FSRA (Financial Services Regulatory Authority of Ontario)FSRA (온타리오 금융서비스규제청)

What is it?

FSRA (the Financial Services Regulatory Authority of Ontario) is Ontario’s financial regulator. The Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) calls FSRA the “Authority” and gives it licensing and oversight under that law.

For home buyers, FSRA’s most important job is the mortgage sector. In Ontario, people and businesses that arrange mortgages (mortgage brokerages, brokers, agents and mortgage administrators) must have an FSRA licence unless the law exempts them.

FSRA covers other financial sectors too. For example, Ontario’s Insurance Act also names FSRA as the “Authority” and lets it make rules about insurance agent licences. This page covers only the mortgage side that matters for buying a home.

What FSRA can and cannot do

FSRA describes what it can and cannot do in the mortgage sector like this.

For getting money back, FSRA says to go to a lawyer or the Law Society of Ontario (LSO), not to FSRA.

Who oversees what?

Different people in a home purchase answer to different regulators. These are the contacts FSRA itself lists.

Banks’ mortgage underwriting rules (the B-20 guideline and the stress test) come from OSFI for federally regulated lenders, not from FSRA. See “Mortgage stress test” for details.

Types of licence

FSRA’s public register says FSRA issues these licences. The new licence classes took effect on April 1, 2023.

• Mortgage brokerage: the business that carries on mortgage brokering. Brokers and agents work on its behalf.
• Mortgage administrator: a business that administers mortgages for others (for example, collecting payments).
• Mortgage broker: can help with mortgages from all lenders, including alternative and private lenders.
• Level 2 mortgage agent: can help with mortgages from all lenders, including alternative and private lenders.
• Level 1 mortgage agent: can help with mortgages from traditional lenders such as banks and credit unions.

Agent and broker licences are issued for a one-year term. Banks, credit unions and some lawyers (under certain conditions) are exempt from licensing, so they do not appear on FSRA’s register.

How to check a licence

1. Ask for the person’s name, licence number and the name of their brokerage.
2. Search FSRA’s public register (mbsweblist.fsco.gov.on.ca) by licence number, or by last name and city.
3. Look at the licence type. If a Level 1 agent is offering a private mortgage, ask why. Private loans must go through a Level 2 agent or a broker.
4. Check the brokerage on the register too. Any up-front fee must be paid directly to the brokerage.
5. If they are not on the register, check whether they are exempt, like a bank employee. For a bank employee, confirm with the bank itself. Arranging mortgages without a licence when not exempt breaks the MBLAA.

Duties under the law and the Code of Conduct

FSRA’s Code of Conduct reminds licensees to do three things.

• Provide products and services that are suitable for each client
• Provide services in a transparent and effective way
• Follow all the laws and rules that apply

The regulation (O. Reg. 188/08) spells this out. A brokerage must take reasonable steps to make sure a mortgage suits you (section 24), disclose material risks in writing (section 25), write disclosures in plain language (section 33), and give them as early as possible, at least two business days before you enter into the mortgage agreement or sign, whichever comes first (section 35). If you agree in writing, they can be given later, any time before you sign.

Complaints and fraud reports

1. Gather your papers (disclosure statements, commitment letter, receipts) and your messages.
2. If you suspect wrongdoing by a licensee or an unlicensed business, use “File a complaint” on FSRA’s website. FSRA reviews complaints with your consent.
3. If you need money back, talk to a lawyer. FSRA says it has no authority to recover funds for you.
4. If you are a victim of mortgage fraud, contact your local police or the Canadian Crime Stoppers Association first, then tell FSRA by filing a complaint. FSRA says to contact police first because crimes are their area.

Example