How to Complain About a Mortgage Broker or Agent in Ontario

You signed a mortgage and now you think your broker or agent steered you wrong. Maybe the terms were not what you expected, a fee surprised you, or nobody explained the risks. It is hard to know who to call or what you can realistically get.

This article walks through the practical path: checking the licence, understanding what a brokerage owes you, making a complaint, and knowing what the regulator can and cannot do. It is general information, not advice on your situation.

Check the licence first

Mortgage brokerages, brokers, agents and administrators in Ontario are licensed by FSRA under the Mortgage Brokerages, Lenders and Administrators Act, 2006. You can check a licence on FSRA's public listing, which FSRA says is more reliable than a printed licence.

This matters because you may not be protected if you deal with unlicensed people. If the person is not on the listing, that is worth raising with a lawyer early.

What a brokerage owes you

A complaint is stronger when you can point to a specific duty that may not have been met. Under O. Reg. 188/08, a brokerage owes you the following.

• Reasonable steps to make sure any mortgage it presents is suitable for your needs and circumstances (s. 24).
• Written disclosure of material risks (s. 25).
• Disclosure of its relationship with each lender (s. 26).
• Disclosure of any actual or potential conflict of interest (s. 27).
• Your written acknowledgement of these disclosures.

Timing also matters. Required disclosures must be made at the earliest opportunity and no later than two business days before you sign the mortgage agreement or instrument, whichever comes first (s. 35(1)).

Whether a particular broker fell short of one of these duties depends on the facts: what you were told, when, and in what form. Your own paperwork is usually the best way to show that, so keep everything you received before and after signing.

Step one: complain to the brokerage

Brokerages must have a process for resolving public complaints, designate people to handle them and keep records (O. Reg. 188/08 s. 41). FSRA expects you to complain to the brokerage first and get a written response before it will review the complaint.

• Write down what happened, with dates and the names of the people involved.
• Gather the mortgage agreement, any disclosure documents you signed, emails and texts.
• Say which duty you think was missed, such as suitability, risk disclosure or conflicts.
• State what you want, for example an explanation or a correction.
• Send the complaint in writing and keep a copy and proof of when you sent it.
• Ask for the brokerage's written response.

Keep the tone factual and calm. A short, clear letter that sticks to dates and documents is easier for the brokerage to answer, and easier for anyone who reviews it later to follow.

Step two: go to FSRA

If the brokerage does not resolve things, you can take the complaint and its written response to FSRA. FSRA can take regulatory action against a broker or agent who has not complied with the Mortgage Brokerages, Lenders and Administrators Act, 2006.

It is just as important to know the limits. FSRA cannot relieve you of mortgage obligations, award compensation or decide contract disputes. How a complaint fits with keeping up your mortgage payments depends on your situation, so it is worth confirming with a lawyer.

What to do next

If you want your money back, want out of the mortgage or are in a contract dispute, the regulator is not the route. How this applies depends on your situation, so it is worth confirming your options with a lawyer.

If your loan was a private mortgage, there are a few points worth knowing. FSRA says private mortgages are generally a short-term option, often for one or two years, and are often interest-only. Fees are often higher than for a traditional mortgage, and private lenders may charge fees for late payments, lapsed insurance or property upkeep. FSRA says borrowers should have an exit strategy and consider independent legal advice before signing.

• Check the licence on FSRA's public listing.
• Compare your disclosure documents and dates to the duties above.
• File a written complaint with the brokerage.
• Take the written response to FSRA if the problem remains.
• Speak to a lawyer about any claim for compensation or any change to the mortgage.

Frequently asked questions