Mortgage Agent Licensing Practice Exam · Question
For a borrower who expects interest rates to decrease over the next few years and is comfortable with payment fluctuations, which mortgage product would generally be most appealing?
A variable-rate mortgage features an interest rate that fluctuates with market rates, such as the prime rate. If a borrower anticipates rates will fall, they co
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Question: For a borrower who expects interest rates to decrease over the next few years and is comfortable with payment fluctuations, which mortgage product would generally be most appealing?
Answer options:
- Fixed-rate mortgage ✅ Variable-rate mortgage
- Home Equity Line of Credit (HELOC)
- Reverse mortgage
Correct answer: Variable-rate mortgage
Explanation: A variable-rate mortgage features an interest rate that fluctuates with market rates, such as the prime rate. If a borrower anticipates rates will fall, they could benefit from lower interest payments over time.
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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
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