Definition
Canadian borrowers have a choice between two main channels for obtaining their mortgage.
**Independent mortgage broker**: - Access to 20-50+ lenders (banks, credit unions, monoline lenders, alternative) - Compensated by the lender → generally free for the borrower - Legal obligation to present options favorable to the client (OACIQ in Quebec) - Dedicated mortgage specialist (not generalist) - Particularly advantageous: complex files (self-employed, difficult credit), quick market comparison
**Bank mortgage advisor**: - Products of a single institution - Can offer loyalty advantages (existing client rate, bundled products) - Deep knowledge of in-house products - Direct access to exception decisions (credit) through internal structures - May be less specialized (multitasking in a branch)
**Empirical studies**: - The Bank of Canada has published studies showing brokers generally obtain lower rates than bank advisors for comparable borrowers - The gap is larger for borrowers with less standard profiles
**Simultaneous use**: It is possible to consult a broker AND a bank in parallel. Pre-qualification applications within a 14-45 day window are treated as a single credit inquiry by credit bureaus.