Mortgage Broker Licensing Practice Exam · Question
A private lender is considering a mortgage for a construction project with a property value upon completion estimated at $1,200,000. The borrower requires $750,000 for the mortgage. What is the Loan-to-Value (LTV) ratio for this proposed mortgage?
The LTV ratio is calculated as the Mortgage Amount / Property Value. In this case, $750,000 / $1,200,000 = 0.625, or 62.5%.
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Question: A private lender is considering a mortgage for a construction project with a property value upon completion estimated at $1,200,000. The borrower requires $750,000 for the mortgage. What is the Loan-to-Value (LTV) ratio for this proposed mortgage?
Answer options:
- 60% ✅ 62.5%
- 65%
- 70%
Correct answer: 62.5%
Explanation: The LTV ratio is calculated as the Mortgage Amount / Property Value. In this case, $750,000 / $1,200,000 = 0.625, or 62.5%.
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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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