Types of Mortgage Broker Licences
1. What is a Mortgage Brokerage?
A Mortgage Brokerage is a business that is licensed to carry out mortgage activities, such as arranging mortgages for clients. A Mortgage Brokerage usually employs several Mortgage Brokers and Agents who can carry out mortgage activities on its behalf.
Each Mortgage Brokerage is accountable for its employees. It needs to make sure that its Mortgage Brokers and Agents are licensed and follow the new Mortgage Broker law.
2. What is a Mortgage Broker?
A Mortgage Broker is an individual who is licensed to carry out mortgage activities for a licensed Mortgage Brokerage. A Mortgage Broker may also be responsible for supervising several Mortgage Agents who work at his/her Mortgage Brokerage.
3. What is a Mortgage Agent?
A Mortgage Agent is an individual who is licensed to carry out mortgage activities for a licensed Mortgage Brokerage, under the supervision of a licensed Mortgage Broker.
4. What is a Mortgage Administrator?
A Mortgage Administrator is a business that is licensed to receive mortgage payments from borrowers and send them to investors. Mortgage Administrators also take steps on behalf of investors to enforce mortgage payments.
1. How can I resolve a complaint about a Mortgage Broker or Agent?
If you have a complaint about a Mortgage Broker/Agent, and have been unable to resolve your complaint with the Mortgage Brokerage that the individual works for, you may write to the Financial Services Commission of Ontario (FSCO) for assistance. The address is:
The Financial Services Commission of Ontario
Licensing and Market Conduct Division
Mortgage Brokerage/Administrator Complaints
5160 Yonge Street, 4th Floor, Box 85
Toronto, ON M2N 6L9
The Mortgage Brokerage is required by law to provide a written response to your written complaint.
Please complete the Mortgage Business Activity Complaint Form and include the Mortgage Brokerage’s written response. You should provide all relevant information and documentation when this form is completed. When your complaint is received, FSCO will confirm receipt and tell you what to expect next.
If you require additional information on how to file a complaint, please call FSCO at (416) 250-7250 or toll free at 1-800-668-0128 and ask for the Contact Centre.
2. What should I do if I was pressured into an inappropriate mortgage?
If a Mortgage Broker or Agent has pressured you into an inappropriate mortgage, you may wish to speak to a lawyer to find out what legal action can be taken, as the Financial Services Commission of Ontario (FSCO) cannot obtain compensation on your behalf.
3. What can I do if a Mortgage Brokerage did not provide me a "cooling off period" before I signed my mortgage agreement?
If a Mortgage Brokerage did not provide you the required "cooling off period" (this is a mandatory 48-hour waiting period) before you signed your mortgage agreement, you can file a complaint with the Mortgage Brokerage. If you are not satisfied with the Mortgage Brokerage’s response to your complaint, you may contact the Financial Services Commission of Ontario (FSCO) to file your complaint.
Under the Mortgage Brokerages, Lenders and Administrators Act (Sections 35 and 7), a Mortgage Brokerage is required to provide you a Statement of Mortgage and a 48-hour waiting period before you can sign your mortgage agreement. However, if the lender is a financial institution (for example, a bank), or if you (the borrower) are not required to pay the Mortgage Brokerage a fee, this required waiting period does not apply.
4. Can the Mortgage Brokerage make me pay a fee in advance?
Before January 1, 2009, if your mortgage is for $200,000 or less, the Mortgage Brokerage cannot accept or require you to make an advance payment or deposit for any expenses or services that will be offered by the Mortgage Brokerage or one of its employees. You do not need to make any payment or deposit until you sign your mortgage agreement (for new mortgages) or enter into a new mortgage renewal agreement (for mortgage renewals). After January 1, 2009, this will apply to mortgages of $300,000 or less.