Exam 7: Managing Your Financial Resources - Purchasing and Financing a Home

In choosing an open mortgage over a closed mortgage,you should consider the likelihood of being able to prepay principal to make up for the higher interest rate on the open mortgage.

If you make an offer to the seller through the real estate broker,the following may happen except

A fixed-rate mortgage will have a set amount applied to the principal with each monthly payment.

Total mortgage financing of $968 per month,and monthly debt payments of $530,given total monthly household income of $3457 results in a gross debt service ratio of 28 percent.

Making extra mortgage payments does which of the following?

Which of the following is not one of the closing costs in purchasing a home?

Which of the following is True about condominiums?

Refinancing a home may incur penalties which outweigh the benefits of acquiring a lower interest rate,so should therefore be thoroughly investigated before acting.

Peter and Mary make a $25 000 down payment on a $400 000 home. What will be the CMHC insurance premium? CMHC charges the following rates on the loan to value ratio: Up to and including 80 percent,1.00 percent;up to 85 percent,1.75 percent;up to 90 percent,2.00 percent;up to 95 percent 2.75 percent. Illustrate the calculation on the loan insurance premium that Peter and Mary have to pay?

A house is appraised at $298 000 and you have a down payment of $25 000.CMHC charges the following rates on the loan to value ratio: Up to and including 80 percent,1.00 percent;up to 85 percent,1.75 percent;up to 90 percent,2.00 percent;up to 95 percent 2.75 percent.What will be the approximate total amount of the mortgage if the CMHC fee is included in it?

Mohammed and Parm are recently married and neither of them has ever owned a home.They wish to use the Home Buyers' Plan (HBP)to make their down payment on their first home.If they each have $75 000 in their RRSPs,how much can they access for their down payment through the HBP?

Which of the following is the best advice in determining how large a mortgage you can afford?

If Jane had a total of $30 000 available for the purchase and transactions expenses to buy a condo,and an accepted offer of $150 000 for the property,she would be able to get a conventional mortgage.

A variable-rate mortgage starts with higher payments,which decrease as the mortgage is paid off.

Which of the following is an advantage of using online realtor services?

A house valued at $288 000 with a down payment of $63 000 will result in an extra charge for a high ratio mortgage.

For someone who has a $300 000 mortgage,at an interest rate of 6.3 percent,which mortgage would be the best choice for increasing one's net worth?

Mertyl is interested in buying a house worth $335 000 and has a down payment of $40 000.What will be the CMHC insurance premium? CMHC charges the following rates on the loan to value ratio: Up to and including 80 percent,1.00 percent;up to 85 percent,1.75 percent;up to 90 percent,2.00 percent;up to 95 percent 2.75 percent.

Lenders require Canada Mortgage and Housing Corporation insurance on high ratio mortgages.What is the primary purpose of this insurance?