Can You Still Work As a Mortgage Broker or a Mortgage Agent if You Are Bankrupt in Ontario?

Working as a Mortgage Broker and Going Bankrupt

If you’re a Mortgage Broker/a Mortgage Agent and you’ve just become bankrupt in Ontario you might wonder whether you can still continue in your role.

And while this is on a case-by-case basis, it’s important to know that typically you won’t lose your license if you’ve found yourself in this situation.

This is also applicable for those looking to enter the industry for the first time.

As stated by the Financial Services Commision of Ontario, when determining whether an individual is suitable to become a Mortgage Broker or a Mortgage Agent or whether you’re mortgage license has been impacted, the Superintendent will look at the

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Ontario Regulation 409/07 and the Mortgage Brokerages, Lenders and Administrators Act (2006).

Taking into account the individual’s personal circumstance, they will determine their eligibility and review their disclosure.

Such circumstances include:


  • Whether they have provided false information or made a false statement.
  • Whether they have carried out activities that go against the Act or regulations.
  • Whether their past dictates that they will not perform their role in accordance to the law or in honesty and integrity.


As well as the above, the FSCO might also request that you’re put under investigation.

With the information that’s gathered from this, they will determine whether it’s suitable for you to continue as a Mortgage Broker or Agent.

How Bankruptcy Could Affect You 

When you have filed for bankruptcy, whether it’s personally, within your business or another scenario it’s vital that you disclose this information to the FSCO.

A voluntary assignment, it’s an essential step towards recovering from it and potentially continuing in your role.

The documentation that you must provide them with, includes the following:


  • Where your bankruptcy was filed.
  • Who your creditors are.
  • Your trustee’s contact details, including their name and address.
  • Why you became bankrupt and the situation that led to it.
  • A Receiving Order or an Assignment of Bankruptcy.


Application Review

For bankruptcy, your application could also be reviewed if they believe that you’ve acted recklessly, if they don’t think that you will successfully pay off your debts or that you haven’t disclosed the information to them.

What About a Consumer Proposal?

If you’re looking for an alternative to filing for bankruptcy, then a Consumer Proposal is a great option – particularly for those within your industry.

Considered to be less stringent than bankruptcy, it showcases that you have the income to be able to pay your debts off – even if they are at a reduced rate.

This results in a likelihood that your license won’t be called into question.

Through filing one of these, you can take advantage of benefits including the wiping of certain debts, you are able to retake control of your finances and you can budget more effectively – while showing the FSCO that you have the motivation to repay what you owe.

Because of this, they treat them with less scrutiny.

Keep in mind, however, that you’ll still have to report that you’ve filed this.

Top Tip

Whether you’re considering a Consumer Proposal or filing for bankruptcy it’s vital that you never share false information on your application.

By doing this, it’s not only a legal offense but it could be the difference between your license being removed and you keeping it.

Contact Bankruptcy Canada 

If you want to find out more about how your bankruptcy could affect your Mortgage license or applying for a Mortgage Broker/Mortgage Agent role in Ontario, then don’t hesitate to get in contact with Bankruptcy Canada today on (877) 879-4770.

Alternatively, you could email us by filling out the easy to use online form.

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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