Mortgage Agent Licensing Practice Exam · Question
Jacqueline, a self-employed individual in Winnipeg, needs a $50,000 second mortgage to consolidate high-interest debt. Her first mortgage is for $300,000, and her home is appraised at $500,000. What is the combined loan-to-value (CLTV) for her property after placing the second mortgage?
The Combined Loan-to-Value (CLTV) is calculated as (First Mortgage + Second Mortgage) / Property Value. In this case, ($300,000 + $50,000) / $500,000 = $350,000
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Question: Jacqueline, a self-employed individual in Winnipeg, needs a $50,000 second mortgage to consolidate high-interest debt. Her first mortgage is for $300,000, and her home is appraised at $500,000. What is the combined loan-to-value (CLTV) for her property after placing the second mortgage?
Answer options:
- 60% ✅ 70%
- 80%
- 90%
Correct answer: 70%
Explanation: The Combined Loan-to-Value (CLTV) is calculated as (First Mortgage + Second Mortgage) / Property Value. In this case, ($300,000 + $50,000) / $500,000 = $350,000 / $500,000 = 0.70 or 70%.
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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
- Which of the following scenarios would typically lead to a higher mortgage interest rate for a borrower?
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