A mortgage agent working for an Ontario-licensed brokerage is assisting a client with a mortgage renewal. The client expresses dissatisfaction with their current lender's rates and services. The agent finds a better offer from a different lender. Which of the following is a mandatory disclosure the agent must provide to the client?

Question: A mortgage agent working for an Ontario-licensed brokerage is assisting a client with a mortgage renewal. The client expresses dissatisfaction with their current lender's rates and services. The agent finds a better offer from a different lender. Which of the following is a mandatory disclosure the agent must provide to the client?

Answer options:

• A detailed personal financial budget for the client.
• A complete list of all lenders the agent has ever worked with. ✅ The cost of borrowing disclosure, including all fees, charges, and the annual percentage rate (APR).
• A written guarantee that the new lender will never increase their rates.

Correct answer: The cost of borrowing disclosure, including all fees, charges, and the annual percentage rate (APR).

Explanation: Mortgage agents are required to provide a cost of borrowing disclosure statement that outlines all costs associated with the mortgage, including interest, fees, and the Annual Percentage Rate (APR), to allow the client to compare options effectively, a key part of regulatory requirements by bodies like FSRA.