Proposal to refuse to register, to revoke, etc.
7.(1)If the Superintendent proposes to refuse to grant or renew a registration, proposes to impose terms and conditions on the registration of an applicant or a registrant or proposes to suspend or revoke a registration, the Superintendent shall serve notice of the proposal, together with written reasons for it, on the applicant or registrant. 1997, c. 28, s. 176 (1). Notice requiring hearing (2)A notice under subsection (1) shall state that the applicant or registrant is entitled to a hearing by the Tribunal if the applicant or registrant mails or delivers, within fifteen days after the notice under subsection (1) is served, notice in writing requiring a hearing to the Superintendent and the Tribunal. R.S.O. 1990, c. M.39, s. 7 (2); 1997, c. 28, s. 172. Powers of Registrar where no hearing (3)Where an applicant or registrant does not require a hearing by the Tribunal in accordance with subsection (2), the Superintendent may carry out the proposal stated in the notice under subsection (1). R.S.O. 1990, c. M.39, s. 7 (3); 1997, c. 28, s. 172. Powers of Tribunal where hearing (4)Where an applicant or registrant requires a hearing by the Tribunal in accordance with subsection (2), the Tribunal shall appoint a time for and hold the hearing and, on the application of the Superintendent at the hearing, may by order direct the Superintendent to carry out the Superintendent’s proposal or refrain from carrying out the proposal and to take such action as the Tribunal considers the Superintendent ought to take in accordance with this Act and the regulations, and for such purposes the Tribunal may substitute its opinion for that of the Superintendent. R.S.O. 1990, c. M.39, s. 7 (4); 1997, c. 28, s. 172. Conditions of order (5)The Tribunal may attach such terms and conditions to its order or to the registration as it considers proper to give effect to the purposes of this Act. R.S.O. 1990, c. M.39, s. 7 (5); 1997, c. 28, s. 172 (2). Parties (6)The Superintendent, the applicant or registrant who has required the hearing and such other persons as the Tribunal may specify are parties to proceedings before the Tribunal under this section. R.S.O. 1990, c. M.39, s. 7 (6); 1997, c. 28, s. 172. Voluntary cancellation (7)Despite subsection (1), the Superintendent may cancel a registration upon the request in writing of the registrant in the form approved by the Superintendent surrendering the registrant’s registration. R.S.O. 1990, c. M.39, s. 7 (7); 1997, c. 19, s. 15 (1); 1997, c. 28, s. 172 (1); 1999, c. 12, Sched. I, s. 6 (1). Continuation of registration pending renewal (8)Where, within the time prescribed therefor or, if no time is prescribed, before expiry of the registration, a registrant has applied for renewal of a registration and paid the fee established by the Minister, the registration shall be deemed to continue, (a) until the renewal is granted; or (b) where the registrant is served with notice that the Superintendent proposes to refuse to grant the renewal, until the time for giving notice requiring a hearing has expired and, where a hearing is required, until the Tribunal has made its order. R.S.O. 1990, c. M.39, s. 7 (8); 1997, c. 19, s. 15 (2); 1997, c. 28, s. 172. When order effective (9)Even though a registrant appeals from an order of the Tribunal under section 30.1, the order takes effect immediately but the Tribunal may grant a stay until disposition of the appeal. 1997, c. 28, s. 176 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section: Cost of Borrowing Definition of “cost of borrowing” 7.1In sections 7.2 to 7.8, “cost of borrowing”, for a mortgage, means, (a) the interest or discount applicable to the mortgage, (b) any amount charged in connection with the mortgage that is payable by the borrower to the mortgage broker or the lender, (c) any amount charged in connection with the mortgage that is payable by the borrower to a person other than the mortgage broker or lender, where the amount is chargeable, directly or indirectly, by the person to the mortgage broker or lender, and (d) any charge prescribed by the regulations as included in the cost of borrowing, but does not include any charge prescribed by the regulations as excluded from the cost of borrowing. See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section: Disclosure of cost of borrowing 7.2(1)A mortgage broker shall disclose to each borrower the cost of borrowing and any other information prescribed for the purposes of this section by the regulations. Same (2)For the purposes of disclosure required by subsection (1), the cost of borrowing, (a) shall be calculated on the basis that all obligations of the borrower are duly fulfilled; (b) shall be calculated in accordance with the regulations; (c) shall be expressed as a rate per annum; and (d) where required by the regulations, shall be expressed as an amount in dollars and cents. See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section: Additional disclosure – term mortgages 7.3A mortgage broker shall disclose the following to a borrower with respect to a mortgage if the mortgage is required to be repaid on a fixed future date or by instalments: 1. Whether the borrower has the right to repay the amount borrowed before the maturity of the mortgage. 2. Any terms and conditions relating to a right described in paragraph 1, including particulars of the circumstances in which the borrower may exercise the right. 3. Whether any portion of the cost of borrowing for the mortgage is to be rebated to the borrower or any charge or penalty is to be imposed on the borrower, if the borrower exercises a right described in paragraph 1. 4. The manner in which any rebate, charge or penalty referred to in paragraph 3 is to be calculated. 5. Particulars of any charges or penalties to be imposed on the borrower if the borrower fails to repay the amount of the mortgage at maturity or fails to pay an instalment on the day the instalment is due to be paid. 6. If the mortgage broker is the lender, particulars of any prescribed change relating to the mortgage agreement or the cost of borrowing for the mortgage. 7. Particulars of any rights or obligations of the borrower prescribed by the regulations for the purposes of this section. 8. Any other information prescribed by the regulations for the purposes of this section. See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section: Additional disclosure – other mortgages 7.4(1)A mortgage broker shall disclose the following to a person if there is an arrangement to enter into a loan secured by a mortgage with the person in respect of which section 7.3 does not apply: 1. Particulars of any charges or penalties to be imposed on the person if he or she fails to pay an amount in accordance with the arrangement. 2. Particulars of any charges for which the person becomes responsible by entering the arrangement. 3. If the mortgage broker is the lender, particulars of any prescribed change relating to the arrangement or the cost of borrowing under the arrangement. 4. Particulars of any rights or obligations of the person prescribed by the regulations for the purposes of this section. 5. Any other information prescribed by the regulations for the purposes of this section. Interpretation (2)For the purposes of subsection (1), an arrangement for the making of a loan secured by a mortgage includes an arrangement for a line of credit. See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section: Statement re mortgage renewal 7.5The mortgage broker shall disclose to the borrower such information respecting renewal of the mortgage as is prescribed by the regulations. See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section: Disclosure in advertising 7.6No person shall authorize any advertisement for a mortgage which purports to contain information relating to the cost of borrowing or any other prescribed matter unless the advertisement contains the information that may be required by the regulations and is in the form and manner that may be prescribed. See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section: Disclosure on behalf of other persons 7.7Subject to the regulations, sections 7.2 to 7.5 and the regulations under those sections do not apply to a mortgage broker where one of the persons set out in Column 1 of the following Table, acting as a lender, authorizes a mortgage broker to provide a disclosure statement on its behalf, that disclosure statement meets the disclosure requirements under the legislation set out in Column 2 of the Table, opposite to that person, and the mortgage broker does so: TABLE  Column 1

Column 2


A bank

Bank Act (Canada)


An insurance company

Insurance Act


A trust corporation 

Loan and Trust Corporations Act


A loan corporation

Loan and Trust Corporations Act


A credit union

Credit Unions and Caisses Populaires Act, 1994


Another mortgage broker

This Act Note: On a day to be named by proclamation of the Lieutenant Governor, the Table is repealed by the Statutes of Ontario, 2005, chapter 31, Schedule 16, section 1 and the following substituted: TABLE  Column 1

Column 2


A bank

Bank Act (Canada)


A retail association as defined under the Cooperative Credit Associations Act (Canada)

Cooperative Credit Associations Act (Canada)


A credit union

Credit Unions and Caisses Populaires Act, 1994


An insurance company

Insurance Act


An insurance company

Insurance Companies Act (Canada)


A trust corporation 

Trust and Loan Companies Act (Canada)


A loan corporation

Trust and Loan Companies Act (Canada)


Another mortgage broker

This Act See: 2005, c. 31, Sched. 16, ss. 1, 3 (2). See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, the Act is amended by the Statutes of Ontario, 1999, chapter 12, Schedule I, subsection 6 (2) by adding the following section: Regulations re disclosure 7.8(1)The Lieutenant Governor in Council may make regulations, (a) prescribing, for the purposes of section 7.1, charges that are included in the cost of borrowing and charges that are excluded from the cost of borrowing; (b) prescribing information other than the cost of borrowing that must be disclosed under section 7.2; (c) prescribing the manner of calculating the cost of borrowing for the purposes of section 7.2; (d) prescribing the circumstances in which the cost of borrowing must be expressed as an amount in dollars and cents for the purposes of section 7.2; (e) prescribing the manner of calculating any rebate referred to in paragraph 4 of section 7.3; (f) prescribing changes for the purposes of paragraph 6 of section 7.3 and paragraph 3 of subsection 7.4 (1); (g) prescribing rights and obligations of borrowers for the purposes of paragraph 7 of section 7.3 and paragraph 4 of subsection 7.4 (1); (h) prescribing information that must be disclosed under paragraph 8 of section 7.3 and paragraph 5 of subsection 7.4 (1); (i) prescribing information for the purposes of section 7.5; (j) prescribing matters for the purposes of section 7.6 and respecting the form, manner and content of advertisements for the purposes of section 7.6; (k) prescribing the time, manner and form of any disclosure required under sections 7.3 to 7.7; Note: On a day to be named by proclamation of the Lieutenant Governor, clause (k) is amended by the Statutes of Ontario, 2005, chapter 31, Schedule 16, section 2 by striking out “sections 7.3” and substituting “sections 7.2”. See: 2005, c. 31, Sched. 16, ss. 2, 3 (2). (l) prescribing classes of mortgages in respect of which some or all of the requirements of sections 7.2 to 7.7 do not apply; (m) prohibiting the imposition by a mortgage broker who is the lender of any charge or penalty referred to in section 7.3 or 7.4; (n) governing the nature and amount of any charge or penalty referred to in section 7.3 or 7.4 that may be imposed by a mortgage broker who is the lender, including but not limited to, (i) regulations providing that such a charge or penalty shall not exceed an amount prescribed in the regulation, and (ii) regulations respecting the costs of the mortgage broker that may be included or must be excluded in the determination of the charge or penalty; (o) respecting information to be disclosed under the circumstances set out in section 7.7 and the form and manner of disclosing that information; (p) respecting any other matter or thing that is necessary to carry out the purposes of sections 7.2 to 7.7. Same (2)A regulation made under clause (1) (a) may exclude charges described in clause (a), (b) or (c) of the definition of ‘‘cost of borrowing” in section 7.1. Same (3)A regulation made under subsection (1) may be general or particular in its application and may be restricted in its application to the class or classes of mortgages or of lenders set out in the regulation. See: 1999, c. 12, Sched. I, ss. 6 (2), 8 (2).