Mortgage Best Interests Duty Rationale Documentation

Documents how a mortgage loan recommendation was assessed against the consumer's interests, the options considered, and the rationale for the selected product.

Submission Notice and Scope

• Purpose of this documentation
• Consumer consent to record recommendation details
  Confirm that the consumer has been informed that recommendation details may be retained for compliance, audit trail, and dispute resolution purposes.
• PII and data minimization notice acknowledged
  Confirm that only necessary PII has been collected and that the record follows data minimization principles.
• Submission date

Consumer Objectives and Needs

• Consumer's stated objectives
  Summarize the consumer's goals, such as repayment flexibility, fixed repayments, lower upfront costs, offset features, or refinancing needs.
• Consumer's key needs and priorities
• Expected holding period for the loan
• Relevant special circumstances
  Include only circumstances relevant to the recommendation, such as planned sale, expected income changes, or repayment constraints.

Options Considered

• Loan options considered
• Comparison criteria used
• Material trade-offs identified
  Describe any trade-offs, limitations, or risks that were discussed with the consumer.

Selected Product Rationale

• Selected product name
• Why this loan was recommended
  Explain the specific reasons this product best meets the consumer's stated objectives and needs.
• Best interests summary
  Provide a concise summary of how the recommendation prioritizes the consumer's interests over other available options.
• Known limitations or risks disclosed
  Record any limitations, risks, or conditions that were disclosed to the consumer before recommendation.

Review, Attestation, and Audit Trail

• Prepared by
• Reviewed by
• Review date
• Attestation
  I attest that this record accurately documents the rationale for the mortgage recommendation and the information captured is complete to the best of my knowledge.