Brokers vs banks
Banks sell their products. Brokers shop the market.
Going straight to your bank means seeing one set of options. An independent broker compares many, explains the trade-offs and works for you.
- Free for you
- Licensed professionals
- No obligation
Side by side
Bank or broker?
A general comparison. Every situation is different.
| Your bank | A broker | |
|---|---|---|
| Choice of products | Its own products only | Many lenders or insurers |
| Whose interests | The bank’s | Yours, and they must disclose how they are paid |
| Rate shopping | You do it yourself | Done for you |
| Cost to you | Usually none | Usually none, paid by the lender or insurer |
| Time and effort | One application per bank | One conversation, many options |
| Ongoing help | Branch staff change | A named professional you can call |
Benefits
What a broker does for you
More options
Compare many lenders or insurers instead of one product shelf.
Advice for you
Brokers must recommend what is suitable for your situation and explain their pay.
Negotiation
Brokers send volume to lenders, which can help secure better terms.
Saves time
One conversation replaces many applications and phone calls.
Paperwork help
They prepare and submit your application, and chase the details.
Support later
Come back at renewal, or when your life changes.
How brokers get paid
For mortgages, the lender usually pays the broker a fee when the mortgage funds, so you typically pay nothing. For insurance, the insurer pays a commission. Brokers should tell you how they are paid, and in some cases (for example, certain private lending) a fee may apply. Always ask.
When a bank still makes sense
If you already have a strong relationship and the bank matches the best offers available, staying can be simple and convenient. A broker can still show you whether that is true, so you decide with the facts.
Questions
Common questions about brokers
How do brokers get paid?
Mortgage brokers are usually paid by the lender when your mortgage funds. Life insurance advisors are usually paid commission by the insurer. This is why advice is typically free to you. Ask your broker how they are paid, and they should tell you.
Are brokers and advisors licensed?
Yes. Mortgage brokers must be licensed or registered by their provincial regulator, and life insurance advisors must hold a provincial life insurance licence. We match you with licensed professionals in your province.
Will a broker pick the product that pays them most?
That is a fair concern. Brokers have a professional duty to recommend what is suitable for you, and you can ask them to show you the alternatives and explain the differences. You decide.
When does a bank make more sense?
If you want everything under one roof, already have a good relationship and a competitive offer, a bank can be a fine choice. A broker is worth a look when you want to compare, have an unusual situation, or want help negotiating.
Do I have to use the broker I am matched with?
No. You are free to talk to others, compare, or go directly to a bank.
See what a broker can find for you
Start a free quote. No obligation, and you can say no at any time.