Question 1

Should I choose a fixed or variable mortgage rate in Ontario?

Accepted Answer

It depends on your risk tolerance. Fixed rates offer predictable payments — ideal for tight budgets. Variable rates historically save money ~80% of the time but require comfort with payment fluctuations. A mortgage broker can model both scenarios with your actual numbers.

Question 2

Is a mortgage broker better than going to my bank in Ontario?

Accepted Answer

For most Ontario homeowners, yes. Brokers access 50+ lenders and typically secure rates 0.10–0.30% lower than big banks. They also recommend lenders with fairer break penalties. The service costs you nothing — lenders pay the broker. Always get a broker quote even if you plan to stay with your bank.

Question 3

How much can I save using a mortgage broker vs a bank?

Accepted Answer

On a $600,000 Ontario mortgage, a 0.20% rate difference saves roughly $7,200 over a 5-year term. If you break your mortgage early, fair penalty calculations through a broker-recommended lender can save $10,000–$20,000 compared to big bank penalties.

	Fixed	Variable
Monthly Payment	Stays the same for your entire term	Can go up or down with Bank of Canada rate changes
Peace of Mind	Maximum predictability — no surprises	Requires comfort with some uncertainty
Historical Savings	Costs more over time ~80% of the time	Saves money in ~80% of 15-year periods
Best For	Tight budgets, first-time buyers, risk-averse families	Financially flexible borrowers with emergency funds
Rate Lock	Locked for 1–5 year term	Fluctuates with prime rate
Conversion Option	N/A — already locked	Most lenders let you convert to fixed anytime

	Broker	Bank
Lender Access	50+ lenders — banks, credit unions, monolines, alternative	Only that bank's own products
Rate	Typically 0.10–0.30% lower — lenders compete for your business	Posted rate minus whatever discount they offer
Cost to You	$0 — the lender pays the broker	$0 directly, but rates may be higher
Break Penalties	Monoline lenders use fair penalty calculations ($3K–$6K)	Big banks use inflated posted rates ($15K–$25K)
Self-Employed / Complex	Knows exactly which lenders approve non-traditional income	One-size-fits-all underwriting — often declined
Advice	Independent — works for you, not a bank	Works for the bank — incentivized to sell their products
Convenience	Handles everything remotely — evenings and weekends	Branch hours, in-person appointments

Compare Your Mortgage Options Before You Decide.

Fixed vs. Variable Mortgage Rates

Mortgage Broker vs. Big Bank

More Comparison Guides

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