Mortgage Agent Licensing Practice Exam · Question
FSRA's 'unsuitable mortgage' regulation aims to prevent which of the following?
The 'unsuitable mortgage' regulation emphasizes the mortgage professional's responsibility to ensure that the recommended mortgage product is appropriate for th
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Question: FSRA's 'unsuitable mortgage' regulation aims to prevent which of the following?
Answer options:
- Clients from choosing mortgages with inconvenient payment schedules. ✅ Mortgage agents from recommending products that do not meet the client's needs or financial capacity.
- Lenders from charging high interest rates.
- Clients from defaulting on their mortgage payments.
Correct answer: Mortgage agents from recommending products that do not meet the client's needs or financial capacity.
Explanation: The 'unsuitable mortgage' regulation emphasizes the mortgage professional's responsibility to ensure that the recommended mortgage product is appropriate for the client's specific financial situation, risk tolerance, and needs, thereby protecting consumers.
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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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