Advertising is a powerful tool for mortgage brokers, but it must be used carefully to avoid misleading or deceptive content. Ensuring compliance with advertising regulations helps protect your business and build customer trust.
The primary obligation for brokers is to ensure that advertisements are not misleading or deceptive. This assessment depends on the overall impression the ad gives, considering factors such as the content, format, target audience, and media used. A balanced presentation that avoids exaggerating benefits is essential.
To comply with regulations, brokers must include specific information in advertisements:
Certain terms have strict usage restrictions under the National Consumer Credit Protection (NCCP) Act. Avoid using words like “independent,” “impartial,” or “unbiased” unless specific conditions are met. Similarly, phrases such as “free,” “best,” or “lowest” can be problematic unless they can be substantiated throughout the advertisement's life. It’s better to use terms like “competitive” cautiously, ensuring any claims can be verified against the market.
To prevent misleading impressions, all important disclaimers must be easily visible and not hidden in fine print. If an ad highlights potential benefits, the limitations or downsides should be presented with equal prominence. Transparency regarding fees, conditions, and product features helps ensure that customers have a realistic understanding of the offering.
When advertising, brokers should not promote a specific lender or product. The Best Interests Duty requires considering multiple options based on each customer’s circumstances. Therefore, ads should reflect a broad approach rather than endorsing a single choice.
Staying compliant with advertising regulations safeguards your reputation and fosters trust with customers. Always review your marketing materials to ensure accuracy, fairness, and transparency. For more detailed requirements, refer to our Help article on advertising compliance.