Mortgage brokers must ask you for information so that you can advise on your options and obtain approval from lenders.
Presentation of mortgage options
Mortgage Brokers must provide you with relevant options that are appropriate to your situation based on an assessment of the Lender, the Mortgage, its structure, characteristics and risks in light of the information you have provided to you on your needs. And your financial situation.
The loan broking may even provide an explanation for the cause for the alternatives he / she gives you, offer you with records to help you find out if you can afford this mortgage, and give you important information about the nature, costs and conditions of the best rated mortgage companies. Particular risks of the mortgage options he or she presents to you. This information will help you decide if the mortgage is right for you.
You may be asked to sign a written statement about the risks associated with the best rated mortgage companies.
To learn more about the risks of a mortgage, read Understanding the Risks of a Mortgage.
Presentation of the application
Mortgage Brokers will evaluate and present the information about you to the lender you have chosen from their options for approval. To learn more about the application process, please read The Mortgage Application Process.
The information that your mortgage broker provides to the lender must be consistent with the decision you made. They must be truthful and consistent with the information you have given to it, and contain no omission of relevant information.
Your mortgage broker must provide all information to the lender in a timely manner. When the lender receives this information at the right time, he can make an appropriate decision regarding the mortgage.
Information to disclose
Mortgage Brokers must provide you with certain information to help you make an Knowledgeable decision approximately your mortgage. Your mortgage broker will need to provide you with numerous information, including the role of the mortgage broker, the significant risks posed by the mortgage, and potential conflicts of interest.
An estimate of the total cost of the loan for the duration of the mortgage must be communicated to you. The total cost of the mortgage depends on the terms of its repayment, such as the interest rate, fees, and the time it takes to repay the entire mortgage (the “amortization period”). The total cost may be higher than the amount borrowed.
In Ontario, brokerages and mortgage brokers and agents must inform you of the significant risks of your mortgage in writing and in a manner that is logical and likely to draw your attention to the matter.
All information must be provided to you in a timely manner. If you have good information at the right time, it will help you make an informed decision. In Ontario, there is a disclosure period of at least two days, unless waived. Take the time to review the details of the mortgage.
The information provided by your mortgage broker to help you make a decision should not contain false, inaccurate or misleading statements. The information provided must be clear and precise. If there is an aspect of the mortgage that you do not understand, you should seek clarification from your mortgage broker.
To find out more about what mortgage professionals need to disclose or what they cannot force you to do, please see Mortgage Broker or Agent’s Checklist.
Brokerages must maintain complete and accurate records of each mortgage transaction in a secure location (for at least six years after the expiry of the renewed term / term), in accordance with the Brokerages Act, 2006. Mortgages, mortgage lenders and mortgage administrator’s opens in another page, and return all original documents that you have provided upon request.
Conflict of interest
Brokerages and mortgage brokers or agents must ensure that any actual or potential conflicts of interest in the mortgage are disclosed in writing.
A conflict of interest arises when the mortgage broker has a personal interest, real or perceived, in the transaction. This personal interest may encourage the broker to provide you with advice that is in his best interests, not yours.
Many situations can lead to a conflict of interest: receiving fees or incentives from other parties involved in the transaction; maintain a relationship with another party to the transaction; or act as a lender or real estate broker in the transaction, among others.
Mortgage brokers must disclose any conflict of interest and not favor their interests to the detriment of those of the client. If you are the only person the mortgage broker represents in the transaction, your interests must be put first.