A mortgage agent in Ontario receives a request from a client who has a clear preference for a specific lender known for offering slightly higher commission to agents. The agent is aware that another lender offers a demonstrably better interest rate and terms for the client's financial situation. What is the agent's primary ethical and regulatory obligation in this scenario?

Question: A mortgage agent in Ontario receives a request from a client who has a clear preference for a specific lender known for offering slightly higher commission to agents. The agent is aware that another lender offers a demonstrably better interest rate and terms for the client's financial situation. What is the agent's primary ethical and regulatory obligation in this scenario?

Answer options: ✅ To present the client with both options, clearly highlighting the superior terms of the second lender, even if it means a lower commission for the agent.

• To prioritize the client's stated preference and exclusively present the option from the lender offering higher commission.
• To disclose the commission difference to the client and let the client make the final decision without further guidance.
• To recommend the lender offering higher commission, as it is within the agent's right to maximize their income.

Correct answer: To present the client with both options, clearly highlighting the superior terms of the second lender, even if it means a lower commission for the agent.

Explanation: Mortgage agents have a fiduciary duty to act in the best interests of their clients. This includes presenting the most suitable products and disclosing all relevant information, even if it impacts the agent's personal gain, as mandated by FSRA's Standards of Practice.