One shelf versus fifty
A broker submits your file to Schedule A banks, credit unions, monoline lenders, and private lenders, then brings back the offers that fit. That matters most when your file is not perfectly ordinary - self-employed income, a rental in the picture, newcomer credit, or a tight debt ratio.
Rate is only part of the comparison
Two mortgages at the same rate can cost very different amounts over five years. Prepayment privileges, penalty calculation, portability, and whether the charge is collateral or standard all change what happens when life changes.
- How the penalty is calculated if you break early
- How much you can prepay each year without a fee
- Whether the mortgage can move with you to a new home
- Whether the lender registers a collateral charge
Who pays the broker
On standard residential deals the lender pays the broker on funding, so there is normally no fee to the borrower. Fees appear on harder files - private, commercial, or credit-repair deals - and they should be disclosed in writing before you commit to anything.
Credit checks and shopping around
Applying separately at four banks means four inquiries. A broker pulls once and uses that single application across lenders, which protects your score while widening your options.
Frequently asked questions
- Will a broker get a better rate than my bank?
- Often yes, because lenders compete for broker volume. Even when the rate matches, the terms are usually more flexible.
- Does using a broker hurt my credit?
- No. One application and one credit pull is shopped to multiple lenders rather than each lender pulling separately.
- Can a broker help if my bank already declined me?
- Yes. A decline usually means you missed one lender's policy, not that the deal is unfinanceable.
Talk to a Toronto private mortgage specialist
We arrange equity-based financing across Toronto and the GTA, whether you need a first position from a private lender or a second mortgage behind the bank you already have.