Ontario Mortgage Agent Practice Exam

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Study for the Ontario Mortgage Agent Exam. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your test!

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List the specific costs that must be included when calculating the cost of borrowing.

Appraisal, inspection or survey costs payable by the borrower, when required by the lender
Insurance charges, excluding those below
Administrative charges including charges for services, transactions or any other activity in relation to the mortgage
H/C: highest credit on the account; highest amounts owed

The correct answer is: Appraisal, inspection or survey costs payable by the borrower, when required by the lender

When calculating the cost of borrowing, there are several expenses that must be taken into consideration. Option A refers to appraisal, inspection, or survey costs that may be required by the lender. This may include paying for a professional appraiser to determine the value of the property being used as collateral for the loan. Option B, insurance charges, may also be included, but not those that are specifically listed in the other choices. Option C, administrative charges, may include fees for services related to the mortgage, such as loan origination fees or processing fees. Option D is incorrect because it refers to other factors unrelated to the cost of borrowing, such as credit history or credit limits. Therefore, the correct answer is A.