What is the Private Mortgages Course (PMC)?

The Private Mortgages Course (PMC) is a course designed to teach students everything they need to know about private mortgages in Ontario.

Who needs to take the Private Mortgages Course (PMC)?

The Private Mortgages Course (PMC), REMIC's mortgage agent level 2 course, is a mandatory licensing course that licensed mortgage agents (level 1) and mortgage brokers must complete in order to upgrade to the level 2 mortgage agent licence or maintain their mortgage broker licence.

See the graphic below for a detailed illustration:

What is the mortgage agent level 2 licence?

In addition to financial institutions that are CMHC approved lenders under the National Housing Act, the level 2 licence authorizes licensees to deal and trade in mortgages with all mortgage lenders, including mortgage investment companies, syndicates, private individuals, agents, brokers, and brokerages.

How long is the course certificate valid for?

The course is valid for licensing for 2 years from the date of completion.

What are the key dates?

Any licensee wishing to deal in private lending should take note of the following key dates:

• April 1, 2023: new licensing classes come into effect
• October 31, 2023: deadline to pass the Private Mortgages Course (PMC) Challenge Exam
• March 31, 2024: deadline to complete the Private Mortgages Course (PMC)

What are the requirements to take the Private Mortgages Course (PMC)?

• Anyone can take this course.

What are the licensing and experience requirements?

• The licensing and experience requirements below are effective as of April 1, 2023.

Mortgage Agent Level 1

• • Experience: No experience required.
  • Education: Successfully complete an approved mortgage agent course for licensing in Ontario, such as REMIC's RMAC.
  • Licensing: Apply for a mortgage agent level 1 licence within two years of successfully completing an approved course.

Mortgage Agent Level 2

• • Experience: Applicants must have at least 12 months of experience over the last 24 months as a mortgage agent level 1.
  • Education: Successfully complete REMIC's Private Mortgages Course (PMC).
  • Licensing: Apply for a mortgage agent level 2 licence within two years of successfully completing the course.

Mortgage Broker

• • Experience: Applicants must have at least 24 months experience over the last 36 months as a mortgage agent level 2.
  • Education: Successfully complete an approved mortgage broker course for licensing in Ontario.
  • Licensing: Apply for a mortgage broker licence within three years of successfully completing an approved education program.

What is covered in the Private Mortgages Course (PMC) and challenge exam?

By completing this course the learner should satisfy the following course competencies:

• understanding their role in the private lending segment
• being aware of the participants in the private mortgages market and the legal and regulatory requirements that apply to private lenders
• having an expert understanding of: (1) the steps in a mortgage transaction; and (2) how to implement them
• applying processes/steps to ensure private mortgage transactions in compliance with licensee obligations to the borrower
• applying processes/steps to ensure private mortgage transactions in compliance with licensee obligations to the lender/investor
• conducting private mortgage transactions in compliance with licensee obligations to the borrower and the lender/investor, not giving preference to either
• describing the processes related to administering a mortgage
• analyzing private mortgage transactions to identify and prevent fraud
• evaluating conduct in private mortgage transactions to determine if it is ethical

What is the challenge exam?

The challenge exam is a 50 question multiple choice examination that upon successful completion replaces the requirement to complete the Private Mortgages Course (PMC).

The challenge exam may only be attempted once; individuals who do not pass the challenge exam must complete the Private Mortgages Course (PMC).

Who can take the challenge exam?

The challenge exam option is ONLY available to those licensees that:

• have five or more years of continuous licensing experience
• believe they have the experience and competencies reflected in the new education requirement to be a mortgage agent level 2 or mortgage broker. View MBRCC's Private Lending Competencies and Curriculum.

How can I register for the challenge exam?

Before registering, please ensure that you are eligible to register for the challenge exam by checking the section above. You can also view the full eligibility requirements on FSRA's website at https://www.fsrao.ca/industry/mortgage-brokering/regulatory-framework/guidance-mortgage-brokering/new-mortgage-agent-and-broker-licensing-requirements-0.

• Fee: $150
• Attempts: 1 attempt ONLY, if it is not passed then you will be required to take and complete the full Private Mortgages Course (PMC).
• Exam structure: 50 Multiple Choice questions
• Passing grade: 80%
• BONUS: If you fail the challenge exam, the $150 fee will be applied as a credit towards the full Private Mortgages Course (PMC).

<< Click here to register for the challenge exam >>.

The following transition period is relevant for those that are currently mortgage licensed in Ontario.

Individuals with five or more years of continuous licensing as of April 1, 2023:

Mortgage Agents - To transition to mortgage agent level 2, individuals must:

• • complete the Private Mortgages Course (PMC) by March 31, 2024, OR
  • pass the Private Mortgages Course (PMC) - Challenge Exam by October 31, 2023 (1 attempt limit)

Mortgage Brokers - To maintain their mortgage broker licence, individuals must:

• • complete the Private Mortgages Course (PMC) by March 31, 2024, OR
  • pass the Private Mortgages Course (PMC) - Challenge Exam by October 31, 2023 (1 attempt limit)
  • Brokers who do not meet the new education requirements will transition to the mortgage agent level 1 licence upon renewal on April 1, 2024 and cannot carry out activities as a Principal Broker.

Individuals with one to five years of continuous licensing as of April 1, 2023:

Mortgage Agents - To transition to mortgage agent level 2, individuals must:

• • complete the Private Mortgages Course (PMC) by March 31, 2024.

Mortgage Brokers - To maintain their mortgage broker licence, individuals must:

• • complete the Private Mortgages Course (PMC) by March 31, 2024.

Individuals with less than one year of continuous licensing:

Mortgage Agents - To transition to mortgage agent level 2 must:

• • attain one year of experience AND
  • complete the Private Mortgages Course (PMC)

Mortgage Brokers - To maintain their mortgage broker licence, individuals must:

• • complete the Private Mortgages Course (PMC) by March 31, 2024.
  • Brokers are exempt from attaining two years' experience as a mortgage agent, level 2 prior to transitioning to the new broker licence.