Published 16 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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A bank offers its own products and may discount for existing customers. A mortgage broker shops multiple lenders, including credit unions and alternative lenders, which helps with self-employment, credit issues or unusual properties. Brokers are usually paid by the lender on standard deals. Compare more than rate: penalties, prepayment privileges, portability and whether the mortgage is collateral-charged.
Side by side
| Bank | Mortgage broker | |
|---|---|---|
| Product range | Its own products | Many lenders, including alternatives |
| Payment | Salaried or commissioned staff | Usually paid by the lender on standard deals |
| Best for | Simple files, existing relationships, bundled discounts | Self-employed, credit challenges, unusual properties, rate shopping |
| Rate negotiation | Discretionary discounts | Competitive quotes across lenders |
| Advice scope | That institution’s options | Across the market they are licensed to access |
Compare these, not just the rate
- Prepayment penalty method, especially on fixed mortgages.
- Prepayment privileges each year.
- Portability if you may move. See porting.
- Collateral charge, which can make switching lenders costlier later.
- Fees, including any broker fee on non-standard files.
Know your budget first
Get your realistic price range before you shop rates.
Free tool — what can you actually afford here?
How to shop properly
- Get quotes from your bank and one broker on the same day.
- Ask each for the penalty calculation method in writing.
- Compare the full terms, not a rate sheet.
- Confirm how long the rate hold lasts.
Where I fit
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty. I am not a mortgage broker; I help clients across Toronto and the GTA set a realistic budget and introduce mortgage professionals so they can compare offers properly.
The takeaway
Banks suit straightforward files and existing relationships; brokers shop more lenders and suit self-employed, credit-challenged or unusual files. Compare penalties, prepayment privileges, portability and charge type alongside the rate before choosing.
Talk it through with me
Getting your mortgage sorted?
Tell me your situation. I will set a realistic budget and introduce mortgage professionals if you want options.
I will come back to you personally, usually the same day. If it is urgent, call or text 833-330-1925.
Frequently asked questions
Is a mortgage broker better than a bank in Ontario?
Brokers access more lenders and suit complex files; banks can offer relationship discounts on straightforward ones. Compare full terms.
Do mortgage brokers charge fees?
On standard deals the lender usually pays the broker. Non-standard or private deals may involve a fee, which must be disclosed.
What is a collateral charge mortgage?
A mortgage registered for a higher amount that can make switching lenders at renewal more complex or costly.
What prepayment privileges should I look for?
Annual lump-sum and payment-increase allowances, and how the penalty is calculated if you break early.
Can I negotiate with my bank?
Yes. Bring a competing quote and ask about discretionary pricing.
How long is a rate hold?
It varies by lender, commonly a few months. Confirm the exact period.
Sources
- Financial Consumer Agency of Canada — mortgages — consumer guidance on qualifying, down payments and mortgage insurance. Accessed 16 September 2026.
- Financial Consumer Agency of Canada — down payments and mortgage insurance — minimum down payment rules and insured mortgage limits. Accessed 16 September 2026.
- Financial Services Regulatory Authority of Ontario — mortgage brokering — licensing and consumer information for mortgage brokers in Ontario. Accessed 16 September 2026.
Related reading
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Etobicoke. I work with buyers and sellers across Toronto and the GTA, with deep local knowledge of the west end. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from RECO or Ontario legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.