What’s the Difference Between a Mortgage Broker and Mortgage Agent?

difference between mortgage broker and agent

Looking for a Canadian mortgage but don’t know how to begin? If so, you might find the information you require by working with a mortgage agent or broker.

They can show you the best ways to get a mortgage, the best terms, and the best interest rates. But how do we tell one from the other? In this guide, we’ll tell you all about how the two are different.

Mortgage Agents

Mortgage agents work with lenders to get loans for people who need them. These lenders could be banks, credit unions, or even people who lend money privately. A mortgage agent could work with a few or even up to 60 different lenders. But this depends on where they are; the main reason is so they can find you the best product.

When is it a Good Idea to Talk to a Mortgage Agent?

If you don’t know much about mortgages, talk to an agent. They have access to many lenders and could help you a lot in your search for the best product.

If you’re only interested in local lenders, it’s also best to talk to a mortgage agent instead of a broker.

Mortgage Brokers

mortageNow that you know what a mortgage agent does, we’ll tell you what makes a mortgage agent different from a mortgage broker:

  • A mortgage broker works for a separate company.
  • To be a mortgage broker, you have to take an extra course.
  • A broker can become a Principal Broker, which is the compliance officer of a brokerage.
  • Brokers can oversee the work of other mortgage agents.
  • In addition to these roles and responsibilities, mortgage brokers also have access to more lenders. A broker’s job is to find the best mortgage interest rates and terms for their clients.

When is it a good idea to talk to a mortgage broker?

Talk to a mortgage broker if you want to find out about mortgages that aren’t easy to find. They can borrow from more people and get better rates. Also, they might have more than one agent at their disposal.

What’s Different About Each?

variables vs fixed mortgage ratesNow, our team will explain in more detail what makes a mortgage agent different from a mortgage broker:

Types of Clients

Both serve the same kinds of customers. They help people who are looking for possible mortgage financing for a home or a business property.


Most of the time, a lender in Canada pays a finder’s fee or commission to a mortgage agent or mortgage. The most important difference is that brokers get it on top of their salaries.

Lenders who are able to pay their borrowers’ mortgages earn commissions. They are also based on percentages that have already been set. But if you look at the commissions they get side by side, there’s no difference!


home mortgagesDid you know that one of the requirements to become a licensed mortgage broker is to have worked as a mortgage agent for at least two years? So, you don’t have to worry when you work with a mortgage broker. He or she is sure to have worked in the field for a long time.


To become a licensed mortgage agent, a person must finish a Mortgage Agent Education Program that has been approved by the authorities in their area (like the Financial Services Commission of Ontario).

To become a licensed mortgage broker, you must first work as a licensed agent for at least two years and then take an additional course that is also approved by regulators.


Different companies offer Mortgage Agent Programs:

Mortgage Agent Qualifying Standards (MAQs), which are set by the regulator, are taken care of by programs like these. They make sure that each agent has the following:

  • Knowing about the mortgage business as a whole
  • Having knowledge of the law
  • Their role in protecting consumers and making moral decisions

The goal of Mortgage Broker Programs is to teach people the skills and knowledge they need to hire and manage agents properly. It makes sure that brokerages follow the rules and laws.


how do mortgage brokers make moneyIn terms of pay, one big difference is that a mortgage agent doesn’t get a salary, while a mortgage broker might get a salary.

It takes a lot of work to find the best mortgage in Canada and deciding between a mortgage broker and a mortgage agent can make your financial problems even worse. Our team hopes that this guide helped you figure out what to do.