Mortgage Broker vs Bank — Which Should You Choose?

This is the most common question I hear: "How do you get paid?" The answer is simple — the lender pays me, not you.

When I arrange a mortgage for you, the lender pays a finder's fee (commission) for bringing them the business. This commission is typically 0.5% to 1.2% of the mortgage amount and is built into the lender's standard cost of doing business.

The rate you receive through a broker is typically the same or better than going directly to a bank. Lenders offer brokers competitive rate promotions because brokers bring them volume.

In my experience, a broker adds the most value in these situations:

• First-time buyers — You need guidance through the process and access to first-time buyer programs.
• Self-employed or variable income — Banks often struggle with non-traditional income. Brokers know which lenders are flexible.
• Credit challenges — Brokers have access to B-lenders and alternative options that banks don't offer.
• Rate shopping — Instead of visiting 5 banks, one broker shops 50+ lenders for you.
• Renewals — Your current lender's renewal offer may not be competitive. A broker can find better options.
• Complex transactions — Investment properties, rental income, bridge financing, or refinances with multiple objectives.

I believe in giving balanced advice. There are situations where going directly to a bank can be the right call:

• Existing relationship benefits — Some banks offer rate discounts to long-standing clients with significant deposits.
• Bundled products — If you want your mortgage, chequing, savings, and credit card all in one place.
• Simple, straightforward application — Salaried employee, excellent credit, standard property — any lender will compete for this business.
• Personal preference — Some people prefer walking into a branch. That's valid.

For the vast majority of mortgage transactions, there is zero cost to you. When fees do apply (typically for non-standard lending), I always disclose the amount and explain why before you commit to anything.

If you've recently moved to Canada, navigating the mortgage system can feel overwhelming. Here's why working with a broker gives you an advantage:

• No Canadian credit history? Brokers access newcomer-specific programs that accept international credit reports, employment letters, and alternative documentation.
• Work permit vs PR vs citizenship — Different immigration statuses qualify for different programs. I know which lenders accept each status.
• Foreign income documentation — Some lenders accept income earned outside Canada. Banks typically don't.
• Larger down payments accepted — Newcomer programs often require 10–35% down, depending on status and income documentation.

Surrey has a large newcomer population, and I work with immigrant families regularly. As a dual-licensed realtor and mortgage broker, I can help you find the right home and secure the financing — all coordinated through one point of contact.

Not all brokers are the same. Here's what to look for:

• Licensed by BCFSA — All legitimate mortgage brokers in BC must be licensed through the BC Financial Services Authority.
• Access to multiple lenders — Ask how many lenders they work with. More options mean better rates for you.
• Transparent about fees — A good broker explains their compensation clearly and discloses any fees upfront.
• Reviews and referrals — Check Google reviews and ask for references. Past client experience matters.
• Local market knowledge — A broker who understands the Surrey and Metro Vancouver market can provide better advice than a national call centre.
• Communication style — Choose someone who explains things clearly and responds promptly. You'll be working closely during a potentially stressful process.