Mortgage Agent Licensing Practice Exam · Question
For a conventional (uninsured) mortgage, what is the current standard for the qualifying rate (stress test) as prescribed by OSFI?
As per OSFI Guideline B-20, for uninsured mortgages, the qualifying rate is the greater of the mortgage contract rate plus two percentage points or 5.25%. This
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Question: For a conventional (uninsured) mortgage, what is the current standard for the qualifying rate (stress test) as prescribed by OSFI?
Answer options:
- The contract rate + 2%
- The Bank of Canada's overnight rate ✅ The greater of the mortgage contract rate or 5.25%
- The prime rate offered by the lender
Correct answer: The greater of the mortgage contract rate or 5.25%
Explanation: As per OSFI Guideline B-20, for uninsured mortgages, the qualifying rate is the greater of the mortgage contract rate plus two percentage points or 5.25%. This ensures that borrowers are stress-tested against a minimum benchmark rate.
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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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