Mortgage Agent Licensing Practice Exam · Question
A client is seeking an uninsured mortgage for a principal residence. Their contract rate is 4.09%. According to OSFI Guideline B-20, what is the stress test qualifying rate this client must be assessed at?
Under OSFI Guideline B-20, the qualifying rate for uninsured mortgages is the greater of the contract rate plus 2% (4.09% + 2% = 6.09%) or 5.25%. In this case,
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Question: A client is seeking an uninsured mortgage for a principal residence. Their contract rate is 4.09%. According to OSFI Guideline B-20, what is the stress test qualifying rate this client must be assessed at?
Answer options:
- 4.09%
- 5.25% ✅ 6.09%
- 6.29%
Correct answer: 6.09%
Explanation: Under OSFI Guideline B-20, the qualifying rate for uninsured mortgages is the greater of the contract rate plus 2% (4.09% + 2% = 6.09%) or 5.25%. In this case, 6.09% is greater than 5.25%.
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- When must a mortgage agent provide the borrower with certain disclosures regarding the proposed mortgage, part
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