5 signs your mortgage broker might not be licensed

Mortgage fraud is a growing problem in Canada. In 2024–25 alone, FSRA took 100 enforcement actions against mortgage professionals — nearly double the previous year. Here are five warning signs that your mortgage "broker" might not be licensed.

1. They can't provide a licence number

Every licensed mortgage professional in Canada has a licence number issued by their provincial regulator. If your broker hesitates, deflects, or can't provide their licence number when asked, that's a major red flag.

What to do: Ask for their licence number upfront and verify it on Brkrr or directly with the provincial regulator.

2. They want cash payments or unusual fee arrangements

For standard A lender mortgages, licensed brokers are paid by the lender when your mortgage closes. For B lender and private mortgages, broker fees may apply — but they are always disclosed to you in writing. Legitimate brokers never ask for cash upfront, demand wire transfers to personal accounts, or charge undisclosed fees.

If someone is asking you for money before your mortgage closes — especially in cash — walk away.

3. They pressure you to skip documentation

Licensed brokers follow regulated documentation processes. They need to verify your identity, income, and financial situation. If someone offers to "skip the paperwork" or "make it easier" by not verifying your information, they're likely operating outside the law.

4. They don't have a brokerage affiliation

In every Canadian province, mortgage agents and brokers must work under a licensed brokerage. They can't operate independently. If your broker doesn't mention their brokerage, or says they work for themselves without a brokerage, they may not be properly licensed.

What to check: Ask which brokerage they work for and verify that the brokerage is also licensed.

5. Their online presence doesn't check out

Licensed mortgage professionals typically have:

• A profile on their brokerage's website
• A listing on regulatory databases (FSRA, BCFSA, etc.)
• Professional social media profiles with their brokerage name

If you can't find any trace of them online beyond a personal phone number and a Kijiji ad, proceed with extreme caution.

What to do if you suspect fraud

1. Stop sharing information immediately
2. Report to your provincial regulator: FSRA in Ontario, BCFSA in BC
3. Contact local police if money has changed hands
4. Report to the Canadian Anti-Fraud Centre: 1-888-495-8501

How to protect yourself

The simplest protection: always verify before you trust. Use Brkrr's free licence check to confirm any mortgage professional's status in seconds. Every agent on Brkrr is cross-checked against provincial regulatory registries — so you know they're legitimate before you share a single piece of personal information.