Brokers vs Banks

When you get a mortgage, your contract is in effect for a specific period of time. This is called the mortgage term, and it can range from a few months to five years or longer.


The big difference between a bank and a mortgage broker is that a mortgage broker can work with multiple lenders with different rates meaning they can work to try and find you the lowest rate for your mortgage, while a bank can only give you the mortgage option from their own company.

Benefits Of Using A Bank For Your Mortgage

  • Convenience. People tend to feel safe with a bank and people like having all their financial resources in one place.
  • Perks for Combining Services. Your mortgage might even come with perks like waived account fees or a free safety deposit box. It’s even possible that you could land an extra, home equity line of credit to help with renovations after you move in.
  • A-lenders. Banks are A-lenders. They tend to look for lower-risk borrowers with the best credit scores. A-lenders may provide great rates but also have the strictest policies. For that reason, your bank may not always be able to give you what you are looking for.

Benefits Of Using A Mortgage Broker

  • Access to More LendersMortgage brokers provide a one-stop shop for their clients. They may have access to hundreds of potential lenders with only one credit inquiry impacting your score. They are often able to find great rates and get you approved quickly. In fact, mortgage brokers often have access to many A lenders such as TD, Scotiabank and BMO. They also have access to other A lenders who are not considered major banks, but still offer great rates and terms. Similarly, most brokers also have access to a network of B lenders and private lenders who cater to those with less-than-perfect credit or finances. 
  • NegotiationWhile banks expect the client to negotiate with them, or accept the given rate, mortgage brokers are more likely to go to bat for you, to get a lower interest rate.
  • FlexibilityMortgage brokers are often very flexible with meetings and communication. Many are available after business hours and are willing to deal with meetings and much of the necessary paperwork through text, email, and Skype. If you’re a bit of an introvert, you can even deal with an online mortgage broker, avoiding face-to-face meetings altogether.