Mortgage Brokerages
MORTGAGE BROKERAGE SECTOR SUMMARY
Number of brokerages | 1,165 | 1,170 | 1,197 |
Number of brokers | 2,512 | 2,561 | 2,703 |
Number of full-time brokers | 1,633 | 1,796 | 1,869 |
Number of agents | 10,748 | 11,267 | 12,510 |
Number of full-time agents | 5,737 | 6,706 | 7,404 |
Number of other staff | 1,528 | 1,641 | 2,195 |
Total number of all mortgages | 334,760 | 340,527 | 318,934 |
Total number of residential mortgages | 323,675 | 330,185 | 311,779 |
Total number of commercial mortgages | 6,877 | 7,767 | 5,020 |
Total number of other mortgages | 4,223 | 2,575 | 2,135 |
Total number of conventional mortgages | 186,957 | 197,004 | 195,379 |
Total number of high-ratio mortgages | 141,566 | 137,182 | 118,010 |
Total number of sub-prime mortgages | 25,160 | 28,138 | 26,390 |
Total dollar value of all mortgages | $134,046,785,882 | $132,487,145,770 | $126,266,069,9501 |
Total dollar value of residential mortgages | $107,601,758,496 | $107,498,366,710 | $101,130,519,114 |
Total dollar value of commercial mortgages | $25,571,222,734 | $24,128,169,580 | $23,522,286,349 |
Total dollar value of other mortgages | $873,804,652 | $860,609,480 | $1,613,264,487 |
Total dollar value of conventional mortgages | $84,439,870,950 | $85,376,130,968 | $83,701,152,320 |
Total dollar value of high-ratio mortgages | $48,326,589,870 | $44,990,391,897 | $40,786,581,352 |
Total dollar value of sub-prime mortgages | $7,086,031,664 | $8,219,521,406 | $7,688,985,091 |
Total number of mortgages funded by bank | 117,204 | 123,723 | 125,534 |
Total number of mortgages funded by credit union | 9,501 | 13,555 | 10,256 |
New question in 2017:
Total number of mortgages funded by insurance company | | | 375 |
Total number of mortgages funded by mortgage investment corporation (MIC) | 8,196 | 7,241 | 7,838 |
Total number of mortgages funded by private lender | 21,340 | 21,203 | 20,879 |
Total number of mortgages funded by self-funding | 107,971 | 109,631 | 106,586 |
Total number of mortgages funded by trust company | 29,939 | 29,986 | 25,205 |
Total number of mortgages funded by other | 40,566 | 35,188 | 22,261 |
Total dollar value of mortgages funded by bank | $52,873,314,339 | $45,599,062,366 | $50,284,748,308 |
Total dollar value of mortgages funded by credit union | $5,486,557,335 | $6,001,545,284 | $5,060,750,714 |
Total dollar value of mortgages funded insurance company | | | $1,477,295,908 |
Total dollar value of mortgages funded MIC | $4,346,761,019 | $4,403,635,045 | $4,162,375,807 |
Total dollar value of mortgages funded by private lender | $7,683,999,048 | $8,525,183,717 | $10,555,628,817 |
Total dollar value of mortgages funded by self-funding | $31,255,259,589 | $32,788,475,333 | $30,754,646,237 |
Total dollar value of mortgages funded by trust company | $14,302,295,607 | $16,917,451,250 | $12,232,682,081 |
Total dollar value of mortgages funded by other | $18,098,598,765 | $18,251,792,775 | $11,737,942,078 |
Total number of brokerages with syndicated mortgage investment (SMI) transactions✝ | 94 | 105 | 602 |
Total number of SMI transactions✝ | 5,987 | 7,412 | 24143 |
Total dollar value of SMI transactions✝ | $6,047,874,437 | $6,630,571,417 | $5,930,325,8924 |
✝ SMI figures in 2015 and 2016 include both qualified and non-qualified syndicated mortgages.
1 The 2017 AIR asked mortgage brokerages to report on the volume and dollar amount of non-qualified syndicated mortgages separately from other mortgage transactions. The $126,266,069,650 total excludes non-qualified syndicated mortgages.
2 The 2017 AIR asked mortgage brokerages to report on the volume and dollar amount of non-qualified syndicated mortgages separately from other mortgage transactions. The definition of a qualified syndicated mortgage used for the purposes of the 2017 AIR was based on the proposed definition at that time. The definition was revised when the amendments to Ontario Regulation 188/08 Mortgages Standards came into effect on July 1, 2018. A non-qualified syndicated mortgage is a syndicated mortgage which does not meet the requirements of a qualified syndicated mortgage.
3 Ibid.
4 Ibid.
ADDITIONAL MORTGAGE BROKERAGE AIR DATA
Types of lenders used to fund mortgages
Mortgage type |
Number
of Broke-
rages |
Percentage of total number of mortgages |
Percentage of total dollar value of mortgages |
Number
of broke-
rages |
Percentage of total number of mortgages |
Percentage of total dollar value of mortgages |
Number
of broke-
rages |
Percentage of total number of mortgages |
Percentage of total dollar value of mortgages |
Bank | 694 | 35% | 39% | 703 | 36% | 34% | 711 | 39% | 40% |
Credit union | 365 | 3% | 4% | 380 | 4% | 5% | 385 | 3% | 4% |
New question for 2017:
Insurance company | | | | | | | 74 | 0% | 1% |
MIC | 225 | 2% | 3% | 247 | 2% | 3% | 281 | 2% | 3% |
Private lender | 589 | 6% | 6% | 600 | 6% | 6% | 604 | 7% | 8% |
Self-funding | 113 | 32% | 23% | 111 | 32% | 25% | 141 | 33% | 24% |
Trust company | 549 | 9% | 11% | 541 | 9% | 13% | 493 | 8% | 10% |
Other | 252 | 12% | 14% | 265 | 10% | 14% | 230 | 7% | 9% |
Mortgage Investment Corporations (MICs)
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
Brokerages who reported MIC transactions. | 225 | 19% | 247 | 21% | 281 | 21% |
Total number of MIC transactions as percentage of total transactions. | 8,196 | 2% | 7,241 | 2% | 7,838 | 2% |
Total dollar value of MIC transactions as percentage of total mortgage value (millions). | $4,347 | 3% | $4,404 | 3% | $4,162 | 3% |
Syndicated Mortgage Investments
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
Brokerages that reported SMI transactions. | 94 | 26% | 105 | 9% | 60 | 5% |
Total number of SMI transactions and percentage of total transactions. | 5,987 | 2% | 7,412 | 2% | 2,414 | 1% |
Total dollar value of SMI transactions as percentage of total mortgage value (millions). | $6,048 | 4% | $6,631 | 5% | $5,930 | 5% |
Total dollar value of residential SMI transactions as percentage of total residential mortgage value (millions). | $1,954 | 2% | $2,640 | 2% | $1,605 | 2% |
Total dollar value of commercial SMI transactions as percentage of total commercial mortgage value (millions). | $3,636 | 14% | $3,530 | 15% | $3,206 | 13% |
Total dollar value of other SMI transactions as percentage of total other mortgage value (millions). | $425 | 49% | $460 | 53% | $1,118 | 15% |
Securitization
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
The mortgage brokerage arranged or participated in arranging securitization facilities. | 8 | 0.7% | 5 | 0.4% | 4 | 0.3% |
The mortgage brokerage made securitization sales. | 7 | 0.6% | 6 | 0.5% | 5 | 0.4% |
Remuneration
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
Did your brokerage accept non-monetary incentives from lenders? |
Yes | 290 | 25% | 278 | 24% | 248 | 21% |
No | 875 | 75% | 892 | 76% | 949 | 79% |
If Yes, what kind of incentives? |
Points | 255 | 22% | 242 | 22% | 213 | 18% |
Event tickets | 93 | 8% | 92 | 8% | 47 | 4% |
Gifts | 65 | 6% | 67 | 6% | 64 | 5% |
Trips | 41 | 4% | 48 | 4% | 95 | 8% |
Memberships | 3 | 0% | 3 | 0% | 0 | 0% |
Other | 0 | 0% | 0 | 0% | 0 | 0% |
Mortgage brokerages that offer credit cards or gift cards as remuneration. |
Yes | 52 | 4% | 50 | 4% | 42 | 4% |
No | 1,113 | 96% | 1,120 | 96% | 1,155 | 96% |
Mortgage brokerages that have contingency commissions or payment arrangements with lenders. |
Yes | 474 | 41% | 480 | 41% | 446 | 37% |
No | 691 | 59% | 690 | 59% | 751 | 63% |
Mortgage brokerages that have tri-party compensation agreements for payments of incentives other than money, between the brokerage, its brokers/agents, and other mortgage brokerages. |
Yes | 16 | 1% | 14 | 1% | 15 | 1% |
No | 1,149 | 99% | 1,156 | 99% | 1,182 | 99% |
Errors and omissions (E&O) insurance
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
Please indicate the liability limit under your current E&O policy (per occurrence). |
$500,000 | 598 | 51% | 558 | 48% | 563 | 47% |
$1 million | 309 | 27% | 329 | 28% | 340 | 28% |
Other | 258 | 22% | 283 | 24% | 294 | 25% |
Please indicate the liability limit under your current E&O policy (per annual aggregate). |
$1 million | 688 | 59% | 653 | 56% | 653 | 55% |
$2 million | 241 | 21% | 266 | 23% | 284 | 24% |
Other | 236 | 20% | 251 | 21% | 240 | 22% |
Mortgage brokerage information
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
The mortgage brokerage reported a franchise. | 336 | 29% | 336 | 29% | 346 | 29% |
The mortgage brokerage also had a mortgage administrator (dual) licence. | 84 | 7% | 94 | 8% | 97 | 8% |
The mortgage brokerage or its related persons/entities are members of Mutual Fund Dealers Association (MFDA). | 27 | 2% | 39 | 3% | 44 | 4% |
The mortgage brokerage or its related persons/entities are registered as an insurance brokerage under insurance legislation in any Canadian jurisdiction. | 51 | 4% | 58 | 5% | 64 | 5% |
The mortgage brokerage or its related persons/entities are registered as a dealer or adviser under securities regulation in any Canadian jurisdiction. | 40 | 3% | 46 | 4% | 50 | 4% |
The mortgage brokerage or its related persons/entities are registered as a real estate brokerage under the Real Estate Business Brokerage Act. | 260 | 22% | 273 | 23% | 270 | 23% |
Does the brokerage or its affiliate hold any other licences? | 340 | 29% | 366 | 31% | 403 | 34% |
Inactive brokerages
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total inactive brokerages |
145 |
137 |
134 |
Brokerages that did not close any deals and whose primary line of business was not mortgage brokering. |
Real estate | 73 | 50% | 63 | 43% | 58 | 43% |
Other | 44 | 30% | 43 | 30% | 44 | 33% |
Advisory services/consulting | 10 | 7% | 13 | 9% | 13 | 10% |
Mortgage referrals | 12 | 8% | 9 | 6% | 8 | 6% |
Administering mortgages | 1 | 1% | 4 | 3% | 5 | 4% |
Legal services | 4 | 3% | 3 | 2% | 4 | 3% |
Construction | 1 | 1% | 1 | 1% | 1 | 1% |
Accounting | 0 | 0% | 1 | 1% | 1 | 1% |
Dealing/trading | 0 | 0% | 0 | 0% | 0 | 0% |
Mortgage lending/investing | 0 | 0% | 0 | 0% | 0 | 0% |
Total inactive brokerages |
145 | 100% |
137 | 100% |
134 | 100% |
Trust accounts
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
The mortgage brokerage has a trust account(s) under the MBLAA. | 107 | 9% | 111 | 9% | 118 | 10% |
The mortgage brokerage opened a trust account during the reporting period. | 20 | 19% | 23 | 21% | 23 | 20% |
For trust accounts opened during the reporting period, the mortgage brokerage obtained prior written consent from the Superintendent of Financial Services to open a trust account pursuant to O. Reg. 188/08, s. 50 (2). | 17 | 85% | 17 | 74% | 14 | 61% |
For mortgage brokerages with trust accounts, the mortgage brokerage reconciled all of its MBLAA trust accounts. | 105 | 98% | 110 | 99% | 115 | 10% |
Mortgage brokerage office locations
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
Location of the brokerage’s head office in Canada as at December 31 (of the reporting year). |
Alberta | 15 | 1% | 17 | 1% | 19 | 2% |
British Columbia | 27 | 2% | 31 | 3% | 33 | 3% |
Manitoba | 1 | 0% | 1 | 0% | 2 | 0% |
New Brunswick | 1 | 0% | 1 | 0% | 0 | 0% |
Nova Scotia | 1 | 0% | 1 | 0% | 2 | 0% |
Ontario | 1,116 | 96% | 1,117 | 95% | 1,138 | 95% |
Quebec | 4 | 0% | 2 | 0% | 3 | 0% |
Total |
1,165 |
100% |
1,170 |
100% |
1,197 |
100% |
Location of mortgage brokerages’ head offices by Ontario region as at December 31 (of the reporting year). |
Central Ontario (L) | 423 | 38% | 434 | 39% | 420 | 37% |
Eastern Ontario (K) | 67 | 6% | 66 | 6% | 70 | 6% |
Toronto Metropolitan (M) | 509 | 46% | 507 | 45% | 522 | 46% |
Southwestern Ontario (N) | 93 | 8% | 87 | 8% | 100 | 9% |
Northern Ontario (P) | 24 | 2% | 23 | 2% | 26 | 2% |
Total |
1,116 |
100% |
1,117 |
100% |
1,138 |
100% |
Total number of offices for each Ontario region as at December 31 (of the reporting year). |
Eastern Ontario (K) | 199 | 11% | 195 | 10% | 220 | 10% |
Central Ontario (L) | 651 | 35% | 697 | 36% | 796 | 38% |
Toronto Metropolitan (M) | 741 | 39% | 755 | 39% | 783 | 37% |
Southwestern Ontario (N) | 62 | 3% | 48 | 3% | 242 | 12% |
Northern Ontario (P) | 223 | 12% | 217 | 11% | 59 | 3% |
Total |
1,876 |
100% |
1,912 |
100% |
2,100 |
100% |
Supervision of mortgage brokers and agents in brokerage
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
Steps taken to ensure adequate supervision |
The mortgage brokerage reviewed its policies and procedures | 1,088 | 93% | 1,097 | 94% | 1,115 | 93% |
Onsite supervisor/manager | 1,011 | 87% | 1,027 | 88% | 1,028 | 86% |
Policies and procedures/best practices | 1,021 | 88% | 1,030 | 88% | 1,058 | 88% |
File review/file audits | 973 | 84% | 991 | 85% | 1,017 | 85% |
Regular meetings (monthly, quarterly etc.) | 890 | 76% | 910 | 78% | 928 | 78% |
Training/support (phone/email/fax/online) | 883 | 76% | 905 | 77% | 926 | 77% |
Other | 115 | 10% | 107 | 9% | 125 | 10% |
|
Terminated for cause |
Reported using Licensing Link |
Terminated for cause |
Reported using Licensing Link |
Terminated for cause |
Reported using Licensing Link |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
During the reporting period, did the brokerage terminate a broker/agent for cause? |
Yes | 24 | 22 | 23 | 21 | 18 | 18 |
No | 1,141 | 2 | 1,147 | 2 | 1,179 | 0 |
Mortgage brokerage licence suitability
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage brokerages |
1,165 |
1,170 |
1,197 |
The mortgage brokerage reported complaint(s) made against the mortgage brokerage to a regulatory body in any Canadian jurisdiction that was based, in whole or in part, on allegations of fraud, theft, deceit, misrepresentation, forgery, or similar conduct. | 14 | 1% | 16 | 1% | 12 | 1% |
The mortgage brokerage was fined or there were monetary penalties imposed by a Canadian financial services regulator excluding FSCO. | 5 | 0% | 0 | 0% | 3 | 0% |
The mortgage brokerage had unpaid fines/monetary penalties owing to a Canadian financial services regulator, other than FSCO. | 0 | 0% | 0 | 0% | 1 | 0% |
The mortgage brokerage was fined or there were monetary penalties imposed by a provincial/federal court. | 1 | 0% | 1 | 0% | 0 | 0% |
The mortgage brokerage was subject to charges laid under the laws of a Canadian province/territory. | 0 | 0% | 3 | 0% | 0 | 0% |
The mortgage brokerage held licences from other regulatory bodies/professional organizations that were revoked or suspended. | 0 | 0% | 7 | 1% | 3 | 0% |
New question in 2017:
During the reporting period, was the brokerage named in a lawsuit (Statement of Claim, Counterclaim or Third-party Claim)? | | | | | 35 | 3% |
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Mortgage Administrators
ADDITIONAL MORTGAGE ADMINISTRATOR AIR DATA
Mortgage administrator information
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total number of administrators |
139 |
164 |
181 |
The mortgage administrator filed financial information pursuant to O. Reg. 193/08 s. 3. | 91 | 65% | 111 | 68% | 114 | 63% |
Unimpaired working capital
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total number of administrators |
139 |
164 |
181 |
The mortgage administrator maintained the required $25,000 of unimpaired working capital (or another arrangement, as approved by the Superintendent), at all times throughout the year. | 137 | 99% | 163 | 99% | 173 | 96% |
Trust accounts
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage administrators |
139 |
164 |
181 |
Did the administrator have a trust account(s) under the MBLAA? |
Yes | 119 | 86% | 149 | 91% | 149 | 91% |
No | 20 | 14% | 15 | 9% | 15 | 9% |
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Mortgage administrators who opened trust account(s) during the reporting period |
44 |
43 |
44 |
For trust accounts opened during the reporting period, the administrator obtained prior written consent from the Superintendent of Financial Services to open a trust account pursuant to O. Reg. 189/08, s. 34 (2). |
Yes | 7 | 16% | 8 | 19% | 8 | 18% |
No | 37 | 84% | 35 | 81% | 36 | 82% |
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Administrators with trust accounts |
119 |
149 |
164 |
For administrators with trust accounts, did the administrator reconcile all of its MBLAA trust accounts? |
Yes | 118 | 99% | 147 | 99% | 162 | 99% |
No | 1 | 1% | 2 | 1% | 2 | 1% |
|
Number |
Total dollar value of shortfalls |
Number |
Total dollar value of shortfalls |
Number |
Total dollar value of shortfalls |
Total mortgage administrators |
139 |
164 |
181 |
Was there a shortfall, at any time, in any of the MBLAA trust accounts? |
Yes | 4 | $98,177 | 1 | $430,508 | 4 | $77,809 |
No | 0 | $0 | 0 | $0 | 0 | $0 |
Portfolio details/information
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage administrators |
139 |
164 |
181 |
The mortgage administrator operated a MIC during the reporting period. | 34 | 24% | 39 | 24% | 49 | 27% |
The mortgage administrator administered private mortgages. | 67 | 48% | 84 | 51% | 96 | 53% |
The mortgage administrator administered syndicated mortgages. | 64 | 46% | 66 | 40% | 505 | 28% |
5 Note: in 2017 the number does not include the mortgage administrators who reported qualified syndicated mortgages.
Securitization
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage administrators |
139 |
164 |
181 |
The mortgage administrator arranged or participated in arranging securitization facilities | 5 | 4% | 4 | 2% | 3 | 2% |
The mortgage administrator made securitization notes | 5 | 4% | 4 | 2% | 5 | 3% |
Remuneration/payments
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total number of administrators |
139 |
164 |
181 |
The mortgage administrator had contingency commission payment arrangements with another person or entity. | 4 | 3% | 9 | 5% | 12 | 7% |
Mortgage administrator office locations
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total number of administrators |
139 |
164 |
181 |
Location of administrator’s head office in Canada as at December 31, 2017. |
Alberta | 4 | 3% | 3 | 2% | 3 | 2% |
British Columbia | 7 | 5% | 9 | 5% | 9 | 5% |
Manitoba | 3 | 2% | 3 | 2% | 3 | 2% |
Ontario | 123 | 88% | 148 | 90% | 165 | 91% |
Quebec | 2 | 1% | 1 | 1% | 1 | 1% |
Number of offices for each Ontario region as at December 31, 2017. |
Eastern Ontario (K) | 13 | 6% | 13 | 8% | 21 | 9% |
Central Ontario (L/M)* | 126 | 86% | 145 | 84% | 181 | 80% |
Southwestern Ontario (N) | 10 | 7% | 13 | 8% | 21 | 9% |
Northern Ontario (P) | 1 | 1% | 1 | 1% | 4 | 2% |
Total number of offices in Ontario | 150 | 100% | 172 | 100% | 227 | 100% |
Licence suitability
|
Number |
Percentage |
Number |
Percentage |
Number |
Percentage |
Total mortgage administrators |
139 |
164 |
181 |
The mortgage administrator reported any E&O claim(s) that were made against it during the reporting period in any Canadian jurisdiction. | 2 | 1% | 0 | 0% | 1 | 1% |
The mortgage administrator reported any claim(s) that were made against it and paid by its E&O insurance carrier or bonding company in any Canadian jurisdiction. | 0 | 0% | 0 | 0% | 0 | 0% |
The mortgage administrator reported any complaint(s) that were made against it to a regulatory body in any Canadian jurisdiction that was based, in whole or in part, on fraud, theft, deceit, misrepresentation, forgery or similar conduct. | 0 | 0% | 1 | 1% | 2 | 1% |
The mortgage administrator was fined or there were monetary penalties imposed by another Canadian financial services regulator, excluding FSCO. | 3 | 2% | 0 | 0% | 1 | 1% |
The mortgage administrator had unpaid fines/monetary penalties owing to another Canadian financial services regulator, other than FSCO. | 0 | 0% | 0 | 0% | 0 | 0% |
The mortgage administrator was subject to charges that were laid under the laws of a Canadian province/territory. | 0 | 0% | 0 | 0% | 0 | 0% |
The mortgage administrator had its licence(s) from another regulatory body/professional organization revoked or suspended. | 0 | 0% | 0 | 0% | 1 | 1% |
The mortgage administrator conducted other business from its premises. | 34 | 24% | 49 | 30% | 46 | 25% |
New in 2017:
During the reporting period, was the administrator fined by any Provincial/Federal courts? | | | | | 2 | 1% |
New in 2017:
During the reporting period, was the administrator named in a lawsuit (Statement of Claim, Counterclaim or Third-party Claim)? | | | | | 11 | 6% |
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