24 Questions
What does APR stand for?
Actual Percentage Rate
When must the borrower disclosure be given to the borrower?
2 business days before entering the mortgage
What does PST on a default premium need to be included in?
Included in the cost of borrowing
Which information must be included in a borrower disclosure form?
Number of lenders represented by the brokerage in the previous year
What is required for waiving the two business days timing requirement for providing disclosure to a borrower?
Consent in writing from the borrower
What specific costs must be included when calculating the cost of borrowing?
Tax on the premium of a default
What must be disclosed to the borrower according to the text?
The nature of the relationship between the brokerage and the borrower
Is it required to include the insurance fee in the cost of borrowing if the mortgage is default insured by CMHC?
No, it does not have to be included
What should be disclosed in the borrower disclosure document according to the text?
Lender's terms and conditions
Is it necessary to provide an exact dollar amount in the cost of borrowing if the cost is unknown?
Yes, it must be shown
Are lawyer's fees, excluding disbursements, part of the cost of borrowing?
No, only disbursements are included
In a borrower disclosure document, should it state 'refer to the lender’s commitment' regarding terms and conditions?
No, it should include those terms and conditions
How should the cost of borrowing be expressed in a borrower disclosure form?
As a percentage, in dollars and cents
In what cases is a potential conflict of interest present according to the text?
When the broker has to choose between their best interests and those of the borrower
How should an unknown cost be disclosed?
As an annual percentage rate and in dollars and cents over the term
Who is responsible for paying the lawyer's fees in the majority of cases mentioned in the text?
The borrower
Under what circumstances does a brokerage have to disclose the name of any lender used to fund over 50% of the mortgages?
Regardless of any particular circumstances
For which costs is the borrower responsible when required by the lender according to the text?
Appraisal, inspection, or survey costs when required by the lender
What information must a brokerage disclose to a borrower upon request, according to Regulation 188/08?
Whether the brokerage acted for the lender
Which relationship can a brokerage have with a borrower, as mentioned in the text?
Acting for both the borrower and the lender
How are brokerage fees regulated according to the MBLAA?
Not regulated by the MBLAA
Which legislation prohibits the cost of borrowing from exceeding 60% APR?
Criminal Code of Canada
What specific information must be disclosed to a borrower regarding mortgages arranged by a brokerage in the previous fiscal year?
The lender's name if mortgages exceeded 50%
Which component is included in the cost of borrowing that should not exceed 60% APR?
Fees and costs payable by the borrower in addition to interest
Test your knowledge of borrower disclosure in real estate transactions with this true/false quiz based on Chapter 10. Questions cover topics such as disclosing the brokerage's role and relationship with the borrower and lender.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
