Before an AMF-licensed mortgage broker can submit your file to a lender, you have to sign a brokerage mandate. This document frames the entire relationship: what the broker commits to doing for you, and what you authorize them to do on your behalf. Two main types exist in Quebec: exclusive and non-exclusive. The difference is not trivial — it affects the quality of service you receive and the results you get.
What a mortgage brokerage mandate frames
The brokerage mandate is a contract regulated by the AMF (Autorité des marchés financiers). Under Quebec's Act respecting the distribution of financial products and services (LDPSF), every mortgage brokerage firm in the province must operate with a signed mandate before submitting a file.
Every Quebec brokerage mandate contains at minimum:
- Full identification of the broker (name, AMF licence number, firm).
- The nature of the mandate: purchase, renewal, refinance, transfer.
- Term of validity (typically 60 to 120 days).
- Broker compensation (who pays, how much, when).
- Exclusive or non-exclusive scope.
The mandate must also spell out the disclosure obligations: if the broker has a particular interest with a given lender (e.g., a referral agreement), they have to tell you.
Exclusive mandate: one broker at a time
An exclusive mandate states that during its term, you do not engage any other mortgage broker on the same file. It's the industry standard in Quebec — the vast majority of professional firms operate on this basis.
Why brokers ask for exclusivity
Exclusivity isn't a whim. It protects the time the broker invests in your file:
- Gathering your documents, analyzing them, structuring the file.
- Submitting to multiple lenders and managing responses.
- Negotiating conditions (rate, portability, prepayment privileges).
If another broker closes the deal tomorrow, the first one gets paid nothing. Without exclusivity, a broker has no reason to invest several hours on a file that can slip away.
What you gain
A single point of contact. You have one broker who knows the whole file, tracks every offer, and presents you the best comparative option — not three brokers each sending you their "best offer."
Stronger negotiation. The broker knows that if the deal closes, they get paid. They have every incentive to secure the best possible conditions so you sign.
No duplicates at lenders. The same file submitted twice to the same lender by two different brokers is treated as a red flag (see below).
The downside: the term commits you
If the relationship isn't working — the broker is hard to reach, doesn't return calls, doesn't explain the offers clearly — you have to wait out the mandate (typically 60 to 120 days) or request termination.
The good news: the right to revoke is mandatory in Quebec (more below). You can exit the mandate at any time in writing. Exclusivity isn't a cage — it's a two-way commitment.
Non-exclusive mandate: multiple brokers in parallel
A non-exclusive mandate lets you engage several brokers simultaneously. On paper, it looks like more choice. In practice, it's almost always counterproductive.
Three unintended consequences of going non-exclusive
Effect 1 — Negative signal to lenders. Lenders see when the same file arrives from multiple sources. They read it as a sign that "the file can't find a taker" — even if that's not the reality. Some auto-decline, others bump their rate.
Effect 2 — Reduced broker investment. A broker who knows a competitor might close the deal ahead of them isn't going to invest three hours on your file. They send it quickly to 2-3 lenders and wait. Result: fewer lenders shopped, less negotiation.
Effect 3 — Multiple credit inquiries. Each broker who submits your file triggers a credit inquiry. A single inquiry lowers your credit score temporarily by 3 to 5 points. Multiple inquiries in a short window stack up — and lenders see them all.
What the Courteo network recommends
The Courteo network works with brokers who ask for an exclusive mandate — it's the market norm and it delivers the best outcome for you.
Standard terms:
- 90 days for a purchase: time to shop, receive conditional offers, and finalize the purchase promise.
- 120 days for a renewal or transfer: covering the rate-hold window at most lenders.
The mandate also specifies the right to revoke: you can withdraw the mandate at any time, without fees, by sending written notice to the broker. This is mandatory in Quebec — no firm can keep you against your will.
Before you sign: mandatory checks
1. Verify the AMF licence
The AMF licence number must be visible on the mandate. Check it against the public AMF registry. A broker without a valid licence cannot legally submit your file to a lender in Quebec.
2. Read the compensation clause
Who pays, how much, when. In most cases:
- For an A lender: the lender pays the broker a commission after the deed is signed. You pay nothing directly.
- For a B lender (difficult credit, self-employed, etc.): brokerage fees may be charged to you. These fees must be explicitly written into the mandate — never communicated verbally.
3. Check the term
The term shouldn't exceed 120 days without justification. A 6-month-plus mandate on a standard purchase file should raise a flag.
4. Confirm the revocation clause
It must be present and clear: you can revoke the mandate by written notice, without fees, at any time. If it's missing or worded to impose termination fees — that's a non-compliant practice.
What happens if you work without a mandate
A broker who submits your file without a signed mandate is operating outside the AMF's legal framework. If something goes wrong (offer not honoured, dispute over conditions, complaint), you have no legal protection in the broker-client relationship. Never work without a signed mandate, even if the broker tells you it's "just to have a look."
Summary table
| Exclusive mandate | Non-exclusive mandate | |
|---|---|---|
| Number of brokers | 1 | Several |
| Broker investment | High | Low |
| Duplicate-lender risk | None | High |
| Credit inquiries | 1 cluster | Multiple clusters |
| Legal protection | Full | Full |
| Revocable | Yes, in writing | Yes, in writing |
Frequently asked questions about Quebec brokerage mandates
Can I go directly to my bank in parallel if I have an exclusive mandate?
Yes. The exclusive mandate prevents you from engaging another mortgage broker, not from talking directly to your bank. You keep the right to negotiate directly with your current institution — in parallel or after the mandate expires.
What happens if my broker stops returning my calls during the mandate?
Revoke the mandate. Send written notice to the broker and the firm. You're released immediately. This is a right you hold under AMF rules — no professional firm will dispute it.
Does the exclusive mandate force me to accept whatever offer the broker finds?
No. The mandate binds you to work with one broker, not to accept the offers presented. You can decline them all and not move forward. The broker's compensation is only owed if you sign with a lender they submitted.
How long does a broker have to present me offers?
There's no fixed regulatory deadline, but a complete file submitted on a Monday typically gets responses from A lenders within 24-48 hours. If your broker takes more than a week without explanation, ask for a written status update — or revoke.