Mortgage Broker Licensing Practice Exam · Question
Under OSFI Guideline B-20 for an uninsured mortgage, what is the minimum qualifying interest rate that must be used, regardless of the contract rate?
OSFI Guideline B-20 stipulates that the qualifying rate for uninsured mortgages must be the greater of the contract rate plus 2% or 5.25%, with 5.25% being the
Start free practice for Mortgage Broker Licensing Practice Exam
302 questions · no signup required · 40 free questions per day
Question: Under OSFI Guideline B-20 for an uninsured mortgage, what is the minimum qualifying interest rate that must be used, regardless of the contract rate?
Answer options:
- The Bank of Canada's overnight lending rate.
- The contract rate plus a 2% buffer. ✅ 5.25%
- The 5-year benchmark posted rate from the Bank of Canada.
Correct answer: 5.25%
Explanation: OSFI Guideline B-20 stipulates that the qualifying rate for uninsured mortgages must be the greater of the contract rate plus 2% or 5.25%, with 5.25% being the minimum floor.
Start free practice for Mortgage Broker Licensing Practice Exam
302 questions · no signup required · 40 free questions per day
More about Mortgage Broker Licensing Practice Exam
Related Questions
- What is the typical time frame for a mortgage agent to provide the required disclosure statement to a client?
- Funds received from a client or investor that the brokerage holds on their behalf must be deposited into:
- Ontario mortgage agents must complete which of the following at each licence renewal?
- Which entity is responsible for licensing and regulating mortgage brokers and agents in Ontario?
- What is a 'material change' in relation to a client's mortgage application?
- Ethical behavior for a mortgage broker includes:
More for Mortgage Broker Licensing Practice Exam candidates
Question explanations
- What is the typical time frame for a mortgage agent to provide the required disclosure statement to a client?
- Funds received from a client or investor that the brokerage holds on their behalf must be deposited into:
- Ontario mortgage agents must complete which of the following at each licence renewal?
- Which entity is responsible for licensing and regulating mortgage brokers and agents in Ontario?
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Mortgage Broker Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.