Mortgage Broker/Agent Overview

A license from the Financial Services Regulatory Authority of Ontario (FSRA) that allows individuals to act as an intermediary between borrowers and lenders in the mortgage market.

A professional who acts as an intermediary between borrowers and lenders to arrange mortgage financing, but operates under the supervision of a licensed mortgage broker.

A person licensed by the Financial Services Regulatory Authority of Ontario (FSRA) to operate a mortgage brokerage and supervise mortgage agents.

The legal document that establishes the terms of a mortgage loan, outlining the principal, interest, and repayment schedule. It serves as a legal contract between the lender and the borrower.

A financial transaction where an existing mortgage is replaced with a new one, often to obtain a lower interest rate or change loan terms.

A legal professional responsible for ensuring a mortgage brokerage and its agents comply with all relevant laws and regulations.

The practice of providing advice and guidance to borrowers on various mortgage options and strategies, such as renewal options or refinancing.

The process of obtaining a new mortgage loan to purchase or refinance real estate.

A government program that allows first-time homebuyers to borrow 5-10% of the purchase price of a home, with repayment upon sale of the property within a 25-year window.

A program that allows first-time homebuyers to use up to $35,000 of their RRSP funds as a down payment, without paying tax on the withdrawal. The amount must be repaid within 15 years.

A federal tax credit program that provides a non-refundable credit worth $5,000 to first-time homebuyers.

A program that offers a rebate on the GST/HST paid on the purchase price or cost of building a new house, or on renovations to an existing home.

A program that provides financial incentives to homeowners for making energy-efficient retrofits to their homes.

A refund available to first-time homebuyers in Ontario that can cover all or part of the land transfer tax paid.

The total amount borrowed against the property, including all interest accumulated. It is the amount the borrower is liable for.

The duration of the mortgage contract, after which the borrower must repay the loan in full or renew it.

The total time required to fully repay the borrowed amount. Includes both interest and principal payments.

The percentage charged on the mortgage amount, representing the cost of borrowing.

The frequency at which interest is added to the principal loan amount.

The fixed sum paid periodically throughout the mortgage term.

The standard agreement between the borrower and lender, outlining the terms and conditions of the mortgage loan.

A rebate offered by the City of Toronto on the Municipal Land Transfer Tax, available to first-time homebuyers.

The total time it takes to repay a mortgage, typically 25 years in Ontario.

A payment that combines both the principal (amount borrowed) and interest due for the payment period. It's like paying down the loan steadily.

A payment amount that stays the same throughout the entire mortgage term.

A mortgage where the interest rate is fixed and doesn't change for the entire term.

Similar to a fixed-rate mortgage, but with an interest rate that can change based on the market. This means the lender can adjust it.

A type of mortgage where the payment amount adjusts with each change in the interest rate. It's designed to minimize the risk to the lender.

A situation where the mortgage payments are not enough to cover the interest due, and the principal balance might increase. This can lead to a growing debt.

The formal process of creating a condominium corporation. It involves submitting the Declaration and Description of the condominium to the land titles office for registration, after approval by relevant authorities.

A legal document that clearly locates all visible public and private improvements (like buildings, fences, and utilities) in relation to property boundaries.

A claim or restriction on a property that can limit the rights of the owner. Common examples include mortgages, easements, and restrictive covenants.

A right granted to use another person's land for a specific purpose. The land granting the right is called the servient tenement, while the land receiving the right is the dominant tenement.

A restriction on how a property can be used, placed on the title for the benefit of another property. Like easements, they 'run with the land' and can only be removed by agreement.

A type of co-ownership where individuals own distinct and proportional shares of the property. Each owner has the right to sell their share independently.

A type of co-ownership commonly used by spouses for their matrimonial home. All owners have equal rights to the entire property.

The right of an owner to occupy a condo unit automatically ends when the ground lease expires.

Providing false or misleading information to FSRA.

Taking adverse employment action against an employee who provided information or documents to FSRA.

Financial Services Regulatory Authority of Ontario (FSRA) can impose penalties for contraventions of the MBLAA and failures to comply with it.

FSRA can assess a penalty of up to $1 million against a corporation.

A code of conduct for mortgage brokers that includes guidelines on competence, suitability, disclosure, and conflict management.

The MBRCC Code of Conduct emphasizes honesty in all dealings, ensuring that brokers communicate openly with clients.

The MBRCC Code of Conduct highlights the importance of brokers understanding and respecting their clients' financial circumstances and risk tolerance.

The MBRCC Code of Conduct emphasizes the importance of brokers cooperating with regulatory bodies.