Key takeaways
- A bank's mortgage specialist offers that bank's products. A mortgage agent works through a licensed brokerage and can submit applications to a range of lenders.
- In Ontario, mortgage agents and brokers are licensed by FSRA, and you can verify a licence publicly.
- Ask any professional how they're paid and which lenders they work with.
- Which route is best depends on your situation.
You have choices when you arrange a mortgage. Understanding each helps you decide what fits you.
Going directly to a bank
A bank mortgage specialist can only offer that institution's products. That can be convenient if you already bank there, and some people prefer a single relationship. But you'll only see one set of options and rates.
Working with a mortgage agent
A mortgage agent works under a licensed mortgage brokerage and can submit your application to a range of lenders the brokerage works with, such as banks, credit unions and monoline or alternative lenders. They gather your information, explain options, help prepare your application and guide you through approval and closing. The number of lenders varies by brokerage, so ask which ones.
How licensing works in Ontario
The Financial Services Regulatory Authority of Ontario (FSRA) licenses mortgage professionals. The licence classes include mortgage agent (Level 1), mortgage agent (Level 2), mortgage broker and mortgage brokerage. Level 2 agents can arrange mortgages with a wider range of lenders than Level 1, including private lenders. Agents work under a licensed brokerage, which is responsible for supervising them.
You can check a licence through FSRA's public licensee search. Charandeep Deol is a Mortgage Agent Level 2 (licence M24000292) with Mortgage Assurance Inc. (FSRA licence 13812).
How are mortgage agents paid?
In many cases the lender pays the brokerage a fee when a mortgage funds, so borrowers often don't pay a fee directly. This isn't always the case, particularly for some private or specialty mortgages. Whatever the arrangement, a mortgage professional should explain it to you clearly before you sign anything. It's fair to ask.
Questions to ask any mortgage professional
- Which lenders can you access?
- How are you paid, and are there any fees to me?
- What happens at renewal?
- What are the penalties and restrictions on this mortgage?
Whichever route you choose, compare more than the rate. See how the process works or book a call to ask your own questions.
Sources and further reading
This article is general information, not personalized mortgage, legal, tax or financial advice. Rules, rates and eligibility change and depend on your circumstances and lender criteria. Confirm details before you make decisions.
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