Ontario Mortgage Agent Practice Exam 2026 - Free Mortgage Agent Practice Questions and Study Guide

When calculating the cost of borrowing, it's essential to include any specific costs that directly affect the borrower’s expenses associated with obtaining a mortgage. The inclusion of appraisal, inspection, or survey costs is particularly relevant because these fees are typically incurred to satisfy the lender's requirements before approving a mortgage. These costs provide the lender with necessary information about the property's value and condition, ensuring that the mortgage amount aligns with the actual worth of the asset being financed. Thus, including these expenses in the cost of borrowing provides a more comprehensive view of what the borrower will ultimately have to pay, both upfront and throughout the duration of the loan.

In contrast, while insurance charges and administrative charges may be relevant in broader contexts, they do not capture the same direct relationship to the initial borrowing costs which are specifically tied to securing a mortgage. Similarly, the concept of the highest credit or amounts owed pertains more to the borrower’s creditworthiness rather than the actual costs associated with obtaining a mortgage. Therefore, focusing on appraisal, inspection, or survey costs is crucial for accurately calculating the direct borrowing costs that affect the borrower financially.