Ontario Real Estate Licensing Exam Practice · Question
Which of the following is a fixed payment made by a borrower to a lender at specified intervals over a set period, consisting of both principal and interest?
A blended payment is a common type of mortgage payment in Canada, where each payment includes a portion of both principal and interest, remaining constant over
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Question: Which of the following is a fixed payment made by a borrower to a lender at specified intervals over a set period, consisting of both principal and interest?
Answer options:
- Balloon payment
- Amortization ✅ Blended payment
- Prepayment penalty
Correct answer: Blended payment
Explanation: A blended payment is a common type of mortgage payment in Canada, where each payment includes a portion of both principal and interest, remaining constant over a set period (often the term of the mortgage). Initially, a larger portion goes towards interest, shifting to more principal over time.
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Other Canadian certifications candidates often prepare for alongside this one.