Questrade Just Became a Bank. Here's Why Mortgage Brokers Should Care.

After six years of regulatory paperwork, stress tests, and probably enough coffee to fuel a small city, Questrade Financial Group finally got what it wanted: permission to be a real bank.

On November 3, the Office of the Superintendent of Financial Institutions (OSFI) granted Questrade its Schedule I banking license, officially christening Questbank as Canada's newest chartered bank. For context, only a handful of Schedule I banks have launched since 2000. Obtaining one of these licenses is more complex than securing a reservation at the restaurant your client won't stop talking about.

But here's the thing…This isn't just another fintech story. This is about what happens when a digital-first platform with $85 billion in client assets decides it's tired of playing nice with traditional banks.

From Discount Brokerage to Banking Behemoth

Questrade's origin story is a classic Canadian fintech underdog: founded in 1999, it built a reputation on low-cost stock trading, advising people to "fire your mutual fund advisor," and generally making Bay Street uncomfortable at cocktail parties.

In 2019, they acquired Community Trust Company, a federally-regulated trust company specializing in commercial and retail mortgages. That same year, they applied for a banking license. Six years, one pandemic, and an 844% growth in assets later, here we are.

The interesting part? Questrade already tried the mortgage game. In 2022, they launched QuestMortgage, a direct-to-consumer prime mortgage platform operating through Community Trust. It was marketed as quick, digital, transparent (all the buzzwords). But by late 2024, QuestMortgage quietly went offline. The landing page now reads like a strategic retreat: "We're busy making improvements."

Translation: We're waiting for the bank license.

Why This Actually Matters for Your Business

Let's cut through the noise. Three reasons this should be on your radar:

1. Balance Sheet Lending Changes Everything

Most fintechs offering mortgages are glorified middlemen. They partner with existing banks, which means they're working with someone else's funding and rules. Wealthsimple's mortgage offering? Powered by Pine Financial, backed by Home Trust. Great product, but they don't own the balance sheet.

Questbank will. Having a banking license means Questrade can accept deposits and originate loans directly. They control their funding costs. They set their risk appetite. They can move faster, price more aggressively, and actually compete on margins instead of marketing budgets.

For brokers, this means another legitimate lender in the prime space. One that has spent 26 years building trust with Canadians and has the technology infrastructure to make applications painless.

2. The Oligopoly is Finally Getting Competition

Canada's Big Six banks control 93% of all banking assets. That's not a typo. Ninety-three percent. The Bank of Canada's Carolyn Rogers recently called it what it is: "an oligopoly." Even OSFI's superintendent admitted that they've been "too conservative" in allowing new players to enter.

The result? Canadian banks are the most profitable in the world (by ROE), consumers pay higher fees than most developed nations, and mortgage rates stay suspiciously similar across institutions. When TD raises rates, everyone else follows by Friday.

Questbank, along with Koho Financial (also pursuing a license) and Banco Santander Canada (licensed in April), represents the first real wave of chartered bank competition in decades. That's not just good for consumers; it's also beneficial for brokers who want clients to have genuine choices.

3. Perfect Timing with Open Banking and Real-Time Rail

Here's where it gets spicy. Budget 2025 just dropped, and it includes:

• Final open banking legislation (write access by mid-2027)
• Real-Time Rail payment infrastructure launching in 2026
• Expanded membership for Payments Canada (fintechs can now access payment systems directly)

Questbank isn't just getting a license, they're getting a license right as the entire financial infrastructure gets modernized. Open banking means easier data sharing. Real-Time Rail means instant payments and account verification. Together, that means faster mortgage approvals, better risk assessment, and fewer excuses for three-week turnaround times.

If Questrade pairs its digital-first approach with these new rails, it could make mortgage applications feel less like a colonoscopy and more like ordering takeout.

What Happens Next

Questrade CEO Edward Kholodenko says more details will be released in H1 2026. They're staying tight-lipped about specific products, but given their mortgage history and balance-sheet advantage, it would be surprising if home lending wasn't part of the strategy.

For brokers, the play is simple: pay attention to Questbank's launch. If they offer mortgages with competitive rates and a seamless digital experience, they're likely to attract clients, especially younger, tech-savvy borrowers who already trust the Questrade brand. Ignoring them because "they're not a traditional lender" would be like ignoring EQ Bank in 2016. We all remember how that worked out.

The Big Six aren't going anywhere. But after decades of operating in a regulatory fortress, they're about to learn what actual competition feels like.

And honestly? It's about time.

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