Why More Canadians Are Using Mortgage Brokers—and It’s Not Just About the Lowest Rate

More Canadians used a mortgage broker in 2025 than at any point during the previous five years.

According to The Broker Advantage, a report from Mortgage Professionals Canada, 38% of recent Canadian homebuyers used a mortgage broker in 2025. That was an increase of six percentage points from 2024.

The numbers were even higher among younger and first-time buyers:

48% of recent first-time buyers used a broker.

44% of buyers aged 18 to 34 used a broker.

Only 24% of buyers aged 55 and older used one.

These numbers show that mortgage brokers are becoming an increasingly important part of the homebuying process—particularly for people entering the market for the first time.

But the most interesting part of the report is not simply that broker use increased.

It is why Canadians are choosing to work with brokers.

The lowest rate still matters—but advice is becoming more important

Access to the best available rate remains the leading reason Canadians use a mortgage broker, cited by 54% of broker clients.

However, several other reasons are becoming increasingly important:

33% wanted multiple mortgage quotes.

31% wanted help understanding their options and the mortgage process.

26% wanted lender recommendations.

25% wanted help with paperwork.

25% wanted to avoid completing all the research themselves.

24% wanted better customer service.

19% wanted mortgage products matched to their specific needs.

The demand for advice was particularly strong among first-time buyers.

Among recent first-time homebuyers, the percentage using a broker to understand their options and the process increased by 14 percentage points, reaching 40%.

This tells us that people are no longer viewing mortgage brokers only as rate-shopping services.

They are also looking for someone who can:

Explain complicated mortgage terms.

Compare different lenders and products.

Identify potential penalties and restrictions.

Manage documentation.

Help them understand the total cost of the mortgage.

A mortgage with a slightly lower rate is not automatically the better mortgage.

Prepayment privileges, portability, refinancing restrictions and penalties for breaking the mortgage can significantly affect the total amount a borrower pays.

Younger Canadians are driving the change

The generational difference is difficult to ignore.

Buyers under 35 used mortgage brokers 44% of the time, compared with only 24% of buyers aged 55 and older.

Younger buyers may have smaller down payments, more complex income situations and less experience navigating the mortgage process. They may also be more comfortable comparing several providers instead of relying only on their existing bank.

Satisfaction levels also support the growth of the broker channel.

Among mortgage holders who worked with a broker:

83% said they would recommend their broker.

72% said they would use a broker again.

Both figures demonstrate that many borrowers see continuing value in receiving professional guidance and having someone compare options on their behalf.

Using a broker does not mean avoiding the major banks

One common concern is that a mortgage broker will automatically direct clients away from Canada’s major banks.

The data shows otherwise.

In 2025, 56% of mortgages arranged through brokers were placed with one of the major banks, increasing from 53% in 2024.

The remaining mortgages were placed with:

Non-bank or smaller-bank lenders.

Credit unions.

Trust companies.

Life insurers.

Mortgage investment corporations.

Alternative lenders.

A broker is not necessarily an alternative to the banks.

A broker can be a way to make banks compete against other lenders.

Across my own last 38 funded mortgages, I worked with 13 different lenders. Sixteen mortgages went to a major bank, while 22 went to credit unions, mortgage-only lenders and alternative lenders.

The purpose is not to avoid a particular type of lender. It is to determine which lender offers the most suitable overall mortgage for the borrower’s circumstances.

Fixed mortgages remain the most popular

Fixed-rate mortgages continue to dominate the Canadian market.

According to the survey:

70% of Canadian mortgages were fixed rate.

26% were variable rate.

4% were hybrid mortgages.

Variable-rate mortgage use increased for the first time in three years.

However, not all variable-rate mortgages operate in the same way. Some have payments that move when the lender’s prime rate changes. Others have fixed payments, with the allocation between principal and interest changing underneath the payment.

Two mortgages can therefore have the same variable rate but create very different experiences for the borrower.

The right choice depends on factors such as income stability, risk tolerance, future plans and the borrower’s ability to manage potential payment increases.

Many future buyers are missing valuable savings tools

The report also identified a significant knowledge gap among Canadians who do not currently own a home.

Awareness of the three major homebuying savings tools remains uneven:

55% were aware of the Tax-Free Savings Account.

53% were aware of the First Home Savings Account.

43% were aware of the Home Buyers’ Plan.

Approximately one in five knew about none of the three.

These programs can make a meaningful difference.

The First Home Savings Account allows eligible individuals to contribute up to $8,000 annually, subject to a $40,000 lifetime contribution limit.

The Home Buyers’ Plan allows an eligible individual to withdraw up to $60,000 from an RRSP toward a qualifying home purchase.

The earlier someone understands these options, the more time they have to structure their savings effectively.

The honest downside of using a mortgage broker

Not every mortgage broker approaches the market in the same way.

Some may regularly place most of their clients with only one or two lenders. In that situation, a borrower may receive less comparison than expected.

Before selecting a broker, consider asking:

How many different lenders did you fund mortgages with last year?

What would the penalty be if I broke this mortgage during the term?

Can you explain which options you rejected and why?

Can the quoted rate be held in writing?

How are you compensated by the lender?

A good broker should be able to answer these questions clearly.

It is also possible that a borrower’s existing bank may occasionally match or beat the available broker-channel options. A responsible broker should acknowledge that possibility rather than promising the lowest rate in every situation.

The real value is comparison, explanation and strategy

The strongest reason to use a mortgage broker is not a guarantee of finding the lowest rate.

The real value is having someone:

Compare multiple lenders.

Explain the differences between products.

Review penalties and restrictions.

Identify risks that may not be obvious.

Manage the application process.

Recommend an option based on the borrower’s complete circumstances.

This can be especially valuable for first-time buyers, self-employed borrowers, people going through a separation, rental-property owners and homeowners preparing for a mortgage renewal.

A mortgage is one of the largest financial commitments most Canadians will make.

The headline rate matters—but understanding the mortgage behind that rate matters just as much.

Nick Bachusky
Mortgage Agent Level 1
Referral Mortgages Inc.
FSRA #13316

Survey figures are from the 2026 Consumer Survey conducted by Bond Brand Loyalty for Mortgage Professionals Canada and describe mortgages taken in 2025. This article provides general information and is not a mortgage quote, financial advice or a guarantee of approval or rates.

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