Mortgage Broker Licensing Practice Exam · Question
Jessica earns $60,000 annually. Her spouse earns $45,000 annually. They have a car loan requiring $400/month, and a credit card with minimum payments of $50/month. Monthly property taxes are $300, and heating is $100. If the maximum TDS ratio is 42%, what is their maximum qualifying monthly P&I payment?
Combined Gross Monthly Income = ($60,000 + $45,000) / 12 = $8,750. Maximum TDS amount = $8,750 * 0.42 = $3,675. TDS = P&I + Taxes + Heating + All other debt pay
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Question: Jessica earns $60,000 annually. Her spouse earns $45,000 annually. They have a car loan requiring $400/month, and a credit card with minimum payments of $50/month. Monthly property taxes are $300, and heating is $100. If the maximum TDS ratio is 42%, what is their maximum qualifying monthly P&I payment?
Answer options:
- $1,825 ✅ $2,075
- $2,110
- $2,250
Correct answer: $2,075
Explanation: Combined Gross Monthly Income = ($60,000 + $45,000) / 12 = $8,750. Maximum TDS amount = $8,750 * 0.42 = $3,675. TDS = P&I + Taxes + Heating + All other debt payments. So, $3,675 = P&I + $300 + $100 + $400 + $50. P&I = $3,675 - $300 - $100 - $400 - $50 = $2,075.
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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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