Guide · Calgary & Alberta
Mortgage Broker vs Bank in Calgary: Which Gets You the Better Deal?
A bank's mortgage specialist can only offer that bank's mortgages. A mortgage broker licensed in Alberta can compare several lenders, including credit unions and alternative lenders, and is usually paid by the lender on standard mortgages. A broker tends to help most when your income, credit or property is not a textbook fit.
Side-by-side comparison
| Mortgage broker | Bank mortgage specialist | |
|---|---|---|
| Lenders they can offer | Several: banks, credit unions, monoline and alternative lenders they work with | One: their own bank |
| Who pays them | Usually the lender, on standard mortgages. Fees on private or alternative deals must be disclosed in writing first | Salary and/or commission from the bank |
| Licensing in Alberta | Licensed by the Real Estate Council of Alberta | Employee of a federally or provincially regulated institution |
| Best fit | Self-employed, commission or contract income, past credit issues, renewal shopping, unusual properties | Simple salaried file, existing relationship and bundled banking perks |
| Downside | Not every bank accepts broker deals; quality varies by broker | No comparison shopping unless you do it yourself |
How is a mortgage broker paid in Alberta?
On most standard purchase, renewal and refinance mortgages, the lender pays the broker a finder's fee when the mortgage funds. You do not write a cheque. Where a broker does charge you a fee, usually on private or alternative lending, they have to disclose it in writing before you commit. Ask how they are paid on your specific deal; a good broker answers plainly.
When going straight to your bank makes sense
If you have a salaried T4 income, strong credit, 20% or more down and a long relationship with your bank, your bank may match or beat what a broker finds, especially if you negotiate. The catch is that you have to do the comparison yourself: get a written offer from your bank, then ask a broker to beat it.
When a broker usually wins
- Calgary's self-employed and contract earners. Lenders differ a lot in how they read business, commission and rotational income.
- Renewals. Renewal is the cheapest moment to switch, and since November 2024 OSFI no longer expects federally regulated lenders to re-run the stress test on an uninsured straight switch (OSFI).
- Bruised credit or a recent job change. Alternative lenders exist for exactly this, and brokers know which ones.
How to check a broker
Look the broker up on RECA's public licence search before you send documents. Ask which lenders they place most deals with, and whether any fee applies to you.
Frequently asked questions
Is it cheaper to use a mortgage broker or a bank?
Often a broker, because they compare several lenders, but not always. Get a written offer from your bank and ask a broker to beat it. On standard mortgages the broker is usually paid by the lender, not you.
Do mortgage brokers charge fees in Calgary?
Usually not on standard mortgages; the lender pays them. Fees can apply on private or alternative lending and must be disclosed in writing before you commit.
Can a mortgage broker get me a better rate than my bank?
Frequently, especially at renewal or if your file isn't a textbook fit. The best approach is to compare written offers side by side.
Sources
- OSFI — Minimum qualifying rate for uninsured mortgages
- Real Estate Council of Alberta
- Financial Consumer Agency of Canada
Calgary Lending is a free referral service. We are not a lender or mortgage brokerage, we do not make credit decisions or quote rates, and approval is never guaranteed. We may receive a referral fee from the lender or broker we connect you with; it is paid by them, not you. Information on this page is general and is not financial advice.