Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c. 29 (Consolidation Period: From April 29, 2022 )

• Jurisdiction: Ontario
• Coming into Force: 29 April 2022
• Status: current

Mortgage Brokerages, Lenders and Administrators Act, 2006

S.o. 2006, chapter 29

Consolidation Period: From April 29, 2022 to the e-Laws currency date.

Last amendment: 2021, c. 40, Sched. 12, s. 3.

CONTENTS

Interpretation

Definitions

1 In this Act,

“Authority” means the Financial Services Regulatory Authority of Ontario continued under subsection 2 (1) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“Autorité”)

“Authority rule” means a rule made under subsection 55 (1); (“règle de l’Autorité”)

“Chief Executive Officer” means the Chief Executive Officer appointed under subsection 10 (2) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“directeur général”)

“cost of borrowing”, for a mortgage, means,

(a) the interest or discount applicable to the mortgage,

(b) any amount charged in connection with the mortgage that is payable by the borrower to the brokerage or lender,

(c) any amount charged in connection with the mortgage that is payable by the borrower to a person other than the brokerage or lender, where the amount is chargeable, directly or indirectly, by the person to the brokerage or lender, and

(d) any charge prescribed as included in the cost of borrowing,

but does not include any charge prescribed as excluded from the cost of borrowing; (“coût d’emprunt”)

“financial institution” means a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada), a credit union to which the Credit Unions and Caisses Populaires Act, 2020 applies including a central within the meaning of that Act, an insurer licensed under the Insurance Act, a corporation registered under the Loan and Trust Corporations Act or a retail association as defined under the Cooperative Credit Associations Act (Canada); (“institution financière”)

“lawyer” means a person who is authorized to practise law in Ontario; (“avocat”)

“licence” means a licence issued under this Act; (“permis”)

“licensed” means licensed under this Act; (“titulaire de permis”)

“mortgage” has the same meaning as in section 1 of the Mortgages Act; (“hypothèque”)

“mortgage administrator” means a corporation, partnership, sole proprietorship or other entity that has a mortgage administrator’s licence; (“administrateur d’hypothèques”)

“mortgage agent” or “agent” means an individual who has a mortgage agent’s licence; (“agent en hypothèques”, “agent”)

“mortgage broker” or “broker” means an individual who has a mortgage broker’s licence; (“courtier en hypothèques”, “courtier”)

“mortgage brokerage” or “brokerage” means a corporation, partnership, sole proprietorship or other entity that has a brokerage licence; (“maison de courtage d’hypothèques”, “maison de courtage”)

“prescribed” means,

(a) prescribed by the regulations; or

(b) subject to subsection 55 (9), in respect of matters listed in subsection 55 (1), prescribed by the Authority rules; (“prescrit”)

“regulation” means a regulation made under this Act; (“règlement”)

“requirement established under this Act” means a requirement imposed by this Act or by a regulation or an Authority rule, a condition of a licence, a requirement imposed by order or an obligation assumed by way of an undertaking; (“exigence établie en application de la présente loi”)

“Tribunal” means the Financial Services Tribunal continued under the Financial Services Tribunal Act, 2017. (“Tribunal”) 2006, c. 29, s. 1; 2017, c. 34, Sched. 17, s. 24; 2017, c. 34, Sched. 27, s. 1 (2, 3); 2018, c. 8, Sched. 17, s. 1, 5; 2020, c. 36, Sched. 7, s. 321; 2020, c. 36, Sched. 14, s. 10 (1).

Section Amendments with date in force (d/m/y)

2017, c. 34, Sched. 17, s. 24 - 01/04/2019; 2017, c. 34, Sched. 27, s. 1 (1) - no effect - see 2018, c. 8, Sched. 17, s. 5 - 08/05/2018; 2017, c. 34, Sched. 27, s. 1 (2, 3) - 08/06/2019

2018, c. 8, Sched. 17, s. 1 - 08/06/2019; 2018, c. 8, Sched. 17, s. 5 - 08/05/2018; CTS 04 SE 18 - 2

2020, c. 36, Sched. 7, s. 321 - 01/03/2022; 2020, c. 36, Sched. 14, s. 10 (1) - 08/12/2020

Regulated Activities

Dealing in mortgages

2 (1) For the purposes of this Act, a person or entity is dealing in mortgages in Ontario when he, she or it engages in any of the following activities in Ontario, or holds themself out as doing so:

1. Soliciting another person or entity to borrow or lend money on the security of real property.

2. Providing information about a prospective borrower to a prospective mortgage lender, whether or not this Act governs the lender.

3. Assessing a prospective borrower on behalf of a prospective mortgage lender, whether or not this Act governs the lender.

4. Negotiating or arranging a mortgage on behalf of another person or entity, or attempting to do so.

5. Engaging in such other activities as may be prescribed. 2006, c. 29, s. 2 (1).

Prohibition re carrying on business

(2) No person or entity shall carry on the business of dealing in mortgages in Ontario unless he, she or it has a brokerage licence or is exempted from the requirement to have such a licence. 2006, c. 29, s. 2 (2).

Prohibition re dealing

(3) No individual shall deal in mortgages in Ontario for remuneration, whether direct or indirect, as an employee or otherwise, unless he or she has a mortgage broker’s or agent’s licence and is acting on behalf of a mortgage brokerage or is exempted from the requirement to have such a licence. 2006, c. 29, s. 2 (3).

Trading in mortgages

3 (1) For the purposes of this Act, a person or entity is trading in mortgages in Ontario when he, she or it engages in any of the following activities in Ontario, or holds themself out as doing so:

1. Soliciting another person or entity to buy, sell or exchange mortgages.

2. Buying, selling or exchanging mortgages on behalf of another person or entity.

3. Buying, selling or exchanging mortgages on the person’s or entity’s own behalf.

4. Engaging in such other activities as may be prescribed. 2006, c. 29, s. 3 (1).

Prohibition re carrying on business

(2) No person or entity shall carry on the business of trading in mortgages in Ontario unless he, she or it has a brokerage licence or is exempted from the requirement to have such a licence. 2006, c. 29, s. 3 (2).

Prohibition re trading

(3) No individual shall trade in mortgages for remuneration, whether direct or indirect, as an employee or otherwise, by engaging in an activity described in paragraph 1, 2 or 4 of subsection (1) unless he or she has a mortgage broker’s or agent’s licence and is acting on behalf of a mortgage brokerage or is exempted from the requirement to have such a licence. 2006, c. 29, s. 3 (3).

Mortgage lending

4 (1) For the purposes of this Act, a person or entity is a mortgage lender in Ontario when he, she or it lends money in Ontario on the security of real property, or holds themself out as doing so. 2006, c. 29, s. 4 (1).

Prohibition re carrying on business

(2) No person or entity shall carry on business as a mortgage lender in Ontario unless he, she or it has a brokerage licence or is exempted from the requirement to have such a licence. 2006, c. 29, s. 4 (2).

Administering mortgages

5 (1) For the purposes of this Act, a person or entity is administering mortgages in Ontario when he, she or it engages in any of the following activities in Ontario, or holds themself out as doing so:

1. Receiving payments from a borrower under a mortgage on behalf of another person or entity, and remitting the payments to or on behalf of that person or entity.

2. Engaging in such other activities as may be prescribed. 2006, c. 29, s. 5 (1).

Prohibition re carrying on business

(2) No person or entity shall carry on the business of administering mortgages in Ontario unless he, she or it has a mortgage administrator’s licence or is exempted from the requirement to have such a licence. 2006, c. 29, s. 5 (2).

Exemptions

Financial institutions

6 (1) Every financial institution is exempted from the requirement in sections 2, 3 and 4 to have a brokerage licence. 2006, c. 29, s. 6 (1).

Same

(2) Every financial institution is exempted from the requirement in section 5 to have a mortgage administrator’s licence. 2006, c. 29, s. 6 (2).

Directors, officers, employees of financial institutions

(3) A director, officer or employee of a financial institution is exempted from the requirement in sections 2 and 3 to have a mortgage broker’s or agent’s licence when, in the ordinary course of his or her duties, the individual deals in or trades in mortgages on behalf of the financial institution. 2006, c. 29, s. 6 (3).

Simple referrals

(4) A person or entity is exempted from the requirement in section 2 to have a brokerage licence or a mortgage broker’s or agent’s licence when he, she or it refers a prospective borrower to a prospective mortgage lender if,

(a) the person or entity provides the prospective borrower with only such information about the prospective lender that is prescribed;

(b) the person or entity provides the prospective borrower with prescribed information in accordance with the regulations respecting the fee or other remuneration the person or entity receives, is entitled to receive, has received or may receive, directly or indirectly, for the referral; and

(c) the person or entity complies with such other requirements as may be prescribed. 2006, c. 29, s. 6 (4).

Same

(5) A person or entity is exempted from the requirement in section 2 to have a brokerage licence or a mortgage broker’s or agent’s licence when he, she or it refers a prospective mortgage lender to a prospective borrower if,

(a) the person or entity provides the prospective lender with only such information about the prospective borrower that is prescribed;

(b) the person or entity provides the prospective borrower with prescribed information in accordance with the regulations respecting the fee or other remuneration the person or entity receives, is entitled to receive, has received or may...