"What are examples of potential conflicts of interest that may exist?"
- The mortgage brokerage/broker/agent is related to the appraiser.
- The lender is related to the mortgage broker/agent.
- The lender is a family member of the borrower.
- When the mortgage brokerage/broker/agent is also a lender.
- If the mortgage broker or his/her spouse uses a self-directed RRSP to fund the mortgage for the borrower.
- Receiving travel points, free holidays, or other incentives that are normally not available.
- Favouring a lender due to monetary reasons.
- When a mortgage broker/agent acts for both the borrower and lender.
- If the mortgage broker/agent receives higher “bonus” commissions for working with a specific lender during a specific timeframe.
- If the principal broker is also a real estate broker who is involved with listing and selling a property.
- Placing business where a higher commission or gift is granted.
- If a large portion of your business (over 50 per cent) is done exclusively with one party.
- Sending a client to a lender because you received a free trip.
- Accepting remuneration from both the borrower and lender without disclosure.
- Recommending a mortgage with a higher interest rate due to a higher finder’s fee.
- Not disclosing the different rates and terms offered by banks and how you will be compensated.
- Failure to disclose to the borrower that you received a fee from another party (lender or investor).