Mortgage Broker Licensing Practice Exam · Question
A private lender is considering financing 'Greenleaf Developments' for a large, purpose-built industrial distribution centre in Mississauga. The lender's underwriting standards require a Net Operating Income (NOI) of at least 1.35 times the annual debt service. The proposed annual debt service for the project is $850,000. What is the minimum annual Net Operating Income (NOI) required for this project to meet the lender's criteria?
The minimum Net Operating Income (NOI) required is calculated by multiplying the annual debt service by the required DSCR. In this case, $850,000 x 1.35 = $1,14
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Question: A private lender is considering financing 'Greenleaf Developments' for a large, purpose-built industrial distribution centre in Mississauga. The lender's underwriting standards require a Net Operating Income (NOI) of at least 1.35 times the annual debt service. The proposed annual debt service for the project is $850,000. What is the minimum annual Net Operating Income (NOI) required for this project to meet the lender's criteria?
Answer options: ✅ $1,147,500
- $950,000
- $1,050,000
- $1,200,000
Correct answer: $1,147,500
Explanation: The minimum Net Operating Income (NOI) required is calculated by multiplying the annual debt service by the required DSCR. In this case, $850,000 x 1.35 = $1,147,500. This ensures sufficient income to cover debt obligations.
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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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