Complaining About a Mortgage Broker in Ontario: How FSRA Works

Maybe you signed a mortgage and now suspect it was not right for you. The broker may not have explained the risks, may have left out a relationship with the lender, or may have given you the paperwork too late to read it properly.

This article explains how to check whether your broker is licensed, what a brokerage must do for you, how the complaint path works in Ontario, and what FSRA can and cannot do once you reach it.

Start by checking the licence

Mortgage brokerages, brokers, agents and administrators in Ontario are licensed by the Financial Services Regulatory Authority of Ontario (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 you cannot find the person or business on the listing, treat that as a warning sign and get legal advice before going further.

What a brokerage must do for you

A brokerage must take reasonable steps to make sure any mortgage it presents is suitable for your needs and circumstances. It must also give you written disclosure of material risks, of its relationship with each lender, and of any actual or potential conflict of interest, and it must get your written acknowledgement.

Timing matters too. These 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.

Signs you may have grounds to complain

Whether a particular broker breached the rules depends on the facts. These are common situations worth looking at more closely:

• You were never told in writing about the risks of the mortgage.
• You were not told the brokerage had a relationship with the lender.
• A possible conflict of interest was never explained.
• The disclosure arrived less than two business days before you signed.
• You were not asked to acknowledge the disclosure in writing.
• The mortgage clearly did not fit your circumstances.

A private mortgage can raise extra concerns. FSRA says private mortgages are generally short-term, often interest-only, and often carry higher fees than a traditional mortgage, and it advises borrowers to have an exit strategy and consider independent legal advice before signing.

The complaint path: brokerage first, then FSRA

Brokerages must have a process for resolving public complaints, designate people to handle them and keep records. FSRA expects you to complain to the brokerage first and get a written response before it will review your complaint.

• Write to the brokerage and describe what happened, with dates.
• Say clearly what you believe was missing, such as late disclosure or an undisclosed conflict.
• Ask for a written response and keep a copy.
• If the response does not resolve things, take your complaint and the brokerage's written response to FSRA.

What FSRA can and cannot do

FSRA can take regulatory action against a broker or agent who has not complied with the Mortgage Brokerages, Lenders and Administrators Act, 2006. It cannot relieve you of your mortgage obligations, award you compensation or decide contract disputes.

So a complaint to FSRA is about the broker's conduct, not about undoing your mortgage or getting money back. If you want to know whether you have other options, such as a claim against the broker or a dispute with the lender, that depends on your documents and facts, and a lawyer can review them.

What to do next

• Look up the broker and brokerage on FSRA's public licence listing.
• Gather the mortgage commitment, signed documents, disclosure forms and any emails or texts.
• Write down the date you received each disclosure and the date you signed.
• Send a written complaint to the brokerage and ask for a written reply.
• Do not stop making mortgage payments without advice, because that could put you in default.
• Speak with a lawyer before signing anything further or if you want to explore options beyond a complaint.

Frequently asked questions