In short
Brokers can be especially helpful if your income is self-employed, your credit isn't perfect or you want options beyond your own bank.
On most regular mortgages, the lender pays the broker, not you.
What a mortgage broker does
A mortgage broker works with a range of lenders, such as banks, credit unions and monoline lenders, and helps you compare rates, terms and features. They gather your documents, submit your application and guide it through to approval.
Brokers can be especially useful if you're self-employed, new to Canada, rebuilding credit or simply want more choice than one bank offers.
A broker can't approve your mortgage. The lender still underwrites and approves it, using the same rules as if you'd applied directly.
Many brokers can also help at renewal, comparing your current lender's offer with others.
How brokers are licensed in Ontario
In Ontario, mortgage brokerages, brokers and agents must be licensed by the Financial Services Regulatory Authority of Ontario (FSRA) under the Mortgage Brokerages, Lenders and Administrators Act, 2006.
Since April 1, 2023, there are three individual licence classes. A Level 1 mortgage agent can arrange mortgages only with financial institutions and approved lenders. A Level 2 agent can also work with private and alternative lenders. A mortgage broker has the same scope as a Level 2 agent and can supervise agents.
You can confirm someone is licensed using FSRA's public licence search. Dealing with an unlicensed person means you lose the protections of the Act.
FSRA also licenses mortgage brokerages, the firms brokers and agents work for. Each brokerage must have a principal broker responsible for compliance.
How brokers get paid
On most standard residential mortgages, the lender pays the brokerage, so you don't pay a fee directly. Fees are more common on private or alternative mortgages.
Ontario rules require brokerages to disclose how they are paid, including fees and incentives, along with any conflicts of interest. Ask for that disclosure and read it before you sign.
Brokers are required to recommend mortgages that are suitable for you. If a broker suggests a private mortgage, ask why, what it costs in total and how you'll move to a regular lender later.
Common questions about mortgage broker
Do you pay a mortgage broker in Ontario?
Usually not on a standard mortgage, because the lender pays the brokerage. You may pay a fee for private or alternative mortgages. Brokerages must disclose their compensation, so ask how they are paid before you commit. Read the disclosure carefully if any fee is involved.
How do I check if a mortgage broker is licensed in Ontario?
Use FSRA's online licence search to confirm the agent, broker or brokerage holds a current licence. FSRA also publishes enforcement actions. Working with an unlicensed person means you aren't protected under Ontario's mortgage brokering law. Check the exact name and licence number on any documents you receive.
What is the difference between a mortgage agent and a mortgage broker in Ontario?
Both are licensed by FSRA, but a broker can supervise agents and act as a brokerage's principal broker. Level 1 agents are limited to financial institutions and approved lenders, while Level 2 agents and brokers can also arrange private and alternative mortgages.
Is a mortgage broker better than going to my bank?
It depends on your situation, since a broker compares several lenders while your bank offers only its own products. Some buyers get similar results either way. Comparing at least one broker quote and one bank quote is a sensible way to see your options.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.