One of the biggest misconceptions among homebuyers is that working with a mortgage broker costs money. Many assume there’s a consultation fee or a percentage charge for arranging a mortgage loan.
In reality, for most Canadians, working with a mortgage broker is entirely free.
That includes asking questions, getting a pre-approval, exploring different lenders, comparing rates and even securing financing.
So why is it free, and how does this compare to working with large online mortgage platforms?
Let’s break it down and compare the two.
In almost every standard mortgage situation, the broker is paid directly by the mortgage lender once your mortgage funds. You, as the client, don’t pay anything out of pocket. I’m compensated for securing a mortgage through a bank, credit union, or alternative lender, which means you get access to advice, rate shopping, and lender negotiations at no direct cost.
People often assume the cost is hidden somewhere, but it isn’t. If you are looking for guidance, a pre-approval or a review of your options, it’s still free and comes with no obligation to proceed.
There are only a handful of situations where I would charge a fee. This usually happens when the mortgage cannot be placed with a traditional lender. For example, when someone has previous bankruptcies, severely damaged credit or highly complex financial circumstances.
In these scenarios, I would disclose fees upfront before doing any work so clients know exactly what to expect. This typically occurs if a client needs a private lender to fund their mortgage.
Future reading:
3 unique reasons to use a broker for your mortgage.
Over the past few years, large online mortgage companies have grown quickly. Their advertisements often promote instant quotes, fast approvals and ultra-low rates. For buyers who want a hands-off digital experience, these platforms can seem attractive.
What often surprises borrowers is that online mortgage companies are not necessarily cheaper. While they may lead with a flashy interest rate, that rate can come with restrictions. Restrictions include reduced prepayment privileges, difficulty switching lenders later or significant penalties if you break the term early.
Those details don’t always appear upfront.
Many people choose a rate online, thinking they are getting the lowest price, only to discover later that their flexibility is limited.
Another challenge with online platforms is the lack of personalized guidance. Everything is designed for efficiency, which means you may be communicating through automated forms or chat systems rather than with someone who understands your financial goals.
If you are self-employed, own rental properties, rely on commission income or have a more complex application, this can quickly become frustrating.
While the idea of an online mortgage experience may sound appealing in theory, I would strongly recommend not going that route. Especially since you don’t pay for working with someone like me, anyway, AI can never compare to real human connections and relationships.
As a local mortgage broker, I know the community. I have relationships with various lenders and understand how different products affect you in the long term. You’re not just getting a rate, you’re getting a strategy and a relationship.
Many clients rely on me not only for their initial purchase but also for advice months or years later when refinancing, renewing, or preparing to move.
Working with someone local gives you direct access to a resource who will walk through questions such as:
These details can mean tens of thousands of dollars saved over the life of a mortgage. An online application system cannot replicate that level of planning.
Where online lenders aim for quick approvals, I focus on long-term results. A mortgage is one of the most significant financial commitments you’ll make, and often the cheapest rate today is not the best cost over five years. Finally, a lot of the time, I have the best comparable rate depending on the situation and debts.
If you’re applying for a traditional mortgage with a mainstream lender, working with a local broker, like me, doesn’t cost you anything. You get access to advice, lending options, ongoing support and personalized service without fees.
Online platforms can be free up front as well, but the cost often shows up later through penalties, restrictions or a lack of flexibility.
The real difference is not price… it is the value.
For many people, especially buyers who appreciate professional guidance, working with a local mortgage broker offers clarity that online platforms cannot provide.
Having someone who will consider your plans and protect you from costly surprises is an advantage that comes at no additional cost.
If you’re ready to have that advantage, reach out to Matthew Jackson today. Give me a call at 250-826-3111, apply on my website or contact me through my online contact form to start the process today.
Let’s get your application off the ground.
