Mortgage Broker Licensing Practice Exam · Question
Scenario 26: The Total Debt Service (TDS) ratio differs from GDS because it ALSO includes:
TDS adds all other monthly debt obligations (loans, cards, LOC, etc.) on top of housing costs used in GDS. The correct answer is "Other monthly debt obligations
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Question: Scenario 26: The Total Debt Service (TDS) ratio differs from GDS because it ALSO includes:
Answer options:
- Only utility bills ✅ Other monthly debt obligations such as loans, credit cards and lines of credit
- Future planned purchases
- Lifestyle expenses such as groceries
Correct answer: Other monthly debt obligations such as loans, credit cards and lines of credit
Explanation: TDS adds all other monthly debt obligations (loans, cards, LOC, etc.) on top of housing costs used in GDS. The correct answer is "Other monthly debt obligations such as loans, credit cards and lines of credit". This capacity-fill scenario 26 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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