For 75% of Canadians who walk into their bank, the loyalty cost is real: 20-50 basis points more than a broker would secure. On a $500k mortgage over 25 years, that's $9,000-$18,000. But banks offer relationship + bundle value that brokers can't.
★ QUICK VERDICT ★
Skip to the answer
PICK BROKER IF...
You're a first-time buyer (no bank loyalty)
You're self-employed or 1099
You have bruised credit
You're investing in rental property
PICK BANK IF...
You're an existing big-bank customer
You want bundled products + rewards
You value branch + relationship service
You can negotiate rate-match (bring broker quote)
★ HEAD-TO-HEAD ★
The 6 metrics
METRIC
BROKER
BANK
WINNER
Lender access
40-50 lenders shopped
1 lender (your bank)
BR
Cost to borrower
$0 (lender pays)
$0
TIE
Typical rate vs walk-in
20-50 bps lower
Walk-in or "loyalty" rate
BR
B-lender access
✓
Only own B-lender (if any)
BR
Existing customer perks
Limited
✓ Relationship pricing
BNK
% of Canadian mortgages
~25-30%
~70-75%
BNK
★ FULL FEATURE MATRIX ★
Everything compared
FEATURE
BROKER
BANK
Rate shop multiple lenders
✓ 40-50 lenders
✗ One lender
Self-employed deals
✓ Specialty options
Standard process only
B-lender (bad credit)
✓ Wide access
Own B-arm if any
Private mortgage
✓
✗ (referral only)
Pre-approval speed
24-48 hours
24-72 hours
Branch / in-person
Brokerage office
✓ Multiple branches
After-funding service
Refers to lender
✓ Direct bank relationship
Renewal handling
Re-shops for you
Sends renewal letter
Volume discount access
✓ Bulk pricing
✗ Posted/loyalty rate
Bundled banking products
Limited
✓ Chequing, cards, investments
Penalty clarity
✓ Compares lender penalties
Your bank's penalty terms only
★ VERDICT BY USE CASE ★
Who wins for you
FIRST-TIME BUYERBROKER
No loyalty to a bank yet. Broker shops 40 lenders. Typical savings: $30-60/mo over 25 years = $9k-$18k.
EXISTING BIG-BANK CUSTOMERBANK
Relationship pricing + bundled rewards can match broker rates. Worth the rate-match conversation.
SELF-EMPLOYEDBROKER
Brokers know which lenders flex on income docs. Banks tend to be stricter on self-employed.
BAD CREDIT (sub-660)BROKER
B-lender network access. Bank will likely decline; broker has Home Trust, MCAP, etc.
RENEWAL (vanilla mortgage)BROKER
Auto-renewal at the bank usually gets you the posted rate. Broker shops for the discount rate.
INVESTMENT PROPERTYBROKER
Specialty lenders for rental properties + portfolio mortgages. Bank often capped at 4 doors.
BUNDLED FINANCIAL LIFEBANK
If you want mortgage + chequing + cards + investments under one roof, bank wins on integration.
✗Some big banks don't deal with brokers (BMO, CIBC partial)
DIRECT BANK
✓Direct relationship for service issues
✓Bundled rewards (chequing, cards, mortgage)
✓Existing customer relationship pricing
✓Branch access for in-person support
✓Specialty bank-only mortgage products
✗Only one lender (no comparison shopping)
✗Posted rate vs broker volume discount = $9-18k loss
✗Stricter income/docs requirements
✗B-lender access only via own B-arm (if any)
★ OUR PICK ★
The smart move
Get a broker quote first. THEN negotiate with your bank.
The biggest financial win in this comparison: get a broker pre-approval, then bring it to your bank as leverage. Banks will often match (or come close to) broker rates for existing customers. You get the broker's rate-shop power AND the bank's relationship benefits. Best of both.