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Mortgage Agent Licensing Practice Exam · Question

A self-employed borrower, David, with an declared income of $70,000 is applying for a high-ratio mortgage to purchase a $550,000 home in Winnipeg with minimum down payment. What is the maximum amortization period allowed under CMHC rules for his insured mortgage?

For high-ratio (insured) mortgages, the maximum amortization period is 25 years, as per CMHC/Sagen/Canada Guaranty guidelines.

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Question: A self-employed borrower, David, with an declared income of $70,000 is applying for a high-ratio mortgage to purchase a $550,000 home in Winnipeg with minimum down payment. What is the maximum amortization period allowed under CMHC rules for his insured mortgage?

Answer options:

  • 20 years ✅ 25 years
  • 30 years
  • 35 years

Correct answer: 25 years

Explanation: For high-ratio (insured) mortgages, the maximum amortization period is 25 years, as per CMHC/Sagen/Canada Guaranty guidelines.

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