Do you submit my application to the lender that pays you the most?

Many borrowers are not aware of the different compensation models for both mortgage brokers and banks. Further, they are usually unaware that different lenders pay brokers different amounts of commission. Why is this important?

Firstly, any consumer needs ensure that they are in fact, getting the best deal. If a broker has a few possible financial institutions they can submit an application to, then it's important they don't submit to a lender paying them the most but instead, one offering the best deal to the borrower. A borrower's life and financial goals should not be meddled with - this isn't a casino!

When it comes to interest rates, they may seem good to the borrower but are they the best? Another question that should be asked: are the terms of the mortgage the best? Is there flexibility within the mortgage contract? Are there any lenders offering something better? And if so, what are their terms?

Because most people are not aware of how mortgage brokers get paid to begin with, they are surprised to find out that there are indeed different amounts of commission being offered to brokers. There are over 20,000 mortgage brokers across Canada, so it's important that borrowers choose to work with those not motivated by "how much compensation" but rather, "is it the best deal for the borrower?" 
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This isn't to portray bank representatives as angels, either. Most bank specialists are also incentivized by bonuses, raises and in most cases, their employment. This means they are graded on how much volume they do or in other words, how many products they sell. Therefore, borrowers also want to ensure they are not put into a mortgage product just because the person at the bank needed to reach their monthly quota.