I Don't Mean to Brag - Part1
Master Your Mortgage Knowledge
Test your understanding of mortgage concepts and regulations with our "I Don't Mean to Brag - Part 1" quiz! This quiz consists of 16 questions that cover various aspects of mortgages, appraisals, and banking products.
- Multiple choice and checkbox questions
- Engaging content designed for finance enthusiasts
- Check your knowledge against industry standards
A mortgage is a document used to register the Bank's interest in a property at the land registry/land titles office.
True
False
Interest rate blending applies to fixed rate closed mortgages being renewed to a new fixed rate term before the maturity date.
True
False
Check all that apply. Indicate which of the following statements are true for an Appraisal Report.
The appraisal must be ordered by the Bank from a qualified approved appraiser who has no direct or indirect interest in the property.
A rental Schedule A must be obtained in addition to the Full Appraisal for rental properties containing 4 or less units.
All three types of appraisals (Full, Drive By and Desk Top) are required under specific circumstances.
The estimated vacant land value in the Cost Approach section of the Full Appraisal cannot be greater than 25% of the final (including building) value estimate.
A customer may prepay some or the entire mortgage early regardless of their mortgage type at anytime without prepayment costs.
True
False
Check all that apply. Which of the following prepayment options are applicable to a fixed rate closed mortgage?
Paying an extra regular mortgage payment
Paying up to 15% of the original principal amount of the mortgage
Increasing the regular monthly mortgage payment by up to 15% of the principal and interest and payment set for the term of the mortgage
No prepayment fees
Property tax rebate for up to one year
Check all that apply. Which of the following are eligibility criteria for mortgage portability?
The property is owner-occupied or rental
The original mortgage is in good standing and will be discharged before funding the new loan
A CMHC insured mortgage that was approved before April 1, 1996
A new or existing mortgage with CMHC insurance
When switching a mortgage into a STEP it must be treated as a Refinance rather than a Switch, as the existing mortgage must be discharged and a new mortgage registered.
True
False
Check all that apply. Which of the following elements make up the STEP program?
Secured borrowing with a collateral mortgage on a principal residence, cottage or rental property
Opportunities to manage interest rate risks by splitting the existing mortgage into 2 or 3 different types of mortgages and terms
Option to obtain a combination of Scotiabank products including ScotiaLine Personal Line of Credit, and Scotiabank Overdraft Protection
Ability to transfer out the mortgage to another lender regardless of the amount and the interest rate
No banking fees charged to the customer
What type of property is allowed under STEP?
Primary Residence
Cottage/Leisure Home Property
Rental Property
All of the above
What is the maximum Loan to Value Ratio on STEP?
Insured, up to 95%
Uninsured, up to 90%
Uninsured, up to 85%
Insured, up to 75%
What is the maximum Global Limit on a STEP?
80% of the lending value
80% of the purchase price of the residence
80% of the appraised value of the property
The global limit is not applicable to STEP
The Scotia Flex Value Mortgage is not available for pre-approvals, or construction mortgages.
True
False
What type of property is eligible for the Scotia Flex Value Mortgage?
Existing properties with a maximum of 4 units, new construction completion only, owner occupied, rental properties
Existing properties with a maximum of 4 units, new construction, progress draw, owner occupied, rental properties
Existing properties with a maximum of 4 units, owner occupied, rental properties
Existing properties with a maximum of 4 units, new construction completion only, owner occupied
What type of product is the Scotia Flex Value Mortgage?
5-year variable rate mortgage with an interest rate and payment amount that changes with the Scotiabank Prime Rate.
5-year variable rate mortgage with an interest rate, less applicable discount set for a 6 month period, and payment amount fixed for a 6 month period.
5-year variable rate mortgage with an interest rate, less applicable discount that changes with Scotiabank Prime Rate and payment amount that is fixed throughout the 5 year term.
5-year variable rate mortgage with an interest rate, discounts and payment that change with the Scotiabank Prime Rate.
What is a Long & Short Mortgage?
It is a preset STEP option that allows customers to take advantage of mortgage laddering by combining the low rate and payment of a variable rate mortgage with the protection of a competitively priced long-term fixed rate mortgage.
It is a preset STEP option that allows customers to take advantage of mortgage laddering by combining the protection of a variable rate mortgage with the low rate and payment of a competitively priced long-term fixed rate mortgage.
It is two separate mortgages, primary and secondary, that take advantage of mortgage laddering by combining the low rate and payment of a variable rate mortgage with the protection of a competitively priced long-term fixed rate mortgage.
It is a limited-time offer that combines a 1-year closed term, fixed rate mortgage with a 7-year closed term, fixed rate mortgage.
What are the mortgage components of a Long & Short Mortgage?
50% of the required mortgage amount must be placed in a 5-year fixed rate, closed term mortgage and 50% of the required mortgage amount must be placed in a variable rate component.
50% of the required mortgage amount must be placed in a 3-year fixed rate, closed term mortgage and 50% of the required mortgage amount must be placed in a variable rate component.
25% of the required mortgage amount must be placed in a 5-year fixed rate, closed term mortgage and 75% of the required mortgage amount must be placed in a variable rate component.
The HFA and customer determine the best ratio for the mortgage amount of fixed rate to variable rate terms depending upon the customer’s situation.
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