Why a broker
Your bank offers its own mortgages. A mortgage broker compares mortgages from many lenders.
In Ontario, a licensed mortgage brokerage works for you across lenders, and for most bank and monoline mortgages the brokerage's service costs you nothing.
Written by Stonefield Mortgage · Reviewed by David Steinfeld, principal broker · Stonefield Mortgage, FSRA mortgage brokerage licence #13722 · [review pending — before this page is indexed]
Published · Updated
A mortgage broker compares mortgages from many lenders, helps you choose, and handles the application. In Ontario, brokerages are licensed by FSRA. For most mortgages from banks, credit unions and monoline lenders the lender pays the brokerage, so the service is usually free to you. Any fee must be disclosed in writing before you commit. The lender, not the broker, approves the mortgage.
Four things that change when you use a broker
- More than one lender
- Your bank offers its own mortgages, the way a Honda dealership sells Hondas: the dealer sells you a Honda, not the car that fits you. We work with many lenders: banks, credit unions, trust companies, monoline lenders, private lenders. Some of these lenders offer their mortgages mainly through brokers, so you would not see their mortgages at a branch.
- The fine print, explained
- Two mortgages with the same rate can cost different amounts if you sell, refinance or pay extra. We compare prepayment privileges, penalties and portability, not just the rate.
- One application
- We prepare one complete application and send it to the lender whose rules fit your situation, instead of you applying bank by bank.
- Someone on your side at renewal
- Your lender's renewal letter is one offer. We compare that offer with offers from other lenders and tell you if staying with your lender is the better choice.
When your bank may be the simpler choice
If your bank offers you a mortgage you are happy with and you value having everything in one place, staying with your bank is a reasonable choice.
A broker is most useful when you want to compare lenders, when your situation is less straightforward (self-employed income, a recent job change, a larger purchase), or when your renewal offer doesn't look right.
Questions about using a mortgage broker
What does a mortgage broker do?
A licensed mortgage brokerage arranges mortgages between borrowers and lenders. We look at your situation, compare products from many lenders, prepare one complete application and stay with it until closing. We do not lend our own money; the lender makes the final decision.
How are mortgage brokers paid?
For most mortgages from banks, credit unions and monoline lenders, the lender pays the brokerage a fee when the mortgage funds. The lender's payment is why the service is usually free to the borrower.
In Ontario, a brokerage must disclose in writing how it is paid, and any fee you would pay, before you commit. How we are paid, in detail.
Is a broker's mortgage different from the bank's own?
No. A mortgage arranged through a broker is the same kind of mortgage, from a regulated lender, registered on your home in the same way. Some lenders, monoline lenders in particular, offer their mortgages mainly through brokers.
Who licenses mortgage brokers in Ontario?
The Financial Services Regulatory Authority of Ontario (FSRA). Brokerages, brokers and agents are licensed, and you can look them up on FSRA's public register. Stonefield Mortgage is a trade name of Stonefield Capital Inc., FSRA mortgage brokerage licence #13722.
Will using a broker hurt my credit?
Your credit report is checked with your consent, as it would be at a bank. Credit bureaus generally treat several mortgage inquiries in a short window as one search.
This page is general information, not financial advice. Every mortgage is subject to lender approval.
No cost to talk
Ask a mortgage broker to call you back
Tell us what you're planning for a home in Ontario and a good number to reach you. We call back within one business day, usually sooner. We ask for documents only once we know which ones your mortgage needs.
You can also call us at (416) 371-2077.