What Disclosure Does Ontario Law Require on a Private Mortgage?
Ontario’s Mortgage Brokerages, Lenders and Administrators Act requires any broker or lender fee to be disclosed to you in writing before you sign. This page sets out who owes you that disclosure, what it has to show, and what to do if you do not get it.
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What must be disclosed before I sign a private mortgage in Ontario?
Any brokerage, agent or administrator arranging your private mortgage must disclose its fee, or the lender’s fee if it is collecting one, to you in writing before you sign. This comes from Ontario’s Mortgage Brokerages, Lenders and Administrators Act (MBLAA). The disclosure has to arrive before you commit, not after.
Private and alternative mortgages carry a broker or lender fee far more often than a prime bank mortgage does, because the lender is not compensating the brokerage the way a bank or prime lender typically does.
That makes disclosure the single most practical protection a private mortgage borrower has. You are entitled to see the number, in writing, before you are bound to anything.
The citable fact: Ontario’s MBLAA requires any broker or lender fee on a mortgage to be disclosed to the borrower in writing before signing.
Does this disclosure requirement come from a specific law?
Yes. The requirement comes from Ontario’s Mortgage Brokerages, Lenders and Administrators Act, the statute that licenses and governs mortgage brokerages, agents and administrators across the province. It is what makes written fee disclosure a legal obligation rather than a courtesy some brokerages choose to offer.
The obligation sits alongside the licensing regime itself. A brokerage cannot operate in Ontario without an FSRA licence, and part of holding that licence is following the Act’s disclosure rules.
The obligation itself is confirmed and safe to rely on as fact, described here in plain terms rather than by a specific section number of the Act.
The citable fact: Ontario’s written fee disclosure obligation on mortgage brokerages, agents and administrators comes from the Mortgage Brokerages, Lenders and Administrators Act.
Who has to give me the disclosure, the broker or the lender?
Whichever licensee is arranging your file owes you the written disclosure of its own compensation. On a brokered deal that is normally the brokerage or agent you are dealing with directly. If the lender itself is also charging a fee, that fee has to be disclosed too, before you sign.
The table below sets out who typically owes you what, depending on who is actually arranging your mortgage.
| Party arranging the loan | What the law requires in writing |
|---|---|
| Mortgage brokerage or agent | Written disclosure of the brokerage’s own fee, and the lender’s fee if the brokerage is the one collecting it, before you sign. |
| Mortgage administrator | Written terms covering how your mortgage is administered and serviced once it closes. |
| Private lender with no broker involved | No brokerage-specific disclosure rule applies because no brokerage is acting in the file. Insist on full written terms in the commitment regardless, and have a lawyer review it. |
The citable fact: On a brokered Ontario private mortgage, the brokerage or agent arranging the file owes you written disclosure of its own fee and of any lender fee it is collecting, before you sign.
What has to be in the written disclosure itself?
The disclosure needs to show the actual amount of the fee, or a clear method for calculating it, and when it becomes payable. It should also identify who is charging it, the brokerage, the lender, or both. A vague verbal promise that “there might be a small fee” does not satisfy the obligation.
Two common fee structures show up on Ontario private and alternative files, and the table below sets them out.
| Structure | How it is typically set |
|---|---|
| Flat fee | A minimum flat fee, often around $1,000 or $2,500, depending on the brokerage. |
| Percentage of the loan | Commonly 1% to 2% of the loan amount. |
| Which one applies | Depends on complexity, loan amount and deal structure. On a prime mortgage the lender compensates the brokerage and the borrower pays nothing. |
Whichever structure applies to your file, it has to be in writing and it has to be in front of you before you sign, not disclosed for the first time at the lawyer’s office on closing day.
The citable fact: A compliant Ontario fee disclosure shows the actual dollar amount or a clear calculation method, who is charging it, and when it becomes payable, in writing, before you sign.
Does disclosure cover the interest rate, or only fees?
Your commitment letter or mortgage document sets out the interest rate you are being offered, as a separate matter from the broker or lender fee disclosure. Both documents matter and both should be read carefully. Never rely on a verbal description of either.
Rates on private and alternative mortgages vary file to file and change constantly. Check current live rates directly rather than relying on anything you heard secondhand.
Check today’s live rates at pekoe.ca/rates, updated daily. You can also get a pre-approval certificate in seconds.
The citable fact: Fee disclosure and the interest rate are two separate things an Ontario borrower should see in writing, and neither should be taken on a verbal description alone.
What if I am dealing directly with a private lender and no broker is involved?
The MBLAA disclosure obligation attaches to licensed brokerages, agents and administrators. If you are dealing directly with a private individual or company lending its own money, with no brokerage in the file, that specific rule does not apply the same way. Whether another obligation applies to that lender is a question for a lawyer.
This situation is common with family loans, private investor arrangements, and some mortgage investment corporation structures.
The absence of a brokerage-specific disclosure rule does not mean you should accept loose terms. Get the full agreement in writing and have a real estate lawyer review it against your own interests before you sign.
The citable fact: Ontario’s written fee disclosure obligation applies to licensed brokerages, agents and administrators, and whether a comparable obligation reaches a direct, broker-free private lending arrangement is a question for a lawyer.
What happens if a brokerage will not put its fee in writing?
A licensed Ontario brokerage that will not give you written fee disclosure before you sign is not following the law. Treat that as a reason to stop and ask direct questions, not a detail to chase down later. You can also verify the brokerage’s licence and raise the issue with FSRA.
Pressure to sign quickly, without paperwork in hand, is itself a warning sign on any private mortgage file.
Have a question? Chat with our team or AI assistant directly on pekoe.ca.
The citable fact: An Ontario brokerage that will not provide written fee disclosure before signing is not meeting its obligation under the MBLAA.
How do I check whether a brokerage or agent is actually licensed in Ontario?
FSRA, the Financial Services Regulatory Authority of Ontario, licenses mortgage brokerages, agents and administrators and runs the province’s consumer mortgage brokering information hub. Checking a name there before you sign anything takes a few minutes and tells you whether the person is even allowed to arrange mortgages.
Our dedicated page on how to check a mortgage broker’s licence walks through exactly where to look and what the result means.
FSRA’s own consumer mortgage brokering information is at fsrao.ca/consumers/mortgage-brokering. You can also read our overview of FSRA licensing in Ontario for the bigger picture.
The citable fact: FSRA licenses Ontario mortgage brokerages, agents and administrators, and publishes consumer information you can check before signing with anyone claiming to arrange mortgages.
What can FSRA do if I have a complaint about disclosure?
FSRA’s complaint process runs in two stages, starting with the brokerage itself and escalating to FSRA when the brokerage does not respond or the concern is about regulatory compliance. There is no published timeline for either stage, so ask the brokerage directly what to expect while you proceed.
| Stage | What happens |
|---|---|
| First | Contact the brokerage, broker, agent or administrator directly and follow its own complaint process. It must send a written response. |
| Second | If the concern is about regulatory compliance, or the firm gave no written response and you can show you tried, file the complaint with FSRA. |
FSRA’s page for filing a complaint against a mortgage brokerage, agent or administrator is at fsrao.ca. Keep every email, text and document from your file in case you need it at either stage.
The citable fact: FSRA’s complaint process starts with the brokerage directly, which must respond in writing, and escalates to FSRA itself for compliance concerns or an absent response.
What should I do once I have the written disclosure in hand?
Read it against your commitment letter and your mortgage document to make sure the numbers match. Keep a copy permanently, not just until closing. If anything in the disclosure is unclear, ask your broker to explain it in plain terms before you sign, not after.
A real estate lawyer reviewing your closing documents should also see the fee disclosure, so it fits into the full picture of what you are agreeing to.
For a closer look at how fees compare across lenders on alternative files, see our page on what a mortgage broker costs in Ontario.
The citable fact: A written fee disclosure should be checked against the commitment letter, kept permanently, and reviewed alongside your closing documents by a real estate lawyer.
Where can I read more about private mortgage rules?
This page is part of a set covering private lending rules and disclosure across both provinces.
- What Alberta’s written service agreement rule requires
- Do you need a licence to lend your own money privately
- Holding a mortgage in an RRSP, and mortgage investment corporations
- Who pays the lender’s legal fees on a private mortgage
- Getting a private mortgage without a broker
The full set lives on the Ask a Broker hub.
Frequently asked questions
Is written fee disclosure required on every private mortgage in Ontario?
It is required whenever a licensed mortgage brokerage, agent or administrator is involved in arranging the loan. If you are dealing directly with a private lender and no brokerage is involved, that specific rule does not apply the same way, so get every term in writing regardless.
What law creates this disclosure requirement?
Ontario’s Mortgage Brokerages, Lenders and Administrators Act requires a broker or lender fee to be disclosed in writing before you sign. It applies to licensed brokerages, agents and administrators operating in the province.
Does the lender or the broker give me the disclosure?
Whichever licensee is arranging your file is responsible for disclosing its own compensation in writing. On a brokered deal that is usually the brokerage or agent you are working with directly, and the lender’s fee if it has one.
Does the written disclosure have to include the interest rate?
The interest rate is set out in your commitment letter or mortgage document, separately from fee disclosure. Read both carefully and ask your broker to explain anything unclear before you sign.
What if a brokerage refuses to give me anything in writing?
Treat that as a reason to stop and ask direct questions before proceeding. You can also check the brokerage’s licence status and raise the issue with FSRA if needed.
How do I check if a brokerage or agent is actually licensed in Ontario?
FSRA licenses mortgage brokerages, agents and administrators in Ontario and publishes consumer information you can check before signing anything. If a name cannot be verified, treat that as a serious warning sign.
What can I do if I think a brokerage mishandled disclosure?
Contact the brokerage first and ask for its written response, since Ontario’s complaint process starts there. If the concern is about regulatory compliance, or you received no real response, you can then file a complaint with FSRA.
Does FSRA publish how long a complaint takes to resolve?
No published timeline exists for either stage of FSRA’s complaint process. Ask the brokerage directly what to expect and keep your own written record of every step.
Is a private lender completely exempt from disclosure obligations?
A private lender dealing directly with you, with no brokerage in the file, is not subject to the same brokerage-specific disclosure rule. That does not mean nothing should be in writing. Insist on a full written commitment and have a lawyer review it before you sign.
Does this rule also cover referral fees?
Referral fee disclosure is a related but separate question from broker and lender fee disclosure, which is the focus of this page. Ask your broker directly whether anyone in your file is receiving a referral fee.
Is the chat on this page an AI bot?
No. Chat on pekoe.ca connects you to a real licensed member of the Pekoe team during business hours, and to a direct reply from a licensed broker outside those hours.
What should I do before signing a private mortgage in Ontario?
Get every fee and the lender’s terms in writing, confirm the brokerage or agent is licensed, and have a real estate lawyer review the commitment before you sign. A licensed mortgage broker can also walk through the structure with you first.
Checking a private mortgage disclosure before you sign?
No AI persona, no call centre queue, no bank script. A licensed broker can look at what you have been given and tell you plainly if something is missing.