The province is introducing new rules for mortgage brokers in the new year.
A new Mortgage Brokerages and Brokers Act and Regulations will come into effect on April 1, 2025.
An increasing number of home owners have sought out mortgage brokers to try to find the most affordable rates after interest rates climbed due to the Bank of Canada’s attempts to control rising inflation.
The new legislation will include a licensing framework for the industry, introduce education and continuing education requirements for those in the industry, and require that brokerages have errors and omissions insurance.
It will also require mortgage brokerages to maintain trust accounts and strengthen client disclosure requirements as well as authorize administrative penalties.
Mortgage interest rates are determined by the Bank of Canada policy rate and will not be affected by the new legislation.