Why Your Bank Might Be the Worst Place to Get a Mortgage

Edith Parinas
Oct 1
3 min read

The Truth About “Bank Loyalty” Spoiler alert: loyalty doesn't always pay — especially when it comes to your mortgage.

For many Canadians, getting a mortgage from the bank where they’ve held an account for years feels like the natural (and easiest) thing to do. You walk into your branch, talk to someone in a suit, and sign the dotted line — done and dusted, right?

But here’s what most banks won’t tell you: That loyalty could be costing you thousands.

Whether you’re buying your first home, renewing your mortgage, or refinancing, it’s time to rethink how and where you get your mortgage — and why using a mortgage broker might be the smarter, savvier move.

1. Your Bank Only Has One Option: Theirs.

Banks can only offer you their own products — and that means limited choice. If their rates aren’t the best in the market? Too bad. If their mortgage structure doesn’t match your lifestyle? You’ll have to fit into their box.

As a mortgage broker, I work with multiple lenders — from big banks to credit unions to monoline lenders you’ve never heard of (but definitely want in your corner). That gives you more options — and better rates, terms, and flexibility.

2. They Bank on You Not Asking Questions

Let’s get real — most people don’t read the fine print. But you should. Many bank mortgages come with restrictive clauses like:

Huge prepayment penalties
Limited prepayment privileges
Unfriendly refinancing rules
High discharge fees

Mortgage brokers are trained to break down these terms, compare across lenders, and advocate for the best fit for you — not the bank’s bottom line.

3. You Could Be Missing Out on a Better Rate

Banks might offer you their "best" rate — but that rate is rarely the best in the market. Brokers can negotiate on your behalf, and because we do high volume, we often access lower wholesale rates that you won’t see advertised publicly.

💡 Even a 0.10% rate difference could mean thousands saved over the life of your mortgage.

4. Renewal Time? They’re Hoping You Don’t Look Elsewhere

When it comes time to renew, banks often rely on you simply signing the form and moving on. They know most people don’t shop around. But if you don’t? You could be accepting a higher rate, worse terms, and less flexibility than you deserve.

I always encourage my clients to review every renewal. Even a quick chat can reveal big savings — or new opportunities.

5. Brokers Work for You, Not the Bank

At the end of the day, your bank’s mortgage specialist is paid to keep your business in-house. A mortgage broker? We work for you — your needs, your goals, and your future.

And here's the kicker: our services are typically free to you. Lenders pay us — not you — when we secure a mortgage on your behalf.

Still Want to Go to Your Bank? That’s Okay — But Get a Second Opinion.

There’s nothing wrong with getting a quote from your bank. Just don’t stop there. Let me run the numbers with other lenders so you can make an informed decision.

📥 Download the Mortgage Readiness Guide

Get my free step-by-step guide to help you prepare to qualify, compare, and negotiate the smartest mortgage for your situation.

✨ Mortgage Readiness: 10 Steps to Get You Into Your Dream Home

Final Thoughts: You Deserve Better Than a “One-Size-Fits-All” Mortgage

The mortgage you choose could be one of the biggest financial decisions of your life. Make sure it’s tailored to you, not just convenient for your bank.

Need help reviewing a quote, planning your next step, or simply learning more about what’s out there?

👉 Let’s book a call.

You deserve options, support, and a mortgage that works as hard as you do.

📞 Book a free consultation

📥 Or email me directly at hello@edithparinas.com