Definition
The brokerage mandate is the contract formalizing the relationship between the borrower (principal) and the mortgage broker (agent).
**Mandatory content (OACIQ)**: - Identification of parties - Object of the mandate (financing sought: amount, type, term) - Duration of the mandate - Broker's compensation (or confirmation that compensation comes from the lender) - Consent to collection and communication of personal information - Rights and obligations of each party - Termination conditions
**Exclusive vs. non-exclusive mandate**: - **Exclusive**: the borrower commits to working only with this broker for the duration of the mandate (common in real estate, less frequent in mortgage financing) - **Non-exclusive**: the borrower may simultaneously approach other brokers or lenders
**Compensation**: In the vast majority of cases, the broker is compensated by the lender (finder's fee, commission) — the borrower pays nothing directly. When the broker charges the borrower (e.g., complex file, private loan), fees must be disclosed in the mandate.
**Legal importance**: An OACIQ broker cannot legally submit a mortgage application without a signed mandate. The mandate also protects the borrower by clearly defining what the broker is authorized to do on their behalf.