Exam 2: Managing Your Financial Resources - Purchasing and Financing a Home

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

Jane's monthly gross income is $4000 and her debt payments are $400 per month.Given a GDS limit of 320 percent and TDS limit of 40 percent,she will be able to qualify for mortgage-related debt payments of $1200 per month.

For a 25-year mortgage of $300 000 with monthly payments of $1745 and interest rate of five percent compounded semi-annually,the amount of principle paid off over five years would be approximately $34 500.

Which of the following is true about the Home Buyers' Plan?

What is the best advice regarding mortgage financing?

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

It is impossible to finance a home purchase worth $210 000 with only $10 500 to put down.

A house for sale is listed at $310 000 and you manage to win the competitive bid with an offer of $312000 .The appraisal indicates the value at $295 000.What will be the conventional mortgage loan amount approved by the bank?

Loan protection life and disability insurance protects the lending institution against financial loss as a result of injury,illness,or death of the borrower.

Is purchasing a home an expense,an investment,or both? How important is it to consider how long you plan to remain in one location in order to determine the value in purchasing?

Which of the following is true regarding conventional mortgages?

When is refinancing a home worthwhile?

The highest current CMHC premium is

Which payment frequency,all else being equal,will generally save you the most interest over the life of your mortgage?

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

It is a good idea not to disclose defects of the home you are trying to sell,since these will adversely affect your selling price or your ability to sell your home quickly.

A high ratio mortgage refers to a mortgage where the down payment is less than 10% of the home's appraised value.

In order to be guaranteed to be approved for a mortgage,you should first acquire a pre-approval certificate.

Discuss in detail all of the factors that may affect the value of your investment in a home in the future.

Which of the following costs associated with home ownership is hardest to budget for?