Hustle & GritWatch us on YouTube
PIPEDA (the Personal Information Protection and Electronic Documents Act) is the federal law governing how private-sector organizations, including mortgage brokerages, collect, use, and disclose clients’ personal information.
When a broker collects income documents, ID, a credit report, or banking details to submit a deal, PIPEDA requires meaningful consent for that collection, limits use to the purpose disclosed to the client, and requires reasonable safeguards for how the information is stored and shared with lenders or insurers.
PIPEDA applies federally to private-sector organizations, though Quebec, British Columbia, and Alberta each have their own private-sector privacy legislation that can apply instead within those provinces. PIPEDA obligations sit alongside, not instead of, the AML record-keeping duties brokers have under FINTRAC — one governs consent and privacy, the other governs what must be verified and reported.
Consent is required: brokers need meaningful client consent before collecting, using, or disclosing personal information like income and credit details.
Purpose-limited use: information gathered to arrange a mortgage can generally only be used for that purpose, not repurposed without further consent.
Provincial overlays exist: Quebec, BC, and Alberta each have their own private-sector privacy laws that can apply in place of PIPEDA within those provinces.
Different job than FINTRAC: PIPEDA governs consent and handling of personal information; FINTRAC separately governs AML identity verification and reporting.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
Every term a Canadian mortgage professional needs — defined, sourced, and kept current.
See how Treadstone can scale your brokerage — a free call, no commitment.