Tag: mortgage brokerage

Do Private Lenders need a brokerage license to lend in Ontario?

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 […]

A MIC does not simply allow you to raise money from the public!

Mortgage Investment Corporations (“MICs”) are on the rise in Canada. With many of these MICs the founders and managers are confused over what regulators may or may not govern certain aspects of running their business as a mortgage lender, a mortgage dealer or arranger such as mortgage broker or agent, a mortgage administrator and being in the business of raising money for the MIC.Depending on how one operates and manages their MIC, the following is a very brief and generalized overview of which regulators may govern how you operate in Ontario.First, and foremost a MIC’s primary purpose should be to qualify as a Mortgage Investment Corporation defined under section 130.1 of the Income Tax Act (Canada), which is further explained here. This would therefore mean that every MIC would first be regulated and governed by the Canada Revenue Agency (“CRA”) in determining if at all the operations and capital structure of the corporation qualifies the MIC as one.