November 16, 2022 nkad3

What is an Ontario Mortgage Agent? – Understanding Representation and Duty

To first understand what a Mortgage Agent is, or does, we must first understand the term ‘Agency’.

Agency, or an Agency Relationship, is when one party acts on behalf of another party.  In the case of a mortgage Agent, the Agent acts on behalf of their principal Mortgage Broker. The Mortgage Agent also acts on behalf of borrowers to obtain mortgage financing in their best interest.

 

Important things to note about Ontario Mortgage Agents, and your partnership with them, are:

  • What is required to be a Mortgage Agent in Ontario?

A Mortgage Agent MUST be licensed in the Province of Ontario (or anywhere in Canada for that matter)

 

  • Who does the Mortgage Agent act for?

First and foremost, the Mortgage Agent is acting in the best interest of you, the borrower.

 

  • What are the duties of a Mortgage Agent in obtaining mortgage financing for you?

Mortgage Agents’ duties include 1. Carry out any proper instructions your client gives you (excluding anything that is illegal) 2. Use proper skills 3. Use proper care 4. Protect your client’s best interests

 

The Fiduciary Duties of a Mortgage Agent include:

  • Loyalty
  • Selflessness
  • No conflicts of interest
  • Full disclosure
  • Confidentiality

 

While Mortgage Agents work for you, the borrower, A Bank employee (or bank mortgage specialist) is less likely to be an agent by its true definition. Unlike a Mortgage Agent, bank representatives act for the employer (the bank) and not the borrowers, hence why each bank refers to their mortgage professionals, not as Agents, but as ‘specialists’ or ‘advisors’.

Our Ontario Mortgage Agents have over 10 years of individual experience in the field. To find out more about how one of our Agents can help you, call us at (905) 455-5005.

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