Mortgage Agent Licensing Practice Exam · Question
A borrower requires quick access to funds for a short-term residential project but has a challenging credit history. Which type of lender is generally better suited to accommodate this need?
Private mortgage investors are often able to process applications and disburse funds more quickly than institutional lenders, and they are typically more willin
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Question: A borrower requires quick access to funds for a short-term residential project but has a challenging credit history. Which type of lender is generally better suited to accommodate this need?
Answer options:
- A. A large federally regulated bank
- B. A provincial credit union ✅ C. A private mortgage investor
- D. A B2B commercial lender
Correct answer: C. A private mortgage investor
Explanation: Private mortgage investors are often able to process applications and disburse funds more quickly than institutional lenders, and they are typically more willing to lend to borrowers with challenging credit histories, focusing more on the equity in the property. This speed and flexibility are hallmarks of private lending.
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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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