Mortgage Agent Licensing Practice Exam · Question
A first-time homebuyer, Sarah, is looking to purchase a condo in Vancouver for $650,000. She has saved a down payment of $50,000. Which type of lender would typically require her to obtain mortgage default insurance for this purchase?
Mortgage default insurance is mandatory for federally regulated lenders (A-lenders) when the loan-to-value ratio exceeds 80%, as per OSFI guidelines and insurer
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Question: A first-time homebuyer, Sarah, is looking to purchase a condo in Vancouver for $650,000. She has saved a down payment of $50,000. Which type of lender would typically require her to obtain mortgage default insurance for this purchase?
Answer options: ✅ A-lender (federally regulated bank)
- B-lender (trust company specializing in non-prime mortgages)
- Private lender (individual or syndicate)
- Credit Union (provincially regulated)
Correct answer: A-lender (federally regulated bank)
Explanation: Mortgage default insurance is mandatory for federally regulated lenders (A-lenders) when the loan-to-value ratio exceeds 80%, as per OSFI guidelines and insurer rules.
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Question explanations
- Which of the following is NOT a primary provider of mortgage default insurance in Canada?
- When must a mortgage agent provide the borrower with certain disclosures regarding the proposed mortgage, part
- Michael and Jennifer are applying for a mortgage to purchase a home in Calgary for $700,000. Their combined gr
- Which of the following scenarios would typically lead to a higher mortgage interest rate for a borrower?
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