Mortgage brokers capture 38% of new homebuyers in Canada

The share of mortgage brokers among new homebuyers in Canada has risen to its highest level in five years, amid increasing complexity in financing decisions and the variety of products, lenders, and interest rate options.

New consumer research showed that 38% of Canadians who recently purchased homes obtained their mortgage financing through a broker, an increase of six percentage points compared to 2024.

Reliance on brokers was more evident among first-time homebuyers, with the percentage rising to 48%, an increase of ten percentage points in one year, meaning that about half of the newcomers to the housing market used a broker to arrange their mortgages.

The brokers’ share also reached 42% among other recent market entrants, while Quebec recorded one of the largest regional increases, with the percentage rising by 14 points to reach 44%.

The best price remains the primary driver

Access to a competitive interest rate remained the main reason for using a mortgage broker, cited by 54% of clients.

Thirty-three percent said they turned to a broker to get offers from more than one lender, instead of relying solely on the products offered by a single financial institution.

However, the results showed that the broker’s role is no longer limited to finding the lowest price, as advice and assistance in understanding the financing process have become more important to borrowers.

Thirty-one percent of broker users said they needed help understanding the available options or the steps to obtain a mortgage, while 26% pointed to the importance of the broker’s recommendation of the appropriate lender, and 25% said that help with preparing paperwork and documents was among the reasons for choosing this channel.

This reflects a gradual shift in clients’ perception of brokers, from merely a means to compare prices to an advisor who helps them assess the loan’s impact on their long-term financial capacity.

First-time homebuyers seek guidance

The shift toward seeking advice was more evident among first-time homebuyers, who usually face a range of unfamiliar terms, conditions, and financial tests.

Forty percent of new buyers who used a broker said they did so to get help understanding options and the financing process, an increase of 14 percentage points from the previous year.

The percentage of those who chose a broker to get a recommendation on the appropriate lender also rose to 28%, while the same percentage cited the quality of customer service.

Twenty-two percent said the broker helped them choose a mortgage product that better fits their needs and financial circumstances.

First-time homebuyers face decisions related to the size of the down payment, loan repayment term, choice between fixed or variable interest, insurance costs, debt affordability tests, along with differences between lenders’ terms.

High loyalty to brokers

The results showed high levels of customer satisfaction, with 83% of mortgage holders who dealt with a broker saying they would recommend them to a family member or friend, the highest percentage recorded in five years.

Seventy-two percent of those who used a broker to arrange their current mortgage said they would use a broker again when seeking a new mortgage.

These figures indicate that the client experience and ongoing advice may play an increasing role in retaining borrowers, especially as large numbers of Canadians approach renewal dates for their loans with rates and terms different from those they previously obtained.

Fixed-rate loans remain dominant

Fixed-rate mortgages continued to dominate the market, accounting for 70% of the loans held by survey participants.

However, the share of variable-rate loans rose to 26%, marking its first increase in three years, indicating that some borrowers have become more willing to tolerate interest rate fluctuations in exchange for potential benefits from any future decreases.

Among variable-rate loan holders, 55% said their payments rise and fall with changes in the prime interest rate, while 45% had fixed payments that remain constant even when the portion allocated to interest and principal repayment changes.

A fixed payment does not mean the borrower is fully protected from interest rate changes, as an increase can lead to a larger portion of the payment going toward interest and slow down principal repayment.

Major banks receive most broker loans

Using a mortgage broker does not necessarily mean obtaining financing from a non-bank institution.

Fifty-six percent of clients who used brokers in 2025 obtained their loans from one of the major banks, up from 53% the previous year.

Conversely, the share of non-bank institutions and small banks fell from 25% to 19%, while mortgage investment companies accounted for 11%.

These results show that brokers act as a distribution channel for a variety of lenders, including major banks alongside credit unions, alternative lenders, and specialized institutions.

The choice of lender depends on the borrower’s financial profile, including income, credit history, property type, down payment size, nature of employment, and ability to meet qualification criteria.

Variation in knowledge of homebuying savings tools

The research also revealed gaps in non-owners’ knowledge of tools that can be used to save for a down payment.

Fifty-five percent said they knew about the possibility of using a Tax-Free Savings Account in homebuying plans, while awareness of the First Home Savings Account was 53%.

Knowledge of the Home Buyers’ Plan, which allows eligible withdrawals from retirement savings, dropped to 43%.

One in five non-owners said they did not know any of the three tools, indicating that some potential buyers may not benefit from available programs to accelerate down payment accumulation.

Use or planning to use these tools was significantly higher among those expecting to buy a home within the next two years.

Sixty-seven percent of them said they use or intend to use a Tax-Free Savings Account, 57% mentioned the Home Buyers’ Plan, while 48% said they would rely on the First Home Savings Account.

Limited knowledge of reverse mortgages

The research also addressed the attitude of older Canadians toward reverse mortgages, which allow eligible homeowners to access part of their home’s value without selling the property immediately.

Forty-three percent of Canadians aged 55 and over said they had some knowledge of this type of financing.

However, only 15% said they might consider using it, while 1% reported already having a reverse mortgage.

Staying in the current home, boosting retirement income, and covering unexpected expenses were among the main reasons some seniors consider this option.

However, a reverse mortgage adds interest to the amount owed over time and reduces the remaining equity in the home, making understanding its long-term cost essential before making a decision.

A more complex market

The increased use of brokers reflects a shift in the Canadian mortgage market, where decisions no longer depend on comparing just two or three prices.

Borrowers now face multiple choices related to payment structure, loan term, prepayment options, contract termination penalties, renewal conditions, and differences between traditional and alternative lenders.

Moreover, rising home prices and living costs have made mistakes in product selection more impactful on household budgets and debt affordability for years.

However, survey results alone do not prove that using a broker always leads to lower costs or better products; borrowers should compare prices, terms, fees, and penalties, and understand which lenders the broker can access and how they are compensated.

The report was based on an online survey lasting about 20 minutes and included nearly two thousand Canadians from various regions, conducted between February 5 and 25, 2026.

As a survey commissioned by an association representing the mortgage sector, its results reflect participants’ answers and perceptions and do not represent a comprehensive administrative record of all mortgage transactions conducted in Canada.