Mortgage Broker Licensing Practice Exam · Question
When is mortgage default insurance (e.g., CMHC) mandatory in Canada?
Federal rules require default insurance whenever the LTV is greater than 80% (i.e., down payment less than 20%).
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Question: When is mortgage default insurance (e.g., CMHC) mandatory in Canada?
Answer options: ✅ When the loan-to-value (LTV) is greater than 80%
- When the borrower is self-employed
- Only for first-time home buyers
- When the amortization is over 20 years
Correct answer: When the loan-to-value (LTV) is greater than 80%
Explanation: Federal rules require default insurance whenever the LTV is greater than 80% (i.e., down payment less than 20%).
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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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