Mortgage Broker Exam 2024 With 100% Correct Answers

Latent Value {Ans: The value possessed by a property which has potential for redevelopment because it is currently not employed at its highest and best use}Income approach {Ans: immediate repair & leasing inducement are not on-going item and be deducted from valuation; Owner/investors specific items are excluded e.g. debt service, depreciation, income tax etc.}Purchase cost {Ans: Purchase price + legal, appaisal, etc.}Prepayment privilege in the Interest Act {Ans: Right of prepayment for an "individual" for mortgage term over 5 years. Term includes any extensions unless date of mortgage changed to renewal date (mutually agreed).}Total Debt Service Ratio {Ans: (PIT + other debt)/Annual Salary}Lending Value {Ans: long term conservative estimate of value}