Ontario mortgage borrowers can breathe easy knowing the service they’ll receive from any lender in Ontario is regulated and governed by law. Whether you deal with a FRFI (a Federally Regulated Financial Institution), like one of the big banks from Bay Street, or with a provincially regulated mortgage brokerage like Canadalend, there are laws in place which determine how lenders can operate and act, what they can do and what they cannot do. They have legal responsibilities that cover a host of activities (Canadalend Mortgage Practices) and responsibilities like:
Standards of Practice – Mortgage brokers, like Canadalend, are licensed, and if their practices don’t meet the regulations, they can lose their license. Brokers like Canadalend take this very seriously.
Public Relations – There are regulations about who can be named in a promotion and their license number must be shown. TIP - Never deal with a broker who doesn’t prominently display their license. In fact, if a brokerage receives a complaint, they are duty bound to resolve the complaint or refer the complainant to the Financial Services Commission of Ontario.
Customer Relations – There are lots of regulations governing customer relations, including verification of identities, disclosure of lenders, responsibilities to report unlawful transactions, and a duty to the accuracy of the mortgage application. They are even bound by law to return your documents to you in a reasonable time, without charge.
Disclosure of Information About the Brokerage – Such as the relationships they may have with lenders.
Duties Regarding Information About Fees and Payments – Brokerages cannot claim their fees and are prescribed by regulators (with some exceptions). They must disclose to the borrower, in writing, any fees they receive with respect to negotiation or arrangement of a mortgage.
Duties in Particular Transactions – The mortgage solution a brokerage recommends must be suitable for the borrower regarding the needs and circumstances of the borrower. They must disclose material risks, conflicts of interest, brokerage relationships, mortgages previously in default, and so on.
Responsibilities Regarding Payments by Borrowers, Lenders and Investors – This regulation prohibits payments from lenders to brokers and regulates how mortgage monies are to be kept ‘in trust.’
Rules About Managing a Brokerage – Brokerages like Canadalend are required to establish policies that ensure all of their agents comply with the regulations (including handling complaints, insurance, and authorized agents). There are also regulations about record keeping.
Special Rules About Deemed Trust Funds – This section defines funds held in trust and defines funds of the brokerage. It sets out exactly how to handle these funds (your mortgage money).
Canadalend Mortgage Practices: What do These Regulations Mean?
You can trust Canadalend mortgage practices based on customer feedback, our services, our professionalism, and our no-judgment approach to mortgage solutions for everyone. But, it’s good to know that you’re protected by our practices, as we are duty bound to act in a professional and responsible manner.