Mortgage Broker Licensing Practice Exam · Question
The maximum legal annual interest rate (criminal rate) under section 347 of the Criminal Code, recently reduced, is:
Section 347 historically set the criminal rate at 60% EAR; the federal government reduced it to 35% APR (annual percentage rate) effective 2025 for new agreemen
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Question: The maximum legal annual interest rate (criminal rate) under section 347 of the Criminal Code, recently reduced, is:
Answer options:
- 20% APR
- 35% APR (60% effective annual rate, EAR — historical) ✅ 60% APR criminal rate (legacy); reduced to 35% APR effective 2025
- No legal limit
Correct answer: 60% APR criminal rate (legacy); reduced to 35% APR effective 2025
Explanation: Section 347 historically set the criminal rate at 60% EAR; the federal government reduced it to 35% APR (annual percentage rate) effective 2025 for new agreements.
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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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