Ontario Real Estate Licensing Exam Practice · Question
Sarah is selling her property in Vaughan and buying another one, but the closing date for her purchase is two weeks before the closing date for her sale. What type of financing can she use to cover the down payment and closing costs for the new property during this interim period?
Bridge financing is a short-term loan used to bridge the gap between two real estate transactions when the purchase closes before the sale, providing funds for
Start free practice for Ontario Real Estate Licensing Exam Practice
363 questions · no signup required · 40 free questions per day
Question: Sarah is selling her property in Vaughan and buying another one, but the closing date for her purchase is two weeks before the closing date for her sale. What type of financing can she use to cover the down payment and closing costs for the new property during this interim period?
Answer options: ✅ Bridge financing
- A Home Equity Line of Credit (HELOC)
- A conventional mortgage
- A second mortgage
Correct answer: Bridge financing
Explanation: Bridge financing is a short-term loan used to bridge the gap between two real estate transactions when the purchase closes before the sale, providing funds for the down payment and closing costs.
Start free practice for Ontario Real Estate Licensing Exam Practice
363 questions · no signup required · 40 free questions per day
More about Ontario Real Estate Licensing Exam Practice
Related Questions
- A buyer is considering a mortgage product that allows them to prepay a portion of their principal at any time
- A commercial property in Toronto is sold for $2,000,000. The vendor is an HST registrant. What is the buyer's
- What is the primary purpose of registering a deed under the Registry Act in Ontario?
- What is the primary role of a 'title search' in a residential real estate transaction in Ontario?
- A seller accepts a conditional offer. Before the conditions are fulfilled, the seller receives a firm, higher
- Which of the following is a common encumbrance that would be registered on title and affect a property owner's
More for Ontario Real Estate Licensing Exam Practice candidates
Study guides
Question explanations
- A buyer is considering a mortgage product that allows them to prepay a portion of their principal at any time
- A commercial property in Toronto is sold for $2,000,000. The vendor is an HST registrant. What is the buyer's
- What is the primary purpose of registering a deed under the Registry Act in Ontario?
- What is the primary role of a 'title search' in a residential real estate transaction in Ontario?
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Ontario Real Estate Licensing Exam Practice Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.