What does a mortgage broker actually do? And what does it cost?
If you've never used a mortgage broker, the job title is a little mysterious. A realtor shows you houses. A lender gives you money. So what exactly does the person in the middle do, and why would you add another step to an already overwhelming process?
Fair questions. Let me answer them the way I would across a kitchen table.
The short version
A mortgage broker works for you, not for a bank. Your bank can only ever offer you its own mortgages, which means its advice always ends at the edge of its own product shelf. A broker compares options from many lenders at once. In my case that's more than 50, including the major banks, credit unions, and lenders that work only through brokers and never advertise to the public.
Think of it this way: instead of you visiting five banks and filling out five applications, you tell me your story once, and I bring the market to you.
What actually happens when we work together
First, we talk. Not about products, about you. What you're buying or renewing, what your timeline looks like, what monthly payment lets you sleep at night. The mortgage that looks best on paper isn't always the one that fits your life, and I can't know the difference until I know you.
Then I do the homework. I review your documents, figure out which lenders suit your situation, and compare what they'll offer. Every lender has its own quirks. Some are friendlier to self employed income, some treat rental income more generously, some have flexible prepayment options that matter enormously if you plan to pay your mortgage down faster.
Then you decide. I bring you the options worth considering, explain each one in plain language, and tell you which I'd choose in your shoes. You pick. I handle the paperwork, the back and forth with the lender, and the deadlines, through to the day you get your keys or your new term starts.
And then I stick around. Questions a year later, a renewal in three years, a refinance question in five. My service doesn't end at closing, and that's the part clients tell me they value most.
So what does it cost?
Here's the part that surprises people: in most cases, nothing. When your mortgage completes, the lender pays the broker a fee for bringing them the business. You get the comparison shopping, the advice, and the paperwork handled, and the lender picks up the bill.
There are exceptions, usually in more complex situations involving private or specialty lending, and a good broker will tell you clearly before any work begins if yours is one. You should never be surprised by a broker's fee, ever.
Does using a broker hurt my credit?
No. When I shop your application to multiple lenders, it's done under a single credit inquiry, not one per lender. That's another practical advantage over walking into five banks yourself.
When a broker makes the most sense
You're a first-time home buyer and want someone to walk you through every step
Your renewal letter has arrived and you want to know if the offer is actually good
You're self employed or your income doesn't fit a tidy box
You want options compared for you instead of doing the rounds yourself
And sometimes the honest answer is that your current lender's offer is already the best one available. When that's true, I say so. One of my favourite reviews is from a client I told to stay exactly where he was.
The bottom line
A mortgage broker gives you choice, plain answers, and an advocate who works for you, usually at no cost to you. If you're curious what that looks like for your situation, reach out. The conversation is free, there's no pressure, and you'll leave knowing more than you did.
Let's talk about your next step. Call me at 250 328 4245 or send me a note.