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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What kind of mortgage covers more than one property?

Reverse mortgage
Second mortgage
Blanket mortgage
Open mortgage
Closed mortgage
Bridge mortgage

The correct answer is: Blanket mortgage

A blanket mortgage is a type of mortgage that covers more than one property. This type of mortgage is often used by real estate developers or investors who own multiple properties and want to consolidate them under one loan. With a blanket mortgage, the borrower can use the equity in all the properties as security for the loan. This can be a beneficial financing option for those looking to streamline their borrowing and potentially obtain better terms compared to individual mortgages on each property. - A reverse mortgage is a loan for homeowners age 62 and older that allows them to convert a portion of their home equity into cash. - A second mortgage is a subordinate mortgage taken out on a property that already has a first mortgage. - An open mortgage allows the borrower to repay the loan in full at any time without penalty. - A closed mortgage has prepayment restrictions, meaning the borrower cannot pay off the mortgage before the end of the term without triggering penalties. - A bridge mortgage is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing property.