Questrade Secures Canadian Bank Licence, Signalling Next Big Move Into Mortgages

Toronto | 6 Nov 2025, 09:30 EST —

Questrade Financial Group, one of Canada’s best-known online investment firms, has officially obtained a Schedule I banking licence from the Office of the Superintendent of Financial Institutions (OSFI). The approval, quietly published in Ottawa’s Canada Gazette this week, paves the way for Questrade to expand well beyond its discount-brokerage roots and into full-service retail banking — including mortgages, deposits, and personal loans.

From Brokerage to Bank

Founded in 1999, Questrade began as an online trading platform challenging the high-fee model of Canada’s major banks. Over the years, it grew into one of the country’s largest independent investment dealers with more than one million client accounts and C$ 30 billion in assets under administration.

In 2020, the firm made its first foray into mortgages through QuestMortgage, an online-only platform offering digital pre-approvals and competitive fixed-rate products funded through partner lenders. That pilot proved successful enough for Questrade to build its own banking infrastructure — and today’s licence approval formalizes that long-planned shift.

With Schedule I status, Questrade Bank will be able to originate and hold mortgages directly on its balance sheet, instead of merely brokering them. This move positions the company to compete head-to-head with the “Big Six” lenders that dominate roughly 90 % of Canada’s mortgage market.

Why This Matters

The approval comes at a time when Canadian borrowers are navigating the most complex housing-finance environment in over a decade. Policy rates have eased modestly since mid-2025, but affordability remains stretched and competition among lenders is heating up again.

Digital entrants such as Neo Financial, Koho, and EQ Bank have shown that consumers are willing to shop outside the traditional banking circle if pricing and user experience are better. Questrade’s arrival could push that trend further.

The firm’s reputation for transparency and its strong technology backbone could appeal to younger borrowers and self-employed Canadians — two groups that often find the traditional mortgage process slow and paper-heavy. A fully online, verification-based underwriting model could reduce turnaround times from weeks to days.

What Industry Experts Say

According to data from Canadian Mortgage Trends, fintech-style banks already account for about 7 % of new mortgage originations in urban centres such as Toronto, Vancouver, and Calgary. Analysts suggest Questrade could capture a similar share within three years, especially among first-time buyers seeking rate certainty and digital convenience.

Mortgage strategist Robert McLister commented that “Questrade’s entry adds healthy competition at a time when Canadians need it most. Their cost structure allows them to undercut the traditional spread without compromising credit quality.”

However, observers also warn that banking is a heavily regulated, capital-intensive business. Questrade will have to balance aggressive pricing with prudent risk management, particularly if it wants to avoid the pitfalls that hit alternative lenders during previous housing downturns.

The Bigger Picture

For policymakers, the timing is interesting. The newly elected Mark Carney government is expected to introduce housing-market reforms in its 2025 Budget, including potential incentives for digital-first lenders and stricter oversight of mortgage underwriting standards. A new entrant like Questrade could become a test case for how innovation and consumer protection can coexist in Canada’s highly concentrated financial sector.

Meanwhile, established banks may respond by enhancing their own digital channels or offering limited-time rate discounts to retain customers. Competition on five-year fixed and three-year variable rates is already evident — several lenders trimmed advertised rates by 10-15 basis points in the past two weeks.

What Borrowers Can Expect

Questrade is expected to roll out its first direct-to-consumer mortgage products in early 2026, with an emphasis on urban first-time buyers, professionals, and self-employed clients. The initial offering may include hybrid fixed-variable products, flexible prepayment options, and integrated portfolio dashboards allowing clients to track investments and home loans in one interface.

For borrowers, this could mean more choice — but also the need to compare carefully. New banks often use promotional rates to gain traction, which may reset after the first term. As always, borrowers should evaluate not only the rate but also the penalty structure, portability, and refinance flexibility.

Outlook

If Questrade’s banking launch proceeds smoothly, it could redefine how Canadians approach mortgages over the next decade — blending the investment and borrowing experience into a single digital ecosystem. Analysts estimate that even a 2 % market share could translate into C$ 20 billion in annual mortgage volume within five years.

For an industry still adapting to rising delinquency risks and shifting demographics, more innovation could be exactly what’s needed to restore affordability and trust.

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Questrade’s transformation from online broker to full-fledged bank marks one of the most significant structural shifts in Canada’s mortgage landscape since EQ Bank’s debut in 2016. The move promises new competition, faster digital experiences, and potentially sharper pricing — but also ushers in a new wave of regulatory and risk-management challenges.