Mortgage Agent Licensing Practice Exam · Question
Under OSFI Guideline B-20, what is the minimum qualifying interest rate for an uninsured mortgage at a federally regulated financial institution?
OSFI Guideline B-20 mandates that the qualifying rate for uninsured mortgages must be the greater of the contract rate plus 2% or 5.25%.
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Question: Under OSFI Guideline B-20, what is the minimum qualifying interest rate for an uninsured mortgage at a federally regulated financial institution?
Answer options:
- The contract interest rate plus 2%. ✅ The greater of the contract interest rate plus 2% or 5.25%.
- The contract interest rate only.
- The greater of the contract interest rate or the Bank of Canada's overnight rate plus 2%.
Correct answer: The greater of the contract interest rate plus 2% or 5.25%.
Explanation: OSFI Guideline B-20 mandates that the qualifying rate for uninsured mortgages must be the greater of the contract rate plus 2% or 5.25%.
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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
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