Mortgage brokers represent you, the customer, not the lender. Because they are not employees of a lending institution, brokers are not limited in the product they can offer you. Brokers seek out the best lender package to suit your specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company, or Private Funds.
Variable rate and fixed rate mortgages both have their advantages. Historically speaking, homeowners tend to pay lower rates with variable mortgages, but these mortgages are also vulnerable to fluctuations because they’re tied to the Bank of Canada’s prime rate (which is announced eight times per year). Fixed rates, on the other hand, are typically higher than variable rates, but their rate is consistent throughout the term of the mortgage.