Questions to ask any mortgage broker
Eleven questions a Canadian mortgage broker should be able to answer cleanly. The questions are the same whether you're talking to me or anyone else. The point is that you walk in knowing what a strategist would ask, so the conversation actually filters for one.
For each question: what to ask, why it matters, what a good answer sounds like, and what an evasive answer sounds like. If the broker dodges three of these, that's a useful signal.
Before they shop you a rate
“How do you get paid on this file, and does that change which lenders you show me?”
Why it matters. Mortgage brokers are usually paid by the lender at funding, not by you. That's not a problem in itself. The question is whether the broker has commercial reasons (volume bonuses, exclusive arrangements, brokerage policies) that narrow the lender list before you ever see it. The answer should be specific.
Good answer: Names the compensation source clearly, says which lender categories they have access to (big banks, monolines, credit unions, alt-A, private), and acknowledges any restrictions or volume incentives at the brokerage level.
Evasive answer: "I have access to all lenders" or "It doesn't matter, the rate is the rate."
“Do you specialize in any particular type of file, or do you do everything?”
Why it matters. A broker who does "everything" usually does nothing exceptionally. Specialization tells you they've seen your file type before. If you're a self-employed investor with three rentals, you want a broker who has closed that file before, not one whose typical client is a first-time W-2 buyer.
Good answer: Names a specific focus area (first-time buyers, investors, self-employed, construction, alt-A, complex tax structures) and acknowledges where they refer out for files outside their lane.
Evasive answer: "I do it all."
About the rate quote itself
“What stress test rate are you using to qualify me, and why?”
Why it matters. Federally regulated lenders qualify you at the higher of your contract rate plus 2% or 5.25% (the floor). The number is set by federal regulation, but how it interacts with insured vs uninsured purchases, GDS/TDS ratios, and rental-income add-backs varies by lender. A broker who can't explain the math is a broker who can't shop the right product for your file.
Good answer: Cites the B-20 stress test rule, explains the insured vs uninsured divergence, walks through your specific qualifying number, and notes the lender-by-lender ratio variations.
Evasive answer: Gives a single number with no explanation, or conflates the contract rate with the qualifying rate.
“What's the longest amortization you can offer on this file, and what does that change about my qualifying ceiling?”
Why it matters. Amortization length is a lever most clients don't realize they have. As of December 2024, 30-year insured amortization is available to first-time buyers and certain insured-rental categories. A 25-year vs 30-year amortization can shift your qualifying ceiling by tens of thousands without changing the rate. The broker should know which products on which lenders give you that option.
Good answer: Specifies the longest amortization available on your specific file (25 conventional, 30 insured for first-time buyers, etc.) and quantifies what that does to your max qualifying mortgage.
Evasive answer: "Standard 25 years."
“What's my realistic backup plan if my preferred lender doesn't approve?”
Why it matters. A good broker has a Plan B and a Plan C lined up before submitting Plan A. If your file is anywhere off the standard W-2 fairway (self-employed, recent rental income, tight ratios), the lender approval isn't guaranteed. The broker should have alternative lenders, alt-A options, and (for the right file) private lenders pre-screened.
Good answer: Names two or three alternative lenders by category and explains the trade-off of each (rate premium, fee structure, term flexibility). Acknowledges what a fallback to alt-A or private would look like and what that would cost.
Evasive answer: "Don't worry about it" or "We'll figure it out."
About the structure, not just the rate
“What's the IRD penalty calculation method on this product?”
Why it matters. If you might break a fixed-rate mortgage mid-term, the IRD penalty is the single biggest variable cost on your file. Big banks typically use posted-rate IRD (huge spreads). Monoline lenders typically use discounted-rate IRD (much closer to the 3-month interest floor). The same break on the same balance can cost $5,500, $8,000, or $12,000+ depending which method applies. Asked at signing, this is one of the highest-leverage questions you can pose.
Good answer: States the calculation method clearly (posted vs discounted), explains the typical dollar gap, and acknowledges which lender categories use which method.
Evasive answer: "It's small" or "You won't break the term, so don't worry."
“What's the prepayment privilege on this product, and how does it interact with my options in 2-3 years?”
Why it matters. Prepayment privileges (typically 15% of original principal per year, plus a 15-20% payment increase, plus a lump-sum option) are how you accelerate the mortgage without breaking the term. A broker thinking only about today's rate is missing that the privileges are what give you optionality between renewals.
Good answer: Specifies the prepayment privileges on your specific product and walks through how they interact with future moves (refi to readvanceable, accelerated bi-weekly, lump-sum from a windfall).
Evasive answer: Quotes a generic privilege without explaining how to use it.
“What's my HELOC capacity at this loan-to-value, and how does it grow as principal pays down?”
Why it matters. A readvanceable mortgage (combined first mortgage + HELOC sub-account that grows automatically as principal pays down) is the foundation product behind almost every advanced strategy: cash damming, the Investment Leverage Strategy, the Debt Swap, the cash-out refinance done correctly. If your broker doesn't understand readvanceable structures, they're going to default to a flat closed mortgage. That choice limits your options for the next decade.
Good answer: Walks through your current loan-to-value, the 80% combined ceiling, and how the HELOC sub-account grows over the term. Names lender products that have strong readvanceable variants vs ones that don't.
Evasive answer: "We don't usually do that" or "We can add a HELOC later."
About what comes next
“What does this file look like in 5 years?”
Why it matters. Tests whether the broker thinks structurally or transactionally. The right product for THIS mortgage depends on what you'll likely want at the next renewal. A broker who can sketch a 5-year view of your file (renewal timing, likely refi paths, what events change the picture) is doing the strategy work, not just the funding work.
Good answer: Walks through likely scenarios at year 5: rate environment, your equity build, your renewal options, what would trigger a mid-term refi. Specific to your inputs.
Evasive answer: "We can deal with that at renewal" or refusing to speculate.
“If I'm planning to fund a build or buy a second property in 2-3 years, what's the optimal structure for THIS mortgage?”
Why it matters. The next deal almost always depends on how this one is structured. A 25-year amortization caps your future qualifying capacity. A non-readvanceable product locks you out of the easy structures for layering investment debt. A 5-year fixed term locks you into IRD risk if the second purchase needs a refi at year 3. The broker who flags these trade-offs upfront is the broker thinking two deals ahead.
Good answer: Surfaces the trade-offs unprompted, names the structural choices that matter for the next file, and adjusts the recommendation if you mention a likely future move.
Evasive answer: "Let's just close this one first."
“What questions am I NOT asking that I should be?”
Why it matters. The single best test of a broker. A transactional broker will say you're asking the right questions. A strategist will surface something specific to your file that you didn't think to ask: a lender-specific add-back rule, an upcoming regulatory change, a structural choice that's about to matter. The answer to this question is usually where the actual file-specific value lives.
Good answer: Names something specific to your file that you didn't bring up. Could be a lender quirk, a regulatory window, a structural opportunity. Surfaces it without being asked.
Evasive answer: "You're asking all the right questions."
Want to test these on a real conversation?
Bring this list to any broker call you're running, mine included. The questions are the same. About 30 minutes, no pressure.
Book a strategy call