Mortgage Broker Licensing Practice Exam · Question
A borrower needs default (CMHC/Sagen/Canada Guaranty) mortgage insurance when the down payment is:
Default insurance is mandatory for residential mortgages where the loan-to-value ratio exceeds 80% (i.e. down payment less than 20%).
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Question: A borrower needs default (CMHC/Sagen/Canada Guaranty) mortgage insurance when the down payment is:
Answer options:
- Less than 5%
- Less than 10% ✅ Less than 20%
- Less than 25%
Correct answer: Less than 20%
Explanation: Default insurance is mandatory for residential mortgages where the loan-to-value ratio exceeds 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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