Under the Mortgage Services Act and the Mortgage Services Rules, the obligation to provide a lender information statement is triggered by the mortgage transaction being arranged—not by whether the lender is represented by the licensee.

Where a licensee arranges a mortgage in which another person will be the mortgagee, the licensee must provide the required lender information statement to that person unless a specific exception applies. A private lender may be represented by the licensee, represented by another licensee, or unrepresented. Representation status does not, by itself, remove the lender-information-statement requirement.

For internal purposes, refer to the Superintendent-approved lender information statement as Form 5 only if that is the form approved and required by the Superintendent for the applicable transaction.

Legislative Framework

Section 8 of the Mortgage Services Act applies where a licensee:

1. arranges a mortgage in which another person is to be the mortgagee;
2. arranges the sale of a mortgagee’s interest in a mortgage; or
3. sells the licensee’s own interest as mortgagee under a mortgage to another person,

and is required by the Rules to provide the other person with an information statement.

The consequence of non-compliance is significant: despite any applicable agreement, the intended mortgagee or purchaser is not obligated to advance funds unless the licensee provides the information statement in accordance with the Rules.

Section 73 of the Mortgage Services Rules requires the licensee to provide the information statement:

• if funds are paid into trust: on or before the release of funds from trust at the lender’s direction; or
• if funds are not paid into trust: on or before the lender advances the funds.

The information statement must:

• be in a form approved by the Superintendent;
• contain the information required by the Superintendent;
• be accompanied by any documents required by the Superintendent;
• be dated and signed by the licensee; and
• contain disclosure that is true, plain and not misleading.

Two Practical Scenarios

Scenario 1 — Private Lender Is Represented by the Licensee

A private lender engages a mortgage brokerage to identify and arrange a mortgage investment. The lender is the licensee’s client and will be the mortgagee under the proposed mortgage.

Result: The licensee must provide the lender information statement before the lender advances funds or, if the funds are held in trust, before they are released from trust at the lender’s direction.

The licensee must also comply with the client-relationship duties applicable to the engagement, including the requirements concerning representation disclosure, suitability, material-risk disclosure and remuneration disclosure, as applicable.

Scenario 2 — Private Lender Is Unrepresented

A mortgage brokerage is engaged by the borrower. The brokerage introduces a private lender to the transaction and arranges the mortgage. The private lender is not the brokerage’s client and has not retained another licensee.

Result: The licensee must still provide the lender information statement to the private lender before the lender advances funds or directs the release of trust funds. The fact that the lender is unrepresented does not create an exception to the lender-information-statement requirement.

In addition, before providing mortgage services to or on behalf of an unrepresented lender, the licensee must give the prescribed disclosure explaining:

• the risks of receiving assistance from a licensee whose duties are owed to another client;
• the limited assistance the licensee may provide; and
• the recommendation that the unrepresented lender obtain independent professional advice.

Limited Exceptions

The lender-information-statement requirement does not apply where:

1. the other person is a permitted person or the licensee’s related mortgage brokerage;
2. the mortgage obligation forms part of a mortgage pool offered as a security and is fully guaranteed by the Government of Canada or a provincial government; or
3. an offering memorandum or prospectus has been provided to the other person in accordance with the Securities Act.

There is no exception based solely on whether the lender is represented, unrepresented, sophisticated, or introduced by another party.

Required Practice

Before arranging funding from a private lender, the brokerage should confirm and document:

1. whether the transaction falls within section 8 of the Mortgage Services Act;
2. whether a section 73 exception applies;
3. whether the Superintendent-approved lender information statement and required supporting documents have been completed;
4. whether the statement has been dated and signed by the licensee;
5. whether the statement will be delivered before the applicable funding deadline; and
6. where the lender is unrepresented, whether the required unrepresented-party risk disclosure has also been delivered.

Takeaway

The operative question is not, “Does the broker represent the lender?” The operative question is, “Has the licensee arranged a mortgage transaction in which this person will be the mortgagee?”

If the answer is yes, the lender information statement must be provided unless one of the express statutory exceptions applies.

Authorities

• Mortgage Services Act, section 8 — effect of failure to provide information statement
• Mortgage Services Rules, sections 68–73 — representation, unrepresented parties, suitability and lender information statements
• Mortgage Services Rules, section 73 — information statement to lender
• Mortgage Services Act — provisions, including section 8, come into force October 13, 2026