onlineadvice
MortgageBroker mbabc.ca spring 2014 | 19
New tool helps brokers determine provincial licensing requirements
Multi-jurisdictional
Licensing
The MorTgage Broker
regulaTors' CounCil of Canada
(MBrCC) has introduced a tool on its website
to assist mortgage brokers in identifying the
possible licensing requirements for transactions
that cross provincial boundaries. It lets an
industry member select the province where the
property, borrower and broker are located and it
will then provide advice on which jurisdiction or
jurisdictions a broker would need to be licensed
in, in order to handle the transaction. I have
tried using the tool to generate these examples.
In all instances where the property is located
in B.C., the tool advises that the broker would
need to be licensed in B.C. You can access
the tool at: http://mbrcc.ca/en/links_and_
information/calculator-en.html
Example 1
Broker Location: Ontario
Borrower Location: Ontario
Property Location: British Columbia
Based on the limited information you
have provided:
• B.C. licensing rules would apply. You
would likely need to be licensed in B.C.
for this transaction.
• Ontario licensing rules would apply. You
would likely need to be licensed in Ontario
for this transaction.
In instances where the property is located
outside B.C., but the broker and borrower
are located within B.C., the tool advises that
the broker would likely need to be licensed in
B.C. if the mortgage activity includes buying
and selling mortgages (mortgage trading)
or collecting money secured by mortgages
(mortgage administration).
Example 2
Broker Location: British Columbia
Borrower Location: British Columbia
Property Location: Alberta
Based on the limited information you
have provided:
• B.C. licensing rules may apply. You would
likely need to be licensed in B.C. if the
transaction involved buying and selling
mortgages or agreements for sale and/or
collecting money secured by mortgages.
• Alberta licensing rules would apply.
A "substantial connection test" would
need to be conducted by the Real Estate
Council of Alberta (
RECA) to determine
whether you need to be licensed in
Alberta for this transaction.
e
MBRCC cautions industry member that
the tool is only a starting point for determining
where a broker requires licensing and only
indicates the provinces where licensing
is "likely" to be required. For licensing
activity involving mortgage trading and
administration, the tool provides less certain
advice and brokers may wish to contact their
regulatory authority for clarity.
•
— Samantha Gale
F I N A N C I A L L P
25years
We make it easy. Every day.
For 25 years, we've been helping Brokers fi nd the right mortgage
solutions. It's a track record built on service, support and
innovative tools like Merlin and MyMortage. With passionate
people and powerful solutions, we've built the deep trust of
mortgage Brokers and residential Customers alike. We're here
to make it easy. 25 years at a time. Every single day.
is easier done
than said.
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p18-19_MultiJurisdictional.indd 19 14-05-08 2:36 PM
