Ontario Mortgage Agent Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

Under what circumstances must a Mortgage Agent complete a Creditor Insurance Application?

A) Only if the borrower requests it

B) Not required for refinancing transactions

C) Must be completed in every transaction

Creditor insurance is additional insurance that can be purchased to cover a borrower's mortgage in case of death, disability, or job loss. It is an important protection for both the borrower and the lender in the event that the borrower is unable to make mortgage payments. Because it is an added expense for the borrower, it is important that a mortgage agent only suggests it when it is truly necessary. That is why, under most circumstances, a mortgage agent is required to complete a creditor insurance application in every transaction. This eliminates any bias or self-interest in recommending creditor insurance and ensures that the borrower is given accurate and complete information about this option. Therefore, options A, B, and D are incorrect because they all suggest that completing a creditor insurance application is not necessary in certain situations, while in reality it is required in the majority of transactions.

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D) Optional for first-time homebuyers

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