In order to operate as a mortgage agent or broker, individuals must be licensed. The Province of Ontario regulates these licenses for those who are allowed to offer mortgages to potential home borrowers. If you intend to make a real estate purchase in the coming year, it is important that you check the qualifications of your mortgage broker and its agents and be sure that the people you are dealing with are duly licensed to perform their duties.
It is important to note that Ontario has modified the regulations governing these licenses. They want to be sure that new agents understand all of the elements and fundamental principles of the process before handling deals. In addition, they will be required to accumulate specific experience before they are allowed to operate solo.
These new licenses are broken into three levels, Mortgage Agent Level 1, Mortgage Agent Level 2, and Mortgage Broker. The deadline to obtain one of these licenses is April 1, 2023. It creates a new class as well as ensures that the continuing education criteria will be met for all levels.
- If you have been in the business for five or more continuous years, you need to complete the mortgage agent or broker course (as applicable) by March 31, 2024 or pass the Challenge Exam by October 31, 2023. Brokers who do not pass will revert to the mortgage agent.
- With experience between one year and less than five, they will need to successfully complete the Private Mortgages Course by March 31, 2024. Moving to level 2 requires at least one year of experience.
Better Agents and Brokers
The new classes and rules are designed to produce better agents and brokers. They are designed to increase knowledge and to better help customers and investors. Private lending is more complex than a traditional lending institution. Because the previous educational requirements did not cover private lending in as much depth, it was felt that some changes needed to occur. The education standards are increased so that potential buyers can be better informed about the process and results.
There are an increasing number of lending solutions and especially for those individuals or families that have less than perfect credit and for whom mainstream lenders are not an option, the additional information that brokers and agents require will benefit and provide consumer protection.
At Easy House Loans, we always have and are committed to full compliance with all laws, rules and regulations. Our educational components meet or exceed the standards, and that will not change. Our goal is the best possible loans for our clients. Our experience and education help us keep on top of the best deals and how to execute them well within the parameters set by governmental and legal systems.
If you are contemplating a real estate purchase in the next year, contact a mortgage broker from Easy House Laon with confidence that we will work on your behalf and will be fully licensed as required. Our goals include success for you and for our company.