Free Ontario Mortgage Agent Level 1 practice questions.
Fifteen exam-trap quiz questions, five deep client cases, five flip flashcards and five Concept Vault challenges. Finish to unlock 25 more questions using your email only.
Sample Ontario Mortgage Agent Level 1 practice questions with answers
Preparing for your Ontario Mortgage Agent Level 1 exam means understanding the reason behind a decision. The interactive free test above covers calculations, mortgage concepts, client situations and exam traps. These three additional original examples show how to work through a question and explain the answer. They are supplemental practice, not past or official licensing-exam questions.
Example 1: Calculate loan-to-value (LTV)
A client buys a home for $500,000 and provides a $100,000 down payment. Assuming the value used for lending is $500,000, what is the loan-to-value ratio?
Answer: 80%. The proposed mortgage is $400,000. Divide $400,000 by $500,000 and multiply by 100. Exam trap: Using the down payment as the numerator gives 20%, which is the down-payment percentage, not LTV.
Example 2: Distinguish mortgage term and amortization
A client chooses a five-year mortgage term with a 25-year amortization schedule. What typically happens when the five-year term ends?
Answer: The term ends, but a principal balance will ordinarily remain. The borrower usually considers renewal, refinancing or paying the outstanding amount, according to the contract and lender's terms. Exam trap: A five-year term does not mean a mortgage on a 25-year amortization schedule was designed to be repaid in five years. Read our guide to mortgage term and amortization.
Example 3: Interpret gross debt service (GDS)
A borrower earns $9,000 in gross income each month. The monthly housing costs counted for GDS total $2,700. What is the GDS ratio for this example?
Answer: 30%. Divide $2,700 by $9,000 and multiply by 100. Exam trap: Use gross income and the applicable housing-cost components, not the borrower's take-home pay. Learn more in our GDS/TDS worked examples and free mortgage calculators.
What happens after the free practice test?
You can try the first 30 interactive learning activities without an account or payment. After the preview, you can optionally unlock 25 additional questions by email. If you need chapter-by-chapter study, more cases, calculation practice and a timed mock exam, explore the full Level 1 preparation course. Check our Ontario mortgage-agent licensing guide for the separate official education and licensing steps.