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Mortgage Brokers Regulations
Mortgage Brokers Regulations
Under the authority of section 13 of the Mortgage Brokers Act
and the Subordinate Legislation Revision and Consolidation Act
, the Lieutenant-Governor in Council makes the following regulations.
These regulations may be cited as the Mortgage Brokers Regulations
In this regulations
"Act" means the Mortgage Brokers Act
"securities underwriters" means a person, firm or company who has purchased from an issuer of a security, as the term "security" is defined in the Securities Act
, the right to sell all or a part of that security or who sells the security for an issuer of it or who participates or who has a direct or indirect participation in the undertaking or is otherwise interested in the sale of the security of an issuer of it and includes a person, firm or company who acts as an agent of an issuer in the sale, placement, solicitation or other disposition of the security.
(1) An application for registration as a mortgage broker shall be made to the registrar
where the applicant is a partnership or corporation in the form prescribed by the minister; or
where the applicant is a sole proprietor in the form prescribed by the minister.
A registration remains in effect subject to the filing of annual reports and payments of an annual fee as prescribed by the minister until it is withdrawn by the registered person or is suspended or cancelled under the Act.
A certificate of registration shall be in the form prescribed by the minister.
119/78 s3; 131/93 s1; 58/97 s1
Rep. by 2009 cC-31.1 s111
[Rep. by 2009 cC-31.1 s111]
(1) A mortgage broker and mortgage lender shall not charge a bonus in excess of 1% of the principal amount of a mortgage plus $100.
In these regulations, "bonus" shall not include an application fee charged by a mortgage lender.
The following shall be exempt from the registration provisions of the Act:
a lawyer acting in the ordinary course of his or her profession;
a real estate agent, licensed under the Real Estate Trading Act
, acting in the ordinary course of his or her business;
a mortgage broker receiving less than $1,000 annually from the business of mortgage brokering; and
a securities underwriter.
"Actual amount" defined
For the purpose of paragraph 8(a) of the Act, the term "actual amount" shall have the following meaning:
in the case of non-revolving credit, the amount of money to be paid to the borrower or to be disbursed on his or her direction;
in the case of revolving credit, the maximum amount of money approved to be paid to the borrower or to be disbursed on his or her direction during the term of the agreement.
Rate calculation described
The maximum annual effective rate of interest used in a disclosure statement established under section 4 shall be calculated as follows:
assume a mortgage with a face value of $20,000 at an interest rate of 10% for a 5 year term
the interest charge per year is $2,000
assume a bonus of $200
divide the bonus by 5 = $40
the average annual cost is $2,040
the maximum annual effective rate of interest is:
the average annual cost x 100
or $2,040 x 100
A mortgage broker shall, when advertising, indicate that he or she is a mortgage broker and the address of his or her place of business.
The Mortgage Brokers Regulations (No. 1), 1976,
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