David, a first-time home buyer in Montreal, has successfully received mortgage approval from a credit union. However, his parents, who are helping with the down payment, are insisting that David acquire additional short-term funding from a private lender to pay for new furniture immediately. What is the mortgage agent's ethical obligation regarding this request given David's approved mortgage terms?

Question: David, a first-time home buyer in Montreal, has successfully received mortgage approval from a credit union. However, his parents, who are helping with the down payment, are insisting that David acquire additional short-term funding from a private lender to pay for new furniture immediately. What is the mortgage agent's ethical obligation regarding this request given David's approved mortgage terms?

Answer options:

• Facilitate the private loan if David signs a waiver. ✅ Advise David on the potential risks of the private loan and ensure it doesn't jeopardize his primary mortgage approval, recommending caution.
• Proceed with the private loan as long as the parents agree to co-sign.
• Ignore the request as it falls outside the pre-approved mortgage.

Correct answer: Advise David on the potential risks of the private loan and ensure it doesn't jeopardize his primary mortgage approval, recommending caution.

Explanation: Mortgage agents have a suitability obligation to their clients. Introducing additional debt, especially from a private lender, could impact David's debt servicing or the credit union's approval conditions. The agent must advise on risks and ensure suitability, not just process the request.