Ontario Real Estate Licensing Exam Practice · Question
For a conventional mortgage in Canada, what is the maximum Loan-to-Value (LTV) ratio typically permitted without requiring mortgage default insurance?
In Canada, a conventional mortgage typically requires a down payment of at least 20%, resulting in a maximum LTV of 80%. Mortgages with an LTV greater than 80%
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Question: For a conventional mortgage in Canada, what is the maximum Loan-to-Value (LTV) ratio typically permitted without requiring mortgage default insurance?
Answer options:
- 65%
- 70% ✅ 75%
- 80%
Correct answer: 75%
Explanation: In Canada, a conventional mortgage typically requires a down payment of at least 20%, resulting in a maximum LTV of 80%. Mortgages with an LTV greater than 80% are considered high-ratio and require mortgage default insurance.
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- A buyer is considering a mortgage product that allows them to prepay a portion of their principal at any time
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- What is the primary purpose of registering a deed under the Registry Act in Ontario?
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