A mortgage broker is a licensed intermediary who takes one mortgage application and shops it to many lenders: banks, credit unions, monoline lenders and, where a file needs it, B-lenders and private lenders. The broker doesn’t lend the money or make the lending decision; the lender does. This page explains what a broker does, how the process runs, how a mortgage agent differs from a mortgage broker, and who licenses them in each province. More guides on brokers and lenders are in the lenders and brokers hub.
What does a mortgage broker do?
A mortgage broker:
- Assesses your finances: income, debts, credit and down payment.
- Shops your application across their lender panel, which at most brokerages runs to dozens of lenders.
- Recommends a mortgage, weighing the rate against the terms that matter for you (penalties, prepayment, portability).
- Handles the paperwork: the application, document collection, submission and follow-up with the lender.
- Guides you to closing, working with your lawyer or notary, the lender and your real estate agent.
What a broker is and isn’t
| A broker is | A broker isn’t |
|---|---|
| An intermediary between you and many lenders | An employee of one bank |
| Licensed and supervised by a provincial regulator | Self-appointed or unregulated |
| Usually paid by the lender | Usually paid by you on a standard mortgage |
| Shopping across many lenders | Limited to one institution’s products |
| Giving advice and arranging the mortgage | The one who approves the loan |
How the lender’s commission works, and when a borrower does pay, is in how mortgage brokers get paid.
How the mortgage broker process works
| Step | What happens | Typical timing |
|---|---|---|
| 1. First consultation | The broker reviews your goals, finances and timeline | Day 1 (30–60 minutes) |
| 2. Pre-approval | The broker checks your credit and income and estimates what you can borrow | Days 1–3 |
| 3. Rate shopping | The broker compares rates and terms across their lender panel | Days 1–3 |
| 4. Recommendation | The broker presents one or more options with the trade-offs explained | Days 3–5 |
| 5. Application | You choose a lender; the broker submits the full application and documents | Days 5–7 |
| 6. Lender approval | The lender reviews the file (mortgage underwriting) and may ask for more documents | Days 7–14 |
| 7. Commitment | You receive and sign the lender’s commitment | Days 14–21 |
| 8. Closing | The broker coordinates with your lawyer; the mortgage funds on closing day | Closing day |
What to gather before the first meeting is in the mortgage document checklist, and the questions worth asking about the mortgage itself are in the questions to ask a lender or broker.
Types of professionals in the mortgage industry
| Title | Role | Can they arrange your mortgage? |
|---|---|---|
| Mortgage broker | Senior licensed professional; can supervise agents and, in some provinces, run a brokerage | Yes |
| Mortgage agent / associate | Licensed professional working under a brokerage | Yes |
| Bank mortgage specialist | Employee of one bank, in a branch or mobile | Yes, but only that bank’s products |
| Online lender’s advisor | Works for a lender that sells online, such as nesto, which also brokers mortgages | Yes, within that company’s products and panel |
| Mortgage administrator | Manages existing mortgages for lenders and investors | No, not client-facing |
How a broker compares with a bank or an online lender as a place to get a mortgage is in mortgage broker vs bank vs online lender.
Mortgage agent vs mortgage broker
Both are licensed, both work under a licensed brokerage, and either can arrange your mortgage. The difference is seniority and responsibility. A mortgage broker has a higher-level licence, which usually takes agent experience to get, and can supervise agents. The titles differ by province:
- Ontario licenses Mortgage Agent Level 1, Mortgage Agent Level 2 and mortgage brokers. To get a broker’s licence, an individual must have been licensed as a Mortgage Agent Level 2 for at least 24 of the 36 months before applying, and must pass the broker education program and exam.
- Alberta and Saskatchewan use mortgage associate (working under a broker) and mortgage broker.
- Other provinces use their own titles; the regulator’s register shows which licence a person holds.
To a borrower, the title matters less than the licence being active and the person’s experience with files like yours. How to check both, and how to compare brokers, is in how to choose a mortgage broker. The licensing path itself (courses, exams, costs) is in how to become a mortgage broker.
Who regulates mortgage brokers in Canada?
Mortgage brokers are regulated by the provinces. Each regulator licenses brokers, agents and brokerages, supervises them and handles complaints, and each keeps a public register you can search.
| Province | Regulator | Where to check a licence |
|---|---|---|
| Ontario | FSRA (Financial Services Regulatory Authority of Ontario) | fsrao.ca, licence search |
| British Columbia | BCFSA (BC Financial Services Authority) | bcfsa.ca, licensee search |
| Alberta | RECA (Real Estate Council of Alberta) | reca.ca, RECA ProCheck |
| Quebec | AMF (Autorité des marchés financiers) | lautorite.qc.ca, register |
| Manitoba | Manitoba Financial Services Agency (MFSA) | Its search of registered mortgage brokers |
| Saskatchewan | FCAA (Financial and Consumer Affairs Authority) | fcaa.gov.sk.ca |
| Nova Scotia | Service Nova Scotia | novascotia.ca |
| New Brunswick | FCNB (Financial and Consumer Services Commission) | fcnb.ca |
| Newfoundland and Labrador | Service NL | gov.nl.ca |
| Prince Edward Island | Consumer, Corporate and Insurance Services | princeedwardisland.ca |
Rules on what a broker must disclose to you are set provincially too. In Ontario, for example, a brokerage must tell you in writing whether the lender (or anyone else) pays it on the mortgage it presents; the details are in how mortgage brokers get paid.
When a broker helps most
A broker’s access to many lenders matters most when a file doesn’t fit one bank’s box: first-time buyers who want the market shopped for them, self-employed borrowers, damaged credit (where B-lenders come in), renewals where the existing lender’s offer isn’t competitive, investment properties, newcomers and income from several sources. A bank can win where relationship pricing applies or a product is only sold in branches; mortgage broker vs bank vs online lender covers when.
Common misconceptions about mortgage brokers
| Misconception | Reality |
|---|---|
| “Brokers cost extra” | On a standard mortgage, the lender pays the broker’s commission |
| “Banks always have better rates” | Lenders that sell only through brokers compete for that business, and their rates are often lower than a bank’s posted rates |
| “Brokers push you toward higher-commission lenders” | It can happen, which is why disclosure rules exist; in Ontario a brokerage must also take reasonable steps to make sure the mortgage it presents suits you |
| “I can’t use a broker if I bank with a big bank” | The mortgage and your day-to-day banking are separate; you can bank anywhere |
| “All brokers are the same” | Experience, lender relationships and service vary widely |
| “Brokers can’t get big-bank mortgages” | Some big banks accept mortgages through brokers, alongside credit unions and monoline lenders |