Mortgage Agent Licensing Practice Exam · Question
Sarah is buying a condo in Vancouver for $600,000. She has a down payment of $120,000. The mortgage rate is 5.00% compounded semi-annually, amortized over 25 years. What is her monthly mortgage payment?
Mortgage Amount = $600,000 - $120,000 = $480,000. First, find the effective monthly rate: (1 + 0.05/2)^(2/12) - 1 = 0.0041239. Payment = $480,000 * [0.0041239 *
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Question: Sarah is buying a condo in Vancouver for $600,000. She has a down payment of $120,000. The mortgage rate is 5.00% compounded semi-annually, amortized over 25 years. What is her monthly mortgage payment?
Answer options:
- $2,800.82 ✅ $2,449.44
- $2,326.69
- $2,711.23
Correct answer: $2,449.44
Explanation: Mortgage Amount = $600,000 - $120,000 = $480,000. First, find the effective monthly rate: (1 + 0.05/2)^(2/12) - 1 = 0.0041239. Payment = $480,000 * [0.0041239 * (1 + 0.0041239)^300] / [(1 + 0.0041239)^300 - 1] = $2,449.44.
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- 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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