When Canadians start thinking about a mortgage, one of the most common pieces of advice they hear is:
“Shop around—talk to as many lenders as possible.”

At first glance, this sounds smart. After all, who doesn’t want the lowest rate? But in today’s Canadian mortgage market, shopping lenders on your own can actually cost you time, money, and negotiating power—and in some cases, even jeopardize your approval.

Let’s explain why.

The Myth: More Lenders = Better Deal

Many people assume that calling multiple banks or credit unions will lead to a better mortgage. In reality, this approach often results in:

• Multiple credit checks

• Conflicting advice

• Incomplete comparisons

• Lost leverage with lenders

Rates matter—but they’re only one piece of a much bigger picture.

Credit Checks Can Work Against You

Every time you apply directly with a lender, they typically pull your credit. While a few checks in a short period may be grouped, excessive or poorly timed applications can raise red flags.

Lenders may start asking:

• Why has this borrower applied so many times?

• Was there an issue with previous approvals?

• Is there undisclosed risk?

This can lead to:

• Lower approved amounts

• Higher rates

• Stricter conditions

Not All Mortgages Are Created Equal

When you shop lenders on your own, you’re usually comparing posted or advertised rates—not the full mortgage product.

Important details often get missed:

• Prepayment penalties (especially on fixed rates)

• Portability and refinance restrictions

• Bonafide sales clauses

• Refinance limitations

• Payout calculation methods

A slightly lower rate can end up costing thousands more if life changes and you need flexibility.

You Lose Negotiating Power

Here’s something most borrowers don’t realize:

Once a lender knows you’ve already applied elsewhere, your leverage decreases. Lenders compete best when:

• One professional presents your application

• The deal is packaged cleanly and strategically

• There’s a credible alternative lender ready if needed

Scattered applications weaken that position.

Why Well-Intended Advice Can Sometimes Hurt

Many buyers are encouraged—often by friends, family, or even Realtors—to “just shop the mortgage” or “check with your bank and a few others.”

While Realtors absolutely want the best outcome for their clients, mortgage advice outside their specialty can sometimes hinder rather than help the financing process. Multiple applications, mixed messaging, or last-minute lender switches can delay approvals, create conditions, or put deals at risk—especially in competitive or time-sensitive markets.

A strong purchase is built on clear roles and trusted professionals, each working in their area of expertise.

What a Mortgage Professional Does Differently

A licensed Canadian mortgage professional:

• Shops dozens of lenders on your behalf—without multiple credit hits

• Matches you with the right product, not just the lowest rate

• Structures the deal to improve approval strength

• Anticipates future needs (moves, refinances, life changes)

• Negotiates strategically with lenders

In short, you get choice without chaos.

When Shopping Does Make Sense

There are times when comparing options is healthy—when it’s done properly.

The key difference:

• ❌ Applying everywhere yourself

• ✅ Working with one professional who compares everything for you

Final Thoughts

In Canada’s mortgage market, more applications don’t mean more power. Often, they mean more risk.

Instead of shopping lenders, focus on:

• Clear advice

• Proper strategy

• Long-term suitability—not just today’s rate

The right mortgage is about confidence, flexibility, and cost over time, not just who advertises the lowest number.

By Annette Perry | AIA, Jan 16, 2026