1. Brokering a new mortgage, collateral mortgage, line of credit, or other type of loan secured by real property (which is land and whatever is affixed to it)
2. Refinancing of an existing mortgage
3. Arranging investing in a mortgage by one or more individuals
4. Providing mortgage advice and counsel, including about renewal options

• Works exclusively for the payer
• Payer provides tools
• Payer controls duties, whether that control is used or not
• Payer sets working hours
• Worker must perform services
• Provision of pension, group benefits
• Worker is paid vacation pay
• Payer pays expenses
• Paid salary or hourly wage
• Reports to payer’s workplace on regular basis

• May work for other payers
• Worker provides tools
• Worker decides how the task is completed
• Sets own working hours
• May hire someone to complete the job
• Not allowed to participate in payers benefit plans
• No vacation pay, and no restrictions on hours of work, or time off
• Worker pays own expenses
• Worker is paid by the job on predetermined basis
• Submits invoice to Payer for payment
• Worker may accept or reject work

• Mortgage brokerage
  • The mortgage brokerage is the licensed mortgage brokering entity. Every mortgage agent must be licensed through and authorized by only one mortgage brokerage. If a licensed mortgage agent stops being authorized by their mortgage brokerage their mortgage agent license will be suspended. For example, if a mortgage agent resigns from a mortgage brokerage her license will be suspended until she is hired by another mortgage brokerage.

• Principal Broker
  • The principal broker is a licensed mortgage broker who is designated by the brokerage to be its chief compliance officer. Under the MBLAA, the brokerage is licensed, and it must have one licensed mortgage broker designated as the principal broker. This person is responsible for activities as outlined in Regulation 410/07, which defines the role of the principal broker. Refer to Chapter 5 for more information on the principal broker.

• Institutional lender
  • The lender is the cornerstone of the mortgage industry. Lenders are generally grouped into two main categories: institutional and private. Institutional lenders represent the majority of lenders in Ontario, but private lenders have always been and will most likely always be a necessary provider of funds for borrowers who don’t qualify through institutional lenders. Institutional lenders consist of banks, credit unions, loan and trust companies, finance companies or other corporations constructed to lend money on real estate. Any lender may also be referred to as the mortgagee.

• Private lender
  • A private lender is typically an individual investor with funds who would like to invest in mortgages. This individual will usually invest through their lawyer who may have clients requiring mortgage financing or a mortgage agent. Their purpose may vary but normally an investor will invest in 2nd mortgages due to their higher rate of return when compared to 1st mortgages and other potential types of investments such as GICs or bonds. Any private lender may also be referred to as the mortgagee.

• Borrower
  • The borrower is called the mortgagor and is the individual or individuals who are taking the mortgage loan and pledging their property as security. In virtually every instance you will be meeting with the borrower(s) directly, however you may encounter circumstances where you are meeting with a borrower acting under a Power of Attorney for the homeowner. This requires significant due diligence on the part of the mortgage agent as these transactions are more susceptible to fraud.

• Institutional Mortgage Originator
  • Several financial institutions now have their own mortgage origination teams, often referred to as Road Warriors, who actively seek borrowers for them. These originators are compensated by their institution and are not considered to be brokering a mortgage transaction since they are using only one lender. The major differentiating factor between an institutional mortgage originator and a mortgage agent is that, while both are dedicated to providing the best solutions to their clients, institutional mortgage originators can only place their clients with the lender by whom they are employed and therefore do not have access to all of the different products available in the market.

• Lender Business Development Manager (BDM) / Business Development Officer (BDO)
  • This individual is employed by the lender and is responsible for generating business from brokerages. This typically includes providing training sessions for groups of agents/brokers, helping agents/brokers with applications that may have been declined, and being a resource for agents/brokers who need assistance with the lender’s products, underwriting guidelines, etc.

• Real Estate Salesperson
  • The real estate salesperson is the individual who brokers the purchase and sale transaction between a vendor (seller) and the purchaser. This individual is employed by a licensed Real Estate Broker, has met licensing guidelines and is a member of a local Real Estate Board. Real estate salespeople are a vital link in the process of purchasing and selling real estate and are therefore of considerable importance to the mortgage agent in regard to obtaining clients. More information on the educational requirements for licensing of real estate salespeople can be found through Humber College at https://humber.ca/realestate/

• Real Estate Appraiser / Real Property Assessor
  • The real estate appraiser, also referred to as a Real Property Assessor also plays a vital role in the real estate process, especially from the standpoint of the mortgage agent. The appraiser determines, in the case of financing, the market value of the property to be mortgaged. Real estate appraisers do not have to be licensed in Ontario, but unless they have a professional designation, no lender will accept their appraisal for financing purposes. There are several methods used to determine the market value of a property, as well as several methods of completing an appraisal. These topics will be covered in the chapter, Application Analysis – The Property.

• Home Inspector
  • Home inspections began as a consumer service in the 1970s and have grown in popularity since then. A qualified home inspector will advise the home purchaser / homeowner in regard to the condition of the home and advise regarding issues surrounding its condition. The condition of the home naturally affects the market value. More information on home inspectors in Ontario can be found through the Ontario Association of Home Inspectors (OAHI) at www.oahi.ca.

• Mortgage Default Insurer
  • The mortgage default insurer provides mortgage default insurance policies to lenders typically offering high ratio mortgages, although default insurance can be provided on a mortgage loan of any loan to value. The main insurers in the Ontario market include the government insurer, the Canada Mortgage and Housing Corporation (CMHC) and the two private insurers, Sagen (formerly known as Genworth Financial Canada) and Canada Guaranty Mortgage Insurance Company (Canada Guaranty).

• Land Surveyor
  • A licensed Ontario Land Surveyor (OLS) is a person who creates a specialized map, referred to as a survey, which is a legal document, of a parcel of land that details boundary locations, building locations, physical features and other important items.

• Lawyer
  • A real estate lawyer is the professional involved in a real estate transaction who performs the following tasks:
  • Negotiating and drafting Agreements of Purchase and Sale
  • Acting for buyers or sellers on new or re-sale home, condominium, or commercial purchases
  • or sales
  • Acting for borrowers or lenders on mortgage transactions, including preparing documents
  • and registering documents

• Mortgage Creditor Insurer
  • A mortgage creditor insurer is an insurer that provides a policy to the mortgage borrower so that upon a claim (in the case of death; there are additional creditor insurance policies available) the mortgage loan is paid by a one-time lump sum payment to the lender. This insurance is specific to the mortgage loan.

• Title Insurer
  • A title insurer is an insurer that provides a policy which provides coverage for the insured’s title. It can compensate the insured for real losses associated with covered issues found in the terms of the policy. For example, if there is an old mortgage on title that was never discharged and this prevents the property from being conveyed to the purchasers, the title insurance policy will take steps to remedy this situation.

• Mortgage Administrator
  • A mortgage administrator is a person or entity that services a mortgage loan on behalf of another. For example, a mortgage administrator may process payments, renewals and discharges, provide correspondence and act to collect mortgage arrears for a lender that has contracted them.

• July, 2008: Maximum Amortization
  • The maximum amortization was reduced to 35 years from 40 years
• February, 2010: 2 new restrictions
  • Maximum Refinance: Reduced to 90% loan to value from 95%
  • Non-owner-occupied insured mortgages: 20% down payment required
• January, 2011: 2 new restrictions
  • Maximum Amortization: Reduced to 30 years from 35 years
  • Maximum Refinance: Reduced to 85% loan to value from 90%
• June, 2012: 4 new restrictions
  • Stress Test – GDS/TDS: The government changed the maximum GDS to 39% and TDS to 44% for insured mortgages.
  • Maximum Amortization: Reduced to 25 years from 30 years
  • Maximum Refinance: Reduced to 80% loan to value from 85%
  • Maximum Property Value: High ratio insurance limited to properties valued at less than $1 million
• December, 2015: High Ratio Down payments
  • The government increased the minimum down payment for high ratio insured mortgages on homes valued over $500,000 from 5% to 10%.
• October 2, 2016: Foreign Ownership
  • This is not related to default insured mortgages, rather it is a change to the income tax system.
  • An individual who was not resident in Canada in the year the individual acquired a residence will not—on a disposition of the property after October 2, 2016—be able to claim the capital gains exemption for that year. This measure ensures that permanent non-residents are not eligible for the exemption on any part of a gain from the disposition of a residence.
  • In addition, The Canada Revenue Agency (CRA) will require a taxpayer to report the disposition of a property for which the principal residence exemption is claimed. The CRA currently does not require this reporting where a property is eligible for the full principal residence exemption. The change means that, when a taxpayer disposes of a principal residence, the taxpayer will be required to provide basic information in the taxpayer’s income tax return for that year in order to claim the exemption.
• October 17, 2016: Stress Test – Interest Rate
  • Borrowers must qualify at the Bank of Canada’s five-year fixed posted mortgage rate. This rate is an average of the posted rates of the big six banks. As of February, 2022, the rate was 5.25, or the rate the lender is offering plus 2%, whichever is higher. This means that even though a lender may offer the borrower a much lower rate, the borrower must still qualify at the higher rate.
• November 30, 2016: Low ratio and portfolio insured mortgages
  • Mortgages insured using low ratio default insurance and portfolio insurance must meet the following criteria:
    1. A loan whose purpose includes the purchase of a property or subsequent renewal of such a loan;
    2. A maximum amortization length of 25 years;
    3. A property value below $1,000,000;
    4. For variable-rate loans that allow fluctuations in the amortization period, loan payments that are recalculated at least once every five years to conform to the established amortization schedule;
    5. A minimum credit score of 600;
    6. A maximum Gross Debt Service ratio of 39 per cent and a maximum Total Debt Service ratio of 44 per cent, calculated by applying the greater of the mortgage contract rate or the Bank of Canada conventional five-year fixed posted rate; and,
    7. If the property is a single unit, it will be owner-occupied.
• April 21, 2017: Non-Resident Speculation Tax (NRST)
  • The NRST is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.
• January 1, 2018: Guideline B20 stress test for uninsured mortgages
  • OSFI is setting a new minimum qualifying rate, or “stress test,” for uninsured mortgages.
  • Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.
  • OSFI is requiring lenders to enhance their loan-to-value (LTV) measurement and limits so they will be dynamic and responsive to risk.
  • Under the final Guideline, federally regulated financial institutions must establish and adhere to appropriate LTV ratio limits that are reflective of risk and are updated as housing markets and the economic environment evolve.
  • OSFI is placing restrictions on certain lending arrangements that are designed or appear designed to circumvent LTV limits.
  • A federally regulated financial institution is prohibited from arranging with another lender a mortgage, or a combination of a mortgage and other lending products, in any form that circumvents the institution’s maximum LTV ratio or other limits in its residential mortgage underwriting policy, or any requirements established by law.
• July 1, 2020: CMHC changes to qualifying standards
  • Effective July 1, the following changes apply for new applications for homeowner transactional and portfolio mortgage insurance:
  • Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to our standard requirements of 35/42;
  • Establish minimum credit score of 680 for at least one borrower; and
  • Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.
• July 5, 2021: CMHC returned to its pre-July 2020 underwriting practices for homeowner mortgage loan insurance, specifically:
  • CMHC will consider a Gross Debt Service (GDS) ratio up to 39% and Total Debt Service (TDS) ratio up to 44% for borrowers who have a strong history of managing their payment obligations.
  • At least one borrower (or guarantor) must have a credit score that is greater than or equal to 600 at the time of the request for insurance.
  • As always, CMHC will consider the overall strength of the mortgage loan insurance application, including alternative methods of establishing creditworthiness for borrowers without a credit history.
• March 30, 2022: Non-Resident Speculation Tax (NRST) rate was increased to 20 per cent and expanded provincewide.

• Repay the loan
  • The borrower agrees to repay the loan based on the payment schedule outlined in the contract. Failure to do so results in the borrower deemed to be in default or in contravention of the terms of the mortgage contract.
• Insure the property
  • The borrower agrees to keep adequate property insurance on the property to protect the lender from losing their security due to a fire or other covered risks. If the borrower fails to keep insurance on their property, the lender will consider him or her in default.
• Maintain the property
  • The borrower agrees to keep the property in good saleable condition including repairing any portion of the property that requires it. Failure to do so will result in the lender considering the borrower to be in default.
• Not to commit waste
  • Waste is a legal term which includes actions or conduct that could result in damage to the property or a loss of property value. Committing waste will result in the lender considering the borrower to be in default. This may include significant renovations, such as the addition of another storey to the building. This is due to the fact that if the borrower runs out of money during the renovation and it remains incomplete, the value of the property will be diminished.
• Pay property taxes
  • The borrower is required to pay their property taxes on time. If the borrower doesn’t the lender can pay those taxes, add them to the borrower’s mortgage and/or consider the borrower in default. This is because the Municipality can register a lien against the borrower’s property for unpaid taxes. This lien will take precedence over any other mortgages registered on title reducing the lender’s security.
• Follow the terms of the Standard Charge Terms
  • In addition to the covenants listed above, the borrower must abide by any other terms and conditions listed in the Standard Charge Terms.

• The Standard Charge Terms is a document that is created by the lender and contains all the terms and conditions regarding borrowing and repaying money when real property is used as collateral.
• This document is the mortgage contract.
• It contains detailed information on the lender’s and borrower’s obligations, referred to as covenants, as well as the remedies available to the lender if the borrower does not meet these obligations

• Obtain a fully open mortgage. This will allow the Borrower to repay all or part of his or her mortgage at any time without penalty or notice.
• Accelerate the mortgage. This will save considerable amounts over the life of the mortgage, as long as the Borrower can afford the larger payment.
• Increase the payment. If the Borrower’s cash flow increases he or she may decide to increase the size of the mortgage payment, thereby reducing the amount paid in interest over time.
• Make lump sum payments. If the Borrower can save money during the term he or she can apply this amount directly to the principal. This would be beneficial if the Borrower has paid down other higher interest debt, such as credit cards.

• make local planning decisions that will determine the future of communities
• prepare planning documents, such as:
• make an official plan, which sets out the municipality’s general planning goals and policies that will guide future land use
• make zoning bylaws, which set the rules and regulations that control development as it occurs
• ensure planning decisions and planning documents are consistent with the Provincial Policy Statement and conform or do not conflict with provincial plans
• Under the Planning Act, municipalities can put approval processes in place that help make planning work clearer and faster, where it is possible and appropriate.

1. Mortgage brokerage or Administrator, up to a maximum of $500,000
2. Broker or agent, up to a maximum of $100,000, and
3. Anyone else not licensed, up to a maximum of $500,000

• The individual’s past conduct affords reasonable grounds for belief that he or she will not deal or trade in mortgage in accordance with the law and with integrity and honesty
• The individual is carrying on activities that contravene or will contravene the MBLAA or its Regulations
• The individual has made a false statement in his or her application for a license

• A brokerage must retain all records as follows:
• 1. that relate to a mortgage or mortgage renewal agreement, as the case may be, for at least six years after the expiry of the term of the mortgage or renewal or other expiry of the mortgage transaction
  2. all records that relate to a purchase, sale or trade in a mortgage for at least six years after the trade completion date or other expiry of the transaction O. Reg. 188/08, s. 48 (2)
  3. for at least six years all other records that are required by subsection 46 (1) or that the brokerage is otherwise required to create or maintain under the Act. O. Reg. 188/08, s. 48 (3)

1. Provide Borrowers who are suitable for the Lender
2. Provide appropriate protection against fraud
3. Facilitate the transaction to its successful completion (funding).

• These three assumptions form the cornerstone of the relationship between the Lender and the Brokerage community. The best way to ensure that these assumptions are consistently met is to adopt them as core values or philosophies that are applied to every transaction. To meet these assumptions, they must first be explained.
• Providing Borrowers that are suitable for the Lender
  • The Lender’s first assumption is that the Mortgage agent will only send an application on behalf of a Borrower that fits the Lender’s lending criteria. Lending criteria include such things as income and employment requirements, property requirements, credit requirements and so on. This means that the Mortgage agent must know and understand the Lender’s lending criteria and be able to accurately assess the Borrower to determine if they meet those criteria. Unfortunately, a typical Lender complaint is that some Mortgage agents send them applications for products that they do not have. This type of error can erode the confidence that Lenders have in the Brokerage community.

• Providing appropriate protection against fraud
  • Lenders have been suffering from an increase in mortgage fraud over the past several years. Although not technically a Mortgage agent’s legal responsibility, it is a Mortgage agent’s ethical and moral responsibility to make reasonable attempts to protect the Lender from fraud. In many brokerages’ set of Best Practices it is deemed necessary for the mortgage agent to review all documentation received from the Borrower for accuracy and consistency. This means identifying any signs of potential fraud, such as poorly written or typed income verification as well as verifying income and identity.

• Facilitating the transaction to its successful completion
  • A Lender expects that a mortgage agent has submitted an application to that Lender because he or she has determined that Lender to be the most appropriate for the Borrower. In addition, the Lender expects that, if approved, the mortgage transaction will close. That requires the mortgage agent to ensure that the borrower is committed to completing the transaction and understands what is required of him or her to conclude it. A lender also expects that a mortgage agent will be available to assist in ensuring the transaction closes if there is anything that the mortgage agent is required to accomplish such as meeting outstanding conditions.

1. Act in the Borrower’s best interests
2. Completely analyze the Borrower’s needs
3. Make appropriate recommendations based on the Borrower’s needs
4. Facilitate the transaction to its successful completion (funding).

1. A duty to account for monies received or spent while acting on behalf of the principal
2. A duty to protect the confidential information of the principal
3. A duty of dealing with a third party or the principal in good faith
4. A duty to act in the best interests of the principal
5. A duty of loyalty to the principal
6. A duty to act with reasonable care and skill at all times
7. A duty to follow and obey the instructions of the principal

1. Credit
2. Collateral
3. Capacity
4. Character
5. Capital

• Option 1: Prepay and Re-Borrow
• Option 2: Extended Mortgage Payment Deferral
• Option 3: Extension of Amortization
• Option 4: Special Payment Arrangement (Partial payments with a recovery plan)
• Option 5: Capitalization

• The borrower: Provides coverage against fraud and forgery from the time the policy is in force.
• The lender: Provides coverage against title defects and items that occurred before closing that may make the property unmarketable
• The real estate lawyer: Reduces the amount of work required to close a mortgage transaction

• Chicago Title Insurance Company https://chicagotitle.ca/
• FCT Insurance Company Ltd (First Canadian Title) https://fct.ca/
• TitlePLUS https://titleplus.ca/
• Stewart Title Guaranty Company https://www.stewart.ca/

• For a borrower who has little or no equity in the property, but who has stable income and can demonstrate the ability to repay the outstanding mortgage balance and capitalized amount over the remaining amortization period. Permits the borrower to add arrears of Principal and Interest, unpaid taxes, utility bills, property repair costs to protect the security, and other outstanding charges and arrears which become payable as part of a claim.
• The Approved Lender can approve and implement this option up to a total maximum capitalized amount of $20,000, subject to a documented and substantiated workout analysis, CMHC authorization is required. Capitalization is a technique of last resort and should be used only once during the life of the loan.

1. Property
2. Income
3. Appraisal
4. Environmental Site Assessment
5. Lenders
6. Timing

• These are mortgage investments that can be arranged by a mortgage brokerage. A qualified syndicated mortgage must meet the following criteria:
  • It is arranged through a mortgage brokerage
  • It secures a debt obligation on property that,
  • is used primarily for residential purposes,
  • includes no more than a total of four units, and
  • if used for both commercial and residential purposes, includes no more than one unit that is used for commercial purposes.
  • At the time the syndicated mortgage is arranged, the amount of the debt it secures, together with all other debt secured by mortgages on the property that have priority over, or the same priority as, the syndicated mortgage, does not exceed 90 per cent of the fair market value of the property relating to the mortgage, excluding any value that may be attributed to proposed or pending development of the property.
  • It is limited to one debt obligation whose term is the same as the term of the syndicated mortgage.
  • The rate of interest payable under it is equal to the rate of interest payable under the debt obligation.

• Business cards
• Newspaper ad, whether it is a classified ad or display ad
• A Sign (e.g., on a building or vehicle)
• Billboard or poster
• Bench ad
• A Promotional email
• Radio ad
• Magazine ad
• Flyer or Brochure
• Website
• An Ad placed on a website
• An Advertorial (an article that is an advertisement)

• The following must be included in all public relations materials that an agent or broker is using.
  • Brokerage name (if a franchise state that it is independently owned and operated)
  • Brokerage license number
  • If an agent is using their name in the materials, their name as registered with FSRA
  • If an agent is using their name in the materials, their title – for example, mortgage agent or mortgage broker
• No other information is required; however additional information may be included. For example, an agent may wish to include a brokerage address, contact information, etc.

• Likely!
  • Is this true? The question that must be asked before using this statement is how many lenders did the brokerage actually use in the previous year? The MBLAA and its Regulations require this answer to be disclosed to borrowers when requested. If the brokerage didn’t use in excess of 50 lenders in the previous year, why would its representative make this statement? In other words, what is the goal of this statement?
  • In most cases the goal of this type of statement is to convey to the consumer that the brokerage can shop for the best mortgage for him or her by having access to a vast number of lenders. If the number 50 is factually incorrect the brokerage may be using misleading terminology in its advertising. It should ensure that all of its public relations material accurately reflects the number of lenders that it has actually used and whenever this is not the case the materials should be amended.

• Age, name, income, ethnic origin, religion or blood type
• Opinions, evaluation, comments, social status or disciplinary actions
• Credit records, employment history and medical records.

• Canada’s Anti-Spam Legislation generally prohibits companies from:
  • sending commercial electronic messages to an electronic address, without your consent (permission). This includes emails, social networking accounts and text messages;
  • alteration of transmission data in an electronic message, in the course of a commercial activity, which results in the message being delivered to a different destination without your express consent;
  • installing computer programs, in the course of a commercial activity, without the express consent of the owner or user (e.g., an authorized employee) of the computer system;
  • promoting products or services online using false or misleading representations;
  • collecting personal information by accessing a computer system or electronic device illegally (e.g., in violation of federal law, such as the Criminal Code of Canada); and
  • collecting or using electronic addresses using computer programs without your permission (this is known as ‘address harvesting’).

• There are three government agencies responsible for enforcement of the law. The law allows:
  • The Canadian Radio-television and Telecommunications Commission (CRTC) to issue administrative monetary penalties for violations of the anti-spam law.
  • The Competition Bureau to seek administrative monetary penalties or criminal sanctions under the Competition Act.
  • The Office of the Privacy Commissioner to exercise powers under the Personal Information Protection and Electronic Documents Act.

• Practice makes perfect
  • Remember to practice your script before you start getting calls. Like cold calling, ask your spouse or significant other (someone who will give you helpful advice on how you are performing) to be your incoming call or practise by recording yourself and listening to the conversation. In all cases, try to record yourself and review the tape after your calls. This way you can identify if you are sounding aggressive, defensive, or just right!

• Use a mirror
  • Because a smile translates across a telephone line, you should ensure that you are always smiling when you cold call. A great way to ensure that you do is by having a small mirror in front of you so that you can watch your smile.

• Write things down
  • Be sure to have pen and paper for each call. Write down the caller’s name as soon as you get it (there’s nothing more embarrassing then forgetting a caller’s name after they’ve just given it to you!), and any other details that might be helpful.

• Make these words your own
  • Make sure you use words and phrases that are comfortable for you. In other words, rephrase the script to match how you normally speak. This will ensure that you do not sound like you are reading from a script, even when you are!

• Do not be afraid
  • Remember that the phone can be your best friend. The more comfortable you are on the phone, the easier it will be to meet your objective: getting appointments with qualified clients.

• The purpose of an effective business card is to attract and set in motion the wheels of acquiring potential users of your service. It provides the mortgage agent with:
  • A direct marketing vehicle
  • A person-to-person sales call
  • An advertisement
  • A lead generator
  • A networking tool
  • A visual representation of you.

• Product availability
• Service
• Professionalism
• Niche marketing

• Any of the following:
  • Provide your referrers with a simple referral form that they can email or fax to you. It only needs some basic information, such as who the client is, their contact information and what they need.
  • Thank-you letters: ensure that you always send a thank-you letter to your referral source, whether the referral turns into a client or not.
  • Update your database with the referral information.
  • Contact the potential customer as soon as possible.
  • Guarantee confidentiality to all parties.
  • Send a thank-you gift when the financing is completed.
  • Invite your referrers to company parties to show your appreciation.

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

• Financial Statements
• Business License
• Business Cheque

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

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

• The client’s home
• The Mortgage Agent’s office
• Another outside location
• Pros and cons are found in chapter 11

• A T5 is an information slip provided to a taxpayer who receives:
  • eligible dividends and dividends other than eligible dividends (including most deemed dividends)
  • interest from one or more of the following:
  • a fully registered bond or debenture
  • money loaned to or on deposit with, or property of any kind placed with, a corporation, association, organization, institution, partnership, or trust
  • an account with an investment dealer or broker
  • an insurance policy or annuity contract (when the interest is paid by an insurer)
  • an amount owing as compensation for expropriated property
  • Other payments as indicated by CRA

• T4: typically when a Borrower has salaried or hourly employment income
• T4A: typically when a Borrower has commission income
• Job Letter: typically when a Borrower’s income or position information is required
• Paystub: typically in addition to a Job Letter to confirm that the individual is still employed and that the YTD income matches the Job Letter
• NOA: typically to support income verification for a previous year and/or to confirm that there are no income taxes outstanding
• Agreement of Purchase and Sale: typically when a Borrower is purchasing a property
• Gift Letter: if the Borrower is using funds for his or her down payment that has been given to him or her by a family member
• Property Assessment: can be used by the Agent to support the Borrower’s value of his or her house. It is not used to confirm the value nor will the Lender accept this, but it can support the value.
• Property Tax Bill: used to confirm the amount of taxes payable and if any property taxes are outstanding
• Mortgage Statement: typically used to confirm the outstanding balance of a Borrower’s current mortgage when refinancing
• Status Certificate: required when financing a condominium unit

• a) What is the LTV of the 1st mortgage?

  LTV = (255,000 / 550,000) x 100

  LTV = 0.463636364 x 100

  LTV = 46.36%

  b) What is the LTV of the combined 1st and 2nd mortgages?

  LTV = ((255,000 + 70,000) / 550,000) x 100

  LTV = (325,000 / 550,000) x 100

  LTV = 0.590909090909 x 100

  LTV = 59.09%

a) What is their GDS?

GDS = (PITH / INCOME) x 100

GDS = [(667.43 x 52) + 2,100 + (100 x 12)] / 126,966 x 100

GDS = [(34,706.36 + 2,100 + 1,200) / 126,966] x 100

GDS = (38,006.36 / 126,966) x 100

GDS = 0.299342816 x 100

GDS = 29.93%

b) What is their TDS?

TDS = [(PITH + Other Debts) / INCOME] x 100

TDS = [(38,006.36 + (385 x 12) + (45 x 52) + (510 x 12)) / 126,966] x 100

TDS = [(38,006.36 + 4,620 + 2,340 + 6,120) / 126,966] x 100

TDS = (51,086.36 / 126,966) x 100

TDS = 0.40236252225

TDS = 40.24%

a) What is their GDS?

GDS = (PITH / INCOME) x 100

GDS = [(1,736.29 x 12) + 2,100 + (100 x 12)] / 95,000 x 100

GDS = [(20,835.48 + 2,100 + 1,200) / 95,000] x 100

GDS = (24,135.48 / 95,000) x 100

GDS = 0.254057684 x 100

GDS = 25.41%

b) What is their TDS?

TDS = [(PITH + Other Debts) / INCOME] x 100

TDS = [(24,135.48) + (275 x 12) + (95 x 52) + (300 x 12)] / 95,000 x 100

TDS = [24,135.48 + 3,300 + 4,940 + 3,600] / 95,000 x 100

TDS = (35,975.48 / 95,000) x 100

TDS = 0.378689263 x 100

TDS = 37.87%

a) What is their GDS?

GDS = (PITH / INCOME) x 100

GDS = [(1,512.75 × 26) + 2,100 + (100 × 12)] / 145,000 × 100

GDS = [39,331.50 + 2,100 + 1,200] / 145,000 × 100

GDS = (42,631.50 / 145,000) × 100

GDS = 0.294010345 × 100

GDS = 29.40%

b) What is their TDS?

TDS = [(PITH + Other Debts) / INCOME] x 100

TDS = [(42,631.50) + (405 × 12) + (55 × 52) + (400 × 12)] / 145,000 × 100

TDS = [42,631.50 + 4,860 + 2,860 + 4,800] / 145,000 × 100

TDS = (55,151.50 / 145,000) × 100

TDS = 0.380355172 × 100

TDS = 38.04%

a) What is their GDS?

GDS = (PITH / INCOME) x 100

GDS = [(1,558.46 × 12) + 2,100 + (100 × 12)] / 75,000 × 100

GDS = [18,701.52 + 2,100 + 1,200] / 75,000 × 100

GDS = (22,001.52 / 75,000) × 100

GDS = 0.2933536 × 100

GDS = 29.34%

b) What is their TDS?

TDS = [(PITH + Other Debts) / INCOME] × 100

TDS = [22,001.52 + (405 × 12) + (180 × 12) + (400 × 12)] / 75,000 × 100

TDS = [22,001.52 + 4,860 + 2,160 + 4,800] / 75,000 × 100

TDS = (33,821.52 / 75,000) × 100

TDS = 0.4509536 × 100

TDS = 45.10%

a) What is the LTV of the 1st mortgage?

LTV = (220,000 / 350,000) × 100

LTV = 0.628571429 × 100

LTV = 62.86%

b) What is the LTV of only the 2nd mortgage (excluding the 1st mortgage)?

LTV = (30,000 / 350,000) × 100

LTV = 0.085714286 × 100

LTV = 8.57%

c) What is the total LTV of the 2nd mortgage?

LTV = [(220,000 + 30,000) / 350,000] × 100

LTV = (250,000 / 350,000) × 100

LTV = 0.714285714 × 100

LTV = 71.43%

d) What is her GDS?

GDS = (PITH / INCOME) × 100

GDS = [(433.66 × 12) + (700 × 26) + 3,500 + (100 × 12)] / 78,000 × 100

GDS = [5,203.92 + 18,200 + 3,500 + 1,200] / 78,000 × 100

GDS = (28,103.92 / 78,000) × 100

GDS = 0.360306667 × 100

GDS = 36.03%

e) What is her TDS?

TDS = [(PITH + Other Debts) / INCOME] × 100

TDS = [28,103.92 + (360 × 12)] / 78,000 × 100

TDS = [28,103.92 + 4,320] / 78,000 × 100

TDS = (32,423.92 / 78,000) × 100

TDS = 0.415691282 × 100

TDS = 41.57%

a) What is their GDS?

GDS = (PITH / INCOME) × 100

GDS = [(1,827.53 × 12) + 2,100 + (100 × 12) + (418 × 0.50 × 12)] / 117,000 × 100

GDS = [21,930.36 + 2,100 + 1,200 + 2,508.00] / 117,000 × 100

GDS = (27,738.36 / 117,000) × 100

GDS = 0.23708 × 100

GDS = 23.71%

b) What is their TDS?

TDS = [(PITH + Other Debts) / INCOME] × 100

TDS = [27,738.36 + (310 × 12) + (80 × 52) + (275 × 12)] / 117,000 × 100

TDS = [27,738.36 + 3,720 + 4,160 + 3,300] / 117,000 × 100

TDS = (38,918.36 / 117,000) × 100

TDS = 0.33264 × 100

TDS = 33.26%

a) What is the maximum monthly mortgage payment for which Asha qualifies based on a TDS of 42%?

Maximum Mortgage Payment (MMP) = ((Income × Max TDS / 100) − (Property Taxes + ½ Condo Maintenance Fee + Heat + Other Debts)) / 12

MMP = ((73,000 × 42%) − (2,900 + (100 × 12) + (275 × 12) + (195 × 12) + (300 × 12))) / 12
MMP = ((73,000 × 0.42) − (2,900 + 1,200 + 3,300 + 2,340 + 3,600)) / 12
MMP = (30,660 − 13,340) / 12
MMP = 17,320 / 12
MMP = 1,443.33

Therefore, the maximum monthly mortgage payment for which Asha qualifies is $1,443.33.

If you then wanted to calculate the maximum mortgage amount, you would use this payment along with a specific interest rate, amortization period, and $0 outstanding balance to calculate it.

1. Detached
2. Semi-detached
3. Row-townhouses
4. Condominium unit
5. Duplexes, triplexes, fourplexes
6. Co-operatives (co-ops)

1. Demographics
2. Interest rates
3. Government policies
4. The economy
5. Affordability

1. Building permits
2. Listings
3. Land use regulations

• The cost to rebuild the home in case of damage, such as by fire (insurable value)
• A value so that a municipality can apply its property tax rate (taxation purposes)
• The price that a real estate investor would pay for a property based on his or her preferred rate of return (investment value)
• The amount that the property can obtain if sold (selling price)
• The future value of a property under construction (future price)
• The value of a property being expropriated by the Crown (expropriation value)
• The market value of a property for a Lender to decide on an appropriate loan amount for mortgage financing.

• There are three approaches that appraisers use to calculate the value of a property:
  • Income Approach: this approach is typically used for commercial income producing properties, using the property’s income to determine the market value
  • Cost Approach: this approach uses the cost of rebuilding the property less depreciation plus the value of the property. This is most widely used to confirm the value determined by the direct comparison approach as well as being used to determine the replacement value of a building for insurance purposes
  • Direct Comparison Approach: This approach uses the theory of substitution, comparing similar properties that have recently sold to the property being appraised. The Direct Comparison Approach is the most appropriate for mortgage financing and is therefore relied heavily upon in the appraisal report

• Any three of the following:
  • MICs: Atrium, CMI, MCAN, AP Capital, Timbercreek Financial, etc.
  • Private lenders: individual investors and syndicated mortgages

There are several Chartered Banks

 
Credit Unions

• The typical sub-prime Borrower is an individual who may have a combination of the following characteristics:
  • Current poor credit such as being behind in his or her payments on one or more credit cards, loans or other debts
  • Less than two years at his or her current job
  • Self-employed
  • Has a previous bankruptcy
  • Has previous poor credit with no re-established credit
  • Requires high LTV financing.

• Loan to Value: Which lender(s) offer the ltv that the client requires?
• Income Verification: What income verification is required? Can the client provide the appropriate document(s)?
• Property Type: Does the client’s property type meet the lender’s requirements? I.e., if the client has a rental property, does the lender have a rental product?
• Credit Score: What are the lender’s requirements? Does the lender offer a different ltv based on credit scores? If so, does the client qualify?
• Terms: which lender offers the best terms for the client?
• Product: which Lender offers the right product for the client?
• Rates: which Lender offers the best rate based on the product chosen for the client?
• Speed: which Lender provides the quickest response to an application submission?
• Service: which Lender provides the best service to both Mortgage Agents and clients?
• Reputation: which Lender has the best overall reputation in the mortgage industry?
• Brokerage Preference: does the Mortgage Brokerage have a preference for or dictate which Lender should be used under certain circumstances?
• Finder’s Fees: if everything else is equal and two or more Lenders are appropriate for the client, which of those Lenders, if any, pays the highest commission?
• Loyalty Program: if everything else is equal and two or more Lenders are appropriate for the client, which of those Lenders, if any, offers a loyalty or points program?

• Finder’s Fees: if everything else is equal and two or more Lenders are appropriate for the client, which of those Lenders, if any, pays the highest commission?
• Loyalty Program: if everything else is equal and two or more Lenders are appropriate for the client, which of those Lenders, if any, offers a loyalty or points program?

• Applicants’ Names
• Property Address (address of the security)
• Mortgage Amount
• Interest Rate
• Payment Amount
• Payment Frequency
• Term
• Closing Date
• Prepayment Privileges
• Conditions of approval
• Terms of the approved mortgage (such as fees, appraisal requirements, etc.).

a) An employed individual’s income?

• Income and employment confirmation by way of recent pay stub or a letter from employer confirming income and length of employment on employer’s letterhead and the most recent income tax Notice of Assessment.

b) A self-employed individual’s income?

• A copy of three (3) years income tax Assessments and Financial Statements;

• Contact the Underwriter to understand why the application was declined
• Contact the BDM if he or she disagrees with the decision
• Submit the application to another Lender

1. Filogix Expert, https://www.filogix.com/expert/filogix-expert
2. Newton Connectivity Systems, https://www.newton.ca/velocity
3. MortgageBoss, https://www.m3-tech.ca/boss

• A brokerage is required to provide detailed disclosure to lenders and investors involved in a mortgage transaction. The forms used for disclosure are:
  • Form 1 – Investor/Lender Disclosure Statement for Brokered Transactions
  • Form 1.1 – Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans
  • Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period
  • Form 2.1 – Renewal Form Waiver: To Reduce the Waiting Period
  • Form 3.0 – Information about Investor/Lender in a Non-Qualified Syndicated Mortgage
  • Form 3.1 – Suitability Assessment for Investor/Lender in a Non-Qualified Syndicated Mortgage
  • Form 3.2 – Disclosure Statement for Investor/Lender in a Non-Qualified Syndicated Mortgage
  • Form 3.2.1 – Supplemental Disclosure for Retail Investors in a High-risk Syndicated Mortgage

• Common conditions include evidence of:
  • Employment and income
  • Down payment
  • Assets
  • Purchase and Sale Agreement, and
  • Other such documentation that may be required by the lender to prove statements made in the application

• Fees and payments associated with the mortgage
• The nature of the relationship between the brokerage and lender under the proposed mortgage
• The role of the brokerage
• The number of lenders the brokerage represented during the previous year
• Any potential conflicts of interest
• The risks associated with the proposed mortgage
• The terms and conditions of the proposed mortgage
• Estimated costs
• The cost of borrowing

• Administrative charges including charges for services, transactions or any other activity in relation to the mortgage
• Lawyer’s fees, including disbursements, for a lawyer hired by the lender and paid by the borrower (the majority of cases)
• Insurance charges, excluding default insurance premiums for high-ratio mortgages
• Appraisal, inspection or survey costs payable by the borrower, when required by the lender

1. Whether the brokerage itself was the lender for more than 50 per cent of the total number of mortgages and mortgage renewals completed by the brokerage during the previous fiscal year.
2. The name of the lender, if any, with whom the brokerage arranged mortgages during the previous fiscal year if the mortgages constituted more than 50 per cent of the total number of mortgages and mortgage renewals completed by the brokerage during the previous fiscal year. O. Reg. 188/08, s. 19 (3).”

1. Acting for the lender
2. Acting for the borrower
3. Acting for both the borrower and the lender

• This package commonly contains:
  • A copy of the lender’s mortgage approval
  • The lender’s disclosure statement
  • Solicitor’s Final Report and Certificate of Title document for the lawyer to fill in
  • Solicitor’s Interim Report and Requisition for Funds document for the lawyer to fill in
  • Pre-authorized Debit Form
  • Acknowledgement and Direction
  • Instructions on the requirements for title-insured mortgages and non-title-insured mortgages
  • Requirements regarding property insurance, surveys, condominium units, proof of identity, etc.

• The Offer: An offer is a promise made by one party to another to do something
• Acceptance of the Offer: Acceptance is a promise to accept the offer.
• Intention to Create a Legal Relationship: The parties entering into an agreement must intend to form a legally binding agreement.
• The Legal Capacity to Enter into a Contract: Parties must be approximately equivalent in bargaining power and must meet minimum standards in regards to maturity and intellect to be deemed to have the legal capacity to enter into a contract.
• Legality Requirements: Every contract must meet certain legality requirements. It must have a legal purpose. To be considered legal, this purpose cannot violate any law, statute, or public policy.
• Exchange of Consideration: Although there are exceptions, parties to a contract must agree to exchange something of value in return for their promises.

• Punitive damages: These are damages when the wrongdoing is so egregious that a court feels it necessary to not only compensate the plaintiff but punish the defendant as well.
• Aggravated damages: These damages are awarded when the wrongdoing is so egregious that it surpasses the test for punitive damages. In this case the court may award aggravated damages not to punish the defendant, but to compensate the plaintiff even further.

• The Borrower defaults
• The Lender serves notice
• The Borrower has a redemption period
• The Lender takes possession of the property
• The Lender sells the property

• Newfoundland and Labrador
• New Brunswick
• Prince Edward Island, and
• Ontario

• In payment of all expenses involved in the sale of the property, including the Realtor’s fee, legal fees, etc.
• In payment of all interest and costs associated with the mortgage involved in the Power of Sale
• In payment of the principal balance outstanding on the mortgage involved in the Power of Sale
• In payment to any additional encumbrancers such as mortgage holders and others who had an interest in the property
• Payment of rental deposits made by any tenants, if applicable
• Any monies remaining must be paid to the mortgagor

• While a Power of Sale is the most common remedy in Ontario and can be commenced after 15 days of default, most Lenders will not seek this remedy immediately. In most cases the process will begin with a letter sent from the Lender’s collection department advising the Borrower of the default and requesting that the missed payment be sent to the Lender immediately. The Lender may also require the Borrower to pay a non-sufficient funds (NSF) fee and may also require the Borrower to pay an administrative fee.
• If this letter does not obtain the desired results, the Lender may then use a Demand Letter, which is a letter sent from the Lender’s Lawyer demanding the payment of the outstanding amount. If neither of these remedies is successful, the Lender will then proceed with the Power of Sale process.
• Additional remedies include:
  • Quit Claim
  • Appointment of a Receiver
  • Assignment of rents
  • Action on the Covenant

• Alberta
• British Columbia
• Manitoba
• Nova Scotia
• Quebec, and
• Saskatchewan

• Appointment of a Receiver: Typically used in commercial properties where there is business or rental income generated by the property, the lender applies to the Court for appointment of a receiver. Once appointed, the receiver will collect and administer the income generated by the commercial property, paying expenses, including the mortgage payments.
• Assignment of rents: A clause written into the Standard Charge Terms, allows the lender to collect rent form tenants of the mortgage property, while the mortgage is in default

• Identity
  • The applicant cannot provide any photo identification, or says that he or she will provide photo identification but consistently does not. In addition the quality of the identification must be considered, especially if it does not appear to be genuine.
  • If the applicants are not available to meet or if one applicant is never present.

• Employment and Income
  • The applicant’s job letter contains inconsistencies or errors. For example, if it does not match pay stubs or what the applicant has disclosed about the amount of income, the time employed or his or her job title or has spelling or grammatical errors.
  • If, when verifying the applicant’s employment, the Mortgage Agent cannot find a directory listing for the business, or the business contact number (as provided or as stated on the job letter) is a residential number or cellular number. This information can be obtained by conducting a business phone number search or reverse directory lookup using www.canada411.com or other Internet services.
  • The position and/or income is inconsistent with the applicant’s age.
• Assets
  • The applicant states that he or she has significant income but little or no assets.
• Meeting Location
  • If the client insists on meeting at a location other than the location of the property to be mortgaged. This may simply be based on convenience, and if the Mortgage Agent’s process includes meeting in his or her office this may not be considered a warning sign. The Mortgage Agent should request a copy of a recent utility bill with the applicant’s address and name.
• Contact Information
  • If the applicant only has a cellular phone for contact purposes (although more consumers are using cellular phones as their homes phone).

• Title Insurance: Consumers should obtain title insurance on every property that they buy and get a title insurance for any property that they currently own. This can protect against future acts of title or mortgage fraud.
• Document Destruction: Consumers should destroy all bills and other personally identifiable documents by using a paper shredder instead of simply throwing them in the garbage. This can prevent criminals from obtaining this information by going through a consumer’s garbage. It is now common for criminals to take several containers of garbage from consumers’ homes to a different location to search for documents containing personal identity information which can then be used to impersonate the consumer.
• Home Inspection: A homebuyer purchasing a resale home should have it inspected. This can prevent the buyer from purchasing a house that was used as a grow op or a drug lab.
• ATMs: Consumers should strive to withdraw cash only from their bank’s ATMs. There have been several circumstances where ATMs in small gas stations or other stores have been compromised, allowing the criminal to record debit card and PIN information.
• PIN Numbers: Consumers should always protect their PIN numbers, including debit card and credit card numbers to prevent unauthorized use of these cards.
• Credit Reports: Consumers should pull their own credit report every three to six months to ensure that there are no inquiries or debts that the consumer has not authorized. This can be done online through Equifax and Transunion.
• Online Shopping: Consumers should only use online retailers that they have knowledge of and/or use secure, encrypted processing of payment information. This can be confirmed in many instances through the web browser by way of a lock icon.
• Phone Solicitations: Consumers should never give their credit card information to unsolicited callers. If it is for a charity the consumer should obtain a number that he or she can verify and call the charity back, or have the charity send a payment request by mail. Many criminals will impersonate charities or other groups to obtain personal information by phone.
• Internet Phishing: Phishing is an Internet scam whereby the criminal sends an email to the consumer requesting personal information. The email may appear to be from the consumer’s bank or other company such as Amazon or eBay. The technology can produce emails and websites that look identical to the actual company’s. However, respectable companies will not request this information by email.
• SIN Card: Consumers should not carry their social insurance number card with them as this can be stolen and used for identity theft. There are only limited situations where a SIN card is required, and it is typically not required on a daily basis.
• Passwords: Consumers should use passwords that are unique, excluding birth dates and other common forms of passwords. Consumers should keep this information, if written, locked in a secure place.

• The MBRCC has developed anti-fraud resources for the mortgage industry. These resources are located at:
• https://www.mbrcc.ca/Anti-FraudResourcesforIndustry and include the following publications:
• Brokers’ Responsibilities to Prevent Mortgage Fraud
• Checklist for Detecting and Preventing Mortgage Fraud
• The Consequences of Mortgage Fraud

• Any five of the following:
• The applicant states that they have significant income but little or no assets.
• Down payment source is other than deposits (gift, sale of personal property)
• Applicant’s salary doesn’t support savings on deposit
• Applicant doesn’t utilize traditional banking institutions
• Pattern of loyalty to financial institutions other than the subject lender
• Balances are greater than the Canadian DepositInsurance Corporation (CDIC) insured limits
• High asset applicant’s investments are not diversified
• Excessive balance maintained in checking account
• Dates of bank statements are unusual or out of sequence
• Recently deposited funds without a plausible paper-trail or explanation
• Bank account ownership includes unknown parties
• Balances verified as even dollar amounts
• Source of earnest/deposit money is not apparent
• Earnest/deposit money isn’t reflected in account withdrawals
• Earnest/deposit money is from a bank or account with no relationship to the applicant
• Bank statements do not reflect deposits consistent with income

1. What are the facts?
   Before one can come to a decision whether an action is ethical he or she must be relatively certain that all of the facts have been obtained. Failure to do so can result in a faulty decision.
2. Identify the potential solutions
   Next, it is necessary to list the possible solutions to the problem. Once all of the possible solutions are listed, one can apply the next step in the process. It’s important to note that if you are too involved in a situation you may not be able to clearly see all of the potential solutions. In this instance it may be necessary to obtain the input of others, such as a co-worker or family member, to add some clarity and objectivity to the discussion.
3. Apply the core value: Honesty
   Which potential solutions support this core value? To answer this question apply this core value to each of the solutions from step 2. Do any of the solutions contravene this value? If so, it is not necessary to proceed further; that solution is clearly unethical. Move to the test for integrity with the remaining solutions.
4. Apply the core value: Integrity
   Does the potential solution compromise your integrity? In other words, would this solution be inconsistent with how you live and what you believe in? If the answer is yes you must deem this solution unethical. Move to the test of acting in the best interests of your client with the remaining solutions.
5. Apply the core value: Act in the best interests of your client
   To be able to apply this core value it is necessary to have performed a detailed needs assessment to determine exactly what his or her needs are. Does the potential solution result in an action that is in the best interests of your client? If it does not, you must discard that solution. The remaining solutions can be taken to the next test.
6. Apply the core value: Act in the best interests of the industry
   Does the potential solution reflect well on the industry? Acting in the best interests of the industry does not necessarily mean that the solution must have a positive impact on the industry, such as raising public awareness of the benefits of using a broker, but that it must not act against the best interests of the industry. Even if a potential solution has made it this far, the question would then be: is this solution detrimental to the industry? If the answer is yes, the solution must be discarded. If not, move on to the final core value test.
7. Apply the core value: Comply with law and codes of conduct
   Finally, this core value is applied to the remaining solutions. If any contravene this core value they must be discarded.
8. Choose the best solution
   Any solutions now available to you can be reasonably assumed to be ethical. If you have more than one solution still available, the test of which provides the greatest good can be applied. In most cases, however, only one solution will remain.
9. Review the process
   Once you’ve reached a decision it is important to review the process step by step to ensure that your tests were applied objectively and without bias. It may also be helpful to discuss the process with someone you trust, as long as the discussion does not disclose confidential information, or information that might damage another’s reputation.