Mortgage Agent Licensing Practice Exam · Question
Which factor most significantly influences the 'debt service ratios' (GDS and TDS) calculation for mortgage qualification?
Debt service ratios (GDS and TDS) are directly calculated based on the borrower's gross annual income and their housing-related expenses (GDS) or total debt pay
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Question: Which factor most significantly influences the 'debt service ratios' (GDS and TDS) calculation for mortgage qualification?
Answer options:
- The borrower's age.
- The number of dependents. ✅ Gross annual income and housing-related expenses/total debt payments.
- The length of residency in Canada.
Correct answer: Gross annual income and housing-related expenses/total debt payments.
Explanation: Debt service ratios (GDS and TDS) are directly calculated based on the borrower's gross annual income and their housing-related expenses (GDS) or total debt payments (TDS). These ratios determine the borrower's ability to manage debt.
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- When must a mortgage agent provide the borrower with certain disclosures regarding the proposed mortgage, part
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