TORONTO, Dec. 6, 2023 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) is taking steps to help ensure Ontario consumers are receiving mortgage products that are right for them and their family.
Today, FSRA is proposing Guidance that explains how the mortgage brokering sector can demonstrate that the recommendations they provide to consumers are based on consumers' specific needs and circumstances.
"Purchasing a home is most likely the biggest investment decision of a person's life and it is critical they receive the best advice and get the proper mortgage products," said Huston Loke, Executive Vice President, Market Conduct at FSRA. "Our proposed Guidance is intended to strengthen the sector's practices so consumers' interests are protected and the recommendations they receive are based on sound judgement and product suitability assessments."
FSRA is also proposing changes to two of its forms to make them easier to understand and to raise the profile of important information to promote transparency.
Last year, FSRA reviewed a sample of private mortgages arranged by mortgage brokerages and found that most of the transactions did not clearly show how the mortgage products were deemed suitable for clients.
Mortgage professionals need to take responsible steps to establish that they have made suitable mortgage product recommendations, which include documenting how the product recommendations meet each client's specific needs.
FSRA is committed to making sure consumers and industry members understand this proposed guidance. That's why we're asking the public to join us live online for an overview of the publication and an interactive Q&A session. The date will be announced shortly.
To review the proposed Guidance and form and submit your feedback, please visit FSRA's website. The consultation period is now open and will close on February 28, 2024.
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.
- Consultation on Proposed Guidance for Mortgage Product Suitability Assessment and revised Investor/Lender Disclosure Form
- Register for FSRA's informational webinar the proposed Mortgage Product Suitability Assessment Guidance
- Mortgage Broker Regulators' Council of Canada's Draft Principles for Mortgage Suitability Assessments
FOR MEDIA INQUIRIES:
Russ Courtney
Sr. Manager, Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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