Canadians are increasingly turning to mortgage brokers and gaining a better understanding of the services this channel has to offer. But despite this progress, some misunderstandings remain.
According to Canadian Mortgage Professionals’ 2025 Consumer Survey, one in three Canadians secure their current mortgage through a mortgage broker. However, two-thirds said they were at least likely to work with a broker in the future, and of those who had previously used a broker, 81% intended to return, compared to just 58% of bank mortgage customers.
Customer satisfaction when working with a broker also improved compared to 2024 on nearly every attribute tracked in the survey, including ease of doing business, reliability, knowledge, trust, timeliness, personalization and communication.
At the same time, the investigation also highlighted a number of misconceptions about how brokers operate, how they get paid and how they differ from the big banks.
What does a broker do?
Serve everyone
Colin Shea, principal broker at TMG Performance, describes brokers as a bridge between lenders and ordinary Canadians.
“A lot of times, customers don’t really understand what banks are looking for, and banks need to hear things the way they want to hear them,” he said. “A broker is a middleman who can help bridge conflicts and help the two communicate.”
However, over time, this role has changed, leading to some outdated ideas about the broker community.
There was a time when brokers were limited to non-bank products and primarily served borrowers who had been rejected by traditional lenders. Brokers can now work with clients of all credit levels and have access to products from most of Canada’s Big Six banks.
“There are still some misconceptions, especially among older generations, that we only deal with B-rated lenders, we don’t deal with banks, we’re more of a last resort,” Shea said. “That’s definitely changed.”
While some people still view brokers as a place to go for those with few options, the opposite is now the case. While banks are limited to selling their own products, brokers have access to products from many providers, ranging from non-bank lenders to most major financial institutions, giving customers more options.
Learn about the products they sell
Many mortgages offered through brokers are offered by major banks, leading many people to assume that bank staff are the primary experts in their field.
However, just because their logo appears on a document does not necessarily mean that the local branch representative has in-depth knowledge of the product.
“The people in the branch are generalists — they know a thing or two about mortgages, credit cards, bank accounts, RSPs (registered savings plans) and all the other financial instruments they offer — and we just focus on mortgages,” Shea said. “A good mortgage broker knows the bank’s guidelines better than the branch staff.”
What agents don’t do
Charge fees for mortgages banks offer for free
One of the biggest misconceptions about mortgage brokers is how they get paid.
According to MPC’s 2024 Consumer Survey, respondents who chose not to work with a broker most frequently cited concerns about having to pay for services.
While brokers can bill clients directly in certain circumstances, this is uncommon. With most conventional mortgages, the broker is paid by the lender, not the borrower.
“If you get a prime mortgage to a borrower, the lender pays the broker a fee to send them the deal, which is colloquially known as the ‘broker’s fee,'” explains Katie Caravaggio, MPC’s vice president of membership and professional development.
In other words, Canadians who qualify for a conventional mortgage and turn to a broker to help them find the best deal won’t pay the broker directly because the lender they choose will cover the damages.
“When it comes to the private or MIC (mortgage investment company) side, the mortgage broker charges a middleman fee, but for those transactions the broker has a greater workload and the risk is greater, so the broker may charge the fee directly to the client,” Caravaggio explains. “There are rules around these fees, it’s a regulated area and mortgage brokers are required to disclose to clients upfront what fees they charge and why.”
Most borrowers, especially those who qualify for conventional loans from big banks, never see a broker’s bill, while a minority often need specialized services that banks don’t offer and are informed of those fees in advance.
Providing services without a license
The rapid growth of the real estate market during a pandemic with low interest rates may give the impression that agents are entering the industry for a gold rush.
However, mortgage brokers need to obtain a license to sell loan products in Canada and undergo training to legally work in the industry.
“There are certain educational requirements to obtain a mortgage broker’s license across Canada, and each province has different acts and regulations, but they generally all follow a similar path,” Caravaggio said.
“There’s mandatory education, background checks, vetting processes, requirements to join a brokerage firm that has a prime broker, so there’s a process to becoming a broker,” she added.
Provides the same information as online
Canadians can find a wealth of mortgage information online, and many people prefer to research what will be the biggest financial decision they will make. However, even with more information, key details and lender-specific options aren’t always available, meaning those going it alone may miss out.
“They don’t have access to a range of lenders like a mortgage broker does,” Caravaggio said, explaining that some loan products are offered exclusively through brokers and are not available to individual consumers. “People can do their own research, but not everything can be done, so why not hire someone with expertise in the field?”
Additionally, while online advice is often generic, brokers seek a deeper understanding of a client’s financial situation to provide more personalized advice.
“A good broker understands their client’s financial history and can be an expert in getting them the most appropriate mortgage,” Caravaggio says. “They dig deep with their customers to understand exactly what they want and provide them with the right options based on their expertise.”
Next: Part two of our series looks at who is using brokers today, from new immigrants and first-time homebuyers to seniors and self-employed Canadians, and why the channel is seeing demand from each borrower group.
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Broker Colin Shea Jared Linzon Katie Carvaggio Mortgage Broker Mortgage Industry Mortgage Professionals Canada
Last modified: November 10, 2025
