OREA Mortgage Financing

Question 1

What is the minimum down payment required in Canada for a home purchase priced at $500,000?

Accepted Answer

5% of the purchase price

Answer

10% of the purchase price

Answer

15% of the purchase price

Answer

20% of the purchase price

Question 2

Under Ontario's Land Titles Act, how is a mortgage registered against a property?

Accepted Answer

As a charge

Answer

As a transfer

Answer

As a caveat

Answer

As a lien

Question 3

Which of the following best describes the 'amortization period' in mortgage financing?

Accepted Answer

The total time required to fully repay the mortgage

Answer

The length of time the current mortgage agreement is in force

Answer

The period during which the interest rate remains fixed

Answer

The number of days between scheduled mortgage payments

Question 4

Which federal Crown corporation is the primary provider of mortgage default insurance in Canada?

Accepted Answer

Canada Mortgage and Housing Corporation (CMHC)

Answer

Bank of Canada

Answer

Canada Deposit Insurance Corporation (CDIC)

Answer

Export Development Canada (EDC)

Question 5

A mortgage that allows the borrower to repay the full balance at any time without penalty is called:

Accepted Answer

An open mortgage

Answer

A closed mortgage

Answer

A convertible mortgage

Answer

A variable-rate mortgage

Question 6

What is the maximum amortization period permitted for a standard insured (high-ratio) mortgage in Canada?

Accepted Answer

25 years

Answer

30 years

Answer

35 years

Answer

40 years

Question 7

In Ontario, the Mortgage Brokerages, Lenders and Administrators Act (MBLAA) is administered by:

Accepted Answer

The Financial Services Regulatory Authority of Ontario (FSRA)

Answer

The Real Estate Council of Ontario (RECO)

Answer

The Ontario Securities Commission (OSC)

Answer

The Ministry of Municipal Affairs and Housing