Terms and Conditions of Registration
4.1 (1) In this section, “investor” means a person who, using the services of a mortgage broker, lends money on the security of real estate or purchases a loan or an interest in a loan made on the security of real estate, and includes a prospective investor. (2) A mortgage broker shall not receive money from an investor or enter into an agreement to receive money from an investor unless an existing mortgage is available on a specific property or an application has been made for a new mortgage on a specific property. O. Reg. 275/92, s. 4. (3) At least forty-eight hours, not including any time on a Sunday or holiday, before receiving money from an investor or entering into an agreement to receive money from an investor, the mortgage broker shall deliver to the investor a completed disclosure statement in the form established by the Minister, together with the following documents: 1. If the statement concerns an existing mortgage, a copy of the mortgage. 2. If an appraisal of the property has been done in the preceding twelve months and is available to the mortgage broker, a copy of the appraisal. 3. If an agreement of purchase and sale in respect of the property has been entered into in the preceding twelve months and is available to the mortgage broker, a copy of the agreement of purchase and sale. 4. If a copy of an appraisal of the property is not delivered to the investor, documentary evidence of the property’s value, other than an agreement of purchase and sale. 5. Documentary evidence respecting the borrower’s ability to meet the mortgage payments, such as a credit bureau report or a letter from an employer disclosing the borrower’s earnings. 6. If the investor requests, a copy of the borrower’s application for a mortgage. 7. If the mortgage is a new mortgage, documentary evidence of any down payment made by the borrower for the purchase of the property. 8. A copy of any agreement that the investor may be asked to enter into with the mortgage broker. O. Reg. 275/92, s. 4; O. Reg. 319/98, s. 6 (1). (4) At the time the statement is delivered to the investor under subsection (3), the mortgage broker shall also deliver to the investor, in writing, all other information an investor of ordinary prudence would consider to be material to a decision whether to lend money on the security of the property. O. Reg. 275/92, s. 4. (5) At least 48 hours, not including any time on a Sunday or holiday, before receiving an agreement to renew a mortgage from an investor, the mortgage broker shall deliver to the investor a completed renewal statement in the form established by the Minister, together with the following documents: 1. If an appraisal of the property has been done in the preceding twelve months and is available to the mortgage broker, a copy of the appraisal. 2. If an agreement of purchase and sale in respect of the property has been entered into in the preceding twelve months and is available to the mortgage broker, a copy of the agreement of purchase and sale. (6) At the time the statement is delivered to the investor under subsection (5), the mortgage broker shall also deliver to the investor, in writing, all other information an investor of ordinary prudence would consider to be material to a decision whether to renew the mortgage. O. Reg. 319/98, s. 6 (2). (7) Revoked: O. Reg. 319/98, s. 6 (2). (8) Revoked: O. Reg. 319/98, s. 6 (2). (9) Revoked: O. Reg. 319/98, s. 6 (2). (10) Subsections (3) to (6) do not apply to an investor if the investor is, (a) the mortgage broker; (b) a member of the mortgage broker, if the mortgage broker is a partnership, association, syndicate or organization of individuals; (c) an officer or director of the mortgage broker, if the mortgage broker is a corporation; (d) a person who controls the mortgage broker, if the mortgage broker is a corporation; (e) a corporation that is affiliated with the mortgage broker, if the mortgage broker is a corporation; (f) a corporation registered under the Insurance Act or the Loan and Trust Corporations Act; (g) a bank under the Bank Act (Canada); (h) a credit union; (i) a finance company registered under the Act; or (j) a corporation that is an approved lender under the National Housing Act (Canada). O. Reg. 275/92, s. 4; O. Reg. 319/98, s. 6 (3-5). (11) Revoked: O. Reg. 319/98, s. 6 (6).