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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What is correct about mortgage default insurance?

Is currently offered by private insurers as well as Canada Mortgage and Housing Corporation.
Is the same as creditor life insurance.
Permits qualified borrowers to arrange a mortgage subject to a minimum 10% down payment.
Provides protection for mortgagors in the case of critical illness and death.

The correct answer is: Is currently offered by private insurers as well as Canada Mortgage and Housing Corporation.

Mortgage default insurance is a type of insurance that protects the lender in case the borrower defaults on the loan. The correct answer is A because mortgage default insurance is offered by private insurers as well as Canada Mortgage and Housing Corporation (CMHC). This is an important point to note as it provides borrowers with the flexibility to choose from different insurance providers when obtaining this type of insurance. It is crucial for individuals purchasing a home with less than a 20% down payment to secure mortgage default insurance to protect the lender against the risk of default.