How to get a mortgage administrator licence

Running a business in the mortgage industry comes with many opportunities, especially in a growing market like Ontario. If your company plans to handle mortgage payments from borrowers, you’ll need a specific licence.

In this article, Canadian Mortgage Professional will discuss everything you need to know about the mortgage administrator licence in Ontario. We will talk about what it is and why it’s important. We will also explore the requirements and how your business can apply for one.

What is a mortgage administrator licence?

A mortgage administrator licence in Ontario is a legal requirement for any business that plans to act as a mortgage administrator in the province. These can be corporations, partnerships, or sole proprietorships (unincorporated businesses).

This licence is issued by the Financial Services Regulatory Authority of Ontario (FSRA). All mortgage brokerage and administrator licences are ongoing and don’t need to be renewed.

However, every mortgage brokerage and administrator must pay a regulatory fee each year. These fees help cover FSRA’s costs for overseeing the mortgage brokering industry in Ontario.

Can an individual apply for this licence?

Only business entities can apply for a mortgage administrator licence—not individuals. Plus, it's an important step for any business that wants to offer mortgage administration services in Ontario. They will only be able to operate legally if they obtain this licence.

If you only deal with arranging or negotiating mortgages and not managing mortgage payments, you might only need a mortgage broker licence. But if you handle any administration tasks related to mortgages, a separate licence is required.

Want to work solo as a mortgage broker in Ontario instead? Watch this video on how to get mortgage leads:

You can also choose to work as an individual by becoming a mortgage agent in Ontario.

How to get a mortgage administrator licence in Ontario

Getting a mortgage administrator licence in Ontario involves several steps. The FSRA has set out a clear process and eligibility criteria:

1. register a legal business
2. meet the FSRA’s requirements
3. get errors and omissions insurance
4. submit the licence application
5. wait for the FSRA’s review and approval

Let's discuss each step one by one below:

1. Register a legal business

Before applying for a licence, you must first register a legal business entity in Ontario. This could be any of these three business types:

1. sole proprietorship
2. partnership
3. corporation

You’ll also need to decide on your company name and make sure that it’s not already in use by another licensed entity. You must provide the full legal name of your business, based on its type:

Sole proprietor

Use your full legal name as the sole proprietor. You must also be a Canadian resident.

Partnership

Use the name from your partnership agreement or the name registered with the Ministry of Government and Consumer Services (if different from the full name of the partners). List all partners within the partnership and state the type of partnership.

Corporation

Use the name listed in your articles of incorporation, latest amendment, amalgamation, or continuance.

2. Meet the FSRA’s requirements

The FSRA has set specific requirements for those applying for a mortgage administrator licence. A criminal record and judicial matters check (CRJMC) must be completed through the FSRA’s approved vendor, Triton. Other requirements include:

• having a principal place of business in Ontario
• maintaining proper trust accounts as required by law
• having at least one Principal Representative who is knowledgeable about mortgage administration and will oversee regulatory compliance

3. Get errors and omissions insurance

Mortgage administrators are required to have errors and omissions (E&O) insurance from an approved provider that includes extended coverage for losses caused by fraudulent acts. This coverage must specifically protect the mortgage administrator.

4. Submit the licence application

Once your business is registered and ready, you can apply for the licence through Licensing Link. This is the FSRA’s online application system.

The application must include:

• the name and contact information, including an email address, for the principal representative of the business.
• official documentation about the business, such as:
  • the articles of incorporation if a corporation
  • the partnership agreement if a partnership
  • the Master Business Licence if the business uses a business or trade name
  • a list of the directors, officers, or partners as applicable to the business
• a copy of the business’s errors and omissions insurance (E&O) certificate and policy
• specific documentation such as the trust account information and the external auditor’s contact information
• an Ontario mailing address for service or registered mail; this cannot be a post office box

Your company must also have and maintain a financial guarantee of at least $25,000. Under the FSRA, you need to indicate the manner in which the business meets the requirement for the financial guarantee of $25,000.

5. Wait for the FSRA’s review and approval

After submitting your company’s application, the FSRA will review all your data and documents. This process can take some time. If everything is in order, your mortgage administrator licence will be approved and issued. Once received, your company can legally begin operations.

Responsibilities after getting a mortgage administrator licence

As a business entity with a licence to act as a mortgage administrator, you can expect several responsibilities. Here are some of them:

Maintaining proper trust accounts

Funds received directly or indirectly from borrowers, mortgage lenders, or investors must be kept in separate trust accounts and not mixed with operational funds.

Submitting annual returns

Every year, mortgage administrators must submit an Annual Information Return (AIR) to the FSRA.

Complying with the law

All activities must comply with the Mortgage Brokerages, Lenders, and Administrators Act of 2006 (MBLAA) and the FSRA regulations.

Tips for mortgage administrators to succeed in Ontario

Running a mortgage administration business comes with great potential—but it also requires careful planning and effective management. With the right tools and mindset, your company can grow steadily and build a reputation for being reliable.

Here are some tips to help your business succeed once it is operating legally with a mortgage administration licence:

1. invest in technology
2. stay compliant
3. hire trained staff
4. offer transparency

Let's explore these tips further below:

1. Invest in technology

Managing trust funds and financial records manually can be time-consuming and prone to mistakes. To stay efficient and maintain accuracy, it might be beneficial to invest in mortgage administration software to help your business.

Using the right tools will reduce the chances of human error. This can also make day-to-day operations much smoother.

2. Stay compliant

Mortgage administrators in Ontario are regulated by the FSRA, which has clear rules and reporting requirements. To stay compliant, your business must:

• maintain up-to-date and accurate records
• keep trust funds in the designated trust account
• submit the Annual Information Return (AIR) on time
• observe the rules and regulations set by law

Staying on top of these responsibilities shows professionalism. It also sends a strong message to your clients that your business is well-managed and trustworthy.

3. Hire trained staff

Having the right team in place can make a big difference in the success of your business. Your staff should understand the basics of mortgage financing, customer service, and compliance.

Remember, you don’t really need a large team to be successful—just one that is skilled, reliable, and aligned with your goals.

For instance, the best mortgage brokerages and lenders in Canada are guaranteed to have a great team that is well-trained and efficient in their craft. This is why they come out on top of the competition.

4. Offer transparency

Trust is one of the most important factors in the mortgage industry. Borrowers, mortgage lenders, and investors want to know that their money is in good hands. You can build this trust by being open and transparent about everything you do.

Transparency helps you avoid misunderstandings and gives your clients confidence in your business. When people know you’re reliable and honest, they’re more likely to stick with you.

By following these simple but important tips, your mortgage administration business will have a strong foundation for growth.

Having a mortgage administrator licence is mandatory

Obtaining a mortgage administrator licence in Ontario is an important requirement for corporations, partnerships and sole proprietorships. If you wish to form and operate this kind of business, compliance with the law and the FSRA regulations is necessary.

Your company is also expected to be committed to responsible financial management. Once licensed, you will have the opportunity to build a profitable business as a mortgage administrator. While the setup process can be demanding, the long-term benefits are well worth the effort.

What special preparations will you be making to get your company’s mortgage administrator licence? Tell us in the comments section below.