Can I Still Be a Mortgage Broker or a Mortgage Agent if I File for Bankruptcy in Ontario?

Navigating the Path of Bankruptcy as a Mortgage Broker or Agent in Ontario‍

Is bankruptcy the end of your career in the mortgage industry in Ontario? No. In this article, we’ll discuss the impact of bankruptcy and consumer proposals on the licenses of mortgage brokers or agents. We’ll also provide some insights on how to navigate these financial challenges.

The Intersection Between Bankruptcy and Mortgage Brokerage

The Financial Services Commission of Ontario (FSCO) plays a significant role in this regard. They necessitate that mortgage brokers or agents who declare bankruptcy voluntarily must disclose this information. Furthermore, previously discharged bankrupt individuals or those still under the process must also reveal their status. Key details that need to be provided include:


  • Information of the trustee overseeing the bankruptcy;
  • Details about the location of the bankruptcy filing;
  • Documentation of Assignment of Bankruptcy or Receiving Order;
  • A comprehensive list of creditors.


Certificate of Discharge (provided when available)

A detailed account of the circumstances surrounding the bankruptcy

This information will undergo a thorough review by FSCO. The impact on your license or application will hinge on the reasons associated with your filing.

What FSCO Considers

FSCO pays particular attention to:


  • The nature of your filing and your compliance with legal obligations.
  • If there’s been any dishonest, reckless, or intentional behaviour to evade debt responsibilities.
  • Failure to fully disclose prior registrations or licenses, bankruptcy, or criminal conduct.


An investigation by FSCO may take place, the results of which will be crucial in determining your ability to carry on as a mortgage broker or agent. It is vital to remember that giving false information on your application is considered an offence and can negatively impact licensing decisions.

Consumer Proposal: A Lesser Evil?

On the other hand, a consumer proposal doesn’t place your license in jeopardy like a bankruptcy filing might. Although FSCO still advises reporting a proposal filing, it doesn’t scrutinize it as much as bankruptcy.

For those earning commission-based income, a consumer proposal might be a more suitable option. This is because high income can lead to higher bankruptcy payments and a prolonged bankruptcy process. A consumer proposal emerges as an effective alternative, safeguarding both your license and monthly finances from severe impacts.

Seeking Professional Guidance

In light of these complexities, it is wise to consult the Financial Services Commission of Ontario directly to understand the implications of bankruptcy filing on your license as a mortgage broker or agent.

If you are a mortgage broker or agent grappling with debt-related challenges, contacting a Bankruptcy Canada Licensed Insolvency Trustee can also provide a confidential review of all available debt relief options.


Being a mortgage broker or agent in Ontario and facing bankruptcy is indeed a challenging situation. However, it doesn’t necessarily signify the end of your career. Understanding the rules, regulations, and processes can help you navigate this difficult time and ensure the best possible outcome.

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Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

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