Humber/Ontario Real Estate Course 2 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

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!

Practice this question and more.

If Buyer Maclean's mortgage default insurance premium is $3,500 based on 1.75% of the loan amount, and the loan is 84% of the lending value, what is the appraised lending value?

$200,000
$238,095
$236,873
$197,600

The correct answer is: $238,095

To calculate the appraised lending value, we first need to determine the loan amount. Since the mortgage default insurance premium is $3,500 and it is 1.75% of the loan amount, we can set up the following equation: 1.75% of Loan Amount = $3,500 Now, let's solve for the loan amount: Loan Amount = $3,500 / 1.75% Loan Amount = $3,500 / 0.0175 Loan Amount = $200,000 Given that the loan is 84% of the lending value, we can find the lending value by setting up the following equation: Loan Amount = 84% of Lending Value Now, to solve for the lending value: $200,000 = 0.84 * Lending Value Lending Value = $200,000 / 0.84 Lending Value = $238,095 Therefore, the correct answer is B. $238,095.