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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Which statement regarding mortgage lending sources in Ontario is correct?

Credit unions fund residential mortgages but only to their members.
Life insurance companies are an example of an unregulated lending source.
The Ontario mortgage market relies solely on banks to fund residential mortgages.
Private mortgages are not regulated under the Mortgages Act.

The correct answer is: Credit unions fund residential mortgages but only to their members.

Credit unions are financial institutions that primarily serve members of a specific community or group. This means that they may have specific eligibility requirements for obtaining a residential mortgage loan, such as being a member of the credit union. Therefore, the statement that credit unions fund residential mortgages but only to their members is correct. Option B is incorrect because life insurance companies are regulated under the Insurance Companies Act in Ontario, and therefore cannot be considered an unregulated lending source. Option C is incorrect because while banks do play a significant role in the Ontario mortgage market, they are not the sole source of funding for residential mortgages. Private mortgages, as mentioned in option D, are not regulated under the Mortgages Act but can still be used as a lending source in Ontario. However, this does not make option D the correct answer, as it does not fully answer the question and is not specific to Ontario only. Therefore, the best answer is option A.