Harold the Mortgage Closer preyed on the vulnerable. Now he’s lost his licence, fined $280K, and under fire for charging 76% interest. Here’s the wild story unraveling in Ontario

A 3-year @Toronto Star investigation exposed Harold Gerstel — aka “Harold the Mortgage Closer.” Last week, Ontario’s financial regulator (FSRA) revoked his licence and fined him $280,000.

Gerstel sold himself as a “last resort” for people denied by banks. But FSRA says he targeted vulnerable clients, misled regulators, and repeatedly provided false information.

He bundled hidden fees into loans, pushing effective interest rates to 76% — well above Canada’s legal limit of 60%. That’s loan shark territory.

His most high-profile case? Judy Allen, a 75-year-old retired nurse. She ended up with $1.5M in mortgages on her home and now faces financial ruin.

Gerstel worked with a shady contractor and a lawyer to stack 4 mortgages on her North York bungalow. One mortgage advertised at 22% actually cost her 56% due to massive upfront fees.

He claimed he stopped doing mortgages two years ago. But his website and screenshots collected by the Star — continued promoting: “Fast, no hassle mortgage.” “Call Harold!” “Unparalleled service.”

FSRA says Gerstel: — Took part in 14 civil lawsuits — Refused to cooperate — Gave vague or misleading answers — Skipped investigator interviews — Withheld key documents

He was also operating through a private lending company registered in his wife’s name, which borrowers didn’t know about. That case is still ongoing.

In that second case, FSRA is seeking another $210,000 in fines. If successful, his total penalties could hit $490,000.

This isn’t just one bad broker, it’s a systemic failure. A vulnerable senior, aggressive lending, ignored red flags, and a regulator forced to act only after media exposure.

Link: https://www.thestar.com/news/gta/harold-the-mortgage-closer-is-stripped-of-his-licence-in-wake-of-star-investigation/article_973e7d33-e231-4bdc-be77-72d7a5c78e39.html…