Process and paperwork
Mortgage broker
A licensed professional who arranges a mortgage between you and a panel of lenders, paid by the lender that funds it.
A broker arranges your mortgage but doesn't lend the money. They take one application to many lenders and advise you on which one fits your file. In Alberta, the brokerage is licensed by the Real Estate Council of Alberta under the Real Estate Act, and individuals hold one of 2 titles: Mortgage Associate or Mortgage Broker.
On a standard residential file with an A lender, the lender pays the brokerage a commission when the mortgage funds, and you pay nothing. Alternative and private files usually carry a fee, which must be disclosed in writing and agreed before any application is submitted.
According to Mortgage Professionals Canada, 38% of recent Canadian buyers and 48% of recent first-time buyers used a broker.
Every Alberta licensee is listed on RECA's public ProCheck registry. It takes about 30 seconds to look someone up.
Related terms
Monoline lender
A lender that only does mortgages, reaches borrowers through mortgage brokers, and has no branches.
Annual percentage rate (APR)
The cost of a mortgage expressed as a yearly rate, including the mandatory fees that the interest rate on its own leaves out.
Pre-approval
A lender's underwritten opinion of how much it will lend you, with a rate held for 90 to 120 days but no commitment to lend.
This definition describes how the term is used in Canadian residential mortgage lending. It’s general information, not advice on your file. Rules, thresholds and rates change. Where a figure is quoted, it’s current as of the date shown on the related guide.
Sharp rates. The full picture.
Ask Daniel about this term
Daniel De Sousa, Mortgage Associate, can walk you through it before you sign anything. Or get a rate quote: 6 questions, about two minutes, and no credit check to start.
No credit check, and no commitment.