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Mortgage Agent Licensing Practice Exam · Question

Mortgage Agent David is advising Mark, a new immigrant to Canada, on financing the purchase of a $650,000 condo in Toronto. Mark has a down payment of $100,000 and has been approved for a mortgage with CMHC default insurance. What is the maximum insurable amortization period for Mark's mortgage?

For mortgages insured by CMHC, Sagen, or Canada Guaranty (high-ratio mortgages), the maximum amortization period allowed is 25 years, as per their respective un

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Question: Mortgage Agent David is advising Mark, a new immigrant to Canada, on financing the purchase of a $650,000 condo in Toronto. Mark has a down payment of $100,000 and has been approved for a mortgage with CMHC default insurance. What is the maximum insurable amortization period for Mark's mortgage?

Answer options:

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

Correct answer: 25 years

Explanation: For mortgages insured by CMHC, Sagen, or Canada Guaranty (high-ratio mortgages), the maximum amortization period allowed is 25 years, as per their respective underwriting guidelines.

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