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Mortgage Agent Licensing Practice Exam · Question

When must a mortgage agent provide the borrower with certain disclosures regarding the proposed mortgage, particularly concerning costs and material risks?

Under FSRA mortgage brokering rules (O. Reg. 187/08), disclosures regarding costs, conflicts of interest, and material risks must be made as soon as reasonably

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Question: When must a mortgage agent provide the borrower with certain disclosures regarding the proposed mortgage, particularly concerning costs and material risks?

Answer options:

  • Only upon the borrower's explicit request for such information. ✅ As soon as reasonably possible after the agent recommends a particular mortgage product.
  • At the time of mortgage closing, along with all other legal documents.
  • Within 24 hours of the borrower submitting a complete application form.

Correct answer: As soon as reasonably possible after the agent recommends a particular mortgage product.

Explanation: Under FSRA mortgage brokering rules (O. Reg. 187/08), disclosures regarding costs, conflicts of interest, and material risks must be made as soon as reasonably possible after a mortgage agent recommends a mortgage product or service, enabling the client to make an informed decision.

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