Question 1

Renting is more advantageous than buying a home for

Accepted Answer

A) lower short-term living costs. 
B) financial benefits. 
C) long-term investment purposes. 
D) receiving tax benefits. 
E) permanence of residence. 
A) lower short-term living costs. 
B) financial benefits. 
C) long-term investment purposes. 
D) receiving tax benefits. 
E) permanence of residence. A

Question 2

A real estate agent can best assist a homebuyer by

Accepted Answer

A) assisting in getting a mortgage 
B) setting the purchase price. 
C) offering new home warranties. 
D) assisting you in obtaining financing. 
E) paying the first month's mortgage payment. 
A) assisting in getting a mortgage 
B) setting the purchase price. 
C) offering new home warranties. 
D) assisting you in obtaining financing. 
E) paying the first month's mortgage payment. D

Question 3

The Gross Debt Service (GDS) ratio measures:

Accepted Answer

A) your monthly mortgage payment, including any outstanding debt as a percentage of gross monthly income. 
B) your monthly mortgage payment, including principal, interest, heating, and taxes as a percentage of gross monthly income. 
C) your monthly mortgage payment as a percentage of gross monthly income. 
D) your annual mortgage payment, including any outstanding debt, as a percentage of gross annual income. 
E) your annual mortgage payment, including principal, interest, heating, and taxes, as a percentage of gross annual income. 
A) your monthly mortgage payment, including any outstanding debt as a percentage of gross monthly income. 
B) your monthly mortgage payment, including principal, interest, heating, and taxes as a percentage of gross monthly income. 
C) your monthly mortgage payment as a percentage of gross monthly income. 
D) your annual mortgage payment, including any outstanding debt, as a percentage of gross annual income. 
E) your annual mortgage payment, including principal, interest, heating, and taxes, as a percentage of gross annual income. B

Question 4

Lenders commonly use a TDS ratio of _________ and a GDS ratio of __________ to help determine the amount most people can comfortably afford for housing.

Accepted Answer

A) 20%; 30% 
B) 40%; 20% 
C) 40%; 30% 
D) 30%; 20% 
E) 20%; 40% 
A) 20%; 30% 
B) 40%; 20% 
C) 40%; 30% 
D) 30%; 20% 
E) 20%; 40%

Question 5

You made a $100,000 down payment on a $400,000 house and financed the remaining amount with a Canadian fixed-rate mortgage.Your mortgage has a term of three years, an amortization period of 25 years, a quoted rate of 7% and payments are made monthly.Identify the correct statement.

Accepted Answer

A) The 7% quoted rate does not represent the effective annual rate charged on the mortgage. 
B) The interest rate is fixed for 25 years. 
C) You will make a total of 36 monthly payments to pay off the mortgage. 
D) You have a high-ratio mortgage. 
E) Your interest rate is fixed for 3 years, variable for 22 years. 
A) The 7% quoted rate does not represent the effective annual rate charged on the mortgage. 
B) The interest rate is fixed for 25 years. 
C) You will make a total of 36 monthly payments to pay off the mortgage. 
D) You have a high-ratio mortgage. 
E) Your interest rate is fixed for 3 years, variable for 22 years.

Question 6

Brian Pittman rents a living unit as a result of his membership in a nonprofit housing organization.What name is commonly used for this type of housing?

Accepted Answer

A) modular housing 
B) government-subsidized housing 
C) zoned housing 
D) a condominium 
E) cooperative housing 
A) modular housing 
B) government-subsidized housing 
C) zoned housing 
D) a condominium 
E) cooperative housing

Question 7

Given the following, calculate the TDS ratio.All income and expense items are annual.

Accepted Answer

A) 28% 
B) 41% 
C) 50% 
D) 74% 
E) 84% 
A) 28% 
B) 41% 
C) 50% 
D) 74% 
E) 84%

Question 8

The most common service provided by a real estate agent when selling your home is

Accepted Answer

A) providing legal advice. 
B) qualifying buyers for a mortgage. 
C) screening potential buyers. 
D) making needed repairs. 
E) getting you the lowest offer 
A) providing legal advice. 
B) qualifying buyers for a mortgage. 
C) screening potential buyers. 
D) making needed repairs. 
E) getting you the lowest offer

Question 9

Given the following, calculate the GDS ratio.All income and expense items are annual.

Accepted Answer

A) 28% 
B) 41% 
C) 44% 
D) 52% 
E) 63% 
A) 28% 
B) 41% 
C) 44% 
D) 52% 
E) 63%

Question 10

A property survey typically costs (for the purchase of a home)?

Accepted Answer

A) $200-300 
B) $750-1000 
C) $400-1500 
D) $500-2000 
E) $2,000+ 
A) $200-300 
B) $750-1000 
C) $400-1500 
D) $500-2000 
E) $2,000+

Question 11

Renting is more advantageous than buying a home for

Accepted Answer

A) minimal financial commitment. 
B) financial benefits. 
C) long-term investment purposes. 
D) receiving tax benefits. 
E) permanence of residence. 
A) minimal financial commitment. 
B) financial benefits. 
C) long-term investment purposes. 
D) receiving tax benefits. 
E) permanence of residence.

Question 12

The main financial benefit of owning is

Accepted Answer

A) lower living expenses. 
B) don't pay GST. 
C) investment value growth. 
D) lower initial costs. 
E) high financial commitment. 
A) lower living expenses. 
B) don't pay GST. 
C) investment value growth. 
D) lower initial costs. 
E) high financial commitment.

Question 13

Qualifying for a mortgage is much different then obtaining other forms of credit.

Accepted Answer

A) True 
 B)False

Question 14

If your CMHC premium percentage is 1.8%, what is the maximum loan to value ratio?

Accepted Answer

A) 65% 
B) 75% 
C) 80% 
D) 85% 
E) 90% 
A) 65% 
B) 75% 
C) 80% 
D) 85% 
E) 90%

Question 15

Renting would be most appropriate for people who

Accepted Answer

A) own a variety of pets. 
B) have difficulty establishing credit. 
C) want to reduce their taxes. 
D) enjoy remodeling their residence. 
E) desire the financial benefits of increased equity. 
A) own a variety of pets. 
B) have difficulty establishing credit. 
C) want to reduce their taxes. 
D) enjoy remodeling their residence. 
E) desire the financial benefits of increased equity.

Question 16

Condominiums involve the purchase of an individual living unit rather than an entire building.

Accepted Answer

A) True 
 B)False

Question 17

Step two of the home buying process is?

Accepted Answer

A) Determine home ownership needs 
B) Find and evaluate a property to purchase 
C) Price the property 
D) Obtain Financing 
E) Close the purchase transaction 
A) Determine home ownership needs 
B) Find and evaluate a property to purchase 
C) Price the property 
D) Obtain Financing 
E) Close the purchase transaction

Question 18

Which of the following is an example of a closing cost?

Accepted Answer

A) origination fee 
B) mortgage application fee 
C) earnest money 
D) title insurance 
E) down payment 
A) origination fee 
B) mortgage application fee 
C) earnest money 
D) title insurance 
E) down payment

Question 19

As William Quintal conducts an investigation of property value factors, most real estate experts tell him that ____________ most influences the housing values in an area.

Accepted Answer

A) community pride 
B) style of homes 
C) quality of schools 
D) age of neighborhood 
E) zoning laws 
A) community pride 
B) style of homes 
C) quality of schools 
D) age of neighborhood 
E) zoning laws

Question 20

Given the following, calculate the GDS ratio.All income and expense items are annual.

Accepted Answer

A) 28% 
B) 41% 
C) 50% 
D) 59% 
E) 64% 
A) 28% 
B) 41% 
C) 50% 
D) 59% 
E) 64%

Renting is more advantageous than buying a home for

A real estate agent can best assist a homebuyer by

The Gross Debt Service (GDS) ratio measures:

Lenders commonly use a TDS ratio of _ and a GDS ratio of __ to help determine the amount most people can comfortably afford for housing.

You made a $100,000 down payment on a $400,000 house and financed the remaining amount with a Canadian fixed-rate mortgage.Your mortgage has a term of three years, an amortization period of 25 years, a quoted rate of 7% and payments are made monthly.Identify the correct statement.

Brian Pittman rents a living unit as a result of his membership in a nonprofit housing organization.What name is commonly used for this type of housing?

Given the following, calculate the TDS ratio.All income and expense items are annual.

The most common service provided by a real estate agent when selling your home is

Given the following, calculate the GDS ratio.All income and expense items are annual.

A property survey typically costs (for the purchase of a home)?

Renting is more advantageous than buying a home for

The main financial benefit of owning is

Qualifying for a mortgage is much different then obtaining other forms of credit.

If your CMHC premium percentage is 1.8%, what is the maximum loan to value ratio?

Renting would be most appropriate for people who

Condominiums involve the purchase of an individual living unit rather than an entire building.

Step two of the home buying process is?

Which of the following is an example of a closing cost?

As William Quintal conducts an investigation of property value factors, most real estate experts tell him that ____________ most influences the housing values in an area.

Given the following, calculate the GDS ratio.All income and expense items are annual.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 7: The Finances of Housing

Renting is more advantageous than buying a home for

A real estate agent can best assist a homebuyer by

The Gross Debt Service (GDS) ratio measures:

Lenders commonly use a TDS ratio of _________ and a GDS ratio of __________ to help determine the amount most people can comfortably afford for housing.

You made a $100,000 down payment on a $400,000 house and financed the remaining amount with a Canadian fixed-rate mortgage.Your mortgage has a term of three years, an amortization period of 25 years, a quoted rate of 7% and payments are made monthly.Identify the correct statement.

Brian Pittman rents a living unit as a result of his membership in a nonprofit housing organization.What name is commonly used for this type of housing?

Given the following, calculate the TDS ratio.All income and expense items are annual.

The most common service provided by a real estate agent when selling your home is

Given the following, calculate the GDS ratio.All income and expense items are annual.

A property survey typically costs (for the purchase of a home)?

Renting is more advantageous than buying a home for

The main financial benefit of owning is

Qualifying for a mortgage is much different then obtaining other forms of credit.

If your CMHC premium percentage is 1.8%, what is the maximum loan to value ratio?

Renting would be most appropriate for people who

Condominiums involve the purchase of an individual living unit rather than an entire building.

Step two of the home buying process is?

Which of the following is an example of a closing cost?

As William Quintal conducts an investigation of property value factors, most real estate experts tell him that ____________ most influences the housing values in an area.

Given the following, calculate the GDS ratio.All income and expense items are annual.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Lenders commonly use a TDS ratio of _ and a GDS ratio of __ to help determine the amount most people can comfortably afford for housing.