Should I get a mortgage from a broker or a bank?

The choice is yours, but it helps to understand both options. Brokers work with a variety of lenders to find you the best rate. Banks are always happy to work with new borrowers, but they may not give you their most competitive rate up front.

When to choose a bank

Taking a mortgage with your local bank lets you to consolidate all of your financial services (bank account, credit card, insurance, mortgage, etc.) with one institution. It’s a small, but not insignificant, advantage banks enjoy over brokers.

When to choose a broker

Canadian borrowers are increasingly using mortgage brokers to get the lowest rates on their home loan. Here are a few reasons why they’re choosing brokers:

  • Brokers have access to a wide network of lenders and can get more competitive rates than regular consumers can.
  • They usually have special relationships with the lenders they work with, and you get to enjoy the perks.
  • They process a lot of mortgages and can pass their volume discounts onto borrowers like you.
  • They have access to mortgage offers from Canada’s major banks, so you can still get bank rates from a broker.

Recent surveys from the latest Canadian Association of Accredited Mortgage Professionals (CAAMP) report show that brokers accounted for 55% of total mortgage principals in 2015.

Mortgage Broker Share in 2015
Source: Annual State of the Residential Mortgage Market in Canada, CAAMP December 2015

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