Mortgage Agent Licensing Practice Exam · Question
Sarah is finalizing the purchase of her new house in Montreal, but the closing date for her old property is two weeks after her new house closes. She needs to access funds temporarily to cover the down payment and closing costs for her new house before receiving the proceeds from her old house sale. What type of financing would be most appropriate for Sarah?
Bridge financing is specifically designed to provide short-term funds to cover the gap between the closing dates of two properties, allowing the borrower to acc
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Question: Sarah is finalizing the purchase of her new house in Montreal, but the closing date for her old property is two weeks after her new house closes. She needs to access funds temporarily to cover the down payment and closing costs for her new house before receiving the proceeds from her old house sale. What type of financing would be most appropriate for Sarah?
Answer options:
- A Home Equity Line of Credit (HELOC)
- A closed variable-rate mortgage ✅ Bridge financing
- A conventional fixed-rate mortgage
Correct answer: Bridge financing
Explanation: Bridge financing is specifically designed to provide short-term funds to cover the gap between the closing dates of two properties, allowing the borrower to access equity from their current home before the sale proceeds are available.
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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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