Is My Mortgage Broker Ripping Me Off? – 10 Signs to Watch Out For
Buying a home is one of the biggest financial decisions you’ll ever make — and choosing the right mortgage is just as important as finding the right property.
That’s why many people turn to mortgage brokers to help them navigate the often confusing world of home financing. A good mortgage broker can save you time, money, and stress. But a bad broker? They can cost you thousands, lock you into a poor deal, or even manipulate your trust for their own gain.
So, how do you know if your mortgage broker is actually looking out for your best interests — or quietly ripping you off?
Here are 10 signs your mortgage broker might not be acting in your best interest:
1. They Pressure You to Act Quickly — Without Proper Details
A trustworthy mortgage broker should walk you through your options clearly and never rush you into a decision. If your broker pushes you to “sign now before it’s too late” without explaining why, that’s a red flag.
While it’s true that mortgage rates can fluctuate, and timing sometimes matters, many lenders offer rate holds—typically valid for up to 120 days. However, these are often not the most competitive rates. The best rates are usually reserved for “live deals,” meaning a full application has been submitted and the file is active. In contrast, pre-approvals and informal quotes may come with slightly higher rates or be less reliable until the application is official.
A good broker will explain the difference between a pre-approval, a rate hold, and a live deal rate. They should let you know exactly what to expect if you need more time and clarify whether the rate they’re quoting is guaranteed or conditional. If they’re evasive or rely on vague promises without documentation, consider it a sign to look elsewhere.
2. They’re Vague or Evasive About the Interest Rate
A legitimate mortgage broker will be upfront about your interest rate, loan type, and term—and they should explain how these are affected by your credit, income, and application status.
If a broker gives you a rate but won’t confirm it in writing—or calls it “tentative” or “just a ballpark”—be cautious. Sometimes this happens because your application hasn’t been submitted yet, and not all lenders provide official written confirmations at the pre-approval stage. But once a full application is in, you are entitled to a locked-in rate 100% of the time.
Some less ethical brokers may quote a low rate to catch your attention, knowing that it’s not realistic based on your profile. Later, once you’re emotionally invested, they’ll “update” the rate, blaming market conditions or changes in your file. A good broker will manage your expectations honestly from the start—explaining whether you're being quoted a pre-approval rate, a promotional teaser, or a locked-in rate from a submitted application.
Always ask for clarity. And if a broker dances around the numbers or avoids giving straight answers, that’s your cue to ask tougher questions—or walk away.
3. You’re Finding Better Deals on Your Own
If you walk into a bank and find a lower rate than your broker offered, or see better terms advertised online, it’s worth asking your broker why they didn’t present those options to you initially.
However, it's important to understand that rates for insured mortgages (high-ratio mortgages) are often lower than rates for conventional, non-insured mortgages.
Many of the online ads you see are promoting the rates for insured mortgages, which come with mortgage default insurance, typically required for borrowers with a smaller down payment.
If you're purchasing with a larger down payment and aren't required to pay mortgage insurance, the rate you’re quoted might be higher because it's a conventional mortgage. A good broker will explain this distinction, making sure you understand the difference between insured and conventional rates.
They should also help you compare the true cost of both scenarios — including the insurance on an insured mortgage — so you can see the real difference and decide which option is truly best for your situation.
The broker's job is to shop the market on your behalf, not just steer you toward lenders with better commission structures. They should always ensure you're getting the best deal for your financial situation, not just the most convenient one for them.
4. They Blame External Factors That Don’t Add Up
Mortgage rates are affected by economic forces like the Bank of Canada’s rate changes, inflation data, and the bond market. But if your broker blames a U.S. rate hike or vague “global instability” for why your rate jumped after you were told it was locked in, it could be a cover story.
Once a rate is locked in, it should remain the same throughout the approval process. If the terms change after the rate has been locked, it usually means there was an issue with how the rate was secured initially or that there’s been a misunderstanding about the commitment.
Brokers don’t have direct control over your rate, but they should be ensuring the rate is properly locked and confirmed with the lender. If your terms are suddenly altered after the fact, it’s important to ask why and make sure you fully understand the reason for the change.
Brokers should act as advocates for their clients, making sure all details are clearly communicated and that your rate is set as expected.
5. They Didn’t Secure a Proper Rate Hold
Rate holds for 90 to 120 days are very common in Canada, and most lenders allow brokers to secure one — even before you’ve selected a property.
However, the reliability of these holds can vary depending on the lender’s due diligence upfront. While a rate hold gives you some peace of mind, it's possible that once you submit a full application, you may receive a better rate than the one offered under the hold.
Additionally, some of the best lenders for your situation may not offer a rate hold at all, meaning you could get a better deal elsewhere once you’re ready to proceed. A good broker will guide you through this and explain the trade-offs, helping you decide whether a rate hold is the right choice for you or if it’s worth waiting for a live application to lock in the best rate.
If your broker promised a specific rate and later says it’s no longer available, they may have never submitted the rate hold in the first place. This is a huge red flag.
Ask your broker to confirm in writing which lender the rate hold is with, the term, the rate itself, and the expiration date. If they can’t (or won’t), they might be stalling or trying to upsell you later.
6. A Trustworthy Broker Will Prioritize Your Needs, Not Just Present Multiple Offers
Some brokers might present only one mortgage offer — often from their preferred lender — and call it a day. While it's true that a good broker should show multiple options, it's also important that they don't overcomplicate things with too many choices. Instead, a trustworthy broker will take the time to understand your needs and priorities, such as your preferred rate structure, term lengths, or flexibility for future changes. Based on this conversation, they will bring forward the best offer(s) that match your requirements.
If there’s only one option that truly fits, the broker should explain why it’s the best choice for you and outline their reasoning. They should also be transparent about backup plans or other potential options, including second- and third-choice alternatives, in case things don’t go as planned. If a broker consistently steers you toward just one option with vague explanations like, “this is just the best one for you,” without further detail, that could be a red flag — they may be prioritizing their own commission over your best interests.
7. They Get Defensive When You Compare or Ask Questions
Your mortgage broker should be a guide, not a gatekeeper. If they get annoyed when you mention rates you found online, or seem irritated when you ask for clarification, it’s a sign they’re not confident in their offer — or they feel threatened by your due diligence.
Some brokers rely on clients being uninformed. If you come in with knowledge and they start getting defensive or dismissive, they may not have had your best interest in mind from the start.
8. They Submit Applications Without Your Written Consent
This is a serious red flag. Brokers are legally required to obtain written consent (including e-signatures) before pulling your credit profile. If you discover that your broker submitted your information to lenders without your approval, they are violating regulations, as they are not allowed to contact credit agencies like Equifax without this consent.
While it's true that credit inquiries have a minimal effect on your score, and that multiple inquiries within a 60-day period are often treated as a single inquiry by credit agencies, it's still important that your broker gets proper permission.
Too many credit pulls — even if they don't drastically impact your score — can make you appear like a higher-risk borrower, which could hinder your ability to negotiate favorable terms later on.
A professional broker will always make sure you are fully informed and will never submit an application without obtaining your written consent. Always make sure to review and authorize any credit checks before they happen.
9. Their Story Keeps Changing
If your broker originally quoted a 4.73% rate, but now it’s 4.89%, and then you hear 5.05% the following week — with no explanation and no official paperwork — it may be time to move on.
Some brokers intentionally shift the story to confuse you or wear you down. Once you're overwhelmed, they expect you to settle out of fatigue or fear of missing out.
A reliable broker will give you clear, documented, and consistent information.
10. You Feel Like You're Working for Them — Not the Other Way Around
At the end of the day, you are the client. If you feel like you’re being guilt-tripped, pushed into decisions, or constantly chasing your broker for updates, that’s a problem.
A good broker works for you — not the lender, not their commission, not their ego.
If something doesn’t feel right, trust your instincts. You are allowed to walk away, ask questions, get second opinions, and advocate for your own best outcome.
Final Thoughts
Within the mortgage industry, you may encounter a broker who does not have your best interests in mind or is ineffective or unprepared to help you. However, most mortgage brokers take great pride in their work and deeply value their clients financial health.
There are many excellent brokers who genuinely care about their clients, work hard to secure the best deals, and operate with transparency and integrity.
But if you’re seeing any of the signs above, you owe it to yourself to slow down and ask questions.
You deserve a broker who works as hard as you do to secure the best deal for your financial future. Don’t be afraid to ask for documentation, shop around, or even switch brokers if something feels off.
In real estate, information is power—and knowing how to spot a bad broker could save you tens of thousands in the long run.
Want to learn more? Book a call with us today.
