Mortgage Brokers vs. Bank Loans

Broker vs. Lender

The #1 question for Home buyers (especially first timers) is "Do I go through a Mortgage Broker or directly apply through a Lender".

Here is a link that gives a good overview of the two methods as well as the Credit score - https://www.ratehub.ca/bank-vs-mortgage-broker

To answer that question, it is important to first understand the actual process of lending/borrowing. The following flow diagram will give you an overview on the difference between the two approaches - 

 1. Direct Lender Application Process

direct lender loan process  

2. Mortgage Broker Application Process

mortgage broker loan process

Key Differentiating Factor

As you can see, the hit to the Credit Bureau is only once when you go through a Mortgage Broker & the same is used to negotiate with multiple lenders. This advantage is not available when you directly approach a lender.

Also, as far as we know, mortgage brokers do not charge the buyer & are directly compensated by the lender for bringing in customers. Now, it is your responsibility to do thorough checks to ensure your broker is not passing on deals to you with vested interests.