Mortgage Agent Licensing Practice Exam · Question
What is an important consideration when recommending a reverse mortgage?
A key feature of a reverse mortgage is that the homeowner retains full ownership of their home, unlike a sale. It allows them to convert home equity into tax-fr
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Question: What is an important consideration when recommending a reverse mortgage?
Answer options:
- It is only available to individuals under 65 years old. ✅ The borrower retains ownership of the home.
- It requires monthly mortgage payments.
- The interest rate is always lower than traditional mortgages.
Correct answer: The borrower retains ownership of the home.
Explanation: A key feature of a reverse mortgage is that the homeowner retains full ownership of their home, unlike a sale. It allows them to convert home equity into tax-free cash without having to sell or make regular mortgage payments.
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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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