Humber/Ontario Real Estate Course 3 Exam Practice

In which market is investor Chan purchasing existing mortgages for the investment company's portfolio?

1. Sub-prime mortgage market

2. Primary mortgage market

3. Secondary mortgage market

4. Only from financial institutions

5. Stock market

6. Real estate investment market

The correct answer is: Primary mortgage market

Investor Chan is purchasing existing mortgages for the investment company's portfolio in the Primary mortgage market. The primary mortgage market is where individuals can obtain bank loans directly from lenders, such as banks, credit unions, or other financial institutions. In this market, borrowers can apply for a mortgage loan to purchase real estate properties. The other options are incorrect because: - The Sub-prime mortgage market refers to loans offered to individuals with poor credit histories or limited credit experience. - The Secondary mortgage market involves the buying and selling of existing mortgages between financial institutions or government-sponsored enterprises. - Purchasing existing mortgages only from financial institutions is a limited scope compared to the broad market of primary mortgage lenders. - The Stock market and Real estate investment market are not directly related to purchasing existing mortgages in the context of the question.