Relationships with Consumers: Mortgage Brokerage

Mortgage borrowers must clearly understand with whom their mortgage broker has a working relationship. Real Estate Council of Alberta research into mortgage brokerage/consumer relationships has demonstrated that consumers often do not clearly understand their relationship with the brokerage, the role of the brokerage and the relationship the brokerage may have with lenders.

Clearly explain your role and working relationships in a transaction
Clients often do not understand their relationship with their mortgage brokerage, the role of the brokerage, or the relationship their brokerage may have with lenders. You must make sure that everyone involved in a mortgage transaction understands your role, why you have to do certain things, and who you represent.

Acting as an agent
When you agree to act for someone else, you become the agent for that person.

Your brokerage may choose one of three relationship options
Your mortgage brokerage may choose one of the following relationship options:

Depending on the situation, your brokerage may have different relationships with different lenders and borrowers. Each relationship carries different roles and obligations.

You must explain your relationships to borrowers
Make sure all borrowers you work with, either as clients or customers, understand their relationship to your brokerage and its mortgage professionals. This applies to whatever relationship option you choose.

RECA has created a Mortgage Borrower Relationship Disclosure Document to help you explain these relationships to borrowers. If you use this document, you will meet the disclosure requirements in section 65(c)(i)(ii) of the Rules.

For more information about consumer/mortgage broker professional relatonships, please visit:

Representing the Borrower

Representing the Lender

Acting as an Intermediary