10 questions to ask your mortgage broker before you hire them

This article has been updated from a previous version. 

Working with a mortgage broker can take a huge weight off your shoulders. They handle the complexities of securing a mortgage, guiding you from start to finish.  

Good brokers live and breathe mortgages. They understand the nuances of debt ratios, government regulations, mortgage terms, and product options inside and out. But not all brokers are created equal. As with any industry of professionals, some fall short of excellence.

That’s where things can go wrong. Choosing the wrong broker could mean higher rates, an unsuitable mortgage, approval issues, or even missed deadlines that jeopardize your closing.

You’ll want to test your broker candidate's knowledge and qualifications before you entrust them with your financial life. Here are some top questions to ask.

1. How long have you been a full-time mortgage broker, and how much volume did you close last year?

Experience matters in the mortgage industry. While new brokers can be diligent and effective, a full-time broker with 5+ years of experience often has the expertise, lender relationships, and problem-solving skills to navigate complex situations.  

They’ve likely encountered and resolved issues that could otherwise jeopardize approvals, limit loan amounts, or delay closings. This experience can help them structure your application more effectively, secure lender exceptions, or negotiate better rates.

Equally important is the broker’s annual volume. A full-service broker should close at least $15+ million in deals annually, while a discount broker may handle $30+ million or more. If a broker’s volume is significantly lower, it could indicate a lack of experience, limited lender relationships, or less competitiveness.

While experience and volume are important, they’re just part of the equation. Dedication, customer service, and the ability to secure the best deal for your needs are equally critical when choosing the right broker.

Related: Ask the mortgage expert: Why this could be your window of opportunity into Canadian real estate 

2. How many prime lenders do you work with regularly?

In Canada, the average mortgage broker tends to work with a core group of three to four lenders. While this isn’t inherently bad— brokers often secure volume-based discounts and faster service with their preferred lender, and it’s not always in the client’s best interest.  

The key is flexibility. A broker with access to dozens of lenders raises the chances you'll get the best terms and financing for your situation. 

Ideally, you want to work with a broker who regularly submits deals to at least seven to eight prime lenders each year. The most competitive brokers deal with more than a dozen.

3. Are you transparent about rates, and do you proactively offer the lowest available rate upfront?

A good mortgage broker should be on your side, prioritizing your best interests and working to get you the lowest mortgage rate on a product that fits your requirements best.

If a broker hesitates to quote the lowest available rate upfront, it raises questions about their transparency and loyalty. A trustworthy broker will be upfront and proactive in finding you the most competitive deal—no exceptions.

Related: Can you negotiate your mortgage? 

4. What are the current interest rates in Canada?

Interest rates play a significant role in determining your monthly mortgage payments and the overall cost of your loan. As of today (September 8, 2025), the lowest available rates in Canada are:

• 5-year fixed rate: 4.34%
• 5-year variable rate: 5.10%

These rates are subject to change and can vary based on factors like your credit score, down payment, and the lender you choose.

It’s also important to ask your broker about rate trends—whether rates are expected to rise or fall in the near future, so you can make an informed decision about locking in a fixed or variable rate.

Related: Should you buy a house right now, or wait until interest rates come back down? 

5. How will changing interest rates affect my mortgage?

If you’re considering a variable-rate mortgage, when interest rates rise, your monthly payments may increase, or more of your payment will go toward interest rather than the principal. Alternatively, falling rates can lower your payments or help you pay off your mortgage faster.

Ask your broker to explain how rate fluctuations could affect your specific loan, including potential payment caps or triggers that might require adjustments. A good broker will help you assess whether a variable or fixed rate aligns better with your financial goals and risk tolerance.

Learn more: Do fixed mortgage rates provide better value than variable? 

6. How much can I afford to borrow?

A good mortgage broker will help you determine a realistic borrowing limit by considering:

• Income: Your Gross Debt Service (GDS) ratio (housing costs) should stay under 39% of your income, and Total Debt Service (TDS) ratio (all debts) under 44%.
• Expenses: Monthly costs like utilities, groceries, and transportation are factored in to avoid overextending.
• Down payment: Minimums in Canada are 5% for homes up to $500,000, 10% for $500,000–$1M, and 20% for homes over $1M.
• Credit score: A score of 680+ improves borrowing power and rates.
• Stress test: You must qualify at the higher of 5.25% or your rate + 2%.
• Financial goals: Brokers ensure your mortgage aligns with long-term plans like savings or retirement.

Read more: How much more money do you need to make to buy a home in Canada? 

7. What are the associated fees I should expect?

A reputable mortgage broker should provide a clear and detailed breakdown of all costs involved in your mortgage process. These may include:

• Origination fees: Charged by the lender for processing your loan.
• Application fees: A fee for submitting your mortgage application.
• Closing costs: These can include legal fees, appraisal fees, title insurance, and more.

Ask your broker to explain each fee, why it’s necessary, and whether any of them can be negotiated or waived. A trustworthy broker will ensure there are no surprises and will help you understand exactly what you’re paying for. 

8. Do you use part of your commission to buy down your rate?

In today’s competitive market, some brokers offer rate “buydowns,” where they give up a portion of their commission to secure you a lower interest rate. This practice is more common among high-volume online brokerages that can afford to earn less per deal.

That said, brokers earn their living off lender commissions. While it’s reasonable to ask if they’ll use part of their commission to reduce your rate, expecting a full-service broker to give up more than half may impact the level of service and advice they provide.  

A good broker will balance competitive rates with the personalized support you need.

9. Are there better products or rates available from other lenders, including non-broker options?

A trustworthy broker should always prioritize your best interests by being transparent about alternatives, even if it means recommending a lender they don’t work with. Ask if there are broker-channel lenders offering better features at the same rate, such as Scotiabank, TD Canada Trust, or First National.  

They should also be able to explain why their recommended product is superior in terms of cost, flexibility, or features.

If you find a great rate from a non-broker lender, like RBC, your broker should honestly assess whether it’s a better deal. In cases where the savings are significant, a reputable broker may even suggest pursuing that option directly, despite losing the deal.  

A broker who puts your financial well-being first is one worth returning to for future business or referrals. 

10. Are there any hidden costs or unfavourable contract terms with the mortgage you're recommending?

Low-frills mortgages are basic, no-frills options that often come with lower rates but fewer features, like limited prepayment privileges or higher penalties. They can be good value if you’re comfortable with the trade-offs.

A good broker will clearly explain any restrictions tied to the mortgage, such as:

• Higher-than-normal prepayment penalty (e.g., a penalty of 2.75% of the principal or six months' interest).
• Quick closing requirements. A shorter-than-normal closing period (i.e., 30 days, also known as a quick-close mortgage).
• Restrictions on breaking a mortgage or refinancing prevent flexibility if your circumstances change.  
• Bundled products. A rate that requires bundling another product, such as a line of credit.
• Mandatory refinancing with the same lender. A rate that forces the borrower to refinance with that lender before maturity.

If a broker isn’t upfront about these terms before you apply, it’s a red flag. Transparency ensures the mortgage fits your needs.

Read next: Mortgage amortization: Should you go long or short?