Mortgage Broker Licensing Practice Exam · Question
A Home Equity Line of Credit (HELOC) has a total approved limit of $200,000, with a current outstanding balance of $75,000. The property has a first mortgage of $350,000 and the property's market value is $800,000. What is the available credit on the HELOC?
The available credit on a HELOC is determined by subtracting the current outstanding balance from the total approved limit. In this case, $200,000 (approved lim
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Question: A Home Equity Line of Credit (HELOC) has a total approved limit of $200,000, with a current outstanding balance of $75,000. The property has a first mortgage of $350,000 and the property's market value is $800,000. What is the available credit on the HELOC?
Answer options:
- A. $75,000 ✅ B. $125,000
- C. $200,000
- D. $300,000
Correct answer: B. $125,000
Explanation: The available credit on a HELOC is determined by subtracting the current outstanding balance from the total approved limit. In this case, $200,000 (approved limit) - $75,000 (outstanding balance) = $125,000 available credit. The property value and first mortgage are relevant for establishing the overall limit but not the current availability.
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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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