Mortgage Blog
The Dos and Don’ts When Working with a Mortgage Broker in Canada
December 18, 2025 | Posted by: Sarabjit Dhuna
Working with a mortgage broker in Canada can help you secure better rates, access more lenders, and avoid costly mistakes—but only if you know how to navigate the process correctly. Many homebuyers focus solely on interest rates and overlook important details that can affect them for years.
This guide outlines the essential dos and don’ts when working with a mortgage broker in Canada, helping you make informed decisions whether you’re a first-time homebuyer, refinancing, or renewing your mortgage.
Why Use a Mortgage Broker in Canada?
A licensed mortgage broker acts as an intermediary between you and multiple lenders, including banks, credit unions, and monoline lenders. Unlike dealing with a single bank, a mortgage broker can compare mortgage products and find options tailored to your financial situation.
Benefits of working with a mortgage broker include:
-
Access to multiple Canadian lenders
-
Competitive mortgage rates
-
Expertise in mortgage rules and regulations
-
Help with complex income or credit situations
The Dos When Working with a Mortgage Broker in Canada
Do Work With a Licensed Mortgage Broker
In Canada, mortgage brokers must be licensed by provincial regulators. Always verify licensing through the appropriate authority, such as:
-
FSRA (Ontario)
-
BCFSA (British Columbia)
-
AMF (Quebec)
-
RECA (Alberta)
Working with a licensed mortgage broker ensures compliance with Canadian mortgage laws and consumer protections.
Do Be Honest About Your Financial Situation
Your mortgage broker needs accurate information to find the best mortgage product. Be transparent about:
-
Employment and income
-
Credit score and credit history
-
Existing debts and obligations
-
Down payment source
Incomplete or inaccurate information can lead to declined mortgage approvals or less favorable terms.
Do Ask Which Lenders They Work With
Not all mortgage brokers in Canada have access to the same lenders. Ask whether they work with:
-
Major Canadian banks
-
Credit unions
-
Monoline lenders
-
Alternative and private lenders
A broader lender network often results in better mortgage options.
Do Understand the Total Cost of Your Mortgage
The lowest mortgage rate doesn’t always mean the lowest cost. Ask your broker about:
-
Prepayment privileges
-
Penalties for breaking the mortgage early
-
Portability and refinancing rules
-
Closing costs and lender fees
Canadian mortgage penalties can be significant, especially for fixed-rate mortgages.
Do Ask About Mortgage Broker Fees
Many mortgage brokers in Canada are compensated by lenders for prime mortgages. However, alternative or private mortgages may involve broker fees. Always confirm:
-
Whether fees apply
-
How much they are
-
When they are payable
Transparency upfront helps avoid surprises.
Do Maintain Financial Stability During the Mortgage Process
Once your mortgage application is submitted:
-
Avoid job changes
-
Do not take on new debt
-
Avoid large purchases
Even minor changes can affect your mortgage approval before closing.
The Don’ts When Working with a Mortgage Broker in Canada
Don’t Choose a Mortgage Based Only on the Lowest Rate
Some low-rate mortgages in Canada come with restrictive terms, such as:
-
High penalties to break the mortgage
-
Limited refinancing options
-
Reduced prepayment privileges
A slightly higher rate with flexible terms can save money long-term.
Don’t Work With Multiple Mortgage Brokers Simultaneously
Applying through multiple brokers can result in:
-
Multiple credit inquiries
-
Duplicate lender submissions
-
Delays or declined approvals
Choose one trusted mortgage broker and work with them exclusively.
Don’t Sign Mortgage Documents You Don’t Understand
Mortgage contracts in Canada can be complex. Ensure you understand:
-
Mortgage terms and conditions
-
Penalty calculations
-
Renewal and exit options
A reputable mortgage broker will take the time to explain everything clearly.
Don’t Hide Credit Issues
Past credit challenges such as late payments, collections, or bankruptcies will appear on your credit report. Being upfront allows your broker to:
-
Select appropriate lenders
-
Prepare explanations for underwriters
-
Improve approval chances
Don’t Ignore Your Mortgage Renewal and Exit Strategy
Many Canadians break their mortgage before the end of the term. Ask your broker:
-
How mortgage penalties are calculated
-
What options you’ll have at renewal
-
Whether the mortgage is portable or refinance-friendly
Planning ahead can help you avoid costly penalties.
Final Thoughts: Choosing the Right Mortgage Broker in Canada
A knowledgeable mortgage broker can help you secure a mortgage that aligns with your financial goals—not just the lowest rate. By following these dos and don’ts when working with a mortgage broker in Canada, you can avoid common mistakes and make confident mortgage decisions.