Mortgage Broker Licensing Practice Exam · Question
A first-time homebuyer, Sarah, is looking to purchase a home in Ottawa for $650,000. She has saved $50,000 for a down payment. Assuming the minimum down payment structure for high-ratio mortgages, what is the minimum down payment required for Sarah's purchase?
For properties valued up to $500,000, the minimum down payment is 5%. For properties between $500,000 and $1,000,000, the minimum down payment is 5% on the firs
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Question: A first-time homebuyer, Sarah, is looking to purchase a home in Ottawa for $650,000. She has saved $50,000 for a down payment. Assuming the minimum down payment structure for high-ratio mortgages, what is the minimum down payment required for Sarah's purchase?
Answer options:
- A. $32,500
- B. $40,000 ✅ C. $50,000
- D. $65,000
Correct answer: C. $50,000
Explanation: For properties valued up to $500,000, the minimum down payment is 5%. For properties between $500,000 and $1,000,000, the minimum down payment is 5% on the first $500,000 and 10% on the portion above $500,000. For a $650,000 home, this is $25,000 (5% of $500k) + $15,000 (10% of $150k) = $40,000. Sarah has saved $50,000, meaning she has met the minimum.
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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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