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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Mr. Serrano needs a mortgage for his condo unit purchase. Which cost would NOT arise in his situation?

Appraisal fees for the lender's market value assessment.
Application fees or specialist fees for mortgage processing.
Insurance premium for title insurance.
Land transfer tax based on the mortgage's principal amount.
Legal fees for preparing and registering mortgage documents.
Title search fees for property ownership history.

The correct answer is: Land transfer tax based on the mortgage's principal amount.

In Mr. Serrano's situation, the cost that would NOT arise is the Land transfer tax based on the mortgage's principal amount. Land transfer tax is a fee that buyers pay to the provincial government upon the purchase of a property. This tax is typically based on the purchase price of the property, not the mortgage amount. Therefore, in this scenario, where Mr. Serrano is obtaining a mortgage for his condo unit purchase, the land transfer tax would be based on the purchase price of the property, not the mortgage amount. This makes option D the correct answer. The other options, such as appraisal fees, application fees, insurance premiums for title insurance, legal fees, and title search fees, are all costs that can be associated with obtaining a mortgage for a property purchase.