A mortgage brokerage in Vancouver, BC, facilitates a $1,200,000 mortgage for an investor purchasing a multi-unit residential property. The brokerage receives a commission from the lender. According to BCFSA rules, which of the following statements about the disclosure of remuneration is true?

Question: A mortgage brokerage in Vancouver, BC, facilitates a $1,200,000 mortgage for an investor purchasing a multi-unit residential property. The brokerage receives a commission from the lender. According to BCFSA rules, which of the following statements about the disclosure of remuneration is true?

Answer options: ✅ The brokerage must disclose the nature and amount of all remuneration received in relation to the mortgage, regardless of source, to the borrower in writing.

• Disclosure of remuneration is only required if it exceeds 1% of the loan amount.
• The brokerage is only required to disclose the remuneration if it is paid directly by the borrower.
• Disclosure of remuneration is optional if the borrower is an experienced investor.

Correct answer: The brokerage must disclose the nature and amount of all remuneration received in relation to the mortgage, regardless of source, to the borrower in writing.

Explanation: The BC Mortgage Brokers Act and BCFSA Rule 2018-001 require mortgage brokers to provide a Disclosure Statement to the borrower, detailing all remuneration received, regardless of source.