Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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A buyer is purchasing a property for $422,900 with a $30,000 deposit and $250,000 first mortgage. The seller agrees to a $40,000 second mortgage. What is the balance due on closing?

$392,900
$422,900
$152,900
$352,900
$300,000
$250,900

The correct answer is: $352,900

In this scenario, the buyer is purchasing a property for $422,900 with multiple sources of financing. The buyer made a $30,000 deposit and has a first mortgage of $250,000. Additionally, the seller agreed to a $40,000 second mortgage. To calculate the balance due on closing, you would add up all the sources of financing and deduct them from the total purchase price: $30,000 (deposit) + $250,000 (first mortgage) + $40,000 (second mortgage) = $320,000 $422,900 (total purchase price) - $320,000 = $102,900 Therefore, the correct answer is $352,900 (Option D) as this is the balance due on closing after taking into account the deposit and mortgages.