Chapter 11: The Initial Consultation

Question 1

Describe the documentation that must be obtained by a Mortgage Agent in every mortgage transaction?

Answer 1

• Employment Verification
• PIPEDA Consent
• Photo identification
• Divorce/Separation Agreement (if applicable)
• Child Support Order/Agreement (if applicable)

Question 2

What documentation is typically required for a self-employed individual?

Answer 2

• Financial Statements
• Business License
• Business Cheque

Question 3

What documentation is typically required for a purchase transaction?

Answer 3

• Purchase & Sale Agreement
• MLS Listing
• Proof of Downpayment
• Rental Letter (if applicable)
• Realtor Information

Question 4

What documentation is typically required for a refinance, ETO, or switch transaction?

Answer 4

• Current Mortgage Statement
• Charge/Mortgage
• Transfer/Deed
• Property Tax Statement
• Property Insurance Policy
• Mortgage Repayment History (if applicable)

Question 5

Discuss the importance of the file checklist

Answer 5

A file checklist is a key component for ensuring that the required documentation is obtained on every transaction.

This prevents the embarrassment of having to go back to a client for additional documentation in the future and provides a quick summary of what is in the file.

Question 6

What are the different places that a client may be met and what are the pros and cons of each?

Answer 6

Clients Home
Agents Office
Another Outside Location

Question 7

Why is it important to verify an applicant’s identity?

Answer 7

Identity theft and impersonation are significant concerns, making it necessary for the Mortgage Agent to verify the identity of his or her client at the initial consultation.

Question 8

Discuss the difference between a co-applicant and a guarantor

Answer 8

A co-applicant will go on title with the primary borrower and is equally responsible for the debt.

A guarantor, while equally responsible for the debt is not registered on the title.

Question 9

Why is it important to have the mortgage application signed by the applicant(s)?

Answer 9

By having the client’s signature on the application, the Mortgage Agent has consent to complete the necessary investigations to obtain a commitment from a Lender.

Although verbal authorization is acceptable, some applications may dispute providing authorization at some point in the future.

Question 10

How can a Mortgage Agent determine the applicant’s needs?

Answer 10

To determine the applicant’s needs, specific questions must be asked.

Needs assessment form.