Apr 11, 2026
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Ontario's mortgage regulator hit the sector with $875,000 in fines last year — nearly double the $460,000 imposed the year before. Most Canadians pick a mortgage broker based on a referral or a Google search and never think to look up a disciplinary record. These increased fines should prompt anyone shopping for a mortgage to close that knowledge gap before signing anything.
How much did FSRA's enforcement actions increase in 2025 — and what were the most common violations?
The Financial Services Regulatory Authority of Ontario (FSRA) oversees more than 16,000 mortgage professionals and almost 1,200 brokerages operating in the province. FSRA licences and monitors mortgage agents, mortgage brokers and mortgage administrators — and has the power to impose fines, suspend or revoke licences, and issue compliance orders (1).
In the 2024–25 fiscal cycle, FSRA initiated 100 enforcement actions, up from 65 the prior year. It imposed 80 unique sanctions — nearly double the volume over two fiscal years. The mortgage sector drove the bulk of that activity: 43 of those 80 achieved sanctions targeted at mortgage professionals, accounting for $875,000 of the $1.2 million in total administrative monetary penalties (AMPs) across all FSRA-regulated sectors.
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What’s significant is that FSRA fines the year before were almost half what was imposed in 2025 — from $460,000 in 2024 to $875,000 in 2025, a jump of roughly 90%.
Common violations included:
- Failing to ensure mortgage suitability
- Operating outside an authorizing brokerage or without a licence
- Receiving remuneration from unauthorized sources
- Failing to disclose conflicts of interest
- Providing false or misleading information to the regulator
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Get StartedWho gets fined? The difference between brokers, agents and administrators
In Ontario, mortgage professionals operate at three levels.
Mortgage agents (level 1 and level 2) work under a licensed brokerage and deal directly with borrowers. Mortgage brokers hold a higher-tier licence and can act as principal brokers — effectively running and supervising a brokerage. Mortgage administrators service existing mortgage portfolios.
Because both agents and brokers are individual licensees, FSRA can act against them directly — unlike sectors where only corporate entities hold licences. That distinction explains why mortgage professionals accounted for the largest share of enforcement among all FSRA-regulated sectors (2).
The 2022 amendments to the Mortgage Brokerages, Lenders and Administrators Act also significantly raised maximum penalties from $10,000 to $100,000 for individuals, and from $20,000 to $500,000 for brokerages.
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Some of the fines issued in 2024–25 were still calculated under the older, lower limits because the conduct predated the rule change — meaning future fine totals are likely to grow.
What do these violations actually cost borrowers?
What is the actual cost for borrowers when mortgage professionals do not adhere to their fiduciary responsibilities?
In one widely reported Ontario case, FSRA found that vulnerable clients — many on fixed incomes — were steered into complex, high-fee mortgages by a brokerage that failed to ensure suitability, obtain independent legal advice for reverse mortgages, and disclose conflicts of interest. In a statement released to the public, FSRA agents concluded that “many clients who fully owned their homes a few years ago are now in significant debt and are at risk of losing them (3).”
In another case, a borrower sought a mortgage of $100,000 mortgage, but after a consultation fee of $15,000 was factored into borrowing costs, the borrower was left with just under $61,500. The FSRA investigation found that the borrower’s quoted rate was 10% per month on a two-month term. Once fees were added, the borrower ended up with a stated cost of borrowing of 231% annually (4).
These aren't edge cases. Unsuitable product recommendations, undisclosed referral fees and falsified application documents are among the most common triggers for FSRA action.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
How can you check whether your mortgage professional has a disciplinary record?
FSRA maintains two public registries that every Ontario borrower should know about:
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- Licence lookup — search by name to confirm your broker or agent is currently licensed: fsrao.ca/consumers/mortgage-brokers-and-agents
- Enforcement actions and warnings — a searchable list of all past and pending actions: teao.fsrao.ca
Both tools are free and take under two minutes to use. Enforcement actions remain on the FSRA site permanently — so a search will surface past sanctions even if a licence was later reinstated.
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What red flags should you watch for when choosing a broker?
- Pressure to break an existing mortgage without a written suitability analysis
- Requests to sign a 'gift letter' for funds that are actually a loan
- Fees paid directly to the broker — not through the brokerage
- A broker who says they can arrange a mortgage 'outside' their brokerage
- Reluctance to provide the name and licence number of their authorizing brokerage
- Promises of approval for private or B-lender mortgages without reviewing your full financial picture
What to do if you think your broker has misled you
File a complaint with FSRA directly at fsrao.ca/consumers.
The Financial Consumer Agency of Canada (FCAC) also provides general guidance on consumer rights in mortgage transactions at canada.ca/en/financial-consumer-agency.
If you signed mortgage documents based on false or misleading advice, consult a real estate lawyer before taking any further steps — particularly if a private or second mortgage is involved.
Finally, before signing any mortgage commitment, spend two minutes checking your broker's FSRA licence status at fsrao.ca. It's the fastest due diligence step most Canadians skip.
Article sources
We rely only on vetted, credible sources. For details, see our editorial ethics and guidelines.
Financial Services Regulatory Authority of Ontario (FSRA) (1); Benefits and Pensions Monitor — FSRA enforcement report 2024–25 (2); Canadian Mortgage Professional — brokerage licence revocation and suitability case (3); Canadian Mortgage Professional — high-cost private mortgage case (4)
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Romana King is the Senior Editor at Money.ca. She writes for various publications, and her book -- House Poor No More: 9 Steps That Grow the Value of Your Home and Net Worth -- continues to be an Amazon bestseller. Since its publication in November 2021, this book has won five awards, including the New York CPA Society's Excellence in Financial Journalism (EFJ) Book Award in 2022.
