Ontario Mortgage Agent Practice Exam 2025 - Free Mortgage Agent Practice Questions and Study Guide

The statement that first-time home buyers may withdraw up to $35,000 tax-free from their RRSPs (Registered Retirement Savings Plans) for a down payment is accurate. This initiative, part of the Home Buyers' Plan, allows eligible individuals to access their retirement savings to assist with purchasing their first home. This benefit is specifically designed to help first-time buyers enter the housing market by reducing the financial burden associated with acquiring a home.

Other options present misunderstandings about the conditions and benefits available to first-time home buyers. For instance, the restriction on RRSP withdrawals does not apply, as first-time home buyers can use this provision effectively. Additionally, there is no requirement for first-time buyers to provide a larger down payment compared to existing homeowners, as all borrowers are typically required to meet standard down payment requirements based on the property purchase price and mortgage insurance regulations. Lastly, there is no inherent policy that results in first-time home buyers paying additional interest rates on their mortgages, as interest rates are generally determined based on the market environment and the borrower's creditworthiness rather than their status as a first-time buyer.