When you need a mortgage in Ottawa, you have two main options: work with a mortgage advisor or go directly to your bank. But who actually has your best interests at heart?
Let’s break down the differences.
What Does a Mortgage Advisor in Ottawa Do?
A mortgage advisor (also called a mortgage broker) works with multiple lenders to find you mortgage options. They compare rates and terms from banks, credit unions, and private lenders. Their job is to match you with the right residential mortgage for your situation.
In Ottawa, mortgage advisors typically work with 20 to 50+ different lenders. This gives you more choices than walking into one bank branch.
How Big Banks Handle Mortgages
When you go to a bank for a mortgage, the loan officer can only offer you that bank’s products. They work for the bank, not for you. Their goal is to approve mortgages that meet their employer’s criteria and rates.
Banks have set rates and policies. The person helping you has limited room to negotiate or find alternatives if you don’t fit their requirements.
Who Pays the Mortgage Broker Fee?
Here’s something many Ottawa homebuyers don’t know: mortgage brokers are usually free for you. The lender pays the broker a commission when your mortgage closes. You don’t pay extra fees in most cases.
Banks pay their mortgage officers a salary regardless of whether you get approved. The cost is built into the bank’s operating expenses.
Mortgage Rates: Broker vs Bank in Ottawa
Mortgage advisors often get better rates than what banks advertise to walk-in customers. Why? Because brokers bring volume to lenders. A broker who sends 50 clients per year gets better pricing than you can get alone.
Banks may offer promotional rates, but these aren’t always available to everyone. You need to qualify for their best rates, and you won’t know what other lenders offer.
Best Option for First-Time Homebuyers in Ottawa
First-time buyers in Ottawa face unique challenges. You might have student loans, limited credit history, or questions about down payments and mortgage insurance.
A mortgage advisor can explain your options across multiple lenders. They know which banks are flexible with first-time buyers and which government programs you qualify for.
Banks will tell you about their first-time buyer programs, but they won’t tell you if another lender has better terms for your situation.
When Banks Make Sense
Banks work well if you have a simple mortgage need and an existing relationship. If you have strong credit, stable income, and a 20% down payment, banks can approve you quickly.
Some people prefer the convenience of handling everything under one roof (banking, mortgage, and investments). Banks offer this integration.
When a Mortgage Advisor Is Better
You should consider a mortgage broker Ottawa if you:
- Are self-employed or have irregular income
- Have credit issues or past bankruptcies
- Need a second mortgage or refinancing
- Want to compare multiple offers
- Don’t qualify at traditional banks
- Are buying investment or commercial property
- Want someone to handle the paperwork and negotiations
Mortgage advisors work harder to get you approved because they only get paid if your mortgage closes successfully.
The Real Difference: Who They Represent
The key difference is simple. Bank mortgage officers represent their employer. Mortgage advisors in Ottawa represent you, the borrower.
A bank employee has quotas and products to sell. A mortgage advisor has multiple lenders competing for your business. This competition typically works in your favor.
Making Your Decision
Before choosing, ask yourself: Do I want one option or multiple options? Do I have a straightforward application or a complex situation?
For most Ottawa homebuyers, talking to a mortgage advisor costs nothing and gives you a comparison point. You can always go back to your bank if their offer is competitive.
The mortgage you choose affects your finances for years. You can use mortgage tools and calculators to understand your budget before you start.
Finding a Mortgage Advisor in Ottawa
Look for licensed mortgage professionals with experience in the Ottawa market. Check reviews, ask about their lender network, and confirm there are no upfront fees.
Bank Street Mortgage and other established brokerages in Ottawa offer free consultations. This lets you understand your options before committing to any lender.
The right choice depends on your situation, but knowing the difference helps you make an informed decision about who’s really working for you.
Ready to get started? Apply for a mortgage or contact us to discuss your options.