1. Brokerage Licensing & Corporate Identity
GMG Broker Inc. (operating as Global Mortgage Group) is a corporation registered in the Province of Ontario and licensed as a mortgage brokerage under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA).
All individuals originating, negotiating, or advising on mortgage transactions under GMG Broker Inc. are actively licensed as Mortgage Agents (Level 1 or Level 2) or Mortgage Brokers with FSRA.
2. Nature of Relationship & Representation Roles
Under Ontario mortgage regulation, Global Mortgage Group is required to disclose in writing whom we represent in each transaction. In any transaction, our role will be explicitly documented under one of the following legal relationships:
A. Representing You (The Borrower)
In the majority of standard residential financing files, we act as the Borrower’s Broker. In this capacity, we owe you a duty of loyalty, full disclosure of all material facts, reasonable diligence in sourcing competitive options, and protection of your confidential financial information.
B. Representing the Lender
In certain private placement, institutional correspondent, or specialized commercial files, GMG may act on behalf of the lender. In such circumstances, our primary fiduciary duty is to the lender. We provide you with honest and fair customer service while disclosing this agency status in writing before any commitment is executed.
C. Acting as an Intermediary (Transaction Facilitator)
GMG may act as an intermediary bringing borrower and lender together without an exclusive agency relationship. Both parties are provided with full disclosure and equal transparency regarding product terms and remuneration.
3. Remuneration, Brokerage Commissions & Fees
Global Mortgage Group operates with full financial transparency. Our remuneration models depend on the type of lending institution and mortgage product:
Institutional / Prime Mortgages
For qualified residential mortgages placed with chartered Schedule I banks, monolines, credit unions, and trust companies, the lender pays GMG a finder’s commission directly upon funding. There is typically no broker fee charged directly to the borrower.
- • Volume / Efficiency Bonuses: May apply based on annual volume
For many institutional mortgage products, GMG Broker Inc. may receive a finder’s fee or other remuneration from the lender. Any applicable lender compensation, brokerage fees or other remuneration will be disclosed in writing as required by Ontario law.
Alternative & Private Mortgages
For alternative (B-Lender), commercial, or private mortgage transactions where lenders do not pay a full origination commission, a brokerage fee may be payable by the borrower. All such fees are disclosed in writing prior to signing a commitment.
- • Detailed on FSRA Form 1 / Written Fee Agreement
- • Deducted from mortgage proceeds upon closing
4. Assessment of Mortgage Product Suitability
Before recommending any mortgage product, our licensed agents conduct a formal Suitability Assessment based on your documented financial profile, income stability, credit score, risk tolerance, and long-term homeownership objectives.
Key Evaluation Factors Considered:
Every borrower is provided with a formal written summary explaining why the selected product is suitable for their specific financial profile.
5. Material Risks & Prepayment Calculations
Mortgage financing represents a long-term legal obligation. Global Mortgage Group ensures all borrowers are fully aware of potential financial risks prior to closing:
Prepayment Penalties & Early Break Fees
Breaking or refinancing a closed mortgage before the term expires may trigger substantial prepayment penalties. Variable rate mortgages generally incur a penalty of 3 months’ interest. Fixed rate mortgages are calculated based on the greater of 3 months’ interest or the Interest Rate Differential (IRD), which can be significant if posted interest rates decline.
Variable Rate Changes & Trigger Rate Mechanics
Variable rate mortgages fluctuate with the Bank of Canada overnight policy rate and lender prime rates. In adjustable payment mortgages, monthly payments increase with rate hikes. In static payment variable loans, rate hikes increase the portion allocated to interest until reaching a "trigger rate," which may require payment increases or lump-sum principal payments.
Short-Term Private Mortgage Exit Strategies
Private and bridge loans are short-term financing solutions (typically 12 to 24 months) designed with interest-only payments. Borrowers must establish a viable exit strategy (such as sale of property or refinancing into institutional lending) before term maturity to avoid renewal fees or foreclosure.
6. Conflicts of Interest & Private Lending Affiliations
Global Mortgage Group maintains an ethical duty to avoid conflicts of interest or declare them immediately in writing:
• Lender Independence: GMG Broker Inc. is independently owned and is not an exclusive agent or subsidiary of any single financial institution.
• Direct Affiliation Disclosure: If a mortgage agent, broker, or shareholder has a direct or indirect financial interest in a proposed lender (such as private mortgage funds or MICs), full written disclosure is provided on FSRA-mandated forms prior to file submission.
• Volume Incentive Transparency: We prioritize product suitability, rate competitiveness, and terms over any volume-based lender compensation.
7. Errors & Omissions Insurance and Record Retention
Errors and Omissions Insurance: GMG Broker Inc. maintains errors and omissions insurance, including extended coverage for fraudulent acts, as required under the Mortgage Brokerages, Lenders and Administrators Act, 2006 and its regulations.
Relevant transaction records are generally retained for at least six years after the mortgage or transaction expires. For an unfunded file without an expiry date, records are retained for at least six years from the date they were created.
8. Request Written Statutory Disclosure Documentation
Borrowers, lenders, and legal counsel may request a formalized copy of statutory disclosures or commission schedules for any active transaction: