Mortgage Agent Licensing Practice Exam · Question
Sarah is buying a condo in Vancouver for $650,000. She has a down payment of $130,000 and needs a mortgage of $520,000. The best rate she can secure is 4.79% compounded semi-annually, amortized over 25 years. What is her monthly mortgage payment?
Effective Monthly Rate = (1 + 0.0479/2)^(2/12) - 1 = 0.003957. Payment = P[i(1+i)^n]/[(1+i)^n-1] = 520,000[0.003957(1+0.003957)^300]/[(1+0.003957)^300-1] = $2,9
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Question: Sarah is buying a condo in Vancouver for $650,000. She has a down payment of $130,000 and needs a mortgage of $520,000. The best rate she can secure is 4.79% compounded semi-annually, amortized over 25 years. What is her monthly mortgage payment?
Answer options: ✅ $2,968.10
- $2,959.05
- $2,865.20
- $3,015.30
Correct answer: $2,968.10
Explanation: Effective Monthly Rate = (1 + 0.0479/2)^(2/12) - 1 = 0.003957. Payment = P[i(1+i)^n]/[(1+i)^n-1] = 520,000[0.003957(1+0.003957)^300]/[(1+0.003957)^300-1] = $2,968.10.
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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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