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.

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Investor Moore's company is buying existing mortgages to generate future income. Where are these mortgages acquired?

Primary mortgage market.
Secondary mortgage market.
Only from financial institutions.
Sub-prime mortgage market.
International market.
Local credit unions.

The correct answer is: Secondary mortgage market.

In this scenario, Investor Moore's company is purchasing existing mortgages to generate future income. The correct answer is the secondary mortgage market. The secondary mortgage market is where existing mortgages are bought and sold between financial institutions, government-sponsored enterprises, and private investors. By participating in the secondary mortgage market, Investor Moore's company can acquire these existing mortgages to generate income through interest payments from borrowers. The other options are not the correct answers for this question: A. The primary mortgage market is where borrowers obtain mortgage loans directly from lenders. C. Mortgages can be acquired from various sources, not limited only to financial institutions. D. The sub-prime mortgage market refers to loans issued to borrowers with higher credit risk. E. The international market is not typically where mortgages are acquired in this context. F. Local credit unions are specific financial institutions and not the primary market for buying existing mortgages.