24 Questions
Which of the following is considered a form of secondary identification?
Birth certificate issued in Canada
What criteria must be met for identification to be considered authentic for identity verification?
Include a photo of the person
In the case of Mary reviewing an Ontario driver's license, why should she not accept the identification?
The license number is too long with 16 digits
Which of the following would not be classified as secondary identification?
Foreign passport
What distinguishes a co-applicant from a co-signer and a guarantor?
A co-applicant is never financially responsible for the debt
Which of the following is a requirement for identification to be considered authentic?
Include a unique identifying number
How many pieces of identification are typically required by lenders to comply with Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)?
Two pieces of identification
Which of the following is NOT a form of primary identification according to the text?
Social Insurance Number card
Which of the following statements is TRUE according to the text?
Two forms of primary identification can be used
Which of the following is a form of primary identification according to the text?
Certificate of Canadian Citizenship (containing your photograph)
What is the purpose of the identification requirement mentioned in the text?
To comply with Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
Which of the following combinations of identification is acceptable according to the text?
A Nexus/CANPASS card and a Firearms Licence
What is the main difference between a co-applicant and a co-signer?
A co-applicant's income is included in mortgage calculations, while a co-signer's income is not.
Why might a co-signer be required for a mortgage application?
If the applicant does not have sufficient income to qualify.
What is the role of a guarantor in a mortgage application?
To guarantee that the applicant will meet their obligations.
Why might a guarantor be required in a mortgage application?
If the applicant does not have sufficient income and requires extra assurance.
How is a personal covenant different from a legal covenant tied to a property?
Personal covenants are tied to an individual, while legal covenants are not tied to properties.
In what circumstance would a co-applicant's income and debts NOT be included in mortgage calculations?
If the co-applicant has poor credit but enough income.
What does a mortgage borrower in Canada pledge as collateral?
Real property and personal covenant
What does the 'Character' component of the 5 Cs of Credit refer to?
The borrower's stability and traits unrelated to collateral or finances
Why is a borrower's failure to pay child support considered a negative factor in the 'Character' component?
It indicates the borrower may be irresponsible with finances
What is the purpose of a budget according to the Financial Consumer Agency of Canada?
To help manage money and balance income with expenses and savings
Why is creating a budget important for a potential mortgage borrower?
To determine if they can afford the mortgage based on their current lifestyle
What are the 5 Cs of Credit?
Credit, Collateral, Capacity, Character, Capital
Learn about the identification requirements under Canada's Proceeds of Crime (Money Laundering) and terrorist Financing Act (PCMLTFA) for lenders. Understand the importance of verifying borrower's identification with typically two pieces of identification.
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