Mortgage Broker Licensing Practice Exam · Question
The principal-and-interest payment on a $500,000 mortgage at 5% (semi-annually compounded) amortized over 25 years is closest to:
Using Canadian semi-annual compounding, the monthly payment is approximately $2,908. Candidates should be able to use a mortgage calculator or formula to verify
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Question: The principal-and-interest payment on a $500,000 mortgage at 5% (semi-annually compounded) amortized over 25 years is closest to:
Answer options:
- ~$1,800 / month
- ~$2,500 / month ✅ ~$2,908 / month
- ~$3,500 / month
Correct answer: ~$2,908 / month
Explanation: Using Canadian semi-annual compounding, the monthly payment is approximately $2,908. Candidates should be able to use a mortgage calculator or formula to verify.
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Related Questions
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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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