Ontario Mortgage Agent Practice Exam

When is a tax bill required?

1. A) During a new mortgage application

2. B) When conducting a property assessment

3. C) In a switch or refinance

4. D) Only for commercial properties

The correct answer is: C) In a switch or refinance

A tax bill is not required during a new mortgage application, as this process focuses primarily on obtaining a loan for a property. A tax bill may be requested as proof of payment, but it is not a requirement. Similarly, a tax bill is not required when conducting a property assessment, as this process assesses the value of a property for tax purposes, but does not require proof of payment. A tax bill is only required during a switch or refinance, as the lender will need to verify the current property taxes and any outstanding payments before proceeding with the loan. Additionally, a tax bill is not only for commercial properties, as it is required for any type of property with annual taxes.