How should I respond to a client who asks which mortgage term he/she should select, if I know the lender will pay me a higher commission on a five year term?
You are required to disclose the material risks of the mortgage, your Mortgage Brokerage’s role, and any potential conflicts of interest. You have a duty to ensure the mortgage you recommend is suitable for the client’s needs and circumstances –- not which lender will pay you the higher commission. You should disclose to the client that you receive a higher commission on a five year term, if you recommend it.
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