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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Which of the following statements about a mortgage commitment is true?

It is equivalent to a buyer's pre-approval.
It generally includes conditions, such as satisfactory title.
It is unconditional and guaranteed.
It is exclusively for conventional mortgages.
It contains no terms or conditions.
It does not obligate the lender to provide the mortgage on the stipulated terms.

The correct answer is: It generally includes conditions, such as satisfactory title.

A mortgage commitment generally includes conditions, such as satisfactory title, which need to be met before the lender finalizes the mortgage. This means that the lender has not yet made an unconditional guarantee to provide the mortgage and certain conditions must still be fulfilled. It is important for both buyers and sellers to understand these conditions before the mortgage can be fully approved and finalized. The other options are incorrect because a mortgage commitment is not equivalent to a buyer's pre-approval, it is not unconditional and guaranteed, it is not exclusively for conventional mortgages, and it does contain terms and conditions that need to be met.