New rules for the mortgage broker industry in Newfoundland and Labrador come into effect today, April 1, 2025.

The new Mortgage Brokerages and Brokers Act and Regulations:

• Implement a licensing framework for the industry.
• Authorize establishing a Code of Conduct for the industry.
• Introduce education and continuing education requirements for the industry.
• Require the industry to have errors and omissions insurance.
• Require mortgage brokerages to maintain trust accounts.
• Strengthen client disclosure requirements for the industry.
• Authorize administrative penalties for the industry.

The new Act and Regulations ensure provincial legislation is current and modern, reflecting national best practices in the regulation of the mortgage broker industry.

The new Act and Regulations also provide greater protection and reassurance for people using mortgage brokering services.

Over the last few years, the Provincial Government has made many significant legislative changes to strengthen consumer protection including changes to:

• The Consumer Protection and Business Practices Act and Regulations
• The Insurance Companies Act
• The Life Insurance Act
• The Payday Loan Regulations
• The Petroleum Products Act and Regulations
• The Real Estate Trading Act
• The Securities Act

Mortgage interest rates are not affected by the Mortgage Brokerages and Brokers Act and Regulations as these are primarily determined by the Bank of Canada policy rate.

For more information, please visit the department’s website.

The new Mortgage Brokerages and Brokers Act is available here and the Regulations are also available here.

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