Mortgage Broker

A mortgage broker is a licensed professional who acts as the go-between for you and lenders. Rather than approaching one bank directly, a broker can submit your application to multiple lenders, banks, building societies, credit unions, and non-bank lenders, and compare what each is willing to offer. Their job is to find a loan structure and rate that suits your specific situation, not just the standard product on a bank's website.

Brokers are typically paid by commission from the lender once a loan settles, which means their service is usually free to you as the borrower. That said, it is worth asking any broker upfront how they are compensated and which lenders they work with, some brokers have access to a wide panel of lenders, others work with a more limited range. A good broker will explain the options and the reasoning behind any recommendation.

Where brokers add particular value is in complex situations: self-employed borrowers, those with existing debts, people who have been declined by a bank, or anyone with an unusual income structure. They know which lenders are more flexible in which areas, and can often find a path to approval that a borrower going directly to a single bank would not discover on their own.

A broker can sometimes secure a lower interest rate or better loan structure than you would find by going directly to a bank, the savings over a multi-year mortgage can be significant. They can also help identify which lenders are most likely to approve your application given your circumstances, potentially saving the time and credit impact of multiple declined applications.

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