Mortgage Broker Licensing Practice Exam · Question
Scenario 24: Which costs are included in the Gross Debt Service (GDS) ratio?
GDS = (Principal + Interest + Taxes + Heat + 50% of condo fees) / gross annual income. The correct answer is "Principal, interest, property taxes and heating (p
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Question: Scenario 24: Which costs are included in the Gross Debt Service (GDS) ratio?
Answer options: ✅ Principal, interest, property taxes and heating (plus 50% of condo fees)
- Only principal and interest
- All consumer debt payments
- Property taxes and utilities only
Correct answer: Principal, interest, property taxes and heating (plus 50% of condo fees)
Explanation: GDS = (Principal + Interest + Taxes + Heat + 50% of condo fees) / gross annual income. The correct answer is "Principal, interest, property taxes and heating (plus 50% of condo fees)". This capacity-fill scenario 24 reinforces the same competency for the mortgage-broker bank and follows the certified explanation standard.
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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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