How to File a Complaint Against a Mortgage Lender in Canada

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If you have experienced illegal or unfair treatment by your mortgage lender, you're not alone. Regardless of whether you're facing excessive fees or charges, whether discrimination against you has occurred, or simply a disregard by them to answer your questions suitably, there's an official recourse where you can complain and be heard. You can have your complaint heard and addressed by learning your rights and where to complain in Canada.

This guide goes over the best steps to navigating adversity when filing a complaint against a mortgage lender .

When Should You Consider Filing a Complaint Against a Mortgage Lender?

Be aware of the red flags of lending abuse before things get out of control. Some of the common issues include surprise charges not specified in your original loan agreement, ambiguous or deceptive advice resulting in financial loss, high-pressure selling tactics, and even ethnic, gender, or age discrimination.

Slow response from your lender, failure to adhere to agreed terms, or a change in the loan without an agreed-upon change in terms these are all valid reasons for complaint. Recognizing red flags in advance allows you to make a more compelling complaint with both evidence and clarity.

What Are Your Rights as a Mortgage Borrower in Canada?

Canadian borrowers have a system of protection instilled by government regulators such as the Financial Services Regulatory Authority of Ontario (FSRA) , the Financial Consumer Agency of Canada (FCAC) , and the Autorité des marchés financiers (AMF) in Quebec. They ensure the borrowers get clear disclosure, good treatment, and redress avenues. There must be a complaint procedure open to the public in federally regulated financial entities, says the FCAC. The protection reins in the lenders.

How to File an Internal Complaint with Your Mortgage Lender

Before taking your complaint to a government agency, it's best that you start from within. Call your complaint handling or customer service department of your lender. You must be brief, to the point, and respectful. You must also attach supportive documents such as your mortgage agreement , email exchange, or invoices. Lenders have a complaints officer who will investigate your complaint and get back to you.

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What Happens If the Lender Doesn’t Resolve Your Complaint?

If your complaint isn't resolved or if you aren't satisfied with the answer from the lender, there's additional action after this. You can file a complaint to a regulator assigned to the lender or make a formal complaint with a regulator like the FCAC in most situations. Mediation and arbitration services may also be offered. These review alternatives exist if review by in-house systems isn't going to answer your question. Depending on the level of importance of your complaint, you may also wish to file with provincial regulators.

What Government Agencies Handle Complaints About Mortgage Lenders in Canada?

Multiple agencies across Canada handle mortgage lender complaints based on the province and lender type. Here’s a quick breakdown:

Region/Agency Scope
FCAC (National) Federally regulated lenders
FSRA (Ontario) Ontario-regulated lenders and brokers
AMF (Quebec) Quebec-based institutions
FICOM/MCFSA (British Columbia) British Columbia financial services
OSC (Saskatchewan) Local credit unions and lenders

How to File a Complaint Through the Financial Consumer Agency of Canada (FCAC)

To file a complaint with the FCAC, first make sure your lender is federally regulated (e.g., a large bank). Describe your issue, dates, and a brief overview of what has occurred with the lender.

Add your documents to support your complaint, such as loan documents, bank records, and letters. The FCAC will not resolve individual complaints but will review whether the company has breached the law or rules of fair conduct.

What Supporting Documents Do You Need When Filing a Complaint?

Accurate documentation strengthens your case and facilitates quicker review. You should prepare the following:

  • A copy of your original mortgage agreement
  • All the relevant email or text messages
  • Account statements or penalty notices
  • Online communication screenshots (i.e., offer terms or changes)
  • Logs of call history (dates and names where identifiable)

What Are Typical Outcomes of Lender Complaints?

While not all complaints result in refunds, a large number do. Besides refunds, favorable actions also include fee reversals, changes in contracts, formal letters of apology, and, in some extreme cases, public sanctions or fines against the lender. A few cases have even resulted in company policy changes in order to prevent such misconduct from being repeated. Complaints also help the government ingathering information used to regulate financial companies and identify bad actors.

Your identity will mostly be kept in confidence, but there remain privacy protections in place. Whistleblower legislation, most notably via government agencies, protects your information with your consent. You will not be penalized legislatively for submitting a legitimate complaint, and most organizations prefer to be able to change with structured comments. With severe legal risk involved in your case, an attorney should be consulted before a filing.

If mediation fails, there's always the option of resorting to court by presenting a case in the Small Claims Court if your complaint involves monetary damages of a stated amount (generally $35,000 or less). An attorney may or may not be needed, but may be the best option in complicated cases. Consider also that legal action takes time and money and may not be worth the hassle for every complaint. But for continuing misconduct or violation of a contract, legal assistance may be warranted.

What Are the Timelines and Response Expectations for Complaint Resolution?

Internally, the complaint has to be dealt with by the lenders within 30 business days. The external agencies, like FSRA and FCAC, take 60-90 days or even more to investigate. The external agencies cannot guarantee a ruling in your favour, but will determine if your case brought about a policy failure or systemic issue. Prepare your documents and note the dates of submissions to fulfill deadlines.

“Filing a complaint might feel intimidating, but it’s your right when facing unfair treatment. A well-documented complaint not only protects your mortgage but helps strengthen accountability across Canada’s lending system.”
Steven Tulman , President & Principal Broker, Clover Mortgage

Conclusion: What to Do If Your Mortgage Lender Is Acting Unfairly

If a mortgage lender treats you unfairly, don’t remain silent. Document the unfairness and lodge a formal complaint first. As a last resort, go after the relevant regulator or legal avenues. Every borrower has the right to be treated honestly and fairly and to expect nothing less.

Having the right to complain isn't about getting your problem solved; it's also about holding the lenders accountable and protecting others from the same mistreatment. Don't let the problem linger. Act now to protect your money, your credit rating, and your peace of mind..

Contact our mortgage brokers at Clover Mortgage for expert guidance and a smooth process in dealing with your mortgage lender problems.

FAQs

What qualifies as a complaint about a mortgage lender?

A complaint to a mortgage lender may be for undisclosed charges, abusive or false sales techniques, a change in terms of a loan without your authorization, or a delay in servicing affecting your ability to pay. You may file a formal complaint if your lender has operated in bad faith or violated terms mutually agreed upon between the two of you.

How do I submit a complaint against a mortgage broker instead of a lender?

Brokers and lenders are separately regulated by each of the provinces. Each provincial financial regulator, such as FSRA (Ontario) or AMF (Quebec), will be the normal body to whom the brokers will be licensed. You will have to contact the concerned regulator prior to complaining. The complaint in respect of a mortgage lender may be for a breach of a contract, while broker complaints will be for improper behavior or advice.

How do I know if my complaint is valid?

To know how to file a complaint against a mortgage lender, valid submissions always involve obvious financial or ethical harm and come with attached documents. Examples include a surprise hike in rate, discriminatory activities, or terms being breached. To file a complaint, have documents in order and describe the complaint step by step. Complaining to a mortgage lender requires knowledge of what constitutes a real complaint and how to back it.

Rick Sekhon
Written By Rick Sekhon
"Guiding you through the maze of mortgages with expertise, integrity, and personalized solutions, ensuring your path to homeownership is smooth and successful."