- When does the mortgage broker education and experience exemption expire?
- Who qualifies for the mortgage broker education and experience exemption?
- Can real estate brokers conduct mortgage business without a mortgage broker licence?
- What do registered real estate brokers need to understand before they apply for a mortgage broker licence?
- How can registered real estate brokers apply for a mortgage broker licence?
- Do mortgage agents and brokers require separate errors and omissions insurance from their mortgage brokerage?
- What do registered real estate brokers need to know before they apply for a mortgage brokerage licence?
- How can registered real estate brokers apply for a mortgage brokerage licence?
- I have both a real estate broker and a mortgage brokerage licence. Can I rely on the errors and omissions insurance that I have for my real estate business to cover my mortgage brokering activities?
- Where can I get instructions on using Licensing Link?
1. When does the mortgage broker education and experience exemption expire?
The mortgage broker education and experience exemption for registered real estate brokers will expire on June 30, 2009.
2. Who qualifies for the mortgage broker education and experience exemption?
The mortgage broker education and experience exemption only applies to individuals who were registered real estate brokers with the Real Estate Council of Ontario (RECO) as of June 30, 2008.
3. Can real estate brokers conduct mortgage business without a mortgage broker licence?
No. Real estate brokers are no longer deemed to be mortgage brokers. Under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) all businesses and individuals must be licensed if they wish to conduct mortgage business in Ontario. Please note some exemptions may apply (e.g. , vendor take-back mortgages etc. ).
4. What do registered real estate brokers need to understand before they apply for a mortgage broker licence?
Before you apply for a mortgage broker licence, you need to understand the following:
- Real estate brokers are no longer deemed to be mortgage brokers.
- Only licensed mortgage brokerages, administrators, brokers and agents can conduct mortgage brokering business in Ontario.
- Mortgage brokers and agents must be authorized to conduct mortgage business on behalf of a licensed mortgage brokerage.
- To become licensed as a mortgage broker or agent your licence application must be initiated by your mortgage brokerage's principal broker.
- The mortgage brokerage must be licensed before its principal broker and/or any mortgage broker applications can be submitted online.
- You must meet FSCO's mortgage broker licensing requirements in order to qualify for a mortgage broker licence.
5. How can registered real estate brokers apply for a mortgage broker licence?
To become licensed as a mortgage broker, your licence application must be initiated by your mortgage brokerage's principal broker in Licensing Link (FSCO's online application system). For detailed instructions on how to submit a licence application, view FSCO's Licensing Link Instructions for Mortgage Broker and Agents.
Please note:
- This is a multi-step process that could take several days after the mortgage brokerage has been set up in Licensing Link.
- To take advantage of the mortgage broker education and experience exemption for registered real estate brokers, all steps must be completed by June 30, 2009.
- A mortgage broker's application has not been “submitted” to FSCO until the principal broker has approved the application and paid the licensing fee for the applicant electronically.
If you have any questions, or need assistance in completing your online application, please contact FSCO's licensing department by e-mail: elicence@fsco.gov.on.ca or telephone: (416) 250-9209.
6. Do mortgage agents and brokers require separate errors and omissions insurance from their mortgage brokerage?
Mortgage agents and brokers do not require separate errors and omissions insurance from their mortgage brokerage. They are required to be covered under the mortgage brokerage's errors and omissions insurance policy.
7. What do registered real estate brokers need to know before they apply for a mortgage brokerage licence
Before you apply for a mortgage brokerage licence, you need to understand the following:
- Real estate brokers are no longer deemed to be mortgage brokers.
- Only licensed mortgage brokerages, administrators, brokers and agents can conduct mortgage brokering business in Ontario.
- Mortgage brokers and agents must be authorized to conduct mortgage business on behalf of a licensed mortgage brokerage.
- Your mortgage brokerage's principal broker needs to initiate mortgage broker and agent licence applications in Licensing Link.
- If you wish to apply for a mortgage brokerage licence please make sure you:
- Apply well in advance of the June 30, 2009 deadline.
- Have errors and omissions insurance with extended coverage for fraud with a FSCO approved insurance provider. The errors and omissions insurance that is provided by the Real Estate Council of Ontario (RECO) does not cover mortgage brokerages under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA). For a list of approved insurance providers, visit FSCO's web page on errors and omissions insurance.
- Properly complete the mortgage brokerage licence application. Incomplete applications will result in licensing delays.
- The mortgage brokerage must be licensed before its principal broker and any other mortgage broker applications can be submitted online.
8. How can registered real estate brokers apply for a mortgage brokerage licence?
To become licensed as a mortgage brokerage, please read and complete the Mortgage Brokerage Application Form and Instructions.
9. I have both a real estate broker and a mortgage brokerage licence. Can I rely on the errors and omissions insurance that I have for my real estate business to cover my mortgage brokering activities?
No. The errors and omissions insurance that is provided by the Real Estate Council of Ontario (RECO) does not cover mortgage brokerages under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA). You must get separate errors and omissions insurance for your mortgage brokerage. For a list of approved insurance providers, visit FSCO's web page on errors and omissions insurance.
10. Where can I get instructions on using Licensing Link?
To learn how to use Licensing Link (FSCO's online application system), click on the links below:
Financial Services Commission of Ontario