A mortgage agent is recommending a mortgage product to a borrower. Which of the following actions constitutes a breach of the agent's professional obligation regarding client suitability?

Question: A mortgage agent is recommending a mortgage product to a borrower. Which of the following actions constitutes a breach of the agent's professional obligation regarding client suitability?

Answer options:

• Advising the client to consider a shorter amortization period to save on interest costs, despite their preference for lower monthly payments.
• Recommending a high-ratio mortgage to a borrower with less than 20% down payment for their primary residence. ✅ Suggesting a variable-rate mortgage to a highly risk-averse client who explicitly stated a preference for payment stability.
• Providing an estimate of potential closing costs based on current market averages to the client.

Correct answer: Suggesting a variable-rate mortgage to a highly risk-averse client who explicitly stated a preference for payment stability.

Explanation: Recommending a product misaligned with a client's expressed preferences and risk tolerance, such as a variable-rate mortgage to a risk-averse client seeking stability, directly violates the suitability requirements under FSRA regulations to act in the client's best interest.