Do mortgage brokers get better rates than banks in Canada?

Often, but not always: in Canada, a mortgage broker finds a lower rate than a bank's first offer. The difference is reach, because a broker compares many lenders at once while a bank offers only its own products. Banks can and do match competing offers, and some products are only available at a bank's own branches.

What a broker compares

A mortgage broker is licensed to arrange mortgages with several lenders. In Ontario, brokerages are licensed by the Financial Services Regulatory Authority of Ontario (FSRA). Instead of one lender's offer, you see several side by side: banks, credit unions you might not approach yourself, trust companies and monoline lenders, which lend only mortgages and generally work only through brokers.

A broker's reach is the honest version of "brokers get better rates". The broker does not set the rate; each lender does. What the broker adds is a comparison you would otherwise have to build yourself, one application at a time.

Our page on what a broker sees explains which lender information a broker works with that the public generally does not.

Why a bank's first offer is not always its final one

A bank's renewal letter or first quote is one offer. The Financial Consumer Agency of Canada says you can negotiate with your current lender at renewal and "may qualify for a discounted interest rate that is lower than the rate quoted in your renewal letter" (source: Financial Consumer Agency of Canada, checked October 2026).

Because a bank's first offer can move, "broker versus bank" is often the wrong frame. Many borrowers get the clearest picture by doing both: getting a written offer through a broker, then asking their own bank whether it will match.

If the bank matches, staying is a good outcome. Our page on whether your bank will match covers what to bring.

When a bank may come out ahead

• Your bank matches or beats the comparison. Banks can and do match, often through a renewal or retention team.
• The product is branch-only. Some lenders keep certain products or offers for their own branches, and those may not be available through a broker.
• Relationship pricing. Some banks offer a better rate when you hold other accounts or products with them. Weigh relationship pricing against the whole offer.
• Your situation fits one lender's rules well. Sometimes your own bank is the right fit, and a good broker will say so.

How brokers are paid

For most bank, credit union and monoline mortgages, the lender pays the brokerage, so the service is usually free to the borrower. Any fee is disclosed in writing before you commit. Our page on how we are paid sets out exactly how the lender's payment works for us.

Because the lender pays, it is fair to ask any broker how they choose which lenders to show you. A broker who presents several options, explains the trade-offs and tells you when staying is better is doing the job.

Rate is only part of the offer

Two offers with the same rate can cost different amounts. One offer may have a stricter prepayment penalty method, smaller prepayment privileges, a collateral charge or no portability. A broker comparison is most useful when it covers the whole offer, not just the headline rate. Any offer is subject to lender approval.

What to do next

If your offer came straight from your bank or credit union, see how your offer stacks up in the offer check. Or bring the offer to us through Can your bank do better?: we check your bank's offer against the lenders we work with and tell you plainly if staying with your bank makes sense.

If your offer came through another broker, the offer check gives you the questions to ask that broker.