The Mortgage Brokerages, Lenders and Administrators Act, 2006, requires that a mortgage lender hold a brokerage license in Ontario. And that a person or entity is a mortgage lender in Ontario when he, she or it lends money in Ontario on the security of real property, or holds themselves out as doing so. However there are exemptions, such as financial institutions (banks, credit unions, trust companies). There are further exemptions under Ontario Regulation 407/07, which stipulates that, a person or entity is exempted from this same requirement to have a brokerage licence if the person or entity carries on business as a mortgage lender solely through a mortgage brokerage or a person or entity that is exempted from the requirement to have a brokerage licence.
Therefore a private lender with a brokerage license or acting through one would entitle it to carry on the business of dealing in mortgages or the business of trading in mortgages or to carry on business as a mortgage lender in Ontario, as the case may be, by engaging in these activities permitted under the licence issued to the licensee.
However, this exemption does not apply to the administration of mortgages on-behalf of others, but obviously a private lender can administer and service its own mortgages.
Contact Jeff Levy at Levy Zavet, Lawyers for all your private lending, mortgage brokering and compliance matters.