Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

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Investor Wilson acquires both residential and commercial real estate for investment purposes. As such, she could rely on various sources to secure mortgage financing. Which of the following statements is correct in that regard?

Pension funds account for nearly two-thirds of all residential mortgages placed in Ontario.
A life insurance company is not permitted to secure mortgage financing.
Mortgage funds from private investors are restricted by extensive legislation.
Trust or loan companies may offer additional flexibility compared to chartered banks.

The correct answer is: Trust or loan companies may offer additional flexibility compared to chartered banks.

Trust or loan companies may offer additional flexibility compared to chartered banks as they are not subject to the same regulations and restrictions. However, this does not mean that mortgage funds from private investors are restricted by extensive legislation or that a life insurance company is not permitted to secure mortgage financing. Additionally, while pension funds may account for a significant portion of residential mortgages in Ontario, they may not necessarily be the most common or reliable source for Wilson to secure mortgage financing for her investment properties. Therefore, D is the most accurate and applicable statement in regards to Wilson's options for mortgage financing as an investor in both residential and commercial real estate.