Mortgage Broker Licensing Practice Exam · Question
A mortgage broker is advising 'Synergy Holdings', a commercial investor, on the valuation of a multi-unit residential property in Vancouver. The property generates a Net Operating Income (NOI) of $180,000 annually. Recent comparable sales in the area indicate a capitalization rate (Cap Rate) of 4.5%. What is the estimated market value of the property using the capitalization rate method?
The market value using the capitalization rate method is calculated as Net Operating Income (NOI) divided by the Cap Rate. In this case, $180,000 / 0.045 = $4,0
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Question: A mortgage broker is advising 'Synergy Holdings', a commercial investor, on the valuation of a multi-unit residential property in Vancouver. The property generates a Net Operating Income (NOI) of $180,000 annually. Recent comparable sales in the area indicate a capitalization rate (Cap Rate) of 4.5%. What is the estimated market value of the property using the capitalization rate method?
Answer options: ✅ $4,000,000
- $4,200,000
- $3,850,000
- $4,500,000
Correct answer: $4,000,000
Explanation: The market value using the capitalization rate method is calculated as Net Operating Income (NOI) divided by the Cap Rate. In this case, $180,000 / 0.045 = $4,000,000.
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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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