Chapter 1

Question 1

Which type of lender was dominant before banks became the dominant lenders in Canada?

Answer 1

Life insurance companies

Question 2

This term refers to an amount of credit made available to a borrower but not advanced on closing:

Answer 2

Line of Credit

Question 3

This is the legislation that governs the mortgage industry

Answer 3

MBLAA

Question 4

The typical activities of a mortgage agent include all of the following, EXCEPT

Answer 4

Supervising other agents

Question 5

This is the amount of the loan or mortgage divided by the value of the property:

Answer 5

c. Loan to Value (LTV)

Question 6

This is a legal document in which a person gives someone else the authority or right to make decisions about their finances:

Answer 6

d. Enduring Power of Attorney

Question 7

As of 2016 the government has imposed a requirement to ensure that a borrower could afford their mortgage payments if their interest rate increases. This is called the:

Answer 7

b. Stress test

Question 8

What is a promissory note with a lien on the property for the total amount registered known as?

Answer 8

a. Collateral Mortgage

Question 9

This term refers to the mortgage advance, in other words the money that is being lent to the borrower:

Answer 9

Mortgage proceeds

Question 10

This term refers to any charge on any property for securing money or money’s worth:

Answer 10

Mortgage