Mortgage Broker
A licensed professional who compares mortgages from several lenders and arranges one for you, and is usually paid a commission by the lender.
A mortgage broker connects borrowers with mortgage lenders. Instead of applying at a single bank, you give the broker your financial information. They then look for a suitable mortgage among the lenders they work with. To work out what you can qualify for, brokers look at your income, debts, credit, the amount you want and the amortization period.
Mortgage brokering is regulated provincially. In Ontario, the Financial Services Regulatory Authority of Ontario (FSRA) licenses mortgage brokerages, brokers, agents and administrators. Its authority comes from the Mortgage Brokerages, Lenders and Administrators Act, 2006. Since April 1, 2023, Ontario mortgage agents hold one of two licences. Level 1 covers traditional lenders such as banks and credit unions. Level 2 covers all lenders, including private ones. You can check a licence on FSRA's website. Banks and credit unions are exempt and do not appear there.
Brokerages are usually paid a commission by the lender, but some also charge borrowers fees. In Ontario, a brokerage cannot require an advance payment on a loan of $400,000 or less. On larger loans it may charge an upfront fee or retainer. That fee should not be paid in cash and must go to the brokerage, not the individual broker or agent. Ask at your first meeting how and when they are paid.
Ontario brokers and agents must disclose conflicts of interest in writing, along with any fees or incentives they receive from others. They must take reasonable steps to make sure the mortgage suits your needs and risk tolerance, and explain its material risks in writing. You must receive the total cost of borrowing before you sign. You also get at least two business days to review the agreement, unless you waive this in writing.
Rules in other provinces differ, so check with your provincial regulator. In Ontario, FSRA handles complaints that a brokerage cannot resolve, but it cannot recover money or pay compensation.
Sources
- FSRA: Working with a mortgage professional
- FSRA: Mortgage brokering (how FSRA protects consumers)
- FCAC: Preparing to get a mortgage
Last reviewed October 16, 2026.
Go deeper
Related terms in Mortgage & Buying
- Mortgage Pre-Approval A lender's review of your income, debts and credit that estimates how much you may borrow and often holds a rate for 60 to 130 days.
- Mortgage Renewal Signing a new term for your remaining balance when your mortgage term ends, with the option to negotiate or switch lenders.
- Mortgage Stress Test A federal rule that makes you qualify for a mortgage at a higher rate than your contract rate, to show you could handle higher payments.
- Trigger Rate The interest rate at which a fixed payment on a variable-rate mortgage covers only interest, so nothing goes toward the principal.
General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.