All individuals and businesses who conduct mortgage brokering activities in Ontario must be licensed with the Financial Services Regulatory Authority of Ontario (FSRA). FSRA regulates the mortgage brokering industry in Ontario under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (the Act), as amended, and its regulations.
By dealing with a licensed individual and/or business, you can be assured that your mortgage brokerage, mortgage administrator, broker or agent has met specific education, experience and suitability requirements.
You'll also have assurances that the mortgage brokerage will:
- Adequately supervise its employees.
- Be held accountable for ensuring that its employees (mortgage brokers and agents) follow the law.
- Disclose the nature of its relationship with borrowers and lenders.
- Have errors and omissions (E&O) insurance, with coverage for fraudulent acts.
- Inform you of all the requirements for holding a mortgage.
All mortgage brokerage and administrator licences are continuous and do not need to be renewed. However, all mortgage brokerages and administrators are required to pay a regulatory fee every year. These fees cover FSRA's costs for regulating the mortgage brokering industry in Ontario.
Fees for mortgage brokers
All existing mortgage brokerages and administrators are required to pay a regulatory fee every year through Licensing Link. Mortgage brokerages and administrators that do not pay this regulatory fee may be subject to enforcement action.
To learn more about this fee, please visit the Fee Rule document on FSRA's web page.
- The mortgage brokerage fee covers both the brokerage and the Principal Broker.
- All mortgage brokerages and administrators need to ensure they have approved E&O insurance in place.
- Principal Brokers and administrators should log in to Licensing Link to verify that their contact information is up to date.
- If you have any further questions on licensing of mortgage brokers and agents and fees, read our frequently asked questions.
Errors and omissions insurance requirements
All mortgage brokerages and administrators are required by law to carry E&O insurance in a form approved by FSRA, with extended coverage for fraudulent acts. This E&O insurance must cover a minimum of $500,000 with respect to any one occurrence and $1 million with respect to all occurrences in a given year. These requirements for insurance are detailed in Ontario Regulations 188/08 and 189/08 of the Act.
The CEO has approved the policies of several E&O insurance providers. For a list of these providers, including contact information, refer to FSRA's E&O insurance providers page.
The law requires all mortgage brokerages and administrators to have E&O insurance at all times without exception, whether or not they are doing business. If a mortgage brokerage's or administrator's E&O insurance policy is cancelled or not renewed, FSRA must be immediately notified. Failure to comply with this requirement may result in an administrative monetary penalty and/or revocation of the brokerage's licence.
Insurance providers whose E&O policies are approved
Mortgage brokerages and administrators must obtain E&O insurance from an insurance company on FSRA's list of insurance providers. Please note, insurers have requested that all E&O inquiries be made directly to their representing insurance brokers.
Important information for the real estate and insurance industries
Please be aware that the Real Estate Council of Ontario's (RECO) E&O insurance policy for registered real estate brokers does not cover mortgage brokerages, administrators, brokers or agents. In addition, businesses or individuals that have E&O insurance under the Registered Insurance Brokers Act or the Insurance Act (e.g., as an insurance broker or agent) are not covered for mortgage brokering or administration.
Therefore, you must obtain separate coverage for your mortgage brokerage activities from one of the providers listed, even if you already have other E&O coverage through RECO or are covered for your insurance agent/broker activities.