An Ontario mortgage agent arranges a mortgage for which the lender will pay the agent's brokerage a fee. Under O. Reg. 188/08 made under the Mortgage Brokerages, Lenders and Administrators Act, 2006, what must the brokerage disclose in writing to the borrower?
Correct Answer
A) That the fee is payable, who pays it, and how it is calculated
Section 21 of O. Reg. 188/08 requires the brokerage to tell the borrower in writing whether it has received or will receive a fee from another person in connection with the mortgage, who that person is, and the basis for calculating the fee, and to get the borrower's written acknowledgement. Mortgage agents are regulated by FSRA under the MBLAA, not by TRESA.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Mortgage & Real Estate Finance Question
Background Knowledge for Mortgage & Real Estate Finance
Real World Application in Mortgage & Real Estate Finance
Common Mistakes to Avoid on Mortgage & Real Estate Finance Questions
Key Terms
More Mortgage & Real Estate Finance Questions
An Alberta first-time buyer makes their first Home Buyers' Plan (HBP) withdrawal from their RRSP in 2026. What is the maximum withdrawal, and when must repayment begin?
What happens to monthly payments in a variable rate mortgage when interest rates increase, assuming the mortgage has a fixed payment structure?
What is the primary purpose of the B-20 stress test for uninsured mortgages?
An Alberta buyer wants to purchase a property for $600,000 with a down payment of $50,000. How is the minimum down payment calculated for this price?
A borrower has a $400,000 mortgage at 5% annual interest, amortized over 25 years. If they make an additional principal payment of $10,000, what is the primary benefit?
- → A client is purchasing a $750,000 home. What is the minimum down payment required?
- → A borrower's variable rate mortgage has reached the trigger point. The outstanding balance is now higher than the original mortgage amount despite making regular payments. What is the most likely explanation and immediate consequence?
- → A self-employed borrower with irregular income is applying for a mortgage. Which documentation requirement is most likely to be emphasized by the lender?
- → In Ontario, under what circumstances can a mortgage lender place a property under Power of Sale proceedings?
- → Under what circumstances might a conventional mortgage (with 20% or more down payment) still be covered by mortgage default insurance?
- → Which scenario would require mortgage default insurance?
- → Which organization is the primary provider of mortgage default insurance for high-ratio mortgages in Canada?
- → Under CMHC's current requirements for homeowner mortgage loan insurance, what is the maximum Total Debt Service (TDS) ratio?
- → Which Canadian mortgage default insurer is a federal Crown corporation?
- → A client has a gross annual income of $80,000 and monthly debt payments of $500. Using a 32% gross debt service ratio, what is their maximum allowable monthly housing payment?
People Also Study
Real Property Law
60 questions
Contracts & Agreements
60 questions
Agency & Professional Ethics
60 questions
Land Use & Planning
50 questions
Related Study Resources
Helpful Resources
Previous Question
Under the federal B-20 guideline, what is the minimum qualifying rate that federally regulated lenders must use when stress testing mortgage applicants?
Next Question
Under what circumstances might a conventional mortgage (with 20% or more down payment) still be covered by mortgage default insurance?