How do I verify a mortgage broker's licence in Canada?

Go to your province's mortgage broker regulatory website and search the public registry. In Ontario, search at fsrao.ca. In BC, use bcfsa.ca. In Alberta, use reca.ca. In Quebec, use lautorite.qc.ca. Search the broker's full name or ask them for their licence number and search that directly. An active licence should appear immediately. If it does not appear, or if the licence is suspended or expired, do not proceed.

Should I use more than one mortgage broker?

Generally no — one quality broker with broad lender access is sufficient. A good broker submits to multiple lenders on your behalf, achieving the same result as using multiple brokers without the confusion or risk of duplicate lender submissions. Using multiple brokers can also create awkward situations where two brokers submit your file to the same lender simultaneously, which can delay your application. The exception might be if you are shopping for a very niche product (such as a private mortgage or commercial deal) where you want multiple specialists involved.

Is it rude to ask a broker about their compensation?

Not at all — asking about compensation is entirely appropriate and expected. In fact, licensed mortgage brokers in Canada are legally required to disclose their compensation from all sources before you commit to a mortgage. A professional broker will answer compensation questions directly and without discomfort. If a broker becomes evasive, defensive, or dismissive when you ask about how they are paid, that is a red flag about their transparency and compliance practices.

What if I'm not happy with my mortgage broker mid-process?

You are not locked into any broker until your mortgage closes. If communication has been poor, if the rate you were quoted changed unexpectedly without explanation, or if you feel the broker is not acting in your interest, you can switch brokers before closing. Be aware that if you already have a rate hold at a lender through your current broker, switching brokers during that rate hold can be complicated — the new broker would need to either work with the same lender or find a competitive alternative. The earlier in the process you identify problems, the easier the switch.

Working with Brokers

15 Questions to Ask Your Mortgage Broker in Canada

Last updated: 2026·7 min read

A mortgage broker can save you thousands of dollars and hours of legwork — but only if they are the right broker for your situation. The problem is that most Canadians do not know what questions to ask, so they cannot distinguish a highly capable broker from an average one. These 15 questions give you a framework to evaluate any broker before you commit to working with them. For each question, we explain why you are asking it, what a strong answer looks like, and what should concern you.

Question 1: "How many lenders do you have access to?"

Topic: Lender Access

Why you are asking this

The entire value proposition of a mortgage broker is lender access. More lenders means more options, better odds of finding the best rate for your specific credit profile and income situation, and access to niche products that banks do not offer. A broker who only works with a handful of lenders is not offering you the full broker advantage.

A good answer sounds like:

"I am connected to 25 or more lenders, including First National, MCAP, RMG, and all the major banks. For your profile, I would likely submit to three to five of them and get you the best available rate."

A red flag sounds like:

"I mainly work with TD and BMO."

Fewer than 10 lenders is a significant limitation. A broker who works primarily with Big 6 banks is not accessing monoline lenders, which are often the most competitive source of residential mortgage rates in Canada.

Question 2: "Do you receive volume bonuses from any specific lenders?"

Topic: Conflicts of Interest

Why you are asking this

Many lenders pay brokers enhanced finder's fees once the broker places above a certain volume of mortgages with that lender. For example, a lender might pay 0.85% on the first $5 million placed, then 1.10% on volume above that threshold. This creates a financial incentive to steer clients toward the higher-bonus lender, even if another lender offers a slightly better rate or terms for the borrower. Asking this question directly forces the broker to acknowledge and disclose potential conflicts.

A good answer sounds like:

"Yes — lenders do have volume bonus structures. I receive enhanced fees from [Lender X] above certain annual volume thresholds. I disclose this upfront and I am happy to show you exactly what I am recommending and why it benefits you, so you can see I am not just steering you toward the higher-commission option."

A red flag sounds like:

"No, I do not receive any volume bonuses."

Volume bonuses exist in the industry. A flat denial of their existence is either a sign of inexperience or an evasion. Visible discomfort with the question, or a shift to changing the subject, also raises concerns about transparency.

Question 3: "What is your finder's fee on this mortgage?"

Topic: Compensation Disclosure

Why you are asking this

Disclosure of compensation is a legal requirement for licensed Canadian mortgage brokers. Knowing the specific finder's fee also helps you understand the financial context of the recommendation. A broker earning 1.15% on a $600,000 mortgage is making $6,900 — a meaningful incentive to place the mortgage with a specific lender. Understanding the compensation structure lets you evaluate recommendations with appropriate context.

A good answer sounds like:

"The lender pays me 1.0% of the mortgage amount — on your $500,000 mortgage, that is $5,000. You pay nothing directly. I am required to give you written disclosure of this, and I will do that before we submit any application."

A red flag sounds like:

"I am not sure yet what the fee will be" or "That is between me and the lender."

On a standard residential mortgage, a competent broker knows exactly what their compensation will be. Vagueness on this point suggests either limited experience or a reluctance to be transparent.

Question 4: "Will you charge me any fees?"

Topic: Borrower Costs

Why you are asking this

For standard residential mortgages — purchase or refinance with A-lenders — broker fees charged directly to the borrower are not normal and should raise questions. Brokers are compensated by the lender; charging the borrower on top of that represents double compensation. The exception is legitimate: private or B-lender mortgages where the additional complexity and risk to the broker justifies a direct fee, which should be clearly disclosed upfront.

A good answer sounds like:

"No fee to you for this transaction — the lender compensates me when your mortgage funds."

A red flag sounds like:

Any direct borrower fee on a straightforward A-lender purchase or refinance without a clear, detailed explanation of why the complexity of the deal justifies it.

Question 5: "Can you submit to [specific lender] if I ask you to?"

Topic: Real Lender Access

Why you are asking this

Some brokers claim access to 40 lenders but functionally use 4-5 repeatedly. Testing their actual connectivity to a specific monoline lender — such as First National or MCAP — reveals whether the claimed access is real and current. A broker who has placed mortgages with a lender in the last six months will answer immediately and confidently. One who has not will hedge.

A good answer sounds like:

"Yes, I am approved with First National and have placed several mortgages there in the last few months. For your situation, I would also consider MCAP and RMG — I can show you the rate comparison across all three."

A red flag sounds like:

"I can look into that" or "They probably would not be best for you" without any specific reason.

Vague pushback without a data-based reason suggests the broker does not actually have an active relationship with that lender.

Question 6: "What rate can I actually qualify for right now? Give me a specific number."

Topic: Rate Accountability

Why you are asking this

Some brokers deliberately give vague rate ranges to avoid accountability if the rate changes by the time you submit. A good broker who has reviewed your basic financial profile can give you a specific rate or a tight range within a short conversation. They know their lender pricing well enough to estimate accurately, even before a formal application.

A good answer sounds like:

"Based on what you have told me about your income, credit, and the property, I am seeing 4.79 to 4.89% on a 5-year fixed from a monoline lender right now. I can give you an exact number once I have pulled your credit and confirmed your documents."

A red flag sounds like:

"It really depends on so many things, I cannot say until we go through everything."

Refusing to estimate at all after hearing your basic financial situation signals either poor lender knowledge or a desire to avoid any specific commitment.

Question 7: "What mortgage structure would you recommend for my situation — and why?"

Topic: Advisory Capability

Why you are asking this

A rate-quoting machine and a genuine mortgage advisor are different things. A good broker thinks about your full situation — your job stability, how long you plan to own the property, your existing debts, your risk tolerance for payment fluctuation, and your financial goals — and recommends a structure (fixed vs variable, 3-year vs 5-year term, high-ratio vs conventional) that makes sense for you specifically. Not for the average client. For you.

A good answer sounds like:

"Given that you mentioned you might move or refinance within four years, and your income is stable employment income, I would lean toward a 3-year fixed rather than a 5-year. The rate difference is small but it keeps your options open without a large penalty exposure. If you were planning to stay for 10 years, I would think about this differently."

A red flag sounds like:

"Most of my clients take the 5-year fixed. It is the most popular."

A one-size-fits-all recommendation without engaging with your specific circumstances is not advice — it is a default that may or may not serve your interests.

Question 8: "What will my penalty be if I need to break this mortgage before the term ends?"

Topic: Break Penalty — The Most Underestimated Risk

Why you are asking this

Studies consistently show that over half of Canadian borrowers break their mortgage before the end of the term — for reasons including divorce, job relocation, upsizing, or refinancing to access equity. The penalty for doing so ranges from a modest three months' interest to a devastating interest rate differential (IRD) charge of $20,000 or more at the chartered banks. A good broker discusses this proactively. Many do not, because it is uncomfortable — and because highlighting penalty risk can deter clients from choosing certain products.

A good answer sounds like:

"At a monoline lender like First National, your break penalty would be approximately three months' interest — roughly $2,400 on your mortgage at current rates. At a chartered bank with their posted rate IRD calculation, that same break could cost you $12,000 to $20,000 depending on when rates move. I specifically recommended the monoline for this reason — the rate is competitive and the penalty structure is far more consumer-friendly."

A red flag sounds like:

"You are committing to five years, so you should not need to break it."

Dismissing penalty risk with optimism is not advice. Life changes — a broker who does not discuss this is leaving you exposed to one of the most significant financial risks in a mortgage.

Question 9: "What are the prepayment privileges on this mortgage?"

Topic: Prepayment Options

Why you are asking this

Prepayment privileges are your right to make extra lump sum payments or increase your regular payment without penalty. This is one of the most powerful wealth-building tools in a mortgage. Making an additional $5,000 lump sum payment annually on a $500,000 mortgage can save tens of thousands in interest over the amortization period. Standard products offer 10-20% annual lump sum prepayment rights and 10-20% payment increase options. The difference between a 10% and 20% option is meaningful over the life of a mortgage.

A good answer sounds like:

"This product comes with 20% lump sum prepayment and 20% payment increase annually. Some lenders only offer 10% and 10% — I specifically chose this product partly because the prepayment terms are better for someone who plans to make accelerated payments."

A red flag sounds like:

Not knowing the specific prepayment privileges of the mortgage they are recommending, or needing to look it up during the conversation.

Question 10: "Which lender has the best penalty calculation method for someone in my situation?"

Topic: Sophisticated Penalty Knowledge

Why you are asking this

This question tests the depth of a broker's technical knowledge. The penalty calculation method differs significantly between lenders. Chartered banks calculate their IRD penalty using the difference between your contract rate and their current posted rate — but their posted rates are artificially inflated relative to the actual rates offered, creating a much larger penalty. Monoline lenders typically use your contract rate versus the current discounted rate, resulting in a smaller penalty. A broker who understands this distinction is providing genuinely valuable advice that can save you tens of thousands of dollars if you ever need to break your mortgage.

A good answer sounds like:

"This is an important one. Banks use their posted rate for IRD calculations, which is inflated above market rates — so when you break a bank mortgage, the IRD is calculated against that inflated rate and the penalty is much higher than it should be. Monoline lenders use the actual discounted rate for IRD, which is far more consumer-friendly. For a client who might need to break their mortgage, I almost always recommend monoline for this reason alone, even if the rate difference is a few basis points."

A red flag sounds like:

"The penalty calculations are basically similar across lenders" or a blank response to the question.

This is one of the most consequential knowledge differences between an expert broker and an average one. Ignorance of IRD calculation differences represents a real knowledge gap.

Question 11: "Are you licensed in [my province]?"

Topic: Licensing — Non-Negotiable

Why you are asking this

Operating as a mortgage broker without a valid provincial licence is illegal in every Canadian province. The licence requirement exists to protect borrowers — it means the individual has met minimum education standards, passed background checks, and is subject to regulatory oversight. An unlicensed broker has no regulatory accountability and you have limited recourse if something goes wrong. This is a minimum threshold, not an indicator of excellence — but it is entirely non-negotiable.

A good answer sounds like:

"Yes, my Ontario Mortgage Broker licence number is MB12345. You can verify it at fsrao.ca — it takes about two minutes."

A confident answer with a specific licence number and direction to verify it independently.

A red flag sounds like:

Any hesitation, inability to provide a licence number, or asking why you want to know.

A licensed broker never needs to hesitate on this question. If they do, verify through the public registry before proceeding further.

Question 12: "How many mortgages do you close per year?"

Topic: Experience Volume

Why you are asking this

Volume is an imperfect but useful indicator of experience. A broker who closes 50-200 residential mortgages per year has seen a wide range of situations — unusual income structures, lender underwriting quirks, closing complications — and has built strong working relationships with lender underwriters. A broker closing 5-10 mortgages per year may be part-time or newly licensed, with a correspondingly narrower base of experience and lender relationships. Volume alone does not guarantee quality, but very low volume is worth noting.

A good answer sounds like:

"I closed approximately 85 mortgages last year, primarily residential purchases and refinances in Ontario. I have been full-time in this business for seven years."

A red flag sounds like:

Very low annual numbers (under 12 per year without a specific explanation), evasion of the question, or excessive boasting about volume without any substantive context about the work itself.

Question 13: "Can you provide references from clients in similar situations to mine?"

Topic: Real Client References

Why you are asking this

Online reviews are useful but impersonal. A direct conversation with a real client who faced a similar situation — first-time buyer, self-employed income, refinance to consolidate debt — gives you the kind of detailed, contextual information that public reviews rarely capture. It also signals that the broker is confident enough in their work to invite direct comparison.

A good answer sounds like:

"Absolutely. I have two recent clients who were first-time buyers in your situation who have agreed to take reference calls. Let me get their permission and send you their contact information today."

A red flag sounds like:

Resistance to providing any references, or being directed only to anonymous online reviews without any direct reference option.

Question 14: "What happens if rates drop after I lock in my rate hold?"

Topic: Rate Hold Mechanics

Why you are asking this

Many borrowers understand that a rate hold protects them if rates rise before closing. Far fewer know that rate holds almost always include a "float down" provision — meaning if rates drop during the hold period, you automatically receive the lower rate. This is one of the most borrower-friendly features of the Canadian mortgage market, and understanding it correctly affects how you think about locking in during a rate hold period.

A good answer sounds like:

"If rates drop before your closing date while you are in the rate hold period, the lender automatically gives you the lower rate at closing. The rate hold protects you against increases but does not lock you out of decreases. You always get the better of the two."

A red flag sounds like:

"If you lock in at today's rate, that is the rate you get — if rates drop, you would need to reapply."

This is factually incorrect for standard rate holds at most Canadian lenders. A broker who does not know the float-down provision either lacks experience or is misinforming you.

Question 15: "What are the conditions on my approval and what do I need to do next?"

Topic: Post-Approval Clarity

Why you are asking this

Most mortgage approvals are conditional — they require you to provide additional documents or confirm certain facts before the lender issues a final, unconditional approval. Common conditions include a formal property appraisal, an updated employment letter, proof of down payment source, or confirmation of sale proceeds from a prior home. Failing to satisfy conditions on time is a leading cause of closing delays and last-minute complications. A good broker gives you a clear list of conditions with specific deadlines and next steps immediately after your approval letter arrives.

A good answer sounds like:

"Your approval has three conditions. One: the appraisal is already ordered and should be back in five business days. Two: you need to get an employment confirmation letter from HR — I have a standard template you can use, which makes it easier. Three: we need a 90-day bank statement showing the down payment funds. Let me know when you have all three and I will submit them together to get the conditional removed quickly."

A red flag sounds like:

A vague explanation of conditions without a clear list, no timeline, or uncertainty about what is still needed to close your file.

Disorganization post-approval leads directly to closing problems. How a broker manages conditions is one of the best indicators of their overall process quality.

Red Flags — Signs of a Problem Broker

After working through those 15 questions, watch for these warning signs that indicate a broker may not be acting in your best interest:

✗Refuses to provide their licence number or cannot name the regulatory body that licences them
✗Cannot name the specific monoline or alternative lenders they have access to
✗Promises a specific rate before seeing any of your financial documentation
✗Uses pressure tactics such as "this rate expires today" or "I only have one spot left with this lender"
✗Will not provide written compensation disclosure before you commit
✗Steers strongly toward one specific lender without a clear, data-based rationale for why it is best for your situation
✗Does not discuss mortgage break penalties — especially the difference between bank and monoline IRD calculations
✗Communicates slowly or inconsistently during the pre-approval stage, before you have committed to anything
✗Asks you to sign documents before you have received and reviewed a mortgage approval letter
✗Is evasive or defensive when you ask about compensation, volume bonuses, or conflicts of interest

Green Flags — Signs of an Excellent Broker

Conversely, these are the indicators that you are working with a highly capable, client-focused professional:

✓Proactively discusses mortgage break penalties — before you even ask — and explains the specific difference between bank and monoline IRD calculations
✓Recommends products based on your specific situation, timeline, and financial goals — not a one-size-fits-all default
✓Provides written compensation disclosure upfront, without being asked
✓Explains the difference between mortgage term and amortization clearly and unprompted, because they understand many clients confuse the two
✓Has strong Google reviews with specific, detailed client stories — not generic five-star submissions
✓Answers the hard questions about competition, fees, volume bonuses, and penalties directly and without defensiveness
✓Responds promptly throughout the pre-approval phase and sets clear expectations about timelines
✓Explains what to avoid doing before closing: no new credit applications, no large unexplained deposits, no job changes without notifying them
✓Gives you a written summary of your approval conditions with clear deadlines and specific next steps
✓Follows up after closing to confirm everything transferred correctly and to explain your prepayment options going forward