Mortgage Agent Licensing Practice Exam · Question
What is the primary objective of implementing the mortgage stress test under OSFI's B-20 guidelines?
The main goal of the B-20 stress test is to foster prudent mortgage underwriting practices and enhance the resilience of the Canadian financial system. It ensur
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Question: What is the primary objective of implementing the mortgage stress test under OSFI's B-20 guidelines?
Answer options: ✅ To ensure borrowers can still afford their mortgage payments if interest rates rise or their income decreases.
- To reduce the overall volume of mortgage applications in Canada.
- To standardize mortgage interest rates across all lenders.
- To provide a government subsidy for first-time home buyers.
Correct answer: To ensure borrowers can still afford their mortgage payments if interest rates rise or their income decreases.
Explanation: The main goal of the B-20 stress test is to foster prudent mortgage underwriting practices and enhance the resilience of the Canadian financial system. It ensures borrowers are financially resilient to potential adverse economic conditions, such as higher interest rates or a reduction in income.
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- Which of the following is NOT a primary provider of mortgage default insurance in Canada?
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- Michael and Jennifer are applying for a mortgage to purchase a home in Calgary for $700,000. Their combined gr
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