What the Mortgage Agent Level 1 exam is
To become a mortgage agent in Ontario, you must complete the Mortgage Agent Level 1 course approved by the Financial Services Regulatory Authority of Ontario (FSRA), including its exam, then apply for a licence through a sponsoring brokerage. The course covers the Mortgage Brokerages, Lenders and Administrators Act, 2006, mortgage products, calculations and client qualification.
How licensing works
- Education. Successfully complete the mortgage agent level 1 education program approved by FSRA, which is the Mortgage Agent Level 1 course.
- Time limit. Apply for your level 1 licence within two years of completing the program.
- Brokerage. A mortgage agent deals and trades in mortgages on behalf of one brokerage, which is responsible for supervising its agents through its principal broker.
- Licence term. Agent licences now expire every March 31 and are renewed each year, with any continuing education FSRA requires.
Level 1 and level 2
Since April 1, 2023, Ontario has had two mortgage agent licences. A mortgage agent level 1 may arrange mortgages only with lenders that are financial institutions or approved under the National Housing Act. A mortgage agent level 2, who has also completed the Private Mortgages Course, may arrange mortgages with all lenders, including private individuals, syndicates and mortgage investment corporations. A level 1 agent may take part in private mortgage deals for training, but must not tell clients they are qualified to do them.
About the course exam
The level 1 course is offered by several FSRA-approved education providers, and each provider sets and runs its own course exam. Check your provider's course materials for the exact number of questions, time limit and pass mark. Our timed mock exam is 80 questions in two hours. That is our own practice format, not any provider's.
What our practice exam covers
| Section | What it covers |
|---|---|
| Law, licensing and ethics | The MBLAA, FSRA, licence classes, the principal broker, honesty and conflicts of interest |
| Mortgage products and lenders | Conventional and high-ratio, fixed and variable, open and closed, HELOCs, second and reverse mortgages, default insurance |
| Mortgage calculations | Loan-to-value, minimum down payment, GDS and TDS, semi-annual compounding, stress test rates, penalties |
| Qualifying the borrower | Income documents, credit, down payment sources, suitability, fraud red flags |
| Property, title and closing | Registration, title insurance, power of sale, land transfer tax, the Interest Act |
| Disclosure, privacy and anti-money laundering | Cost of borrowing and compensation disclosure, PIPEDA, FINTRAC identification and reporting |
How to prepare
Work through the calculations until they are routine: LTV, minimum down payment on homes over $500,000, GDS and TDS, and the effective rate of a semi-annually compounded mortgage. Learn exactly what a level 1 agent may and may not do, and the disclosures a borrower must receive. Drill one section at a time, read every explanation, then take the timed mock.
Checked against FSRA and Government of Canada information on October 14, 2026. Last reviewed: October 2026.
Aptitude Tests Canada is an independent practice platform. We are not affiliated with or endorsed by FSRA, any mortgage education provider or the Government of Ontario. Our questions are original practice questions, not real exam questions.
Practice questions with answers
Tap a question to see the correct answer and explanation.
Which body regulates mortgage brokering in Ontario?
- The Law Society of Ontario
- The Financial Services Regulatory Authority (FSRA)
- The Office of the Superintendent of Financial Institutions
- The Real Estate Council of Ontario (RECO)
Answer: B, The Financial Services Regulatory Authority (FSRA). FSRA regulates and licenses mortgage brokerages, brokers, agents and administrators in Ontario under the MBLAA. RECO regulates real estate salespeople.
What is a conventional mortgage in Canada?
- One with at least 20% down payment
- One that always needs default insurance
- One with a variable rate only
- One with no fixed term
Answer: A, One with at least 20% down payment. A conventional mortgage has a loan-to-value of 80% or less, so the down payment is at least 20%. Mortgages above 80% LTV from federally regulated lenders need default insurance.
A home costs $450 000. What is the minimum down payment under Canada's rules?
- $22 500
- $4 500
- $45 000
- $90 000
Answer: A, $22 500. For homes up to $500 000, the minimum down payment is 5% of the purchase price: 5% x 450 000 = $22 500.