Humber/Ontario Real Estate Course 2 Exam Practice

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For a buyer submitting an offer of $252,000 with a $10,000 deposit and arranging a $172,000 mortgage, what is the balance due on closing?

  1. $252,000

  2. $242,000

  3. $70,000

  4. Cannot be determined based on details

  5. $252,000 plus deposit

  6. Entire amount minus mortgage

The correct answer is: $242,000

In this scenario, the balance due on closing can be calculated by subtracting the deposit and the mortgage amount from the offer amount. $252,000 (Offer amount) - $10,000 (Deposit) - $172,000 (Mortgage) = $242,000 Therefore, the correct answer is B. This is the amount that the buyer would need to pay on closing day after taking into account both the deposit and the mortgage amount. Option A is incorrect because it only represents the offer amount, not the balance due on closing. Option C is incorrect as it does not consider the deposit and the mortgage. Option D is also incorrect as the balance due can indeed be determined based on the details provided. Option E is incorrect because it only adds the deposit to the offer amount, not the balance due on closing. Option F is incorrect because it does not calculate the balance due accurately, as it suggests subtracting the mortgage from the offer amount without considering the deposit.

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