Mortgage Broker Licensing Practice Exam · Question
A 'collateral mortgage' (vs a standard charge) is best described as:
Collateral charges are registered for an amount equal to or greater than the actual loan (often 100–125% of value), allowing future re-advances but making trans
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Question: A 'collateral mortgage' (vs a standard charge) is best described as:
Answer options:
- A mortgage registered for the exact loan amount only ✅ A mortgage registered for an amount up to 125% of the property value, allowing re-advances
- A mortgage that cannot be discharged
- A second mortgage by definition
Correct answer: A mortgage registered for an amount up to 125% of the property value, allowing re-advances
Explanation: Collateral charges are registered for an amount equal to or greater than the actual loan (often 100–125% of value), allowing future re-advances but making transfers to another lender harder.
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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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