Mortgage Agent Level 1 vs. Level 2 in Ontario: What's the Difference?

The difference is private mortgages. A Mortgage Agent Level 1 licence in Ontario authorizes you to arrange most residential mortgages with institutional lenders — banks, credit unions, monolines and trust companies — under your brokerage's supervision, but not to deal in mortgages from private lenders. Level 2 lifts that restriction. To get it, you need at least 12 months as a licensed Level 1 agent in the last 24 months, plus FSRA's Private Mortgages Course. Both levels are held through a licensed brokerage, and a Mortgage Broker licence sits above both.

Ontario's mortgage licensing framework, governed by FSRA (the Financial Services Regulatory Authority of Ontario), established the two agent licence classes when it overhauled regulation in 2023. Understanding what each level actually authorizes — and what it doesn't — shapes which brokerage you should join, which lenders you can access, and how your career scales. For the full path to getting licensed, see how to become a mortgage agent in Ontario.

The short answer

Level 1 is the starting licence. It covers lenders that are financial institutions or are approved by CMHC, such as banks, credit unions and monolines. Level 2 adds private lenders. To get Level 2, you need at least 12 months as a licensed Level 1 agent in the last 24 months, and you must complete FSRA's Private Mortgages Course within 2 years before you apply (FSRA, Become a Mortgage Agent Level 2). A Mortgage Broker licence sits above both. Our licensing overview has more context.

What Mortgage Agent Level 1 authorizes

Level 1 is designed for agents new to the industry. After completing an FSRA-approved Level 1 course and being authorized by a licensed brokerage, you can:

• Arrange and deal in most residential mortgages— the core of daily agent work.
• Work with institutional lenders: banks, credit unions, monoline lenders, and trust companies.
• Take, process, and negotiate mortgage applications under brokerage supervision.

The key restriction at Level 1 is private mortgages. FSRA's guidance says a Level 1 licence covers only lenders that are financial institutions or are approved by CMHC under the National Housing Act. Any other lender, such as a private individual, a syndicate or a mortgage investment corporation, needs a Level 2 agent or a broker (FSRA, New mortgage agent and broker licensing requirements). Private lending carries different risk profiles and disclosure requirements, which is why FSRA requires agents to demonstrate additional qualifications before entering that space. If a specific deal situation is unclear, confirm with your principal broker and check FSRA's current guidance directly.

What Mortgage Agent Level 2 adds

Level 2 expands your dealing authority in two important ways:

• Private mortgages. Level 2 holders can deal with private lenders — individuals, syndicates, MICs (Mortgage Investment Corporations), and similar non-institutional sources. This is where many agents build alternative-lending niches for clients who don't qualify at institutional lenders.
• Full lender range. Generally, Level 2 removes the restrictions Level 1 carries, giving you access to the complete spectrum of lender types in Ontario.

How to get Level 2. FSRA's rule has two parts:

• Experience: at least 12 months licensed as a Level 1 agent within the last 24 months.
• Education: the Level 1 course plus FSRA's approved Private Mortgages Course, completed within 2 years before you apply.

Your brokerage's principal broker starts the application. Source: FSRA, Become a Mortgage Agent Level 2. FSRA can update these rules, so check its page before you plan your timeline. See also our licensing page.

Level 1 vs. Level 2 vs. Broker at a glance

FSRA publishes the current course providers and requirements; confirm them there before planning an upgrade, since they can change.

How the Mortgage Broker licence differs

The Mortgage Broker licence sits above both agent levels. A broker can do everything a Level 2 agent can, plus supervise other agents and brokers and, with FSRA approval, serve as a principal broker — the individual responsible for a brokerage's compliance and oversight. Most agents work toward the broker licence over time, but it's not required to build a strong practice. The distinction is covered in depth at mortgage agent vs. mortgage broker: what's the difference.

How licence level affects your brokerage choice and lender access

Institutional lenders represent the large majority of mortgage volume, so Level 1 covers most of what new agents do day to day. But if private lending is part of your target market, you'll need Level 2 — and the brokerage you join should have established private-lender relationships ready for when you get there. At Level 1 your brokerage also carries heightened supervision responsibilities; a well-structured brokerage turns that into an asset, with your principal broker on early deals meaning real-time learning rather than just sign-off. Look for live training and genuine one-on-one mentorship, not just a recorded library. Haven't taken your Level 1 course yet? Start here.

Does licence level affect your income?

Your licence level doesn't directly set your commission split — that's a brokerage arrangement. But Level 2 can lift income indirectly by opening private-lender deal types, which often carry different lender fees and finder's fees. Agents who specialize in alternative and private lending build practices that are less rate-cycle sensitive than the institutional market. For the full income picture, see mortgage agent salary and income in Ontario and how commission splits actually work.

Frequently asked questions

What is the difference between Mortgage Agent Level 1 and Level 2 in Ontario?

Level 1 is the starting licence. It covers lenders that are financial institutions or are approved by CMHC. Level 2 adds private lenders. You need 12 months as a Level 1 agent in the last 24 months, plus FSRA's Private Mortgages Course, to get it.

Can a Level 1 mortgage agent deal with private lenders in Ontario?

No. FSRA says a Level 1 agent can deal only with lenders that are financial institutions or are approved by CMHC under the National Housing Act. Private individuals, syndicates and mortgage investment corporations need a Level 2 agent or a broker. Ask your principal broker if a file is unclear.

How long does it take to get a Level 2 licence?

At least 12 months. FSRA requires 12 months as a licensed Level 1 agent within the last 24 months, plus the Private Mortgages Course, completed within 2 years before you apply. Check FSRA's Level 2 page before you plan, since rules can change.

Do I need Level 2 to be successful as a mortgage agent?

Not necessarily. Many agents build strong, long-term careers at Level 1 working exclusively with institutional lenders. Level 2 is most valuable if you plan to specialize in alternative or private lending, or as a natural step toward a broker licence.

What is the FSRA mortgage agent licence level for private mortgages?

Mortgage Agent Level 2 (or Mortgage Broker) is the licence class FSRA requires for dealing in private mortgages in Ontario. Level 1 does not authorize private mortgage activity.

How much is the FSRA licence fee, and what continuing education do I need?

FSRA sets the licence fees and the continuing education (CE) hours, and both can change, so check FSRA's own pages for today's numbers. You complete CE in each licensing cycle to renew. See FSRA's Level 1 licence page and its renewal FAQ.

Can I work for two mortgage brokerages at once in Ontario?

No. In Ontario you are authorized to deal in mortgages through one licensed brokerage at a time. To move, you switch your authorization to the new brokerage. See FSRA's licensing requirements and how to switch brokerages.

Choosing the right brokerage matters as much as your licence level. At Mortgage Squad (FSRA brokerage #13737), we support agents at both Level 1 and Level 2 with live principal-broker-led training, structured one-on-one mentorship, and published commission tiers that rise to 100% with volume — one flat $150/month platform fee, refunded at $10M funded (or 15 funded deals). Apply confidentially or explore everything at careers.