Mortgage Broker Licensing Practice Exam · Question
When a property is sold during the mortgage term, an 'assumable' mortgage means:
An assumable mortgage allows a qualified buyer to take over the seller's existing mortgage terms, subject to the lender's approval of the new borrower.
Start free practice for Mortgage Broker Licensing Practice Exam
302 questions · no signup required · 40 free questions per day
Question: When a property is sold during the mortgage term, an 'assumable' mortgage means:
Answer options:
- The seller must pay it off ✅ The buyer may take over the existing mortgage subject to lender approval
- The mortgage automatically transfers without lender consent
- Only the interest rate transfers
Correct answer: The buyer may take over the existing mortgage subject to lender approval
Explanation: An assumable mortgage allows a qualified buyer to take over the seller's existing mortgage terms, subject to the lender's approval of the new borrower.
Start free practice for Mortgage Broker Licensing Practice Exam
302 questions · no signup required · 40 free questions per day
More about Mortgage Broker Licensing Practice Exam
Related Questions
- 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?
- What is a 'material change' in relation to a client's mortgage application?
- Ethical behavior for a mortgage broker includes:
More for Mortgage Broker Licensing Practice Exam candidates
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?
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Mortgage Broker Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.