When arranging a mortgage, you can go straight to your bank or work through an independent broker. Both can get you a mortgage; they simply work differently. Here is a fair comparison to help you decide which fits your situation.
The Range of Options
A bank offers its own products within its own guidelines. A broker can compare offers across many lenders, which improves your chances of a competitive rate and a mortgage that fits. If your file is straightforward and you value the familiarity of your bank, either can work; if you want choice, a broker widens it.
How Approvals Are Handled
A branch works within one set of criteria, so a decline there ends that path. A broker who knows the criteria of many lenders can redirect your application to one better suited to your situation, which tends to help for less standard files.
Seeing the Full Cost
Both banks and brokers should explain rates and fees, but a broker’s job is to compare them across lenders and highlight terms that could cost you later, such as penalties or a lack of portability. Seeing options side by side makes the trade-offs clearer.
Non-Standard Income
If you are self-employed or earn commission, a broker who knows which lenders are comfortable with your situation can present your file to advantage. A branch is limited to its own guidelines, which may not accommodate you as easily.
Time and Effort
With a bank you manage the relationship yourself; with a broker, much of the legwork, paperwork, comparison, and follow-up, is handled for you. For a busy buyer, that convenience is worth something.
Choosing What Works for You
There is no single right answer, only the one that suits your file and how much choice you want. I am licensed in British Columbia, Alberta, and Ontario, and I am glad to help you weigh it honestly.
