Mortgage Brokers in Toronto

Toronto is Canada’s largest and most competitive housing market. According to the Toronto Regional Real Estate Board’s June 2026 Market Watch, the average selling price in the GTA was $1,058,658, down 3.9% from June 2025, while home sales rose 9.4% year-over-year to 6,770 transactions. Whether you are buying, refinancing, or trying to keep your home, you will likely need a mortgage, and the right mortgage broker can make the difference between an approval and a decline.

A-lenders like federally regulated banks provide prime mortgages and home equity loans to borrowers with strong credit scores and easily documented income. If your credit rating is less than ideal, or your situation is more complicated, a private or alternative lender may be the better route. As long as you have a steady source of income and enough equity in your property, you can usually be approved for a mortgage in Toronto. A strong credit score and a history of financial responsibility will improve your chances of getting approved for a lower interest rate.

Mortgage Broker Store is a mortgage brokerage licensed by the Financial Services Regulatory Authority of Ontario (FSRA brokerage licence #12800). We specialize in the mortgages that banks turn down: private mortgages, bad credit lending, and stopping power of sale.

Why Choose Mortgage Broker Store in Toronto

Most Toronto brokerages focus on arranging standard bank mortgages. Our team concentrates on private and alternative lending for borrowers who cannot qualify at a bank, and we have been arranging these mortgages in Toronto and across Ontario for well over a decade. Our niche areas include:

• Private Lender Mortgages
• Bad Credit Mortgages
• Stopping Power of Sale and Foreclosure
• Home Equity Loans
• Second Mortgages
• Debt Consolidation Loans

Toronto Mortgage Rates

Interest rates for prime mortgages from Canadian A-lenders move with the Bank of Canada’s policy interest rate and vary with the loan term, whether the rate is fixed or variable, and the financial profile of the borrower. Because rates change through the year, always compare current quotes rather than relying on an advertised headline number.

For private and alternative loans, rates are higher because the lending risk is higher. As of July 2026, private mortgage and second mortgage interest rates in Toronto generally range from 8% to 12%, depending on the loan-to-value ratio, the property, and its location. You can see our current private lending rates and fees on our lending guidelines and pricing page.

Toronto Mortgage Approval Process

The approval process for a mortgage in Toronto is the same as it is anywhere else in Canada. If you’re applying for a prime mortgage from a bank, be prepared to provide documentation including but not limited to:

• Up-to-date identification
• Prior tax returns
• Proof of employment
• Credit card statements
• Records of investments and other debts

Before you get approved for a mortgage you’ll need to go through a pre-approval process. During pre-approval, a bank will look at your financial assets as well as your total debt load.

The bank or mortgage advisor will look through your financial records and determine the maximum amount you can qualify for, your monthly mortgage payment amount, and an initial locked-in interest rate. Though you may be pre-approved for a maximum mortgage amount, your actual mortgage may not be as large. Pre-approval usually occurs before the property actually changes hands, so the amount of your mortgage will depend on the amount of your down payment and the final appraised value of the home.

During this process, you’ll need to stay on top of your budget so you can accurately determine how much money you’ll be able to put down for an initial down payment while still having cash left over for moving and any ongoing maintenance.

Most banks require a credit score of at least 600 if you want to borrow a mortgage. In some cases, such as a smaller or shorter-term home equity loan, trust companies and credit unions can accept applicants with a credit score as low as 550.

Pre-approval usually lasts for a set period of time, like 60 or 120 days. If you choose to go ahead with the process during that time, in order to secure formal mortgage approval you’ll need to then prove that you can afford your mortgage at the current interest rate. One way to prove this is to undergo what is referred to by banks as a “stress test”. While federally regulated lenders are required by law to make mortgage applicants undergo a stress test, any lender can choose to stress test your finances.

Private and alternative lenders look at applications differently. Approval is based mainly on the equity in the property and your ability to make the monthly payments, so a low credit score or hard-to-document income is not an automatic decline. This is where our brokerage does most of its work.

What is a Mortgage Brokerage?

A brokerage is a group of mortgage brokers who have connections to individuals, banks, and other types of lenders. Brokers who work for a brokerage are experts on many types of loans and mortgage structures and can help you find a loan structure that works for both your budget and your needs. A reputable mortgage brokerage is a great first stop if you are looking for a mortgage but aren’t quite sure what the best option is, or how to go about applying for a mortgage.

What is a Mortgage Agent?

A mortgage agent is, like a mortgage broker, a person that acts as a middleman between the mortgage lender and the mortgage borrower. Agents can work out of banks and credit unions, and they can also work under private mortgage brokers who specialize in connecting borrowers with private and alternative lenders. A mortgage broker does essentially the same thing, however, brokers usually have a slightly higher degree of training, and are qualified to oversee the work of multiple agents.

You may have also heard the term mortgage advisor used synonymously with broker or agent, however, these are not the same thing. An advisor is someone who works in-house at a lender (usually a bank, credit union, or trust) and, as their title would suggest, provides advice to borrowers on what mortgage options are available to them and how they can prepare to apply for a loan.

Comparing Mortgage Brokers with Mortgage Agents

Mortgage brokers and agents in Toronto are both licensed to sell mortgages but only one is allowed to run a brokerage. The person who runs a mortgage brokerage is the principal broker, also known as a broker of record. A principal broker may hire others to work at the mortgage brokerage but it is their job to ensure full compliance with regulations and that all documents are in place. In simple terms, the broker of record is responsible for everything that happens at the brokerage.

Mortgage Brokers vs. Banks

Banks have historically been the main mortgage providers in Canada, but mortgage brokers now arrange a significant share of new mortgages, particularly for borrowers who do not fit bank lending criteria. A broker can shop your application to many lenders at once and negotiate competitive rates from their pool of lenders, instead of limiting you to one institution’s products. Most of our clients come to us after being turned away by a bank; we work with private and institutional lenders across Ontario to find terms that fit the situation.

Fees Charged by Mortgage Brokers

The fees a mortgage broker charges depend on the type of mortgage. Borrowers who qualify at a bank usually pay no upfront broker fee, because the lender pays the brokerage a commission when the mortgage closes. For private and alternative mortgages, the borrower pays a lender fee and a broker fee, typically 2% to 4% each, which are normally deducted from the mortgage advance on closing. Fees increase with risk: a higher loan-to-value ratio, an unusual property, or a legal complication such as an inheritance, divorce, or an active power of sale all add work and cost. These fees pay the lender’s and broker’s staff, lawyers, and property appraisal experts among other professionals involved in the mortgage process. Our current fees are published on our lending guidelines and pricing page.

Mortgage Broker Licensing in Toronto

All mortgage brokers and agents in Toronto must be licensed by the Financial Services Regulatory Authority of Ontario (FSRA), which replaced the Financial Services Commission of Ontario (FSCO) as the industry regulator in June 2019. Licensing requirements come from the Mortgage Brokerages, Lenders and Administrators Act, 2006. Agents start with a Level 1 licence, can upgrade to a Level 2 licence that permits them to arrange mortgages with private lenders, and after at least two years of experience and the required broker education can apply for a full mortgage broker licence. You can read more in our guide to who regulates mortgage brokers in Canada.

Before you commit to working with anyone, verify their licence on FSRA’s public registry and do some basic due diligence. Our mortgage broker checklist covers the questions to ask, and our guide to the dangers of unlicensed mortgage brokers explains the warning signs, with a companion video on identifying unlicensed brokers. Mortgage Broker Store operates under FSRA brokerage licence #12800.