Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Course 2 Exam with our comprehensive practice tests. Study with flashcards, multiple choice questions, and detailed explanations to ensure you are ready for exam day!

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Buyer Smith wants to buy a $600,000 log home and needs a $334,000 mortgage. With a three-year term, 15-year amortization, and a 7.5% interest rate, what would the monthly payments be if the payment factor is 9.205137?

$3,075
$2,505
$3,843
$5,523

The correct answer is: $3,075

To calculate the monthly mortgage payment, you can use the formula for mortgage payments: M = P * f Where: M = Monthly payment P = Mortgage amount f = Payment factor In this case: P = $334,000 f = 9.205137 Substitute the values into the formula: M = $334,000 * 9.205137 M = $3,075 Therefore, the correct answer is A: $3,075. Options B, C, and D are incorrect because they do not reflect the accurate calculation based on the given mortgage amount, payment factor, and formula for mortgage payments.