Key Takeaways
- MVDA: an applicant may be refused if, given their financial position or that of an interested person, they cannot reasonably be expected to be financially responsible (s. 6(1)(a)(i)).
- For corporations, the finances of officers and directors also count (s. 6(1)(d)(i)–(ii)).
- Mortgage licences can be suspended if the licensee ceases to meet prescribed requirements (MBLAA, s. 18(1)(a)).
- Evidence of a credible financial plan can answer the concern.
The Test
Under the MVDA, an individual applicant is not entitled to registration if, having regard to their financial position or that of an interested person, they cannot reasonably be expected to be financially responsible in the conduct of business (s. 6(1)(a)(i)). For corporations, the finances of the corporation, its officers and directors, and interested persons are considered (s. 6(1)(d)(i)–(ii)).
What Helps
- Current financial statements and a realistic plan.
- Evidence of resolved debts, judgments or tax arrears.
- Capital or guarantees from responsible parties.
- Proposed conditions, such as reporting.
Frequently Asked Questions
Does a bankruptcy disqualify me?
Not automatically under the MVDA test, which asks whether you can reasonably be expected to be financially responsible. Context and recovery matter.
Are unpaid penalties relevant?
Yes. Under the MBLAA, failing to pay a fee or administrative penalty allows refusal or revocation without the usual proposal process (s. 22).
Sources
Statutory references are to the provisions listed below, as consolidated on e-Laws when this page was prepared.
- Motor Vehicle Dealers Act, 2002, s. 6 — Checked November 10, 2026.
- Mortgage Brokerages, Lenders and Administrators Act, 2006, ss. 18, 22 — Checked November 10, 2026.