Joe Cutura | Mortgage IQ

When you're looking to buy a home and require a mortgage, it really helps to have a ... *
- Pre-Approval Letter
- Pre-Qualification Certificate
- High Credit Score
- Big Down Payment
Well Done!

The correct answer is: Pre-Approval Letter

Having a Pre-Approval letter shows sellers and realtors that a lender has reviewed your income and credit history, determined you’re ready for a mortgage and reserved an interest rate for you. All you need to do now is find the right home.
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The correct answer is: Pre-Approval Letter

Having a Pre-Approval letter shows sellers and realtors that a lender has reviewed your income and credit history, determined you’re ready for a mortgage and reserved an interest rate for you. All you need to do now is find the right home.

Mortgage fees and closing costs (legal and administrative costs) are standard on all mortgage loans. *
- True
- False
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The correct answer is: False

Mortgage fees such as default insurance premiums and property appraisal fees vary greatly depending on what percentage of the home's value you are financing. Closing costs also vary according to the province you live in and other local taxes.
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The correct answer is: False

Mortgage fees such as default insurance premiums and property appraisal fees vary greatly depending on what percentage of the home's value you are financing. Closing costs also vary according to the province you live in and other local taxes.

Which of the following is the lender least concerned about?*
- Proof of Income
- Loan to Value Ratio (LTV)
- Debt to income Ratio
- Loan Purpose
- Credit Score
- Number of Dependants
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The correct answer is: Number of Dependants

Lenders consider all the factors from the question, but have little concern about the number of dependants applicants have when assessing their ability to pay their mortgage.
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The correct answer is: Number of Dependants

Lenders consider all the factors from the question, but have little concern about the number of dependants applicants have when assessing their ability to pay their mortgage.

Mortgage default insurance is*
- Insurance to protect you in case of default on your mortgage
- Insurance you buy if your down payment is less than 20%
- A required closing cost
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The correct answer is: Insurance you buy if your down payment is
less than 20%

This is referred to as high-ratio financing, and is required by The National Housing Act (NHA). The premiums, which vary based on the size of down payment, are added to the mortgage and financed over the life of the mortgage.
Well Done!

The correct answer is: Insurance you buy if your down payment is
less than 20%

This is referred to as high-ratio financing, and is required by The National Housing Act (NHA). The premiums, which vary based on the size of down payment, are added to the mortgage and financed over the life of the mortgage.

If you choose a variable rate mortgage (VRM), your qualifying rate is*
- The variable rate in effect at the time of application
- The Bank Prime Rate
- The Government of Canada qualifying rate
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The correct answer is: The Government of Canada qualifying rate

In Canada it's now required that you qualify at an interest rate higher than your actual variable rate offered to ensure you're prepared for potential rate increases. This may impact your maximum purchasing power.
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The correct answer is: The Government of Canada qualifying rate

In Canada it's now required that you qualify at an interest rate higher than your actual variable rate offered to ensure you're prepared for potential rate increases. This may impact your maximum purchasing power.

A Home Equity Loan and a Home Equity Line of Credit are the same thing.*
- True
- False
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The correct answer: is False

Home equity loans are when a lender gives you a set amount of money and you pay it back over a fixed repayment schedule. A Home Equity Line of Credit (HELOC) is the right to borrow a certain amount of money that is guaranteed by your home. To obtain a HELOC, you must have a minimum of 20% equity in your home.
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The correct answer is: False

Home equity loans are when a lender gives you a set amount of money and you pay it back over a fixed repayment schedule. A Home Equity Line of Credit (HELOC) is the right to borrow a certain amount of money that is guaranteed by your home. To obtain a HELOC, you must have a minimum of 20% equity in your home.

Canada Mortgage and Housing Corporation (CMHC) mortgages are only given to first time buyers.*
- True
- False
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The correct answer is: False

CMHC mortgages otherwise are provided to any home owner that requires a mortgage amount greater than 80% of their home value. You can be a tenth-time buyer and still qualify for a high ratio mortgage provided you are comfortable with the default insurance premiums.
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The correct answer is: False

CMHC mortgages otherwise are provided to any home owner that requires a mortgage amount greater than 80% of their home value. You can be a tenth-time buyer and still qualify for a high ratio mortgage provided you are comfortable with the default insurance premiums.

Home buyers can access their Retirement Savings Plans (RSPs) for a down payment on a home provided*
- They withdraw a maximum of $25,000 per mortgage applicant
- They repay the withdrawn funds over the next 15 years
- They haven’t previously accessed RSP funds for a home purchase
- All of the above
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The correct answer is: All of the Above

With the government's Home Buyer's Plan, buyers can withdraw up to $25,000 for each mortgage applicant from their RSP without any holdback for taxes. Committing to repay the RSP funds interest free over the following 15 tax years will avoid any future taxes against the withdrawal.
Well Done!

The correct answer is: All of the Above

With the government's Home Buyer's Plan, buyers can withdraw up to $25,000 for each mortgage applicant from their RSP without any holdback for taxes. Committing to repay the RSP funds interest free over the following 15 tax years will avoid any future taxes against the withdrawal.

What is your mortgage I.Q.?

Mortgage I.Q.

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The correct answer is: Pre-Approval Letter

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The correct answer is: Pre-Approval Letter

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The correct answer is: False

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The correct answer is: False

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The correct answer is: Number of Dependants

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The correct answer is: Number of Dependants

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The correct answer is: Insurance you buy if your down payment is
less than 20%

Well Done!

The correct answer is: Insurance you buy if your down payment is
less than 20%

Well Done!

The correct answer is: The Government of Canada qualifying rate

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The correct answer is: The Government of Canada qualifying rate

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The correct answer: is False

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The correct answer is: False

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The correct answer is: False

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The correct answer is: False

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The correct answer is: All of the Above

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The correct answer is: All of the Above

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What is your mortgage I.Q.?

Mortgage I.Q.

Well Done!

The correct answer is: Pre-Approval Letter

Oops, better luck next time!

The correct answer is: Pre-Approval Letter

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The correct answer is: False

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The correct answer is: False

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The correct answer is: Number of Dependants

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The correct answer is: Number of Dependants

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The correct answer is: Insurance you buy if your down payment is less than 20%

Well Done!

The correct answer is: Insurance you buy if your down payment is less than 20%

Well Done!

The correct answer is: The Government of Canada qualifying rate

Oops, better luck next time!

The correct answer is: The Government of Canada qualifying rate

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The correct answer: is False

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The correct answer is: False

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The correct answer is: False

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The correct answer is: False

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The correct answer is: All of the Above

Well Done!

The correct answer is: All of the Above

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The correct answer is: Insurance you buy if your down payment is
less than 20%

The correct answer is: Insurance you buy if your down payment is
less than 20%