Ontario’s mortgage violations are up 50 per cent this year
The province’s financial services regulator has been busy lately, doling out $860,000 in penalties for allegedly dicey practices
A new document from the Financial Services Regulatory Authority of Ontario (FSRA) has surfaced some alleged malpractice in the mortgage industry. In its first-ever Enforcement Annual Report, the provincial watchdog reveals that it focused most of its 2025 investigations on mortgages—to the tune of $860,000 in penalties. That’s a 50 per cent increase over last year.
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Of the FSRA’s 32 investigations, 21 targeted the mortgage industry even though the agency also monitors the insurance, loan and trust, pension, and credit sectors. Its report says that mortgages “also represent the majority of the FSRA’s enforcement actions.”
In an interview with the Toronto Star, Elissa Sinha, the FSRA’s director of litigation and enforcement, said it’s “not surprising” that the mortgage sector sees the lion’s share of scrutiny as brokers and agents deal directly with consumers and handle complex products.
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And penalties for breaking the rules are rising. In 2022, amendments to the Mortgage Brokers, Lenders and Administrators Act increased the maximum penalty for individuals from $10,000 to $100,000 and for brokerages from $20,000 to $500,000.
Zakiya Kassam is a writer and fact checker whose work has appeared in Post City Magazines, This Magazine and Now Toronto. She was previously the associate editor at Storeys.
