Mortgage Agent Licensing Practice Exam · Question
What is the role of a 'guarantor' on a mortgage?
A guarantor pledges their own credit and assets to ensure the repayment of a mortgage if the primary borrower defaults, but they typically do not have an owners
Start free practice for Mortgage Agent Licensing Practice Exam
307 questions · no signup required · 40 free questions per day
Question: What is the role of a 'guarantor' on a mortgage?
Answer options:
- They are the primary borrower who makes the mortgage payments. ✅ They provide financial backing for the primary borrower without taking an ownership stake in the property.
- They are the licensed mortgage agent facilitating the transaction.
- They are responsible for providing the appraisal report.
Correct answer: They provide financial backing for the primary borrower without taking an ownership stake in the property.
Explanation: A guarantor pledges their own credit and assets to ensure the repayment of a mortgage if the primary borrower defaults, but they typically do not have an ownership interest in the property.
Start free practice for Mortgage Agent Licensing Practice Exam
307 questions · no signup required · 40 free questions per day
More about Mortgage Agent Licensing Practice Exam
Related Questions
- 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?
- Which type of lender typically offers the most flexible underwriting criteria but often at higher interest rat
- Which of the following bodies is primarily responsible for regulating mortgage brokers and agents in Ontario?
More for Mortgage Agent Licensing Practice Exam candidates
FAQs
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?
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Mortgage Agent Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.