An experienced mortgage professional can help set up more than half of all new mortgages in Canada. So, now, you have the choice to work with a mortgage agent or a mortgage broker. Which one should you choose?
This blog discusses the main differences in mortgage agent vs broker. Let’s break down each role so you understand who to call by the end of the read!
Mortgage Agent vs. Mortgage Broker: Unpacking the Roles
Whenever you start looking into buying a home or refinancing one, you will come across these 2 professionals. There’s a lot of difference in how they operate, which we’ll discuss below:
Mortgage Agent
Mortgage agents are licensed and qualified professionals. Their main line of work involves handling mortgage transactions. An agent works under a specific licensed mortgage brokerage. So, they are an employee or representative of that brokerage.
Mortgage Broker
In learning about mortgage agent vs mortgage broker, you’ll learn one main difference. Both of them are licensed, but brokers have more experience. And they also have higher licensing requirements. That will depend on BCFSA in BC.
A broker can be independent or manage other mortgage agents with a brokerage. The real advantage of mortgage brokers is that they have access to a wider network of lenders. This includes big banks, trust companies, private lenders or B lenders.
Here’s a table to summarize the differences between a mortgage broker vs mortgage agent:
| Feature | Mortgage Agent | Mortgage Broker |
|---|---|---|
| Definition | Licensed professional working for a brokerage | Licensed professional, often owns/manages a brokerage or has higher qualifications |
| Works For | A single specific mortgage brokerage | Can be independent, run a brokerage, or work for one |
| Lender Access | Limited to lenders approved by their brokerage | Access to a wide network of diverse lenders (banks, credit unions, etc.) |
| Scope of Options | Can offer products only from their brokerage’s pool | Can compare products and rates from many different lenders |
| Licensing (BC) | Licensed under the BCFSA via their brokerage | Licensed under the BCFSA, may have sub-brokers (agents) reporting to them |
| Primary Goal | Facilitate mortgages via their brokerage | Find the best mortgage fit from a broad market selection |
Mortgage Broker vs. Real Estate Agent: Clearing the Confusion
Many first time home buyers mix up the roles of a mortgage broker with a real estate agent. Let’s learn about their distinct roles.
Real Estate Agent (or REALTOR®)
Focus: The property itself.
Goal: To help purchase or sell physical real estate. They are experts in property values, neighbourhoods, and the transaction process.
If you’re buying a home, agents help you find the right one. If you’re selling one, agents find you the right market. Real estate agents manage viewings and negotiations mostly.
Mortgage Broker
Focus: The financing for the property.
Goal: To secure the loan, you need to buy the property. They are experts in the mortgage market, lender policies, and interest rates.
Mortgage brokers help you to understand your borrowing power. They will find the best mortgage product and rate, and work on documentation.
Final Thoughts
The difference in mortgage agent vs broker will help you clear up the home buying process in Canada. You can start with a broker and eventually have a strong offer for the real estate agent. This only makes you appear as a qualified buyer.
If you need professional guidance on mortgages in Surrey, Asim Ali offers personalized mortgage solutions. You can contact the professionals today to explore your options and take the next step toward homeownership.