Mortgage Agent Licensing Practice Exam · Question
Under the current B-20 guidelines for uninsured mortgages, what is the minimum qualifying rate used for the stress test?
OSFI's Guideline B-20 mandates that for uninsured mortgages, the qualifying rate is the greater of the contractual mortgage rate plus two percentage points or 5
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Question: Under the current B-20 guidelines for uninsured mortgages, what is the minimum qualifying rate used for the stress test?
Answer options: ✅ The greater of the mortgage contract rate plus 2% or 5.25%
- The mortgage contract rate or 5.25%
- The Bank of Canada overnight rate plus 2%
- The five-year benchmark rate published by the Bank of Canada
Correct answer: The greater of the mortgage contract rate plus 2% or 5.25%
Explanation: OSFI's Guideline B-20 mandates that for uninsured mortgages, the qualifying rate is the greater of the contractual mortgage rate plus two percentage points or 5.25% (whichever is higher). This ensures borrowers can withstand potential interest rate increases.
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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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