When reviewing a credit bureau report, an Ontario mortgage agent identifies an inaccurate entry for a collection account that the borrower claims was already paid. What is the appropriate next step for the mortgage agent to advise the borrower?

Question: When reviewing a credit bureau report, an Ontario mortgage agent identifies an inaccurate entry for a collection account that the borrower claims was already paid. What is the appropriate next step for the mortgage agent to advise the borrower?

Answer options:

• Disregard the entry, as it is likely an old record that won't affect the mortgage.
• Apply for the mortgage immediately and dispute it later if approved. ✅ Contact the credit bureau to initiate a dispute for correction, providing any supporting documentation.
• Advise the borrower to open a new credit file to avoid the disputed entry.

Correct answer: Contact the credit bureau to initiate a dispute for correction, providing any supporting documentation.

Explanation: Borrowers have the right to dispute inaccurate information on their credit report. The correct procedure involves contacting the credit bureau directly, providing evidence that the account was paid or is incorrect, which is crucial for a fair assessment of their creditworthiness for mortgage approval.