Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 2 Exam with our comprehensive quiz that covers essential concepts and topics. Enhance your understanding with multiple choice questions designed to test your knowledge and boost your confidence before the exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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A buyer is purchasing a property for $422,900 with a $30,000 deposit and $250,000 first mortgage. The seller agrees to a $40,000 second mortgage. What is the balance due on closing?

$392,900
$422,900
$152,900
$352,900
$300,000
$250,900

The correct answer is: $352,900

In this scenario, the buyer is purchasing a property for $422,900 with multiple sources of financing. The buyer made a $30,000 deposit and has a first mortgage of $250,000. Additionally, the seller agreed to a $40,000 second mortgage. To calculate the balance due on closing, you would add up all the sources of financing and deduct them from the total purchase price: $30,000 (deposit) + $250,000 (first mortgage) + $40,000 (second mortgage) = $320,000 $422,900 (total purchase price) - $320,000 = $102,900 Therefore, the correct answer is $352,900 (Option D) as this is the balance due on closing after taking into account the deposit and mortgages.