Alberta Real Estate Licensing Exam Practice · Question
John is applying for a mortgage on an investment property. The lender requests a 35% down payment. This mortgage would be classified as:
A conventional mortgage is one where the down payment is 20% or more of the property's purchase price. Since John is providing a 35% down payment, this falls in
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Question: John is applying for a mortgage on an investment property. The lender requests a 35% down payment. This mortgage would be classified as:
Answer options:
- A high-ratio mortgage. ✅ A conventional mortgage.
- A vendor take-back mortgage.
- A bridge loan.
Correct answer: A conventional mortgage.
Explanation: A conventional mortgage is one where the down payment is 20% or more of the property's purchase price. Since John is providing a 35% down payment, this falls into the conventional category.
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