Mortgage Regulation Act Exemption Regulations
made under Section 90 of the
Mortgage Regulation Act
S.N.S. 2012, c. 11
N.S. Reg. 120/2020 (effective November 1, 2021)
amended to N.S. Reg. 148/2024 (effective September 1, 2024)
Table of Contents
Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
Click here to go to the text of the regulations.
Citation
Definitions
Persons exempt from Act
Conditions for exempting persons doing simple referrals
Exemption from mortgage administrator requirements
Exemption from requirement for licence to act as mortgage broker
Exemption from requirement for licence to act as mortgage broker or administrator
Exemption from requirement for licence to act as mortgage lender
Citation
1 These regulations may be cited as the Mortgage Regulation Act Exemption Regulations.
Definitions
2 In these regulations,
“Act” means the Mortgage Regulation Act;
“Community Business Development Corporation” means a not-for-profit company
limited by guarantee and publicly funded in part through the Government of
Canada’s Community Futures Program to provide business loans and foster
economic development in rural Nova Scotia;
“mortgage professional” means a mortgage lender, mortgage brokerage, mortgage
broker, associate mortgage broker or mortgage administrator;
“syndicated mortgage” means a mortgage in which 2 or more persons participate,
directly or indirectly, as a lender in a debt obligation that is secured by a mortgage.
Persons exempt from Act
3 All of the following persons are exempted under subsection 3(1) of the Act from the
application of the Act:
(a) a bank or an authorized foreign bank, as defined in the Bank Act (Canada);
(b) a body corporate to which the Trust and Loan Companies Act (Canada)
applies;
(c) a retail association as defined in the Cooperative Credit Associations Act
(Canada);
(d) a company as defined in the Insurance Companies Act (Canada);
(da) a Community Business Development Corporation;
(e) a director, officer, employee or other representative of a person that is
exempted under clauses (a) to (da), when acting solely on behalf of the
person;
(f) a person that undertakes mortgage brokerage or lender activities, but only if
each mortgage related to those activities meets all of the following
conditions:
(i) the mortgage loan is for an amount greater than $1 000 000,
(ii) the Cost of Borrowing Disclosure Regulations made under the Act
do not apply to the mortgage loan,
(iii) 1 of the following applies:
(A) none of the investors in the mortgage is a private investor,
(B) 1 or more of the investors in the mortgage are private investors,
and a person that is exempted from the Act under clauses (a) to
(e) or by Section 5 brokers the mortgage on behalf of each
private investor;
(g) a person that refers prospective borrowers to mortgage professionals and
meets the conditions of Section 4;
(h) a person that refers mortgage professionals to prospective borrowers and
meets the conditions of Section 4;
(i) a person that undertakes activities in relation to a syndicated mortgage that
are regulated under the Securities Act.
Conditions for exempting persons doing simple referrals
4 All of the following are the conditions required to be met for a person that makes
referrals to be exempted under clause 3(g) or (h):
(a) the person informs the prospective borrower in writing of all of the
following before making a referral for which the person has received or may
receive a fee or other remuneration, directly or indirectly:
(i) the amount of the fee or other remuneration or, if the amount of the
fee or other remuneration is not ascertainable at that time, a
reasonable estimate of the fee or other remuneration,
(ii) if the remuneration is in a form other than money, the nature of the
remuneration,
(iii) the nature of the relationship between the person and the mortgage
professional;
(b) in referring a prospective borrower to a mortgage professional, the only
information that the person provides to the prospective borrower, in addition
to the information required by clause (a), is the name, address, telephone
number, fax number, e-mail address or website address of the mortgage
professional or an individual who acts on behalf of the mortgage
professional;
(c) in referring a mortgage professional to a prospective borrower,
(i) the only information that the person provides to the mortgage
professional is the name, address, telephone number, fax number,
e-mail address or website address of the prospective borrower or an
individual who acts on behalf of the prospective borrower, and
(ii) the person obtains the written consent of the prospective borrower to
give the information referred to in subclause (i) to the mortgage
professional.
Exemption from mortgage administrator requirements
5 (1) The Central as defined in the Credit Union Act and a credit union to which the
Credit Union Act applies are exempted from the mortgage administrator
requirements of the Act and regulations while acting as a mortgage administrator
on behalf of an investor that meets any of the following:
(a) the investor is exempted under clauses 3(a) to (c);
(b) the investor is a credit union established under the laws of a province of
Canada;
(c) the investor is an entity owned or controlled, in whole or in part, by a person
to whom clause (a) or (b) applies.
(2) A director, officer, employee or other representative of a person that is exempted
under subsection (1) is exempted from the mortgage administrator requirements of
the Act and regulations when acting solely on behalf of that person.
Exemption from requirement for licence to act as mortgage broker
6 (1) Subject to subsection (2), a person who is a director, officer, employee or other
representative of a credit union to which the Credit Union Act applies is exempted
from the requirement to hold a licence to act as a mortgage broker while acting as a
mortgage broker on behalf of a person that meets all of the following:
(a) the person is exempted under clauses 3(a) to (c);
(b) the person is owned, controlled or affiliated with the credit union.
(2) A person is exempted under subsection (1) only if the person meets all of the
following:
(a) the person is acting in its professional capacity on behalf of a client;
(b) the person is not holding themself out as being a mortgage broker.
Exemption from requirement for licence to act as mortgage broker or administrator
7 (1) Subject to subsection (2), all of the following persons are exempted from the
requirement to hold a licence to act as a mortgage broker or mortgage
administrator:
(a) a practising lawyer as defined in the Legal Profession Act, but only while
engaged in an activity that they are insured for under their professional
liability insurance;
(b) a trustee in bankruptcy;
(c) a person acting under an order of the Court;
(d) a person acting on behalf of Her Majesty the Queen in Right of the Province
of Nova Scotia, Canada or another province of Canada, but only if the
person is not otherwise required to be licensed.
(2) A person is exempted under subsection (1) only if the person meets all of the
following:
(a) the person is acting in its professional capacity on behalf of a client;
(b) the person is not holding itself out as being a mortgage broker or
administrator.
Exemption from requirement for licence to act as mortgage lender
8 A person to which any of the following applies is exempted from the requirement to
hold a licence to act as a mortgage lender and is exempted from Section 25 of the Act
respecting designating compliance officers:
(a) in any period of 12 consecutive months, the person lends its own money on
the security of 4 or fewer mortgages with an aggregate amount of not more
than $1 000 000, and the person does not hold itself out as being a mortgage
lender;
(b) the person is a director, officer, employee or other representative of a person
that is exempted under clause (a), and is acting solely on behalf of the
person.
The following regulations are not
yet in force and are not included in the current consolidation: