Why Self-Employed and Commercial Borrowers Are Ditching Banks for Brokers in 2026

By Mudit Chhura  |  Co-Founder, IndiBrick  |  Read Time: 8 Mins

New national data just confirmed something we have believed since day one at IndiBrick. Canadians are walking away from the single-bank mortgage process in record numbers, and self-employed and commercial borrowers have the most to gain from that shift.

According to new research from Mortgage Professionals Canada, mortgage broker market share climbed to 38 percent of recent homebuyers in 2025, up six percentage points from the year before, and reached 48 percent among first-time buyers. That is the highest level of broker use in five years, and it did not happen by accident.

The Data Is Clear: Canadians Are Choosing Brokers Over Banks

The findings come from MPC's report, The Broker Advantage: How Canadians Are Navigating Mortgage Choices in a More Complex Market, based on a survey of close to 2,000 Canadians conducted by Bond Brand Loyalty. The numbers tell a consistent story across every buyer segment.

Borrower Segment	Broker Share (2025)	Change vs. 2024
All recent homebuyers	38%	+6 points
Recent first-time buyers	48%	+10 points
Other recent buyers	42%	Increase
Quebec buyers	44%	+14 points

Access to the best rate remains the top reason borrowers use a broker, but it is no longer the only reason. Close to a third of broker clients say they use a broker for help understanding their options or the mortgage process, roughly a quarter value lender recommendations, and another quarter point to help with paperwork. Among first-time buyers specifically, the share citing help understanding their options jumped 14 percentage points year over year.

Broker loyalty is also at a five-year high. The vast majority of current mortgage holders who used a broker say they would recommend one, and most say they would use a broker again for their next mortgage.

"Banks sell you their own products. A broker, and especially a tech-driven brokerage like IndiBrick, is built to find the right product for you, even when that means looking outside a single bank's approval box."

Why a Single Bank Cannot Compete, Especially for Self-Employed and Commercial Borrowers

If you are a salaried employee with two years of T4 income and a simple credit profile, a bank mortgage might work fine. But if you are self-employed, run an incorporated business, own commercial property, or generate income through contracts and invoices, walking into a single bank branch puts you at an immediate disadvantage.

• A bank can only offer you that bank's own lending criteria, income verification rules, and rate sheet
• Most banks apply rigid, payroll-style income verification that does not reflect how self-employed and commercial income actually works
• Banks typically have no pathway to B-lender, alternative, or private debt financing if you do not fit their box
• A single bank has no incentive to tell you a competitor down the street would approve your file faster or at a better rate

This is exactly why broker share is highest among the borrowers who need the most flexibility, first-time buyers, self-employed applicants, and increasingly, commercial and investment property owners.

What Self-Employed and Commercial Borrowers Actually Need From a Broker

Not every broker is built the same way. For business owners, entrepreneurs, and commercial borrowers, the right broker relationship should include the following.

• Access to multiple lenders, including major banks, B-lenders, credit unions, and private or alternative lenders, compared side by side
• Underwriting expertise in Business-for-Self income assessment, using bank statements and invoices rather than rigid T4-style formulas
• A clear path to private debt or Mortgage Investment Corporation financing when conventional and B-lender options are not a fit
• Speed and accountability, so your file does not sit untouched while a purchase deadline or renewal date approaches

Why IndiBrick Goes Beyond the Traditional Broker Model

The MPC data shows Canadians are already choosing brokers over banks. At IndiBrick, we built our entire platform around the belief that the next step is choosing a broker powered by technology, not paperwork and phone tag.

• AI-guided intake that captures your full financial picture upfront, built specifically to handle self-employed and commercial income scenarios
• Automated underwriting logic aligned with LTV, GDS/TDS, and B-20 guidelines, with built-in routing to B-lender and private debt options when a conventional lender is not the right fit
• An algorithmic SLA accountability engine that enforces response-time standards, so your file does not go quiet for days at a time
• BorrowDirect, our private debt marketplace, for commercial and self-employed borrowers who need financing structures a bank branch simply does not offer
• Digital, fixed-fee legal closing integration to keep your entire transaction, from application to keys, inside one connected platform

The Knowledge Gap Banks Will Not Fill For You

The MPC research also uncovered a real knowledge gap around homebuying savings tools. Just over half of non-owners were aware of Tax-Free Savings Accounts as a homebuying tool, roughly the same share knew about First Home Savings Accounts, and awareness of the Home Buyers' Plan was lower still. One in five non-owners was not aware of any of these three programs at all.

A bank teller is not incentivized to walk you through every program that could reduce your down payment burden or improve your qualification position. A broker is. This is precisely the advisory gap driving more Canadians, and especially first-time and self-employed buyers, toward brokerages rather than bank branches.

Frequently Asked Questions: Broker vs. Bank for Self-Employed and Commercial Borrowers

Is it better to use a mortgage broker or go directly to a bank in Canada?

For most borrowers, and especially self-employed and commercial borrowers, a mortgage broker provides access to multiple lenders, competitive rate comparison, and underwriting flexibility that a single bank cannot offer. National survey data shows broker use reached a five-year high in 2025, driven largely by demand for both rate access and advisory support.

Why do self-employed borrowers struggle to get approved at a bank?

Banks typically apply payroll-style income verification models that do not reflect how self-employed income is earned or reported. Business-for-self borrowers often need income assessed through bank statements, invoices, and business documentation instead, which is a specialty of experienced mortgage brokers rather than a standard bank underwriting process.

Can a broker get commercial financing that a bank cannot?

Yes. Brokers with access to B-lenders, credit unions, and private debt or Mortgage Investment Corporation sources can structure financing for commercial and alternative-income borrowers who do not fit a single bank's conventional lending box.

Does using a broker cost more than going directly to a bank?

In most residential mortgage transactions in Canada, brokers are compensated by the lender, not the borrower, meaning there is typically no direct cost to the client for broker services.

What makes a tech-driven brokerage different from a traditional broker?

A tech-driven brokerage uses automated intake, underwriting logic, and accountability systems to move files faster and reduce the manual back and forth common in traditional broker and bank processes, while still providing access to multiple lenders and financing structures.

The Bottom Line for Self-Employed and Commercial Borrowers

The data is no longer up for debate. Canadians are choosing brokers over banks at the highest rate in five years, and the borrowers benefiting the most are exactly the ones banks are least equipped to serve, first-time buyers, self-employed entrepreneurs, and commercial property owners with income structures that do not fit a standard rate sheet.

If you are self-employed or growing a commercial portfolio, the question is no longer whether to work with a broker. It is whether your broker is still running on phone calls and paperwork, or on a platform built to move as fast as your business does.

---