What Does a Mortgage Broker Do?
A mortgage broker helps you compare mortgage options from lenders available through the brokerage.
Instead of going directly to one bank and considering that institution's mortgage products, a broker reviews your financial situation, identifies lenders whose lending criteria may fit your circumstances, and can submit your application to an appropriate lender.
The lender — not the broker — makes the final decision about whether to approve your mortgage and on what terms.
A broker can help with:
- Comparing mortgage rates and products
- Understanding fixed and variable mortgages
- Finding lenders that fit your situation
- Preparing a mortgage application
- Coordinating documentation
- Mortgage pre-approvals
- Purchases
- Refinancing
- Renewals
- Investment properties
- Self-employed borrowers
- More specialized property types
The goal isn't simply to find the lowest rate. A mortgage is more than an interest rate.
The mortgage term, prepayment privileges, penalties, portability, qualification requirements and lender policies can all matter.
Why Work With a Mortgage Broker Instead of Going Directly to a Bank?
A bank can be an excellent option for some borrowers.
But a bank generally offers the mortgage products of that institution. A mortgage broker can compare options from multiple lenders available through the brokerage.
| Bank | Mortgage Broker | |
|---|---|---|
| Lender options | One institution's mortgage products | Multiple lenders available through the brokerage |
| Rate comparison | Compare that bank's available rates | Compare rates from participating lenders |
| Underwriting | Bank's own underwriting | Each lender independently underwrites |
| Point of contact | Bank representative | Your mortgage broker |
| Mortgage options | Limited to that institution's products | Options may vary across lenders |
| Application | Direct to the bank | Broker submits to an appropriate lender |
What about paperwork and approval?
In our experience, some bank applications can involve more internal review, documentation and due diligence than a straightforward A-lender application through a broker.
That isn't true of every bank or every borrower. Some bank applications are extremely straightforward, while some broker applications require substantial documentation.
The advantage of working with a broker is that we can assess your situation first and identify lenders whose guidelines may be appropriate before submitting the application.
Each lender independently decides whether to approve a mortgage and on what terms.
Current Ontario Mortgage Rates
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Who Can a Mortgage Broker Help?
Mortgage brokers work with many different types of borrowers.
First-Time Home Buyers
Buying your first home can involve more decisions than simply choosing a mortgage rate. We can help you understand your potential borrowing range, down payment options, mortgage products and the steps involved before you make an offer.
Move-Up Buyers
If you're selling one property and purchasing another, timing and financing can become more complicated. We can help you consider your existing mortgage, new purchase, down payment and financing requirements together.
Self-Employed Borrowers
Self-employed income can be assessed differently depending on the lender and the structure of your business. A mortgage broker can help identify lenders whose income guidelines may fit your situation and explain what documentation may be required.
Investors
Investment properties can have different qualification requirements from owner-occupied homes. Rental income, down payment, property type and the lender's policies can all affect the financing options available.
Homeowners Refinancing
If you're looking to access equity, consolidate debt, renovate or change your mortgage structure, refinancing may be an option. The right mortgage isn't necessarily the one with the lowest advertised purchase rate.
Mortgage Renewals
Your existing lender isn't necessarily your only option when your mortgage comes up for renewal. A renewal is an opportunity to compare the rate, term, features and flexibility of your current mortgage with other available options.
How the Mortgage Process Works
- 1
Tell us about your situation
Start with your purchase, refinance or renewal plans. We'll look at the basics — including income, down payment, property and timeline.
- 2
Review your options
We'll identify mortgage products and lenders that may fit your situation.
- 3
Choose your mortgage
We'll explain the available options so you can make an informed decision.
- 4
Complete the application
Once you've selected an option, we'll help you gather the required documentation and submit the application.
- 5
The lender underwrites the file
The lender independently reviews the application and makes the approval decision.
- 6
Close your mortgage
Once approved and all conditions are satisfied, your lawyer completes the mortgage closing.
How Long Does a Mortgage Pre-Approval Take?
The timeline depends on the complexity of your situation and how quickly the required information and documentation can be provided.
A straightforward application can move quickly, while self-employed income, multiple properties, unusual property types or more complex financial situations may require additional review.
A pre-approval can help you understand your potential borrowing range before making an offer, but pre-approval is not a guarantee of final mortgage approval.
The property itself and the final application still need to satisfy the lender's requirements.
What Mortgage Rate Can You Get?
There isn't one Ontario mortgage rate that applies to everyone. Your rate can depend on:
Down payment
The amount you're putting down can affect whether your mortgage is insured, insurable or conventional.
Credit
Your credit history can affect the mortgage products and lenders available to you.
Income
Lenders assess different types of income according to their own policies.
Property
A standard owner-occupied home may be treated differently from a rental, condo, rural property or multi-unit property.
Mortgage amount
Mortgage pricing can vary depending on the amount being borrowed and the lender's product.
Term
A 2-year fixed, 3-year fixed and 5-year fixed mortgage can have different rates.
Mortgage features
Prepayment privileges, portability and penalty calculations can be just as important as the headline rate depending on your plans.
What Makes a Good Mortgage?
The lowest advertised rate isn't necessarily the best mortgage for your situation. Before choosing a mortgage, consider:
- Interest rate — What will you pay during the term?
- Term — How long are you committing to the mortgage?
- Prepayment privileges — How much can you pay off early?
- Penalty — What happens if you sell or refinance before maturity?
- Portability — Can you transfer the mortgage if you move?
- Restrictions — Are there limitations that matter to your plans?
- Lender policies — Does the lender's underwriting approach fit your situation?
A mortgage with a slightly higher rate can sometimes be more appropriate if it provides flexibility that matters to you.
Mortgage Broker or Bank: Which Should You Choose?
There isn't a universal answer.
If you already have a strong relationship with your bank and its mortgage product is competitive for your situation, going directly to the bank may make sense.
A mortgage broker may be particularly useful if you want to:
- Compare multiple lenders
- Understand different mortgage products
- Explore options beyond your current bank
- Have a more complex income situation
- Compare renewal options
- Finance an investment property
- Explore refinancing
- Understand your options before making an offer
The important thing is to compare the mortgage, not just the institution.
Mortgage Services
Home Purchases
Financing for first-time buyers, move-up buyers and other home purchases.
Mortgage Pre-Approvals
Understand your potential borrowing range before making an offer.
Mortgage Renewals
Compare your renewal options before automatically accepting your existing lender's offer.
Refinancing
Explore options for accessing equity, consolidating debt or restructuring your mortgage.
Investment Properties
Financing options for rental and investment properties.
Self-Employed Mortgages
Guidance for borrowers whose income doesn't fit a traditional salaried structure.
Rural Properties
Mortgage considerations for acreage, rural homes and properties outside standard urban housing.
Specialty Properties
Financing can vary for condos, multi-unit properties and other less conventional property types.
Mortgage Broker Serving Ontario
Estate Mortgage Group works with clients across Ontario, with a particular focus on:
If you're buying a home in Newmarket or Barrie, you can also explore our local mortgage pages:
Meet Your Mortgage Advisor
Anthony Krasno
Principal Broker, Estate Mortgage Group
Principal Broker, Estate Mortgage Group · FSRA Licence #13425
- Principal Broker at Estate Mortgage Group, FSRA Licence #13425
- Works directly with buyers across Newmarket, Barrie, York Region and surrounding communities
- Local knowledge of the communities Estate Mortgage Group and the Krasno Team serve
647-575-2005 · Anthony@KrasnoTeam.com
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