Mortgage Broker Toronto: 10 Questions to Ask Before You Commit
Choosing a mortgage broker in Toronto isn’t just about getting a low rate. In a fast-moving market (and with tight closing timelines), the “best” mortgage is often the one that fits your life: flexible prepayments, fair penalties, and a strategy for renewals.
Use the questions below as a checklist before you sign a commitment letter or waive financing.
1) Are you licensed to broker mortgages in Ontario?
Start with the basics: ask about licensing, experience, and what types of files they handle most (first-time buyers, refinances, self-employed, investors, condo purchases, etc.). A good broker will answer clearly—no vagueness.
2) Which lenders will you shop—and why?
Ask what their lender access looks like:
- Major banks and monoline lenders
- Credit unions and trusts
- Alternative (B) lenders
- Private lenders (when appropriate)
A broker can be great, but only if they’re actually comparing options that match your situation—not just pushing the easiest approval.
3) What matters most in my mortgage besides rate?
In Toronto, many buyers fixate on the headline rate—then get surprised later by restrictions.
Ask your broker to compare:
- Prepayment privileges (lump sums + payment increases)
- Portability (moving before the term ends)
- Refinance flexibility (future plans matter)
- Payout/penalty risk if you break early
4) What is the real penalty if I break early?
This is one of the most important questions—especially if you might sell, refinance, or move within a few years.
Ask for a plain-English explanation of how penalties work for:
- Fixed-rate mortgages
- Variable-rate mortgages
- “Low-rate” or “restricted” products (often have harsher terms)
If the broker can’t explain penalties simply, that’s a red flag.
5) What rate hold (if any) can you secure—and what are the conditions?
If you’re shopping or waiting on a property, you may want a rate hold. But rate holds come with conditions and timelines.
Ask:
- How long is the hold?
- What happens if rates drop—do I get the lower rate?
- What documents do you need to lock it in properly?
If you’re ready to move, you can start the process through the Apply Now page.
6) What documents will you need from me—and what’s the timeline?
Toronto deals can move quickly, and a “missing document” can be the difference between closing on time and a stressful scramble.
Ask for a checklist tailored to you (employment, down payment source, debts, credit, and any rental/investment income). The best brokers plan for the lender’s underwriting requirements early.
7) How will you handle condo-specific details?
Toronto buyers often run into condo-specific underwriting questions.
Ask how your broker deals with:
- Condo fees and building details
- Appraisals in changing markets
- Status certificate timing (your lawyer handles this, but it affects confidence and deadlines)
- Pre-construction or assignment scenarios (extra timelines and costs can apply)
8) What’s the plan if the appraisal comes in low?
This happens. A solid broker will walk you through contingency options (different lender, different mortgage structure, larger down payment, or negotiating strategies) before it becomes urgent.
9) How are you compensated—and could there be any broker fees?
Many prime (A) deals are compensated by the lender, but some alternative/private deals may involve fees. Ask upfront:
- Are there any broker fees in my scenario?
- If yes, how much and when are they paid?
Transparency here is non-negotiable.
10) What’s your strategy for my renewal—not just my closing?
The mortgage you choose today affects your flexibility later.
Ask what they recommend for:
- Renewal planning
- Switching lenders at renewal
- Avoiding “auto-renew” complacency
- Structuring your term so it matches your future plans
If you want to understand renewal options ahead of time, review Mortgages.ca’s Renewal and Transfer information and bring questions to your broker conversation.
Quick Toronto Checklist Before You Choose a Broker
- I understand penalties and break costs
- I know the difference between a low rate and a good mortgage
- I’m comfortable with the lender type (A / alternative / private)
- I have a clear closing timeline and document plan
- I have a renewal strategy—not just a rate
If you’d like a second opinion on a quote you received (rate + terms), reach out through the Contact page and include your purchase price, down payment, closing date, and any conditions you’re working with.
FAQ
Is it better to use a mortgage broker or my bank in Toronto?
It depends. Your bank only offers its own products. A broker can compare multiple lenders and structures. The key is asking the right questions so you don’t trade a slightly lower rate for restrictive terms.
What should I bring to a first call with a Toronto mortgage broker?
A rough budget, estimated down payment, income details, debts, and your timeline (especially closing date). The sooner your broker has the facts, the faster they can secure a strong approval strategy.
Do mortgage brokers charge fees?
Often, prime mortgages do not require borrower-paid broker fees. Some alternative or private solutions may include fees. Ask upfront so it’s clear before you commit.