BC Real Estate Trading Services Licensing Exam Practice · Question
Scenario 35: In British Columbia, what is the maximum permissible loan-to-value ratio for a conventional mortgage without mortgage default insurance?
A conventional mortgage in Canada typically requires a down payment of at least 20%, meaning the maximum loan-to-value ratio is 80% without requiring mortgage d
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Question: Scenario 35: In British Columbia, what is the maximum permissible loan-to-value ratio for a conventional mortgage without mortgage default insurance?
Answer options:
- 65%
- 70% ✅ 80%
- 95%
Correct answer: 80%
Explanation: A conventional mortgage in Canada typically requires a down payment of at least 20%, meaning the maximum loan-to-value ratio is 80% without requiring mortgage default insurance. Loans above 80% LTV are considered high-ratio and require insurance. The correct answer is "80%". This capacity-fill scenario 35 reinforces the same competency for the bc-real-estate bank and follows the certified explanation standard.
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Question explanations
- A developer, Grandview Developments Ltd., plans to build a new condominium project in Kelowna. They register a
- Michael, a real estate licensee, is assisting his client Jane in purchasing a commercial property at 123 Main
- A buyer, David, has entered into a Contract of Purchase and Sale for a vacant lot in Tofino. David's lawyer di
- Maria is purchasing a unit in a newly constructed strata building in Squamish. Her real estate licensee, Ken,
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