The Role of a Mortgage Broker in Quebec: What They Do and What It Costs

A mortgage broker compares offers from several lenders for you, negotiates the terms and guides you through to signing at the notary. For a mortgage with a traditional lender, the service is free: the lender pays the broker. In Quebec, brokers must hold a licence from the Autorité des marchés financiers (AMF) and act in your best interest.

What does a broker actually do?

1. Reviews your situation: income, debts, credit, down payment, plans.
2. Calculates your borrowing capacity using the ratios lenders use.
3. Compares offers from several lenders: banks, specialized lenders, alternative lenders.
4. Submits your file to the best-suited lender, highlighting your strengths.
5. Negotiates the rate, and also the terms: penalties, prepayment privileges, portability.
6. Follows the file through final approval and signing at the notary.
7. Contacts you at renewal to make sure you’re still getting the best offer.

Broker vs. bank: what’s the difference?

How is a broker paid?

With a traditional lender, the broker receives a commission from the lender once the mortgage is signed. You pay nothing, and the rate isn’t higher because of it: lenders often offer brokers competitive rates to win their business.

With an alternative or private lender, for files that don’t fit a bank, brokerage fees may apply. Your broker must disclose them clearly and in writing before going further.

A broker’s obligations in Quebec

Since 2020, mortgage brokerage has been regulated by the AMF. Brokers must, among other things:

• hold a valid licence, which you can check in the AMF register;
• act in your interest and advise you based on your situation;
• disclose their compensation and any conflict of interest;
• protect your personal information.

Before working with a broker, always check their licence number.

When does a broker make the biggest difference?

• First purchase: they explain each step and the help available (HBP, FHSA, welcome tax refund).
• Self-employed: they know the lenders that accept business income.
• Weak or new credit: they know which lenders will accept your file.
• Renewal: many homeowners sign their bank’s offer without comparing; a broker can often do better.
• Refinancing or debt consolidation: they compare the total cost, penalty included.
• Real estate investing: they structure financing across several properties.

Frequently asked questions

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