25 Questions to Ask a Mortgage Broker Before Choosing a MortgageHow are you paid, and will I pay any fees?

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25 Questions to Ask a Mortgage Broker Before Choosing a Mortgage

A mortgage broker can compare lenders and help you find a mortgage that fits your finances, but the lowest advertised rate is not always the best deal. Before you commit, ask about the broker’s experience, lender access, compensation, mortgage restrictions, penalties, and the approval process.

The most important questions are: Why are you recommending this mortgage? Which alternatives did you compare? What will it cost in total? What happens if I sell or refinance early? And do I personally qualify for the quoted rate?

Use the questions below as a checklist when speaking with a mortgage broker in Canada.

Questions About the Mortgage Broker

1. Are you licensed, and where can I verify your licence?

Ask for the broker’s full name, licence number, brokerage name, and the provincial regulator that oversees them. Licensing requirements and public registries differ by province, so verify the information directly with the relevant regulator. A licence confirms that the broker is authorized to arrange mortgages; it does not guarantee that every recommendation is suitable.

2. How much experience do you have with borrowers like me?

A broker who mainly handles straightforward salaried applications may not be the best fit for a self-employed borrower, newcomer, investor, or applicant with damaged credit. Explain your income, down payment, property type, and goals, then ask how often the broker works on similar files and what complications they expect.

3. Will you personally handle my application?

Find out who will collect documents, answer questions, submit the application, and communicate with the lender. Some brokers pass files to assistants or fulfillment teams. That is not necessarily a problem, but you should know your main contact, expected response times, and who is available when a financing deadline is approaching.

4. How are you paid, and will I pay any fees?

For many standard residential mortgages, the lender pays the broker a commission. Fees may apply for private, alternative, commercial, or unusually complex financing. Ask for every broker, lender, appraisal, administration, and commitment fee in writing before authorizing the application. Also ask whether compensation differs between lenders or whether the brokerage receives volume bonuses.

5. Do you have any conflicts of interest?

Ask whether the broker, brokerage, or related company has an ownership, referral, or financial relationship with any recommended lender, appraiser, insurer, lawyer, or other service provider. A relationship does not automatically make the recommendation unsuitable, but it should be disclosed clearly.

Questions About Lenders and Mortgage Options

6. Which lenders do you work with?

Ask for the types of lenders the broker can access, such as banks, credit unions, monoline lenders, alternative lenders, and private lenders. Also ask which major lenders are not available through the brokerage. No broker has access to every mortgage in the market, so you may still want to compare the broker’s offer with your own bank or credit union.

7. What mortgage options do I qualify for?

Ask the broker to explain the realistic options based on your income, debts, credit history, down payment, property, and intended use. The answer should cover more than one headline rate and should identify whether the mortgage is insured, insurable, or uninsured; fixed or variable; open or closed; and offered by a prime, alternative, or private lender.

8. Why are you recommending this lender and mortgage?

The broker should connect the recommendation to your priorities. Those may include a lower total cost, easier qualification, prepayment flexibility, a more predictable payment, a portable mortgage, or a lender that accepts your type of income or property. Be cautious if the explanation is only “this is the lowest rate” or if the broker cannot describe the trade-offs.

9. What alternatives did you compare?

Ask the broker to show you at least a few relevant options and explain why each was accepted or rejected. The comparison should include the interest rate, payment, term, amortization, fees, prepayment privileges, penalty method, portability, restrictions, and total borrowing cost over the term.

10. Can you provide the recommendation in writing?

Request a written summary of the selected mortgage and the strongest alternatives. This gives you time to review the details and makes it easier to compare another broker or lender. It also reduces the risk of relying on a verbal promise that does not appear in the lender’s commitment or mortgage contract.

Questions About Rates, Payments, and Total Cost

11. Do I personally qualify for the quoted rate?

Advertised rates may apply only to certain borrowers, properties, down payments, amortizations, or insured mortgages. Ask what conditions apply to the quoted rate and whether the lender has reviewed your documents. Until the lender approves both you and the property, treat the rate as conditional.

12. Can you hold the rate, and what happens if rates change?

Ask how long the rate hold lasts, what documents are required, and whether the hold applies before you have a signed purchase agreement. Also ask whether you will receive a lower rate if the lender reduces rates before closing. Rate-hold periods and float-down policies differ by lender.

13. What will my payment and total borrowing cost be?

Ask for the regular payment, payment frequency, interest paid during the term, balance remaining at renewal, and all required fees. A lower payment may result from a longer amortization, but that normally increases the total interest paid. Compare mortgages over the same term and amortization so the numbers are meaningful.

14. Is a fixed or variable rate better for my situation?

A fixed rate provides payment and rate certainty for the term. A variable mortgage changes with the lender’s prime rate, although the way payments respond depends on the product. Ask whether the payment changes when rates change, what happens if a trigger rate or trigger point applies, and whether the mortgage can be converted to fixed. The broker should discuss your budget and risk tolerance rather than predict rates with certainty.

15. What amortization periods are available?

A longer amortization lowers the required payment but usually increases total interest. In Canada, some insured borrowers can now choose a 30-year amortization if they are first-time homebuyers or are buying a newly built home, subject to the applicable insurance rules. Uninsured mortgages may offer other amortization options depending on the lender and borrower. Ask the broker to show the payment and total-cost difference.

16. Will I need mortgage default insurance?

Mortgage default insurance is generally required when the down payment is below 20%, provided the mortgage and property meet the insurer’s rules. It protects the lender, not the borrower. Ask how much the premium will be, whether it will be added to the mortgage, whether provincial sales tax applies, and how a larger down payment would change the premium, rate, and total cost.

Questions About Restrictions and Flexibility

17. What prepayment privileges are included?

Ask how much you may increase regular payments and how large a lump-sum payment you may make each year without penalty. Confirm when the privilege resets, whether unused room carries forward, and whether the rules change after a mortgage is ported or renewed.

18. How is the penalty calculated if I break the mortgage?

For a closed mortgage, the penalty depends on the contract and lender. A variable-rate mortgage often uses a specified number of months’ interest, while a fixed-rate mortgage may use the greater of a set amount of interest or an interest-rate-differential calculation. Do not assume every lender calculates the penalty the same way. Ask the broker to estimate the penalty using a realistic example and explain the rate the lender uses in the calculation.

19. Is the mortgage portable?

A portable mortgage may allow you to transfer the mortgage to another property, but conditions apply. Ask about the permitted time window, whether you must requalify, whether the new property must be approved, and what happens if you need to borrow more or less. Portability does not guarantee that you can avoid every penalty.

20. Is this a standard-charge or collateral-charge mortgage?

A collateral charge can support additional borrowing with the same lender, but it may make it harder or more expensive to switch lenders or register another loan against the property. Ask how the mortgage will be registered, what amount will be registered, and whether legal or discharge costs may apply when you refinance or transfer the mortgage.

21. Are there restrictions on refinancing, selling, or switching lenders?

Some low-rate or restricted mortgages limit refinancing, transfers, or early discharge. Ask whether you may refinance with another lender during the term, whether the mortgage can be assigned at renewal, and whether special fees or conditions apply if you sell the property. These restrictions can cost more than a small rate discount saves.

Questions About Qualification and Approval

22. Is this a pre-qualification or a lender-reviewed pre-approval?

A pre-qualification may be based mainly on information you provide and is not a commitment to lend. A stronger pre-approval usually includes a credit check and document review, but it is still conditional. Ask exactly what has been verified, which lender reviewed the file, how long the approval or rate hold lasts, and what conditions remain.

23. What mortgage stress-test rate will apply?

Most borrowers must qualify at a rate above their contract rate. For uninsured mortgages at federally regulated lenders, the minimum qualifying rate is generally the greater of the contract rate plus two percentage points or the regulatory floor in effect at the time. Other rules may apply to insured mortgages, renewals, switches, credit unions, and provincially regulated lenders. Ask the broker which rule applies to your application and how it affects your maximum mortgage.

24. What documents do you need, and what could delay approval?

The required documents depend on the application, but commonly include identification, income evidence, employment information, bank statements, proof and source of down payment, debt details, and purchase documents. Self-employed borrowers may need business financial records and tax documents. Ask for a complete checklist early and disclose unusual deposits, gifted funds, tax debts, credit issues, or income changes before the file is submitted.

25. What could still cause the mortgage to be declined?

Even after a pre-approval, the lender must usually approve the property and confirm that your financial circumstances have not materially changed. Problems may include a low appraisal, an unacceptable property type or condition, new debt, reduced income, missing documents, unverifiable down-payment funds, or changes to credit. Ask what conditions remain and avoid taking on new credit or changing jobs without first discussing the impact.

Additional Questions for Specific Situations

Buying a home

Ask how quickly the broker can obtain a financing decision after an accepted offer, what financing-condition period is realistic, who orders the appraisal, and when final lender instructions will reach your lawyer. Do not remove a financing condition solely because you have a pre-approval; the property and final application may still need approval.

Renewing a mortgage

Ask the broker to compare the existing lender’s renewal offer with transfer options before the maturity date. Confirm whether you must requalify, whether legal or appraisal costs apply, and whether a new lender will cover any transfer costs. Avoid accepting the first renewal offer before comparing the rate and terms.

Refinancing

Ask the broker to calculate the current discharge penalty, legal and appraisal fees, new payment, and break-even point. Refinancing may reduce a rate or consolidate debt, but extending the amortization can increase the total amount of interest paid.

Self-employed or non-standard income

Ask which lenders accept your income documentation, how they calculate qualifying income, and whether higher rates, fees, or down-payment requirements apply. The broker should explain the difference between a standard prime application and alternative or stated-income programs without promising approval.

Investment or unusual properties

Ask whether the lender accepts the property type, location, zoning, occupancy, rental income, and intended use. Condominiums, rural homes, mixed-use buildings, short-term rentals, leasehold properties, and properties needing major repairs may face additional conditions.

Common Mortgage Broker Red Flags

Consider speaking with another broker if the broker:

guarantees approval before reviewing your documents and the property
refuses to explain compensation, fees, penalties, or lender alternatives
pressures you to sign immediately or discourages you from reviewing the commitment
quotes a rate without explaining its eligibility conditions
recommends one lender without connecting the choice to your circumstances
asks you to hide debts, alter documents, or provide inaccurate information
communicates poorly when deadlines or lender conditions are approachin