Mortgage Agent Licensing Practice Exam · Question
Maria is a first-time homebuyer in Toronto, looking to purchase a condo for $650,000 with a 10% down payment. She is concerned about interest rate fluctuations but also wants the flexibility to pay down her mortgage aggressively if she receives a bonus at work. Which mortgage product would best suit Maria's needs?
An open variable-rate mortgage offers the flexibility to make large lump-sum payments or pay off the mortgage without penalty, while still benefiting from poten
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Question: Maria is a first-time homebuyer in Toronto, looking to purchase a condo for $650,000 with a 10% down payment. She is concerned about interest rate fluctuations but also wants the flexibility to pay down her mortgage aggressively if she receives a bonus at work. Which mortgage product would best suit Maria's needs?
Answer options:
- A closed variable-rate mortgage ✅ An open variable-rate mortgage
- A fixed-rate mortgage with a high prepayment privilege
- A hybrid mortgage
Correct answer: An open variable-rate mortgage
Explanation: An open variable-rate mortgage offers the flexibility to make large lump-sum payments or pay off the mortgage without penalty, while still benefiting from potential rate decreases.
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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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