The Difference Between A Mortgage Broker & The Bank

The Bank vs A Mortgage Broker

in Guelph, Milton, or Mississauga

Mortgage Brokers Mississauga Ontario

With so many mortgage providers available today, what’s the difference between the bank and a mortgage broker in Guelph, Milton or Mississauga? Read on to find out.

Mortgage Broker vs Bank – Mortgage Rate Negotiation

The Bank doesn’t usually offer you the best mortgage rate up front, forcing you to negotiate (even if you are a “valued” customer).

Your Mortgage Broker in Guelph, Milton, or Mississauga offers you the best available mortgage rate right from the start.

Mortgage Broker vs Bank – Mortgage Rate Changes

The Bank is not likely to contact you if mortgage rates drop before your closing date.

Your Mortgage Broker in Guelph, Miton, or Mississauga continues to work on your behalf to ensure you get the best mortgage rate available on closing.

Mortgage Broker vs Bank – Mortgage Options

The Bank can only offer its own mortgage products (10 mortgage products, on average). If you are shopping for a mortgage in Guelph, Milton, or Mississauga, you are limited to the products offered in those cities.

Your Mortgage Broker can offer you the best available mortgage product for your situation (over 300 mortgage options). When you talk to your Mississauga, Milton, or Guelph mortgage broker, you have access to over 300 mortgage options from across Canada.

Mortgage Broker vs Bank – Credit

The Bank makes a credit check each time you place a mortgage application (one credit check for each and every bank you apply to). This can substantially affect your credit rating.

Your Mortgage Broker makes one credit check when you apply for your mortgage in Guelph, Milton, or Mississauga, and uses it to apply to all mortgage lenders on your behalf.

Mortgage Broker vs Bank – Pay

The Bank is typically paid based on a combination of the mortgage amount, the mortgage rate you pay, and sometimes even the amortization selected.

Your Mortgage Broker is paid by the mortgage lender based on the mortgage amount, not the mortgage interest rate.

Mortgage Broker vs Bank – Equity Maximization

The Bank benefits from longer amortization periods that cost you more interest on your mortgage and increase the bank’s profits.

Your Mortgage Broker in Mississauga, Milton, or Guelph develops a custom mortgage solution to reduce the mortgage interest you pay; your mortgage broker then determines an amortization period to fit your budget.

Mortgage Broker vs Bank – Mortgage Renewals

The Bank usually sends out mortgage renewals a month before your mortgage renewal date. You need to renegotiate your mortgage every time.

Your Mortgage Broker in Guelph, Milton, or Mississauga searches the market for the best mortgage rate up to 4 months prior to your mortgage renewal, saving you money on your mortgage. Plus, your mortgage broker handles the mortgage rate negotiation for you.


Want to learn more about mortgages in Guelph, Milton, or Mississauga? Download the Mortgage Broker’s Ultimate Mortgage Guide with tips on how you could save thousands of dollars.

Questions? Contact a Champion mortgage broker in Guelph, Milton, or Mississauga here.


Disclaimer: The comparison above looks at the policies and procedures of many of the major banks and trusts across Canada, as well as real life examples Canadian mortgage holders have provided.  The intent of the comparison above is not to tarnish the reputation of the banking industry, rather, it is to provide education for Canadians as to what other Canadian mortgage holders have experienced.  The comparison looks at the overall banking industry as a whole, and does not claim that all or any of the above findings apply to any particular bank or trust.  Additionally, the statements on the broker side of the table may not apply to all mortgage brokerages, they have been based on the policies, procedures, and ethical business practices of Champion Mortgage Inc.