Mortgage Brokers: directory of firms

In Ontario, FSRA regulates mortgage brokering under the Mortgage Brokerages, Lenders and Administrators Act, 2006. All individuals and businesses carrying out regulated mortgage brokering activities must be licensed with FSRA unless the Act exempts them, and the licence classes are distinct: a mortgage brokerage, a mortgage administrator, a mortgage broker and a mortgage agent are separate things. FSRA tells consumers to work with licensed professionals and publishes a searchable listing so you can confirm a brokerage, administrator, agent or broker is licensed to do business in the province.

British Columbia takes the same idea through different machinery. The Mortgage Brokers Act provides that a person must not carry on business as a mortgage broker or submortgage broker unless registered under the Act. The mortgage broker is the registered business entity and the submortgage broker is the individual registered to act on its behalf, which is the person you will actually deal with. BCFSA keeps a record of everyone currently registered, and warns that consumers who use the services of unregistered mortgage brokers are not protected by the Act at all.

Quebec and Alberta each run their own regime again. Supervision of mortgage brokerage in Quebec moved from the OACIQ to the Autorite des marches financiers on the first of May 2020, and mortgage brokers there became representatives holding a certificate in the mortgage brokerage sector, governed by the Act respecting the distribution of financial products and services. The AMF's Register of firms and individuals authorized to practise lets you check whether the person in front of you may pursue those activities. In Alberta, RECA states that anyone who deals in mortgages on behalf of another person for compensation, or who represents themselves as a mortgage broker, must hold a mortgage broker licence issued by RECA unless an exemption applies, with exemptions for banks, credit unions and lawyers acting in their professional capacity. RECA ProCheck confirms whether an individual or brokerage is authorized to work in Alberta, the type of licence held, and disciplinary decisions from the past five years.

Dealing directly with your own bank is simple, and for a straightforward file with steady employment and a strong credit history it can be perfectly adequate. The limit is structural: a bank can only offer you its own products, so you learn what one lender will do and nothing about what the rest of the market would have done. Many borrowers are content with that trade, particularly where an existing banking relationship carries weight.

A broker's argument is breadth, but only the breadth it actually has. Because brokers do not all deal with the same lenders, the useful question is not whether someone is a broker but which lenders they can submit to and which they use most. Files that fall outside standard underwriting, such as self-employment, recent arrival in Canada, or a property type lenders treat cautiously, are where that breadth earns its keep. Ask early which lenders a broker works with, and treat a vague answer as information in itself.

On ordinary residential files the lender generally pays. The Financial Consumer Agency of Canada states that mortgage brokers generally do not charge fees for their services and that they usually receive a commission from the lender when they arrange a transaction. That is not universal: on files that mainstream lenders decline, and on private mortgages in particular, a broker fee charged to the borrower is common and should be set out in writing before any work begins. Provincial rules govern what must be disclosed and when, which is another reason to know which regulator stands behind the person you are dealing with.

LokalMatch lists mortgage brokerages and agents by area so you can find them and approach them yourself. Lending is a restricted category on this site: we don't sell requests for this service, so nobody has paid for placement, nothing on this page is a recommendation, and we do not screen, rank or match brokers. We are not a referral service and receive nothing for putting a borrower in touch with a broker or a lender. Confirm the licence on your own province's register before you send anyone your financial documents.

Federally regulated lenders owe you information rather than goodwill. The Financial Consumer Agency of Canada sets out that you must be given information when you apply for or renew your mortgage or when your agreement changes, including information about prepayment penalties, charges and privileges, about the security attached to the mortgage, and about optional mortgage life insurance if you buy it. There are also expectations that a lender will help if you are struggling to pay. Read the prepayment terms before signing rather than at the point you need them, because that is when they become expensive.

Mortgage default insurance is widely misunderstood, so it is worth being blunt. CMHC's own wording is that it protects your lender in case you cannot make your payments. It is required when your down payment is below twenty per cent of the purchase price. The premium can be paid as a lump sum or added to the mortgage and paid off through your payments, and while the lender pays the insurer, CMHC notes your lender will likely pass that cost on to you. It is not coverage for you, and it is not a substitute for life or disability insurance.