I Don't Mean to Brag - Part1 | Take the Quiz

Create an engaging and educational image depicting various elements of mortgages, such as homes, financial documents, interest rates, and appraisers, with a welcoming and informative style.

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.

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17 Questions4 MinutesCreated by NavigatingNiche321

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.

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 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

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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I Don't Mean to Brag - Part1

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