Test Questions

Question 1

Which was created by the Canada mortgage and housing corporation?

Answer 1

Canada mortgage bonds

Question 2

Which statement regarding mortgage default insurance is FALSE

1) A lender may apply for a higher loan-to-face value ratio to an insured loan than uninsured
2) The insurance company guarantees borrowers will be able to continue to make their mortgage payments without interruption
3) the insurance premium paid on an insured mortgage can be added to the loan amount
4) mortgage default insurance is insurance for the lender

Answer 2

2)

Question 3

A contract between a seller and a buyer whereby the seller agrees to sell its interest in certain property to the buyer for a price payable by instalments and then, to convey legal title to the buyer after payment of the purchase price in the matter agreed, is called

Answer 3

An agreement for sale

Question 4

What’s a contractual clause in a mortgage could apply where the mortgage is otherwise in good standing, but the borrower has not paid his or her property tax

Answer 4

A omnibus clause

Question 5

The British Columbia land title system, a mortgage is registered as a charge against the property of which the mortgage is

Answer 5

The registered owner

Question 6

A mortgage is

Answer 6

A contract, evidence of a loan, and security for a loan

Question 7

What is a equitable mortgage

Answer 7

Mortgage of the equity of redemption
Agreement to execute a legal mortgage
Mortgage by way of deposit of the duplicate certificate of title

Question 8

A lender who holds a mortgage registered as a charge on an otherwise clear title to a borrowers land has

Answer 8

An interest in land created by contract

Question 9

A court has to power to re-open a mortgage transaction where, having regard to the risk and to all the circumstances, it is of the opinion that the cost of borrowing is excessive or harsh and unconscionable. In which statue is this power container

Answer 9

Business Practices and Consumer Protection Act

Question 10

Which is not a provision of the interest act

Answer 10

No interest rate higher than 25% shall be provided for in a mortgage document.

Question 11

After a borrower has given a mortgage of real property, the borrowers remaining interest is described at law as

Answer 11

Equity of redemption

Question 12

An option to purchase the mortgaged property given by the mortgagor(borrower) to the mortgagee (lender) at the time the mortgage is negotiated is

Answer 12

Void

Question 13

A mortgage that is granted, but for procedural reasons is not registrable is

Answer 13

Still deemed a legal mortgage

Question 14

Where the borrower believes that the amount of interest being charged is excessive, under which statue might relief be granted.

Answer 14

The business practices and consumer protection act.

Question 15

The principal of good faith includes

Answer 15

The duty of parties to a contract to act honestly in the performance of their contractual obligations.

Question 16

False statement regarding mortgagees

Answer 16

Once the mortgagee terms have been agreed to by the mortgagor and the mortgagee, the mortgagee is bound to advance the total amount of the funds when requested by the borrower, regardless of the terms of the mortgage

Question 17

What is not a statement concerning mortgages?

Answer 17

A mortgage is a loan

Question 18

In a mortgage contract the mortgagee is

Answer 18

Granted the mortgage as security for a loan

Question 19

Which is not a requirement under the interest act in order for a borrower to tender prepayment or their mortgage ?

Answer 19

The lender is a financial institution

Question 20

Which is a clause contained in a mortgage that would constitute a clog on the equity of redemption and make it void

Answer 20

Option to purchase clause

Question 21

With a portable mortgage

Answer 21

A borrower can save money when the existing mortgage has a lower interest rate than current rates

Question 22

A mortgage of the mortgagors equity of redemption is called

Answer 22

An equitable mortgage

Question 23

What’s a false statement regarding the business practices and consumer protection act (BPCPA)

Answer 23

A disclosure statement must be given to a borrower six days prior to the borrower incurring an obligation under a credit agreement, unless the time period is waived by the borrower.