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Working With an Agent
9/27/2026

Mortgage Agent vs. Bank: Which Is Right for You?

Mortgage agent or your bank? See what each does, how agents are regulated in Ontario, when the bank may be better, and questions to ask first.

Mortgage Agent vs. Bank: Which Is Right for You?

It’s a fair question, and I’d rather answer it honestly than pretend one option is always better. Going straight to your bank is simple and familiar. Working with a mortgage agent can give you more choices. Which is right depends on your situation, and it helps to know what each really involves.

What a mortgage agent does

The Financial Services Regulatory Authority of Ontario (FSRA) describes what licensed mortgage brokers and agents do. They look at your finances to identify suitable mortgage options, compare them, and determine whether you meet a lender’s criteria. They gather the documents, explain the features and risks of each option, negotiate rate and terms with the lender, and work with the lender and your lawyer through closing.

Mortgage agents and brokers operating under Ontario’s mortgage-brokering legislation must be licensed by FSRA. Some mortgage providers, including banks and credit unions, are exempt from those licensing requirements.

Bank or agent: a fair comparison

Going straight to your bankWorking with a mortgage agent
Who you deal withThe bank’s mortgage specialist, who works with that bank’s productsA licensed agent who can compare products from the lenders they work with
ChoiceThat bank’s rates and termsSeveral lenders, though not every lender works with brokerages
ConvenienceOne relationship, one place, and often your existing accountsOne more relationship, but the agent handles the shopping and paperwork
Cost to youNo separate feeUsually paid by the lender through a commission, with any borrower fees disclosed in writing
Best whenYou value having everything in one place, or your bank’s offer is competitiveYou want to compare options, or your situation is less standard

General comparison. Both routes vary by lender and by person, and the best answer is often to compare an offer from each.

What the FCAC research shows

The Financial Consumer Agency of Canada found that about 37% of mortgage holders chose their lender mainly because they already bank there, and that only 48% personally compared lenders. There’s nothing wrong with staying with your bank, but it’s worth knowing you have choices, and it costs little to get a second opinion.

Know the licence levels

In Ontario there are two types of mortgage agent. FSRA says a Level 1 agent can help you get a mortgage from a traditional lender, such as a bank or a credit union. If you need an alternative or private lender, you must work with a Level 2 agent or a mortgage broker. I’m a Level 1 mortgage agent, so I work with traditional lenders. If your situation calls for something else, I’ll tell you. If your situation requires an alternative or private lender, I’ll explain the licensing requirements and the appropriate next step.

When your bank may be the better choice

  • Your bank’s offer is competitive and you value the relationship.

  • Your file is simple and your bank is happy to match a good offer.

  • A lender you want only lends directly, and not through brokerages.

  • You’d rather handle it all in person at your branch.

Those are good reasons, and I’d say so. The point is to choose on purpose. Getting an offer from your bank and one from an agent, then comparing them, is often the best of both.

Questions to ask any mortgage professional

FSRA recommends asking any broker or agent these five questions, and they’re just as useful for me as for anyone else:

Are you licensed by FSRA?

How and when are you paid, and do you get a commission?

What other fees or costs are involved, and how are they paid?

What is the process I can expect when working with you?

Can you explain the risks involved in the mortgage you’re recommending?

FSRA also suggests asking which lenders they work with, whether they’re acting for you, the lender, or both, and whether their licence level fits the mortgage they’re recommending.

Want a second opinion?

If you have an offer from your bank, send it to me and I’ll show you how it compares, no strings attached. I’ll also explain how I’m paid, which the next post covers. Visit mortgagejoe.ca to get in touch or learn more.

Sources

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