Mortgage Broker Licensing Practice Exam · Question
An investor is purchasing a commercial property in Ottawa for $2,500,000 with a 30% down payment. The property generates $180,000 in annual net operating income (NOI). The proposed mortgage has an annual debt service of $140,000. What is the Debt Service Coverage Ratio (DSCR) for this property?
DSCR is calculated as Net Operating Income (NOI) divided by Annual Debt Service. In this case, $180,000 (NOI) / $140,000 (Debt Service) = 1.2857, which rounds t
Start free practice for Mortgage Broker Licensing Practice Exam
302 questions · no signup required · 40 free questions per day
Question: An investor is purchasing a commercial property in Ottawa for $2,500,000 with a 30% down payment. The property generates $180,000 in annual net operating income (NOI). The proposed mortgage has an annual debt service of $140,000. What is the Debt Service Coverage Ratio (DSCR) for this property?
Answer options: ✅ 1.29
- 0.78
- 1.50
- 1.00
Correct answer: 1.29
Explanation: DSCR is calculated as Net Operating Income (NOI) divided by Annual Debt Service. In this case, $180,000 (NOI) / $140,000 (Debt Service) = 1.2857, which rounds to 1.29. This is critical for commercial underwriting to ensure sufficient cash flow.
Start free practice for Mortgage Broker Licensing Practice Exam
302 questions · no signup required · 40 free questions per day
More about Mortgage Broker Licensing Practice Exam
Related Questions
- 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?
- What is a 'material change' in relation to a client's mortgage application?
- Ethical behavior for a mortgage broker includes:
More for Mortgage Broker Licensing Practice Exam candidates
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?
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Mortgage Broker Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.