Understanding Home Buying in Canada

What is a fixed-rate mortgage?

• A mortgage where the interest rate changes every year.

• A mortgage where the interest rate remains the same throughout the term.

• A mortgage where the interest rate is fixed for the first year only.

• A mortgage where the interest rate is fixed for the first five years.

What is typically the first step in the home buying process?

• Making an offer on a house.

• Getting pre-approved for a mortgage.

• Hiring a real estate agent.

• Closing the deal.

What is a common percentage range for a down payment on a house in the U.S.?

• 1-5%

• 10-20%

• 25-30%

• 35-40%

Which of the following is NOT typically included in a monthly mortgage bill?

• Principal repayment

• Property taxes

• Home insurance

• Utility bills

What is one advantage of buying a home?

• Guaranteed increase in property value.

• Fixed monthly rent payments.

• Building equity over time.

• No maintenance responsibilities.

What is one disadvantage of buying a home?

• Lack of privacy.

• High mobility and flexibility.

• Responsibility for maintenance and repairs.

• No tax benefits.

How does a fixed-rate mortgage benefit the homeowner?

• It allows for lower initial payments.

• It provides predictable monthly payments.

• It offers a lower interest rate than variable-rate mortgages.

• It requires no down payment.

What is the typical term length for a fixed-rate mortgage in the U.S.?

• 5 years

• 10 years

• 15 or 30 years

• 50 years

Which of the following is a step in the closing process of buying a home?

• Getting pre-approved for a mortgage.

• Conducting a home inspection.

• Making an offer.

• Signing the closing documents.

What is equity in the context of home ownership?

• The total amount of money paid towards the mortgage.

• The difference between the home's market value and the outstanding mortgage balance.

• The initial down payment made on the home.

• The interest paid on the mortgage.