BC Real Estate Trading Services Course Financing & Mortgages

Question 1

In BC, the maximum amortization period for an insured mortgage (less than 20% down payment) as of 2024 is:

Accepted Answer

30 years

Answer

20 years

Answer

25 years

Answer

35 years

Question 2

In Canada, mortgage default insurance is required when the down payment is:

Accepted Answer

Less than 20% of the purchase price

Answer

Less than 10% of the purchase price

Answer

Less than 25% of the purchase price

Answer

Less than 5% of the purchase price

Question 3

In BC, a 'first mortgage' takes priority over a 'second mortgage' because:

Accepted Answer

Priority is determined by registration date — the first registered has priority in case of default

Answer

First mortgages have lower interest rates

Answer

First mortgages are registered with BCFSA

Answer

Provincial law always gives priority to larger loans

Question 4

The 'mortgage stress test' in Canada requires borrowers to qualify at:

Accepted Answer

The greater of the contract rate plus 2% or the Bank of Canada's benchmark qualifying rate

Answer

The contract rate only

Answer

The prime rate plus 5%

Answer

A fixed rate of 5.25% regardless of the contract rate

Question 5

In BC, a 'conventional mortgage' is one where the loan-to-value (LTV) ratio is:

Accepted Answer

80% or less of the property value (at least 20% down payment)

Answer

More than 80% of the property value

Answer

Exactly 75% of the property value

Answer

Less than 65% of the property value

Question 6

In BC, which of the following is the correct definition of 'amortization period'?

Accepted Answer

The total length of time over which the loan is scheduled to be fully repaid

Answer

The period during which the interest rate is guaranteed by the lender

Answer

The number of years until the mortgage must be renewed

Answer

The waiting period before the first payment is due