An Ontario mortgage broker is approached by an individual seeking to invest in mortgages as a private lender. What is the broker's primary responsibility to this potential investor?

Question: An Ontario mortgage broker is approached by an individual seeking to invest in mortgages as a private lender. What is the broker's primary responsibility to this potential investor?

Answer options: ✅ To ensure the investor receives appropriate risk disclosure regarding the nature of private mortgage lending and the specific investment opportunities.

• To guarantee a certain return on investment for any private mortgage facilitated through their brokerage.
• To advise the investor on the best time to sell their existing stocks to fund private mortgage investments.
• To only connect the investor with borrowers who have a perfect credit history and low loan-to-value ratios.

Correct answer: To ensure the investor receives appropriate risk disclosure regarding the nature of private mortgage lending and the specific investment opportunities.

Explanation: Mortgage brokers arranging private mortgages, whether for borrowers or lenders, have a responsibility to provide clear risk disclosure. For investors, this includes outlining the risks inherent in private mortgage investments to ensure they make informed decisions.