In Ontario, mortgage brokers and the mortgage broker industry in general is regulated by the Financial Services Commission of Ontario (FSCO).
If you are planning to use the services of an Ontario Mortgage Broker, it is important that you educate yourself on the industry and that you are informed about the Mortgage Brokers and Lenders Administration Act (2006). It is also imperative that you:
• Confirm that the Ontario Mortgage Brokerage is licensed
• Confirm that the Ontario Mortgage Broker is licensed
• Understand how Ontario mortgages work
• Understand how Ontario Mortgage Brokers are regulated
It is against the law for an Ontario Mortgage Broker to operate business without a valid license. The FSCO exists to protect consumers against fraudulent mortgage practices, by requiring that all agents and brokers in Ontario prominently display their licensing information on their websites. If you are dealing with an agent or broker in Ontario, ask to see their license and qualifications before conducting business with that individual. If the agent or broker cannot provide documentation, always consult the FSCO first, before conducting business with that individual.
There are several benefits to dealing with a licensed and regulated Ontario Mortgage Broker or Brokerage:
• The Ontario Mortgage Broker will be properly educated and have experience in the field of Ontario mortgages
• The Ontario Mortgage Broker will be experienced and be able to provide advice confidently and accurately
• The Ontario Mortgage Brokerage will be held accountable for ensuring all Mortgage Brokers follow the law
• Should fraudulent activities occur, the Brokerage will have errors and omissions insurance with the proper coverage to protect consumers against these types of activities
• All Ontario Mortgage Brokers must disclose the nature of their relationship with borrowers and lenders
The FSCO monitors and investigates all incidents of non-compliance, and takes appropriate action against Ontario Mortgage Brokers and Ontario Mortgage Brokerages who do not follow the law. If the Ontario Mortgage Broker or Ontario Brokerage is not licensed with the Financial Services Commission of Ontario, it is recommended that you find an individual who is.
For more information visit http://www.gtamortgagematters.com/