(604) 725-0675
Text or Call


Brokers or Banks – Which one is better?

If you are looking to buy a home, you have to look at a bank or mortgage broker to help you with the funds. There are very few who can afford to buy a home without a mortgage.

What is a mortgage?


Simply put, a mortgage is a loan that you borrow from a lender to buy you a home. The loan amount that you borrowed is also called principal. You need to pay back the lender with interest, failing which they can secure your property. The question that confuses many is which source is better to secure a mortgage loan: bank or broker?

Are Banks Better for First Time Buyers?



  • Experienced advisors say that first time buyers should consult their banks because they are familiar with the system.
  • They probably have a good relationship with their managers to make the application easier, but everyone has qualifying criteria.
  • First time home buyers are more stringently evaluated by brokers. Their credit scores, down payments, and income will be double checked for credibility. Banks can help first time buyers better because they are already helping them with wealth planning and management.
  • Banks are aware of their financial status. The trust is greater because advice from the institution is in their best interests. If they have extra money, banks can guide them on the best way to invest: buying a home, putting it into RRSP, RESP, insurance coverage or tax free savings.



  • A mortgage broker, on the other hand, may have vested interests to invest the extra income in a home.
  • They are freelance agents who shuttle between lenders and borrowers (you).
  • Once they find a reliable borrower, they get a commission from the lender. Hence, they will always persuade you to invest in a home.
  • However, a mortgage broker can connect you to a wider variety of lending services because they are well connected with lenders, including banks.
  • Mortgage brokers can help you shop for competitive prices once you decide to buy a home.
  • They can even negotiate better rates for you from the banks.



  • Once you decide to look for a home, your realtor will require you to secure a pre-approval from a mortgage broker. This is a free service that will help you determine the amount you qualify to invest in a home.
  • Your qualification will be based on your income, credit history, and personal finances.
  • You will need to disclose all details to your mortgage broker after which you will receive a mortgage approval at an interest rate to proceed with home buying. The rate applies for 120 days. If the rates drop, you will be given the lower rate.
  • Once you win the trust of the lenders and get pre-approval, you can start your home search with a clearer perspective of your budget. Final approval will be conducted with the help of a lawyer with proper documentation.
  • If you don’t get pre-approval because of bad credit history, you can approach a mortgage broker to help you.
  • Online brokers have become increasingly popular in this respect. They allow you to shop for the best rates and compare options online, without any pressure to buy from them.
  • Brokers allow you more flexibility to get loans from non-traditional lenders.
  • Banks are more personalized but less flexible and there is a higher interest on your mortgage.


Lending Expert, Surrey

Your mortgage will be the biggest decision that will support your biggest financial investment. Choose with care.

If you have faced rejection, don’t worry. We have the connections to help you repair you with credit rating to make sure you get the lowest possible rates that work for you. Call us for advice!