Are lenders who lend using a brokerage license required to insure high ratio mortgages?

Lenders using a brokerage license are not governed by the Bank Act in the same way that federally regulated banks are. The Bank Act imposes specific requirements on banks, including conditions under which high-ratio mortgages must be insured. However, mortgage brokers and lenders operating under a brokerage license have different regulatory frameworks that often do not require them to insure high-ratio mortgages.

This lack of requirement is significant for understanding the landscape of mortgage lending in Canada. It indicates that while some lenders (such as federally regulated banks) must meet certain standards for high-ratio mortgages, those using brokerage licenses may not face the same obligations. This distinction emphasizes the regulatory environment and the varied requirements that exist between different types of lenders in Canada.

Other options imply conditions or blanket rules that aren't applicable to all lenders, highlighting the specific regulatory context in which brokerage licenses operate.