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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Question explanations
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- 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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