Paula, a Level 1 Mortgage Agent in Ontario, receives an inquiry from an investor client in Hamilton who needs financing for a commercial multi-residential building with 10 units. The client requests a mortgage amount of $3.5 million. What is Paula primarily limited in doing for this client?

Question: Paula, a Level 1 Mortgage Agent in Ontario, receives an inquiry from an investor client in Hamilton who needs financing for a commercial multi-residential building with 10 units. The client requests a mortgage amount of $3.5 million. What is Paula primarily limited in doing for this client?

Answer options:

• Paula is limited in providing advice on investment strategies for the client. ✅ Paula is limited to placing mortgages for residential properties with no more than four units only.
• Paula is limited by the amount of the mortgage, as Level 1 agents can only arrange mortgages up to $1 million.
• There are no specific limitations for a Level 1 agent regarding commercial properties or loan amounts, provided they operate under a licensed brokerage.

Correct answer: Paula is limited to placing mortgages for residential properties with no more than four units only.

Explanation: In Ontario, Level 1 Mortgage Agents generally have restrictions regarding the types of properties they can deal with, typically limited to residential properties of 1 to 4 units, as per FSRA guidelines on agent licensing and permissible activities.