Reference no: EM133062562
Q1. Bob and Sally would like to apply for a mortgage. They are purchasing a house for $525,000 and have $125,000 as a down payment. They have requested weekly payments for a 3 year term at 3.95% compounded semi-annually with a 35 year amortization. The payment for this proposed mortgage is $403.68. They have told you that they also have a car payment of $255 per month, annual car insurance of $2,100, an RRSP contribution of $70 per month by payroll deduction, a weekly loan payment of $35 and total monthly credit card payments of $410. Their property taxes are $2,600 per year. Their combined income is $114,000 per year and heat on this house is $75 per month. What is their TDS?
-31.92%
-30.08%
-15.92%
-30.82%
Q2. When calculating the market value of a residential property for financing an appraiser will typically use:
-The income approach
-The cost approach
-The direct comparison approach
-The market value approach
Q3. Your client is applying for a high ratio, CMHC insured mortgage to purchase a property. In filling out the application, which one of the following list of information is most important to CMHC?
-The applicant's current address, including postal code
-The address of the property being purchased, including postal code
-The address of the property being purchased, and the postal code is not important
-The applicant's previous address, including the postal code
Q4. You have a client who has stated that she owns her own business, registered as corporation. Which one of the following documents should you obtain to prove this?
-Tax Return
-Job Letter
-Master Business License
-Articles of Incorporation
Q5. A client has approached his Mortgage Agent and is requesting to refinance his second mortgage in the amount of $85,500. In addition to his first mortgage with an outstanding balance of $358,550, he also has a third mortgage with an outstanding balance of $7,500, and a fourth mortgage with a balance of $2,350. Given a property value of $500,000, which one of the following is correct?
-The LTV of this proposed mortgage is 88.81%
-The LTV of this proposed mortgage is 17.10%
-The LTV of this proposed mortgage is 90.31%
-The LTV of this proposed mortgage is 91.81%
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: Q1. Bob and Sally would like to apply for a mortgage. They are purchasing a house for $525,000 and have $125,000 as a down payment.
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