that don't take direct applications from the public.

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Ongoing relationship

A good broker tracks your file and contacts you 4 months before renewal — giving you time to shop the market rather than accepting whatever your bank offers. Banks rarely provide this proactive service.

FactorBrokerBank
Number of lenders50+1
Cost to borrowerUsually freeFree
Alternative lending accessYesNo
Proactive renewal shoppingYesRarely
Self-employed solutionsStrongLimited
Works for bad creditYesNo
Common questions
Does using a mortgage broker hurt my credit score?
No — a broker submits one application on your behalf, and all lender inquiries within a 14–45 day window are typically grouped as a single inquiry by the credit bureaus. You won't see multiple hits for shopping your mortgage through a broker.
Does my bank give me a better rate because I'm an existing customer?
Sometimes marginally. However, the "loyalty discount" your bank offers is almost always less than what a broker can negotiate by pitting multiple lenders against each other. We regularly beat bank renewal offers by 0.2–0.7%.
More questions
Is a mortgage broker regulated in Ontario?
Yes. Mortgage brokers and agents in Ontario are licensed and regulated by FSRA (Financial Services Regulatory Authority of Ontario) under the Mortgage Brokerages, Lenders and Administrators Act, 2006. My Future Mortgage is a licensed Ontario brokerage — FSRA Licence #13576.
When should I go directly to my bank instead of using a broker?
If you have an existing relationship and your bank is offering a provably competitive rate, the convenience of staying may outweigh shopping around. But in most cases, a 15-minute call with a broker costs nothing and could save thousands. There's no downside to getting a comparison.

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