Pekoe is a licensed mortgage brokerage serving home buyers, renewers and investors across all of Ontario, digital first and remote capable from our base in Kitchener-Waterloo. We compare the full lender market rather than a single bank’s shelf, and we operate under FSRA Licence #13321.
This page covers how an Ontario mortgage broker is licensed and paid, what Ontario land transfer tax costs, and the handful of rules that are genuinely different here than in Alberta, including what happens on default. It also routes you to the specific city page for wherever in Ontario you are buying, renewing or refinancing.
What an Ontario Mortgage Broker Does
An Ontario mortgage broker works for you, not for one lender. We submit your file to multiple lenders, banks, credit unions, monoline lenders and alternative lenders, and negotiate terms on your behalf instead of presenting a single offer from a single institution.
Before working with any broker in Ontario, check one thing first: licensing with the Financial Services Regulatory Authority of Ontario (FSRA). Pekoe operates under FSRA Licence #13321, with Dan Johanis as principal broker. Our guide to FSRA licensing in Ontario explains what the licence covers and how to look one up yourself.
Checking the licence is step one. Picking the right broker for your specific file is a separate question, and it is one our guide to choosing a mortgage broker in Ontario already answers in full, so we will not repeat it here.
For the full mechanics of applying, from pre-approval through to funding, see our guide to getting a mortgage in Ontario.
An Ontario mortgage broker’s job is to shop your file across the lender market and negotiate on your behalf, and the first thing to verify before you work with one is FSRA licensing.
How Ontario Mortgage Brokers Are Paid
On a typical prime mortgage in Ontario, the lender pays the brokerage directly and the borrower pays nothing extra for broker services. This is the standard arrangement for the majority of Ontario purchases and renewals Pekoe places.
Alternative and private mortgages work differently. On those files the brokerage sets its own fee, not the lender. Two structures are common: a minimum flat fee, often around $1,000 to $2,500, or a percentage of the loan, commonly 1% to 2%.
Which structure applies depends on the complexity of the file, the loan amount and how the deal is put together.
Ontario law is explicit on disclosure. Under the Mortgage Brokerages, Lenders and Administrators Act (MBLAA), any fee charged to a borrower must be disclosed in writing before the borrower decides whether to proceed, never after. Our breakdown of what a mortgage broker costs in Ontario covers the fee structures in more detail.
On a prime deal in Ontario, broker services normally cost the borrower nothing. On an alternative or private deal, any fee is set by the brokerage, commonly $1,000 to $2,500 or 1% to 2% of the loan, and it must be disclosed in writing before you decide whether to proceed.
Ontario Land Transfer Tax
Ontario charges a provincial land transfer tax on every property purchase, calculated in marginal brackets against the purchase price rather than as one flat percentage on the whole amount.
| Portion of purchase price | Rate |
|---|---|
| Up to and including $55,000 | 0.5% |
| Over $55,000 up to and including $250,000 | 1.0% |
| Over $250,000 up to and including $400,000 | 1.5% |
| Over $400,000 | 2.0% |
| Over $2,000,000, land with one or two single family residences only | 2.5% |
The tax is marginal. Each bracket applies only to the portion of the price inside it, not to the whole price at the top rate. Our guide to Ontario land transfer tax walks through the calculation with worked examples.
First-time buyers can claim a refund of up to $4,000 against the provincial tax. Full eligibility details are in our Ontario land transfer tax rebate guide.
Toronto is the only Ontario municipality that charges its own land transfer tax on top of the provincial one. A Toronto buyer pays both. Toronto’s municipal tax has its own bracket schedule, its own administration fee, and its own first-time buyer rebate, which stacks with the provincial refund.
See our Toronto municipal land transfer tax guide for the full schedule. No other Ontario municipality adds a municipal land transfer tax.
Land transfer tax is one line in a longer closing cost ledger. Legal fees, title insurance and appraisal costs all land around the same time, and our Ontario closing costs guide lists what else to budget for.
Ontario land transfer tax runs from 0.5% to 2.0% in marginal brackets up to $400,000 and above, with a 2.5% bracket above $2,000,000 on single family land, a first-time buyer refund of up to $4,000, and Toronto as the only municipality layering a second tax on top.
What Makes Ontario Different From Alberta
Pekoe is licensed in both provinces, and the differences are not academic. They change what a borrower pays and what happens if a mortgage goes into default.
| Area | Ontario | Alberta |
|---|---|---|
| Regulator | FSRA | RECA |
| Land transfer tax | Provincial tax applies on every purchase, Toronto adds a second municipal tax | No provincial land transfer tax, Land Titles registration fees only |
| Default remedy | Power of sale | Judicial foreclosure |
| Rent increases | Provincial guideline caps most units first occupied before November 15, 2018 | No cap on the amount of an increase |
Buying a condo in Ontario adds one document to the closing checklist that a detached purchase does not need. The status certificate must be delivered within 10 days of the condo corporation receiving the request and the fee, and the fee is capped at $100. Our Ontario status certificate guide covers what to check once it arrives.
A borrower moving between the two provinces will notice land transfer tax, power of sale instead of foreclosure, rent control on most existing units, and FSRA instead of RECA as the main practical differences.
Power of Sale: Ontario’s Default Remedy
When an Ontario mortgage goes into default, the lender’s standard remedy is power of sale, not judicial foreclosure. The process is set out in the Mortgages Act and moves faster than foreclosure.
Under section 32 of the Act, the lender cannot give notice of its intent to sell until default has continued for at least 15 days, and the sale itself cannot happen for at least 35 days after that notice is given. These are statutory minimums for those two steps only. The Act sets no fixed total timeline, since listing, marketing and closing all run on ordinary real estate timing after that.
Borrowers have a real right to stop the process. Under section 22, you can cure the default at any time before the sale by paying the arrears plus the lender’s necessary expenses, which relieves you from the consequences of the default.
Our guide to power of sale in Ontario covers the full process.
In Ontario, a defaulting borrower has at least 15 days of continued default before notice can be given, and at least 35 days after that notice before a sale can happen, with the right to cure at any point before the sale closes.
Find Your Mortgage Broker by City
Pekoe maintains a dedicated page for Ontario municipalities we serve, each with local market context. Find yours below, grouped by region.
Do not see your city listed. Pekoe is licensed to serve all of Ontario regardless of whether a dedicated city page exists yet, so reach out directly and we will work your file the same way.
Frequently Asked Questions
Is a mortgage broker in Ontario regulated?
Yes. Ontario mortgage brokers and brokerages are licensed by the Financial Services Regulatory Authority of Ontario (FSRA) under the Mortgage Brokerages, Lenders and Administrators Act. Pekoe operates under FSRA Licence #13321, with Dan Johanis as principal broker.
Does it cost money to use a mortgage broker in Ontario?
On most prime mortgages, no. The lender pays the brokerage directly and the borrower pays nothing. On alternative or private mortgages, the brokerage may charge a fee, commonly a flat $1,000 to $2,500 or 1% to 2% of the loan, and that fee must be disclosed in writing before you decide whether to proceed.
How much is Ontario land transfer tax on a typical purchase?
Ontario land transfer tax is calculated in marginal brackets from 0.5% up to 2.0%, with a 2.5% bracket above $2,000,000 on land with one or two single family residences. First-time buyers can claim a refund of up to $4,000. Toronto buyers also pay a separate municipal land transfer tax on top of the provincial amount.
What happens if I default on my mortgage in Ontario?
Ontario lenders typically use power of sale rather than judicial foreclosure. Under the Mortgages Act, notice cannot be given until default has continued for at least 15 days, and the sale cannot happen for at least 35 days after that notice, and the borrower can cure the default at any point before the sale by paying the arrears plus the lender’s necessary expenses.
Is buying in Ontario different from buying in Alberta?
Yes. Ontario charges a provincial land transfer tax that Alberta does not, Ontario uses power of sale on default where Alberta uses judicial foreclosure, Ontario caps rent increases on most existing units where Alberta does not, and Ontario brokers are licensed by FSRA rather than RECA.
Work With a Mortgage Broker Who Knows All of Ontario
Pekoe compares the full Canadian lender market on every file, whether you are buying your first home in Windsor or renewing a mortgage in Ottawa.
Find your city above, or reach out directly to start your file.
Check today’s live rates at pekoe.ca/rates, updated daily. You can also get a pre-approval certificate in seconds.
Browse the Ask a Broker library for plain-language answers to more Ontario mortgage questions, or contact Pekoe.ca to start your file.