Despite expectations that the role of mortgage brokers would decline rapidly with the advance of digital lending, the data suggest they still matter.
According to a WOWA Data Lab survey of 2,178 homebuyers between August and October, 2025, who recently purchased a property, 45 per cent used a mortgage broker to secure their mortgage.
So why do brokers remain important in Canada’s mortgage market? The short answer is the system’s complexity.
There is no question that the broker channel faces pressure, particularly from technology and the growth of direct-to-consumer lending. But home-buying Canadians continue to rely on mortgage brokers for four reasons: their relationships with a broad range of lenders, their solutions for declined borrowers, their role in educating borrowers and the absence of fully digital mortgage platforms that can deliver immediate, end-to-end decisions.
First, mortgage brokers maintain relationships with banks and nonbank lenders, making them a key distribution channel – particularly for institutions without extensive branch networks.
Among the Big Six banks, Royal Bank of Canada does not work with the broker channel, while Bank of Nova Scotia is the most active participant, followed by Toronto-Dominion Bank and Bank of Montreal. National Bank of Canada and Canadian Imperial Bank of Commerce engage with the broker channel more selectively.
As noted earlier, lenders rarely disclose their lowest rates to prime borrowers. Advertised rates are typically well above what borrowers ultimately receive, while brokers often access more competitive, unadvertised pricing that better reflects true market rates.
Have homes gotten pricier – or has money lost its value?
To get the best mortgage rate, look behind the opaque curtain of Big Bank pricing
This is especially evident at Scotiabank, which does not actively advertise mortgage rates and instead publishes posted mortgage rates primarily for mortgage penalty calculations. Mortgage brokers do not charge prime borrowers directly and are typically compensated by lenders through commissions of close to 1 per cent of the mortgage amount.
Second, mortgage brokers offer access to a wider range of solutions for borrowers with complex financial circumstances, such as self-employed individuals. Even Canadians with stable income and strong credit may be declined by major banks due to income limits, pushing them toward alternative solutions, such as B-lenders, or, less commonly, private mortgages – areas brokers can help them navigate.
Third, many homebuyers rely on mortgage brokers to navigate knowledge gaps in the mortgage process. A significant number of Canadians are unaware that banks typically leave considerable room for rate negotiation, or that the first rate offered is rarely the most competitive.
Others do not realize that attractive options may exist beyond their primary bank. Together, these gaps in understanding push borrowers, especially first-time homebuyers, toward expert guidance.
Fourth, financial institutions and fintechs still struggle to offer truly straightforward online mortgage applications that deliver immediate approval amounts, limiting the appeal of bypassing the broker channel.
This is largely due to the absence of open banking and real-time Canada Revenue Agency income-verification tools needed for seamless applicant verification. Over time, as this digital infrastructure is introduced, fully streamlined mortgage applications are likely to emerge, potentially transforming the approval process.
Hanif Bayat, PhD, is the CEO and founder of WOWA.ca, a Canadian personal finance platform.
