New rules for the mortgage broker industry in Newfoundland and Labrador are coming into effect on April 1, 2025.
The new Mortgage Brokerages and Brokers Act and Regulations will:
- Implement a licensing framework for industry.
- Introduce education and continuing education requirements for industry.
- Require the industry to have errors and omissions insurance.
- Require mortgage brokerages to maintain trust accounts.
- Strengthen client disclosure requirements for industry.
- Authorize administrative penalties for the industry.
The new Mortgage Brokerages and Brokers Act and Regulations ensures that Newfoundland and Labrador’s legislation is current and modern, reflecting industry input and national best practices in the regulation of the mortgage broker industry. It also provides greater protection and reassurance for people using mortgage brokering services.
The Department of Digital Government and Service NL will be contacting mortgage brokerages and brokers to inform them about the changes and will work with industry to ensure they are ready by the effective date.
Mortgage interest rates are not affected by the Mortgage Brokerages and Brokers Act and Regulations as these are primarily determined by the Bank of Canada policy rate.
The Mortgage Brokerages and Brokers Regulations are available in the Newfoundland and Labrador Gazette.
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“Buying a new home is one of the most important and most exciting experiences in a person’s life. Navigating the process, however, can be challenging with a lot of information to process and understand. The Mortgage Brokerages and Brokers Act and Regulations will help industry stakeholders provide greater assistance to their clients, while also helping those people looking to get a mortgage and buy a new home in Newfoundland and Labrador.”
Honourable Elvis Loveless
Minister of Digital Government and Service NL
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