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A mortgage brokerage is the licensed firm under which individual mortgage professionals — mortgage agents, mortgage brokers, submortgage brokers, mortgage associates, or courtiers hypothécaires, depending on the province — are registered to arrange mortgages with lenders on behalf of clients. The brokerage itself, not just the individual, holds provincial licensing obligations.
An individual mortgage professional cannot generally operate independently — they are licensed to work for and under a mortgage brokerage, which is itself licensed by the provincial regulator (FSRA in Ontario, BCFSA in BC, RECA in Alberta, the AMF in Quebec). The brokerage is responsible for supervising its agents and brokers.
Every brokerage designates a principal broker — the individual who holds ultimate responsibility for the brokerage’s compliance with provincial rules, staff supervision, and record-keeping.
Two-level licensing in Ontario: since April 1, 2023, FSRA has licensed Ontario mortgage professionals as Level 1 or Level 2 mortgage agents, or as mortgage brokers, all operating under a licensed brokerage.
Every brokerage needs a principal broker: provincial rules require a designated principal broker responsible for the brokerage’s compliance and supervision.
Regulator varies by province: the brokerage’s licence sits with FSRA (Ontario), BCFSA (British Columbia), RECA (Alberta), or the AMF (Quebec), each with its own licensing and conduct rules.
Compensation flows through the brokerage: lender finder’s fees and other payments are generally paid to the brokerage first, then allocated to the individual agent or broker per their internal agreement.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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