Navigating the mortgage process in Ontario means relying on licensed professionals to act with integrity, professionalism, and transparency. If you feel a mortgage broker or agent in Ontario has acted improperly, you have the right to file a complaint with the Financial Services Regulatory Authority of Ontario (FSRA).
FSRA oversees the conduct of mortgage brokers and agents in the province, ensuring they adhere to industry regulations, including the Mortgage Broker Regulators’ Council of Canada (MBRCC) Code of Conduct. This code sets the ethical and professional standards that all mortgage professionals must follow. If a broker or agent breaches these standards, consumers have a formal process to hold them accountable.
Step 1: Understanding Your Rights Under the MBRCC Code of Conduct
Before filing a complaint, it’s crucial to understand the professional obligations mortgage brokers and agents must follow under the MBRCC Code of Conduct. The key principles include:
- Acting in the Client’s Best Interest – Mortgage professionals must prioritize their client’s financial well-being and provide recommendations that align with their needs and circumstances.
- Disclosure and Transparency – Clients have the right to full disclosure of fees, commissions, and any potential conflicts of interest.
- Suitability of Mortgage Products – Brokers must ensure that the mortgage solutions they offer are appropriate for the client’s financial situation.
- Professionalism and Ethical Behavior – Brokers and agents must act with honesty, fairness, and integrity.
- Confidentiality and Protection of Personal Information – Mortgage professionals must safeguard their clients’ personal and financial information.
- Compliance with Laws and Regulations – All mortgage professionals must follow FSRA’s licensing rules, consumer protection laws, and other relevant regulations.
If a mortgage broker or agent fails to uphold these standards—whether through misrepresentation, lack of disclosure, unethical behavior, or financial misconduct—you may have grounds for a complaint.
Step 2: Attempt to Resolve the Issue with the Broker or Brokerage
Before filing a formal complaint, consider raising your concerns directly with the mortgage broker or agent. In many cases, issues can be resolved through communication. If that approach is unsuccessful, you can escalate the matter by contacting the brokerage’s Principal Broker—the individual responsible for overseeing compliance within the brokerage.
Step 3: Gather Supporting Documentation
To strengthen your complaint, collect and organize any relevant documents, including:
- The mortgage agreement and disclosure documents
- Email or text communications with the broker or agent
- Proof of payments or fees charged
- Any advertisements, brochures, or promotional material that may have been misleading
- A written summary of your complaint, including dates and details of interactions
Step 4: File a Complaint with FSRA
If the issue remains unresolved, you can file a formal complaint with FSRA by following these steps:
- Visit the FSRA Website – Go to www.fsrao.ca and navigate to the complaints section.
- Complete the Complaint Form – Provide your personal details, the name of the mortgage broker or agent, their brokerage, and a detailed explanation of the complaint.
- Attach Supporting Documents – Upload or submit any evidence that supports your claim.
- Submit the Complaint – FSRA will review the complaint and may contact you for further details.
Step 5: FSRA’s Investigation Process
Once your complaint is received, FSRA will assess whether the broker or agent has violated industry rules or regulations. They may:
- Conduct interviews with the parties involved
- Review transaction records and agreements
- Take disciplinary action if necessary
FSRA has the authority to impose fines, suspend or revoke licenses, and take other enforcement actions against brokers or agents who violate regulations.
Step 6: Alternative Dispute Resolution
If your complaint involves financial loss, FSRA does not provide compensation but may guide you toward legal avenues, such as:
- The Ombudsman for Banking Services and Investments (OBSI) – If the mortgage broker was affiliated with a financial institution, OBSI may assist in resolving disputes.
- Small Claims Court – If financial damages are involved, you may pursue legal action for compensation.
- A Civil Lawsuit – For larger claims, consulting a lawyer may be necessary.
Final Thoughts
Consumers deserve fair and ethical treatment in the mortgage industry. If you believe a mortgage broker or agent has acted improperly, following this complaint process ensures accountability and helps maintain industry integrity. By leveraging FSRA’s regulatory oversight and the MBRCC Code of Conduct, you can take steps to protect yourself and others from unethical mortgage practices.
For more information or to file a complaint, visit www.fsrao.ca.
