FSRA outlines new licensing requirements
The Financial Services Regulatory Authority of Ontario is calling on the province’s mortgage agents and brokers to renew their licences early in 2023 to avoid potential delays, taking into account new licensing requirements.
“The new requirements will help ensure consumers and investors receive appropriate mortgage advice and product recommendations when dealing with private mortgages,” FSRA said.
FSRA added that over the next few weeks, it will be emailing Ontario mortgage professionals on the licence type they qualify for. Brokers and agents can begin renewing their licenses starting February 1.
As outlined in its previous guidelines published in April 2022, FSRA renewed licences will have the following categories:
- Level 1 agents – may arrange mortgages solely with lenders that are financial institutions or approved lenders under the National Housing Act, as described in regulation
- Level 2 agents or mortgage brokers – may arrange mortgages for all mortgage lenders, including mortgage investment companies, syndicates, private individuals, agents, brokers, and brokerages
FSRA said that it is providing online resources that outline the new licensing requirements and provide answers to frequently asked questions.
Professionals also called on to register for mortgage courses
The regulator said that mortgage professionals must perform one of the following to retain a Level 2 agent or mortgage broker licence after April 1, 2024:
- Complete the FSRA-approved private mortgages course by March 31, 2024; or
- Pass a FSRA-approved challenge exam by October 31 this year. However, this option is only available for mortgage professionals who have five or more years of continuous licensing experience.
The private mortgage course and challenge exam are available through Canadian Mortgage Brokers Association – Ontario, Mortgage Professionals Canada, and Real Estate and Mortgage Institute of Canada. The FSRA also outlined the list of approved providers of its mortgage broker course.
