Mortgage Agent Licensing Practice Exam · Question
Which of the following actions might negatively impact a borrower's credit score?
Opening multiple new credit accounts in a short timeframe can signal increased risk to lenders, potentially indicating financial distress or a 'credit-seeking'
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Question: Which of the following actions might negatively impact a borrower's credit score?
Answer options:
- Maintaining a long credit history with a mix of credit types.
- Consistently paying all bills on time and in full. ✅ Opening several new credit accounts in a short period.
- Keeping credit utilization low relative to available credit limits.
Correct answer: Opening several new credit accounts in a short period.
Explanation: Opening multiple new credit accounts in a short timeframe can signal increased risk to lenders, potentially indicating financial distress or a 'credit-seeking' behaviour that can lower a credit score due to an increase in inquiries and new debt obligations.
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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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