Mortgage Blog

Questions You Should Ask Your Mortgage Broker

February 22, 2022 | Posted by: Ronice Harrison

A mortgage broker acts as the middle-man between a borrower and a lender. This means they research and communicate with different financial institutions in order to find the cheapest option available, and the BEST option for their borrowers.

Think of them as your personal loan shopper, going store-to-store finding the best, most affordable option.

By working with different institutes and using their various contacts, mortgage brokers will research how and where you can find the best mortgage, with the lowest interest rate.

Do you know the difference between a variable vs a fixed interest rate? Read to find out!


How does a mortgage broker help their clients?

By assessing people’s current financial situation, mortgage brokers evaluate the borrower’s ability to secure financing and determine an appropriate loan amount.

They gather information on the borrower’s current income and decide all the loan details, including where to get the loan, the interest rate, payback terms, down payment and much more.

They research and call on their connections at a variety of different financial institutions in order to find the right option for their clients.


Why do some borrowers work with a mortgage broker and some don’t?

Some people work with mortgage brokers because they simply don’t have the means to find the information themselves.

Applying for a mortgage can be a complex and overwhelming process, especially with so many different options available. Having a mortgage broker can make this process simpler, easier, and faster.

Other people work with mortgage brokers because of their bad credit score. If you have a hard time getting a loan from a traditional lender (like a bank), a mortgage broker can provide you with even more options. They can find you the money you’re looking for.

Want to know how much it costs to purchase a house in your city in Ontario? See our infographic.

Not sure whether a bank or a mortgage broker is the best choice for YOU? Read our guide to make the right choice.


Questions To Ask Your Mortgage Broker

questions to ask your mortgage broker as you prepare for your mortgage approval

1. Which Lender is Best For my Financial Situation?

Your mortgage broker will need to assess your finances before they can determine which lender is most suitable for you. All borrowers are different and will, therefore, different lenders will be best suited for some and not for others.

Working with the lender that best fits your current financial situation, with the least amount of risk, should always be the number one priority of both you and your mortgage broker. You should feel comfortable and confident taking this loan, knowing it’s the right choice for you.

2. What Interest Rate Will I Qualify For?

The interest rate that you qualify for will affect your overall cost of borrowing. If you’re able to qualify for a lower rate you’ll end up saving thousands. On the other hand, the higher your rate, the more expensive your loan will be and potentially more difficult to manage.

This rate depends mostly on the current market rate, which is based on the prime rate set by the Bank of Canada.

Want to know the latest prime rate from the Bank of Canada?

3. Is There an Origination Fee?

Mortgage brokers never charge fees for their clients. But occasionally, lenders will charge an origination fee.

Ask your mortgage broker if you’re subject to these fees and if so, how much will it cost you? Also, consider asking if there is any way for the origination fee to be waived.

4. What Are The “Hidden Costs”?

While the term “hidden” might be a bit strong, there are in fact many fees associated with applying for and being approved for your mortgage. These fees are mostly related to inspecting the home purchased, and transferring it to your ownership.

You should expect to pay a variety of fees, including but not limited to the following:

  • Appraisal fee
  • Credit pull fee
  • Land transfer fee
  • Lawyer and notary fees
  • Recording fees
  • Title registration
  • Home inspection
  • Taxes

This is why it’s so important to ask your mortgage broker about EVERY fee you’ll need to pay. This way, you can budget accordingly.

5. Can You Provide me With a Loan Estimate?

An estimate of all the costs associated with your mortgage is called a loan estimate, which your lender is required to give you.

A good broker will initiate a conversation about this when your application is finished. But if they don’t… make sure to ask the loan estimate yourself.

6. How Large Should my Down Payment be?

Always ask your mortgage broker how much your down payment should be. Most first-time house buyers assume the larger the down payment, the better mortgage rate you’ll receive. However, this is completely false.

You can give as little as 5% and still get the same mortgage rate as those who put down 20% or more!

Your mortgage broker can provide insight and advice on just how much of a down payment is appropriate for the house you want to buy and the life you want to live.

Did you know it’s still possible to buy a home in Ontario with NO down payment? Read our article to learn how.

7. Is a Fixed Rate The Best Option For Me?

Considering the constant fluctuation of interest rates in the market, it may be advantageous to lock your loan with a fixed interest rate.

If you feel like interest rates may increase sometime soon, solidifying your loan with a fixed interest rate is a smart way to keep your interest rate from increasing during your first term.

8. Is There a Penalty For Prepayment?

A prepayment penalty is when your lender charges you a fee to pay off your mortgage earlier than originally agreed. Some types of mortgages have more prepayment fees than others, so ask your nroker:  

  • How much will the penalty be? 
  • What are the terms of the prepayment?
  • Will I be charged the penalty if I refinanced my mortgage later on?

9. Can You Guarantee That my Closing Will be on Time?

If your lender is unable to close your mortgage on time, you may end up dealing with extra expenses, for example;

  • Rescheduling movers
  • Find a place to live while you wait to move

In a worst case scenario, you might even lose the home you planned to buy.

So, it’s important that your mortgage broker guarantee an on-time closing for your mortgage, especially if you are under a strict timeline to purchase your home.

Choosing The Right Mortgage Broker For You

There are countless mortgage brokers out there will to help you secure the mortgage you need to purchase the home of your dreams. This is why we can’t recommend enough that you choose a broker who:

  • works fast, and on-time
  • has connections with a large variety of lenders
  • is someone you like and work well with

During the mortgage application process, you’ll be working closely with your broker and a great broker can and will make all the difference.

If you’re looking for a mortgage, get in touch with an AQRE Lending mortgage broker first to hear about your options, or get lightning-fast pre-approval by taking just ONE minute to fill out our pre-approval form.

Low down payment? Poor credit? No problem! Our lending partners offer mortgages for any and all financial situations.

Get pre-approved today!


For more information:

Learn what documents you need to get your mortgage approved.

Read our Mortgage Guide for first-time home buyers.

Get all the details about your credit score and why it’s so important.



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