Real Estate: Chapter 10 Borrower Disclosure True/False Quiz

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What does APR stand for?

Actual Percentage Rate (correct)

Annual Percentage Ratio

Average Percentage Rate

Accumulated Percentage Rate

When must the borrower disclosure be given to the borrower?

1 week before entering the mortgage

24 hours before entering the mortgage

72 hours before entering the mortgage

2 business days before entering the mortgage (correct)

What does PST on a default premium need to be included in?

Added to the APR calculation

Included in the cost of borrowing (correct)

Considered as an upfront fee

Excluded from 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 Signup and view all the answers

What is required for waiving the two business days timing requirement for providing disclosure to a borrower?

Consent in writing from the borrower Signup and view all the answers

What specific costs must be included when calculating the cost of borrowing?

Tax on the premium of a default Signup and view all the answers

What must be disclosed to the borrower according to the text?

The nature of the relationship between the brokerage and the borrower Signup and view all the answers

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 Signup and view all the answers

What should be disclosed in the borrower disclosure document according to the text?

Lender's terms and conditions Signup and view all the answers

Is it necessary to provide an exact dollar amount in the cost of borrowing if the cost is unknown?

Yes, it must be shown Signup and view all the answers

Are lawyer's fees, excluding disbursements, part of the cost of borrowing?

No, only disbursements are included Signup and view all the answers

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 Signup and view all the answers

How should the cost of borrowing be expressed in a borrower disclosure form?

As a percentage, in dollars and cents Signup and view all the answers

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 Signup and view all the answers

How should an unknown cost be disclosed?

As an annual percentage rate and in dollars and cents over the term Signup and view all the answers

Who is responsible for paying the lawyer's fees in the majority of cases mentioned in the text?

The borrower Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

What information must a brokerage disclose to a borrower upon request, according to Regulation 188/08?

Whether the brokerage acted for the lender Signup and view all the answers

Which relationship can a brokerage have with a borrower, as mentioned in the text?

Acting for both the borrower and the lender Signup and view all the answers

How are brokerage fees regulated according to the MBLAA?

Not regulated by the MBLAA Signup and view all the answers

Which legislation prohibits the cost of borrowing from exceeding 60% APR?

Criminal Code of Canada Signup and view all the answers

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% Signup and view all the answers

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 Signup and view all the answers