Mortgage Broker Licensing Practice Exam · Question
Which of the following scenarios would likely disqualify a residential mortgage from CMHC mortgage loan insurance?
CMHC mortgage loan insurance is generally not available for properties with four or more units or for properties that are not owner-occupied. While 3 units isn'
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Question: Which of the following scenarios would likely disqualify a residential mortgage from CMHC mortgage loan insurance?
Answer options:
- The purchase price of the property is $850,000.
- The borrower has a credit score of 650. ✅ The property is planned to be used as a rental property with 3 units.
- The down payment is 10% of the purchase price.
Correct answer: The property is planned to be used as a rental property with 3 units.
Explanation: CMHC mortgage loan insurance is generally not available for properties with four or more units or for properties that are not owner-occupied. While 3 units isn't explicitly 4 or more, if it's purely a rental property and not owner-occupied, it would be ineligible. Additionally, CMHC often has stricter criteria for multi-unit dwellings. The other options (purchase price, credit score, down payment) are generally within CMHC's acceptable ranges, assuming other criteria are met.
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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?
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