Mortgage brokerage licence (FSRA)

Anyone buying or selling a firm that arranges mortgages meets this licence early, because in Ontario a firm cannot carry on the business of dealing in mortgages without one unless it is exempted. The firm itself is licensed, separately from the individuals who work for it. This entry covers Ontario and Saskatchewan; check the rules where the firm operates.

What each source says

• Ontario: subsection 2(2) of the Mortgage Brokerages, Lenders and Administrators Act, 2006 says no person or entity shall carry on the business of dealing in mortgages in Ontario unless it has a brokerage licence or is exempted. The Act also requires a licensed brokerage to designate a principal broker.
• Saskatchewan: the Financial and Consumer Affairs Authority says each broker and associate works on behalf of one mortgage brokerage, which must obtain a separate licence.

What to check or ask

Ask the regulator whether a licence carries over to a buyer, or whether the buyer must apply. Confirm who the designated principal broker is and whether that person is staying. Check whether the firm relies on an exemption rather than a licence. The Saskatchewan steps are in mortgage brokerage licensing on a sale in Saskatchewan.