How long must a loan file be retained in Ontario?

In Ontario, the requirement to retain a loan file for at least six years after the expiry of the mortgage is grounded in regulatory standards and practices that ensure proper record-keeping for financial transactions. This retention period allows for comprehensive tracking of the mortgage lifecycle, including any disputes or audits that may arise years after the mortgage has been discharged.

During this six-year period, various legal and financial points may need to be referenced, such as proving payment history or demonstrating compliance with necessary regulations. The six-year timeline aligns with the general business records retention requirements found in the Canada Revenue Agency guidelines, which set a standard for many financial activities.

The other options do not align with these regulatory standards. Retaining records for three years, four years, or five years may not provide sufficient legal coverage or documentation, especially in cases of audits or claims that could arise long after the loan has been paid off. Therefore, the six-year retention period ensures that all parties have access to complete records should they be required for any future legal or financial matters.