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!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What risks must be disclosed to a borrower with cash back options?

The weather forecast for the next year
The closing costs for the property
The risks of refinancing during the mortgage term
The risks of renting out the property

The correct answer is: The risks of refinancing during the mortgage term

It is important for a borrower to be aware of all potential risks associated with a mortgage, including the risks of refinancing during the mortgage term. A borrower should be informed that refinancing may result in changes to their interest rate, monthly payments, and overall mortgage terms. This option is correct because it directly addresses the disclosure of risks to the borrower with cash back options. Option A is incorrect because the weather forecast would have no bearing on a borrower's decision to choose a cash back option. Option B is incorrect because the closing costs for a property would also not directly pertain to the risks of cash back options. Option D is incorrect because it deals with the risks of renting out a property, which is unrelated to the question and would not be a relevant disclosure for a borrower considering cash back options.