What a Mortgage Broker Actually Does
A mortgage broker is a licensed intermediary between you and the lenders. One application, one credit pull, and your file is placed with the lender whose rules and pricing fit your situation best.
The short answer
A licensed mortgage broker submits one application to multiple lenders — banks, monoline lenders, credit unions, alternative and private lenders — and is paid a finder's fee by the lender on most standard residential mortgages, so there's no cost to you. A bank branch can only offer its own products; a broker compares guidelines, penalty formulas and prepayment terms across lenders, not just rates.
Broker versus bank
| Bank branch | Mortgage broker | |
|---|---|---|
| Lender options | One | Dozens, including lenders with no branches |
| Credit checks while shopping | One per bank you approach | One, shared across lenders |
| Who they represent | The lender | You |
| Cost on standard residential files | None | None — the lender pays the broker |
| Options if declined | Ends there | Alternative and private lenders reviewed |
How brokers are paid
On standard residential mortgages with prime lenders, the lender pays the broker a finder's fee at closing. You pay nothing. On alternative or private files a lender or broker fee can apply — in Ontario that fee must be disclosed in writing before you commit, and you'll see it in advance every time.
What licensing means
Mortgage brokering is provincially regulated. In Ontario, brokers and agents are licensed under the Financial Services Regulatory Authority (FSRA); in Alberta, activity is regulated by the Real Estate Council of Alberta (RECA). Licensed professionals carry disclosure obligations, errors and omissions coverage, and continuing education requirements.
I'm Tiffany Quaye, a licensed mortgage professional brokering through Pineapple Financial Inc., working with homeowners across Ontario and Alberta.
The process, step by step
- A conversation about your goal, balances and renewal date. No credit check at this stage.
- Document collection: income, property details and existing mortgage statement.
- One credit pull and one application, submitted to the lenders that actually fit.
- Lender commitment reviewed with you line by line — rate, penalty formula and prepayment privileges.
- Appraisal and lawyer coordination, then funding.
The questions worth asking any broker
- How is the prepayment penalty calculated at this lender, and what would mine be on a $400,000 balance?
- What are the prepayment privileges, and can I increase my payment mid-term?
- Is this a collateral or standard charge, and what does that mean if I switch later?
- Are you paid by the lender on this file, and is there any fee to me?
Common questions
Does a mortgage broker cost me anything?
On standard residential mortgages with prime lenders, no — the lender pays the broker at closing. If a file requires an alternative or private lender where a fee applies, it's disclosed in writing before you commit to anything.
Does using a broker hurt my credit score?
One credit inquiry covers the whole shopping process, because the same application is presented to multiple lenders. Approaching several banks yourself creates a separate inquiry each time.
Can a broker get a better rate than my bank?
Often, but rate is only part of it. Penalty formulas, prepayment privileges and whether the charge is collateral or standard can cost or save far more than a small rate difference over a five-year term.
What if my bank already declined me?
That's a common starting point. A decline usually reflects one lender's guideline, not your whole situation — alternative and private lenders assess self-employment, bruised credit and unusual properties differently.
I shop your mortgage across 30+ lenders — banks, monolines and private
One application, compared across lenders. You are not stuck with your bank's answer.
Start the conversation
Tell me a little about your situation and I'll come back with the honest version — including whether waiting is the smarter move.
Step 1 of 3
Get your personalised plan
Three quick steps. No credit check, no application, no obligation — just a clear read on your options.
Not sure which option fits your situation?
Bring your numbers — mortgage balance, balances you're carrying, and what's stressing you out. I'll walk you through what's realistic, including when doing nothing is the better call.