A mortgage broker can help you compare options from the lenders they work with, while a bank offers mortgages from its own product range. Either route can suit a borrower. To choose between them, compare the actual mortgage offers and the help you receive through approval and closing. FCAC explanation of lenders and brokers
If you already bank somewhere, its offer is a useful starting point. Bring the written terms when asking a broker for a comparison, and explain what you want the mortgage to allow you to do. A planned move or irregular income can matter as much as the advertised rate.
Ask which lenders are available for your application
Some lenders deal directly with borrowers, while others offer mortgages through brokers. Brokers have different lender relationships, so ask which institutions they can approach and why the proposed options fit your application. Access to several lenders does not mean access to every lender or product. Lender access through brokers
For New Brunswick borrowers, the regulator requires brokerage disclosures covering suitability and lender relationships, including potential conflicts of interest. Use those disclosures to understand the recommendation. FCNB disclosure requirements
You can also ask what happens if the first lender declines. A useful answer explains what would need to change, such as the purchase budget or supporting documents, rather than promising an approval elsewhere.
Find out who pays the broker and what you might pay
Mortgage brokers are commonly paid a commission by the lender when they arrange a mortgage. Borrower fees can still apply to an arrangement, so ask for a written explanation of compensation and every fee you would owe before proceeding. FCAC broker compensation, FCNB fee disclosure
Keep the broker's compensation separate from the other costs of arranging the purchase. Ask whether the quote includes lender charges, appraisal costs and legal work, and find out which amounts are payable if the transaction does not close. Get those conditions in writing instead of assuming that a lender-paid commission makes the whole purchase free.
The same written-cost comparison helps when dealing directly with a bank. Federally regulated institutions must provide clear disclosure of their credit agreements; read the information and question any charge you do not understand. FCAC disclosure rights
Compare the contract you would be signing
Ask both providers to show the payment and repayment period, then read the flexibility provisions. A lower rate can be useful, but restrictions matter if you plan to make extra payments or sell before the term ends. Choosing mortgage features
Consider this hypothetical comparison: two five-year mortgage offers have the same rate, but one permits an annual lump-sum prepayment of 10% of the original principal and the other permits 20%. On a $300,000 original mortgage, those assumed limits are $30,000 and $60,000. A borrower expecting a substantial lump sum would want to understand that difference.
These are invented contract terms for illustration, not BRX or bank offers. Actual privileges may use a different calculation and have timing restrictions. Ask how unused allowances work and what penalty applies if you pay more than the contract permits. Prepayment privileges and penalties
Compare the service through to closing
Before submitting an application, agree on who will contact you and how documents should be provided. Ask when you will hear about outstanding conditions and who can answer questions as the financing deadline approaches, especially when more than one person is providing income or down payment documents.
Use these questions when speaking to a bank or broker:
- Which mortgage options did you compare, and why does this one fit?
- Show me the full costs and compensation disclosures.
- What would selling or making a large extra payment mean under this contract?
- Who handles my file if you are away near the financing deadline?
For broker licensing, check the regulator in the province where you are borrowing. New Brunswick's Financial and Consumer Services Commission provides a mortgage licensing overview, which helps establish authorization to practise. Your comparison still needs to consider the offer and service.
BRX Mortgage Team East has PEI, Nova Scotia and New Brunswick contact pages. Bring an existing offer, if you have one, and ask the team to explain its recommendation and costs in writing.