Quebec AMF Broker key terms

A natural person holding an AMF-issued certificate who, on behalf of a client, arranges or negotiates mortgage loans with lenders for compensation, without acting as a lender or deposit institution.

Quebec's financial market regulator. It issues certificates to mortgage brokers and agencies, supervises their conduct, investigates complaints, and imposes administrative sanctions for regulatory breaches.

The authorization an agency or independent firm must hold to carry on mortgage brokerage in Quebec. It requires a designated responsible officer and compliance with AMF capital, insurance and conduct rules.

The individual credential issued by the AMF to a representative after meeting training, examination and good-conduct requirements. It must be renewed periodically and can be suspended or revoked.

The mandatory professional development hours a certified broker must complete each renewal cycle, covering compliance, ethics and technical topics, with records kept available for AMF verification.

The person within a licensed brokerage firm responsible for monitoring adherence to the Act, AMF rules and internal policies, and for reporting significant breaches to senior management.

The obligation to gather and document sufficient information about a borrower's finances, goals and risk tolerance before recommending a mortgage product, and to update that information as circumstances change.

A structured review of a borrower's income stability, debts, savings, time horizon and objectives, used to identify which mortgage structures and features genuinely fit the client's situation.

The professional judgment that a recommended mortgage term, rate type, amortization or lender matches the client's documented needs, affordability and tolerance for payment changes.

An evaluation of how much payment volatility or financial uncertainty a borrower can absorb, which guides the choice between fixed, variable and hybrid rate structures.

The maximum loan a lender will advance based on verified income, existing debt service, credit history and the qualifying rate, expressed through ratios such as gross debt service and total debt service.

The share of gross household income consumed by mortgage principal and interest, property taxes, heating and half of condominium fees; lenders set a maximum acceptable percentage.

The share of gross household income required to cover housing costs plus all other debt obligations such as car loans, credit cards and lines of credit; a key lender approval threshold.

A regulatory requirement that borrowers qualify at a rate higher than the contract rate, or at a specified floor, to confirm they could still pay if interest rates rose.

The portion of a property's purchase price funded from the buyer's own resources rather than the mortgage. Its size determines loan-to-value and whether default insurance is required.

The mortgage amount divided by the property's appraised value or purchase price, expressed as a percentage. Higher ratios signal greater lender risk and may trigger insurance requirements.

Coverage protecting the lender, not the borrower, against loss when a high-ratio mortgage defaults. The premium is typically added to the loan balance and paid by the borrower.

A mortgage exceeding the standard loan-to-value threshold, usually above 80 percent, which must be insured by an approved default insurer and meets stricter eligibility criteria.

A loan at or below the standard loan-to-value threshold, typically 80 percent or less, so default insurance is not mandatory and lender approval rules are somewhat more flexible.

A loan whose interest rate and payment stay constant for the whole term, giving predictable budgeting but often carrying an interest rate differential penalty if repaid early.

A loan whose rate fluctuates with a reference rate, so payments or the interest portion change over time; typically allows cheaper early repayment but exposes the borrower to payment risk.

The total number of years scheduled to repay the mortgage in full through regular payments. Longer amortization lowers payments but increases total interest paid.

The length of the current contract with a lender, at the end of which the balance is renewed or repaid. It is shorter than the amortization period and fixes the rate period.

How often mortgage payments are made, such as monthly, biweekly or accelerated weekly. More frequent accelerated payments reduce the amortization period and total interest.

A contractual right allowing the borrower to pay down part of the principal each year, or increase payments, beyond the regular schedule without triggering a penalty.

A charge imposed when a mortgage is repaid early or refinanced beyond allowed privileges, calculated as three months' interest or the interest rate differential depending on the contract.

The process at the end of a term where the remaining balance is renegotiated or rolled into a new term with the existing or a different lender, often requiring fresh qualification.

Replacing an existing mortgage with a new loan, often to access equity, change terms or consolidate debt; it requires a new application, qualification and sometimes a discharge of the prior charge.

A loan registered behind a first mortgage on the same property. It carries higher risk for the lender, so rates are higher and the combined loan-to-value must be acceptable.

A revolving credit facility secured by property, letting the borrower draw and repay funds up to a limit; typically variable-rate and often combined with a mortgage.

A record of a borrower's credit accounts, payment history and inquiries, used by lenders to assess repayment behaviour and to calculate the credit score that influences approval and pricing.

The process of confirming a borrower's earnings through pay stubs, tax notices, employer letters or financial statements, especially important for self-employed applicants whose income fluctuates.

A situation where a broker's personal interest, or a lender incentive, could improperly influence advice to a client; it must be identified, disclosed and managed or avoided.

The obligation to tell the client how the broker is paid, including lender-paid commissions or finder's fees, so the client understands what may influence a product recommendation.

Payment made to or received from a third party for sending a client, such as from a real estate professional. It must be disclosed and must not compromise the advice given.

The obligation to act in the client's best interest, placing the client's needs ahead of the broker's own compensation, and to recommend only products that genuinely fit.

The standard of honesty, diligence and fair dealing expected of a certified broker, including avoiding misleading advertising, falsified documents and pressure tactics toward clients.

The duty to collect, use and store client financial and identity data only with consent and for stated purposes, and to protect it from unauthorized access or disclosure.

The AMF's assessment that a representative is honest, financially sound and free from disqualifying conduct such as fraud convictions, which underpins the right to hold a certificate.