HUMBER REAL ESTATE EXAM 2026/2027 STUDY GUIDE
QUESTIONS AND ANSWERS RATED A+
✔✔What is a fixed rate? - ✔✔A set interest rate.
the interest rate remains the same throughout the entire mortgage term. This means
your monthly payments, which include both principal and interest, will be consistent
throughout the term, regardless of fluctuations in the broader market interest rates.
✔✔What is a variable rate? - ✔✔Varies with adjusted payment or amortization. A
variable rate mortgage is a type of home loan where the interest rate is not fixed, but
instead fluctuates over time based on the prime rate set by the lender. This means your
monthly payments can change as interest rates change. While variable rates often start
lower than fixed rates, they also carry the risk of increasing if the prime rate rises.
✔✔What are the Mortgagee rights? (lender) - ✔✔Has a right to:
Assign: Mortgagee can sell, transfer, or assign; mortgagor must be notified. mortgagor
does not take on any additional obligations as a result of the assignment.
Be Paid: Principal plus interest as per mortgage. if all covenants (promises) are
performed, discharge of mortgage is given.
✔✔What are the mortgagor rights? (borrower) - ✔✔Has a right to:
Quiet Possession: Allowed peaceful possession and right to use, maintain and care for
the property subject to normal wear/ tear
Redeem: Mortgagor has the right to sell, mortgage or otherwise deal with the
mortgaged property; cannot be stopped from the ability to redeem the property free of
debt.
Discharge: Right to discharge when the mortgage is paid off. The mortgagor can obtain
a court order to discharge if necessary.
✔✔What are the mortgagors privileges? - ✔✔- prepayment arrangements
- renewal
- transfer
- postponement
- discharge penalty
✔✔What are the 6 legal remedies for mortgage default? (mortgagee's legal rights) -
✔✔- foreclosure
- judicial sale
- quit claim deed
, - payment (personal covenant)
- possession by mortgagee
- power of sale
✔✔What is depth? - ✔✔the front to rear lot distance
✔✔What is width? - ✔✔the side to side lot distance
✔✔What is area? - ✔✔The site size
✔✔How can you verify lot size? - ✔✔Geowarehouse. municipal property assessment
corporation (MPAC), and municipal tax statements.
✔✔What two parts does the surveyor's real property report consist of? - ✔✔1. Plan of
survey (diagram)
2. Written Report (property information)
✔✔What does structural integrity involve? - ✔✔1. Footings and Foundation
2. Framing, Floors, and Walls
3. Roof
✔✔What are footings? - ✔✔Widened section at the foundation base (typically concrete)
that transmits the weight of the structure to the ground.
a footing is the wider, base component of a foundation that directly contacts the soil and
distributes the weight of a structure
✔✔What is foundation? - ✔✔Transmits structural weight to the footing, acts as a
retaining wall to withstand lateral pressure from outside soil, transmits structural weight
below the frost line to avoid heaving.
The foundation, which includes the footing and any supporting walls or slabs, transfers
the load from the superstructure to the ground.
✔✔What are some common foundation problems? - ✔✔- foundation moves inwards
(deflection) and structurally fails (possible solution to this is tiebacks, buttresses, new
wall outside the old one, or replace.
- foundation cracks appear due to movement
- moisture penetration occurs (efflorescence is a tell tale sign - whitish salt stain on
inside of foundation wall). Moisture issues are commonly due to lack of proper drainage.
✔✔What are posts/columns? - ✔✔Can be steel, wood, or poured concrete (or block).
They carry beam load to the footing and act as a retaining wall to withstand lateral
QUESTIONS AND ANSWERS RATED A+
✔✔What is a fixed rate? - ✔✔A set interest rate.
the interest rate remains the same throughout the entire mortgage term. This means
your monthly payments, which include both principal and interest, will be consistent
throughout the term, regardless of fluctuations in the broader market interest rates.
✔✔What is a variable rate? - ✔✔Varies with adjusted payment or amortization. A
variable rate mortgage is a type of home loan where the interest rate is not fixed, but
instead fluctuates over time based on the prime rate set by the lender. This means your
monthly payments can change as interest rates change. While variable rates often start
lower than fixed rates, they also carry the risk of increasing if the prime rate rises.
✔✔What are the Mortgagee rights? (lender) - ✔✔Has a right to:
Assign: Mortgagee can sell, transfer, or assign; mortgagor must be notified. mortgagor
does not take on any additional obligations as a result of the assignment.
Be Paid: Principal plus interest as per mortgage. if all covenants (promises) are
performed, discharge of mortgage is given.
✔✔What are the mortgagor rights? (borrower) - ✔✔Has a right to:
Quiet Possession: Allowed peaceful possession and right to use, maintain and care for
the property subject to normal wear/ tear
Redeem: Mortgagor has the right to sell, mortgage or otherwise deal with the
mortgaged property; cannot be stopped from the ability to redeem the property free of
debt.
Discharge: Right to discharge when the mortgage is paid off. The mortgagor can obtain
a court order to discharge if necessary.
✔✔What are the mortgagors privileges? - ✔✔- prepayment arrangements
- renewal
- transfer
- postponement
- discharge penalty
✔✔What are the 6 legal remedies for mortgage default? (mortgagee's legal rights) -
✔✔- foreclosure
- judicial sale
- quit claim deed
, - payment (personal covenant)
- possession by mortgagee
- power of sale
✔✔What is depth? - ✔✔the front to rear lot distance
✔✔What is width? - ✔✔the side to side lot distance
✔✔What is area? - ✔✔The site size
✔✔How can you verify lot size? - ✔✔Geowarehouse. municipal property assessment
corporation (MPAC), and municipal tax statements.
✔✔What two parts does the surveyor's real property report consist of? - ✔✔1. Plan of
survey (diagram)
2. Written Report (property information)
✔✔What does structural integrity involve? - ✔✔1. Footings and Foundation
2. Framing, Floors, and Walls
3. Roof
✔✔What are footings? - ✔✔Widened section at the foundation base (typically concrete)
that transmits the weight of the structure to the ground.
a footing is the wider, base component of a foundation that directly contacts the soil and
distributes the weight of a structure
✔✔What is foundation? - ✔✔Transmits structural weight to the footing, acts as a
retaining wall to withstand lateral pressure from outside soil, transmits structural weight
below the frost line to avoid heaving.
The foundation, which includes the footing and any supporting walls or slabs, transfers
the load from the superstructure to the ground.
✔✔What are some common foundation problems? - ✔✔- foundation moves inwards
(deflection) and structurally fails (possible solution to this is tiebacks, buttresses, new
wall outside the old one, or replace.
- foundation cracks appear due to movement
- moisture penetration occurs (efflorescence is a tell tale sign - whitish salt stain on
inside of foundation wall). Moisture issues are commonly due to lack of proper drainage.
✔✔What are posts/columns? - ✔✔Can be steel, wood, or poured concrete (or block).
They carry beam load to the footing and act as a retaining wall to withstand lateral
