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SMCP Accreditation Exam
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This exam consists of 100 multiple choice questions and requires a score of 70% or greater to pass. It is not timed. All questions must be answered or the results will not be submitted. It is suggested you have a calculator handy. If you do not pass the first time, the exam can be rewritten as many times as necessary. It is also highly recommended that you also record your answers on paper as you go in case you accidentally close your browser or there is a technical issue on your computer and your answers are lost before you hit the Submit button after completing all the questions. It is also highly recommended that you also record your answers on paper as you go in case you accidentally close your browser or there is a technical issue on your computer and your answers are lost before you hit the Submit button after completing all the questions. Good luck!
Name
*
Prénom
Nom
Email
*
Inflation is defined as:
*
“… Often expressed in terms of dollars, inflation indicates a decrease in the purchasing power of a nation’s currency. As prices rise, they start to impact the general cost of living for the common public”
“… Often expressed as a percentage, inflation indicates an increase in the purchasing power of a nation’s currency. As prices fall, they start to impact the general cost of living for the common public”
“… Often expressed as a percentage, inflation indicates an increase in the purchasing power of a nation’s currency. As prices rise, they start to impact the general cost of living for the common public”
“… Often expressed as a percentage, inflation indicates a decrease in the purchasing power of a nation’s currency. As prices rise, they start to impact the general cost of living for the common public”
The highest federal income tax rate is:
*
30%
31%
32%
33%
A study released in August of 2019 by the Canadian Centre for Policy Alternatives discovered that of the 90 companies listed on the Toronto Stock Exchange Composite Index that have defined benefit pension plans, only a few had completely funded their workers’ pension plans in 2017. Collectively these 90 companies were underfunded by about $X billion. Meanwhile they were busy paying out billions of dollars in dividends to shareholders – about $Y billion worth.
*
$10 and $55
$12 and $66
$14 and $77
$16 and $88
Old Age Security is available to Canadians at age _____.
*
55 years old
60 years old
65 years old
70 years old
While it changes yearly, in 2019 the CPP maxed out at just over $X per month when taken at age 65 but very few Canadians actually receive that much for various reasons such as how long they have been contributing, their employment history, etc.
*
$1,150
$1,200
$1,250
$1,275
As regards RRSPs, the government sets an annual maximum contribution allowance based on a formula of past income and the CRA’s maximum amount as specified by them. The government also dictates that at age X you must cash out or convert your RRSP to an income-generating vehicle.
*
65 years old
67 years old
70 years old
71 years old
The RRSP can be viewed as an income deferral vehicle. Income in now, income out later. It was created to provide Canadians with a private savings plan for future retirement income. For those who are not members of employer-sponsored pension plans, it is an opportunity to set aside current income for future retirement income with similar tax advantages to pension plans.
*
True
False
If one borrows to contribute to an RRSP, the interest on the borrowing is tax deductible but the contribution amount is not.
*
True
False
The focus of a TFSA is savings, not income deferral. The point of the TFSA is to set aside current income, taxed today, for a future need in exchange for taxable earnings and withdrawals.
*
True
False
If one borrows to contribute to a TFSA, the interest is tax deductible because unlike an RRSP contribution, the TFSA contribution is not tax-deductible in the first place.
*
True
False
The determination of deductibility of borrowed money for contributions to either a TFSA or RRSP, regardless of any differences of tax treatment between the two of the contribution itself, is the same.
*
True
False
The maximum percentage one can take out for a reverse mortgage is _____% and the youngest at which one can take on a reverse mortgage is _____ years old.
*
50% and 55 years old
55% and 50 years old
55% and 55 years old
50% and 50 years old
If you have a reverse mortgage, if you hold the reverse mortgage long enough and your house value does not maintain a sufficient rate of increase, when the reverse mortgage comes due and the amount owing is greater than the amount of equity remaining in the house, the bank has the legal right to demand and collect the difference.
*
True
False
Fixed-rate reverse mortgages compound semi-annually, so every six months the amount of interest that gets added to the balance each month increases because it is being calculated on the original balance plus the previous six month’s unpaid interest that was added to the balance.
*
True
False
As regards a reverse mortgage, the ______ I am, the ______ equity I will be able to access.
*
‘younger’ and ‘more’
‘younger’ and ‘less’
As described in Master Your Mortgage for Financial Freedom, Canadians have two very important financial goals:
*
To eliminate their expensive, non-deductible mortgage debt as soon as possible, and save/invest for their future
To buy their first home and save/invest for their future
To firstly buy their first home, and secondly, pay off the mortgage
To support their family financially now and to support them in the future
In order for interest on borrowed money to be deductible, one must borrow with the reasonable expectation of generating… (pick the best answer):
*
Interest
Income
Capital gains
Dividends
Profit
We define ‘good debt’ as debt acquired to purchase assets which only appreciate in value.
*
True
False
At a 40% marginal tax rate, the annual tax refund on a $600,000 qualifying investment loan at a rate of 5% interest would be:
*
$10,000
$12,000
$13,500
$14,000
I make $70,000 per year and am at the 40% marginal tax rate. However, if I have a $5,000 tax deduction for the tax year, my tax savings is how much compared to if I did not have that deduction?
*
$1,500
$1,750
$2,000
$2,250
Mortgage lenders are happy to allow the homeowner, if he/she desires, owe them the full amount of the initial total ‘forever’ because (select the FALSE answer)
*
The lender has the house as security
The lender has both the house and the resultant Smith Manoeuvre investment portfolio as security
Their asset – the mortgage loan – likely never diminishes or gets fully paid out
The lender is reasonably confident that with rising incomes and house prices, the loan collateral and ability for the borrower to pay is sufficient to service and protect the loan
The 65% HELOC Rule applies only to readvanceable mortgages, not to HELOC’s that are registered as a first and only charge against the property.
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True
False
IIROC implemented the 65% HELOC Rule in order to promote prudent lending practices.
*
True
False
OSFI implemented the 65% HELOC Rule in order to improve affordability of home ownership.
*
True
False
On a refinance, the 65% HELOC Rule restricts secured, interest-only lines of credit to 65% of the ____ of the property
*
Appraised value
Assessed value
Purchase price
Taxable value
We would be interested in capping the total loan from the lender to less than the full offered 80% if:
*
The amount of non-deductible debt we required was less than 80% and we wanted to maximize the amount of immediately available credit upon refinance so we could maximize the Prime the Pump accelerator
The amount of non-deductible debt we required was less than 80% and we wanted to maximize the amount of immediately available credit upon refinance so we could maximize the amount of consolidation or preservation space available
The amount of non-deductible debt we required was less than 80% and we wanted the highest possible balance on the non-readvancing component in order to maximize the monthly investable amount
The amount of non-deductible debt we required was less than 80% and we wanted the highest possible balance on the readvancing component in order to maximize the monthly investable amount
The 65% HELOC Rule limits the interest-only component of the readvanceable mortgage to 65% of the value of the home. Effectively this means that with a $1,000,000 home, while the total loan from the mortgage lender can be the full 80%, or $800,000, this full amount will not be readvanceable. Some lenders allow the splitting of the non-deductible amount into one or more components, which means that the mortgage will readvance right away so that the conversion process can begin immediately. If the homeowner required the full $800,000 in non-deductible debt, it could be split $150,000 non-readvancing and $650,000 readvancing. However, if the homeowner was refinancing and only actually required $700,000 of non-deductible debt and accepts the full $800,000 total loan, the correct mortgage components will look as follows:
*
$100,000 non-readvancing, $650,000 readvancing, $50,000 immediately available credit
$125,000 non-readvancing, $600,000 readvancing, $75,000 immediately available credit
$150,000 non-readvancing, $550,000 readvancing, $100,000 immediately available credit
$200,000 non-readvancing, $550,000 readvancing, $50,000 immediately available credit
If the house value were $700,000 and the homeowner were refinancing and only required $450,000 in non-deductible debt, but accepted the full 80% total loan, the components would look as follows:
*
$105,000 non-readvancing, $345,000 readvancing, $110,000 immediately available credit
$100,000 non-readvancing, $340,000 readvancing, $120,000 immediately available credit
$110,000 non-readvancing, $345,000 readvancing, $105,000 immediately available credit
$115,000 non-readvancing, $340,000 readvancing, $105,000 immediately available credit
If the house value were $700,000 and the homeowner were refinancing and only required $450,000 in non-deductible debt, but restricted the total loan to only what was needed, the components would look as follows:
*
The full $450,000 would readvance immediately and there would be $10,000 in immediately available credit
The full $450,000 would readvance immediately and there would be $5,000 in immediately available credit
$67,500 non-readvancing, $382,500 readvancing, $0 immediately available credit
The full $450,000 would readvance immediately, $0 immediately available credit
If the house value were $700,000 and the homeowner were refinancing and only required $500,000 in non-deductible debt, but restricted the total loan to $550,000, the components would look as follows:
*
$105,000 non-readvancing, $395,000 readvancing, $50,000 immediately available credit
$100,000 non-readvancing, $400,000 readvancing, $50,000 immediately available credit
$95,000 non-readvancing, $405,000 readvancing, $50,000 immediately available credit
$90,000 non-readvancing, $410,000 readvancing, $50,000 immediately available credit
With the Manulife One readvanceable mortgage, the Main account effectively functions as:
*
The Smith Manoeuvre Chequing Account
The Personal Chequing Account
The dedicated Proprietorship/Rental Property bank account
The ‘tracking account’ which keeps a running total of the amount of funds borrowed for deductible purposes and the amount of interest paid on this amount
The prepayment privilege on the MCAP Fusion mortgage is 20% but MCAP will not allow any additional annual prepayments above and beyond that percentage while some lenders will allow excess prepayment with penalty.
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True
False
With the MCAP Fusion mortgage, even if the total loan requirement is above 65%, the mortgage will readvance immediately.
*
True
False
The National Bank All-in-One readvanceable mortgage allows up to __ segments.
*
9
49
89
99
This statement is incorrect. “Similar to the Manulife One mortgage, National Bank isolates any loan amount above 65% house value and allows that isolated amount to readvance.” Replace X with Y to make a correct statement.
*
Replace “National Bank” with “MCAP”
Replace “65%” with “80%”
Replace “allows” with “does not allow”
Replace “Manulife One” with “MCAP”
With the Scotia STEP readvanceable mortgage, the homeowner can instruct transactions on-line even if their linked bank accounts are with a different banking institution.
*
True
False
Clear language is important when talking with your client and other financial professionals. As regards a readvanceable mortgage, we want to refer to the non-deductible, amortizing segment of the mortgage as the __________, and the deductible, interest-only segment as the __________ or ___________.
*
“Loan portion”, “investment loan” or “line of credit”
“Line of credit”, “loan portion” or “investment loan”
“Investment loan”, “loan portion” or “line of credit”
“Mortgage”, “investment loan” or “line of credit”
The ‘increasing efficiency of the regular mortgage payment’ refers to:
*
The slowly declining amount of interest paid with every subsequent payment
The slowly increasing amount of interest paid with every subsequent payment
The jump in tax deductions that occurs when a mortgage prepayment is made
The slowly decreasing amount of available reborrowing so that more can get invested
If we break the Plain Jane Smith Manoeuvre down into only two steps, which statement would most accurately describe it?
*
Reborrow to invest the newly created equity due to the regular mortgage payment, and prepay the mortgage with the resultant tax relief and also invest that subsequent newly created equity as well
Make the regular mortgage payment, and reborrow the newly created equity to invest
Reborrow to invest the newly created equity due to the regular mortgage payment, and prepay the mortgage with the resultant tax relief
Refinance into a readvanceable mortgage and Debt Swap whatever paid-up investments or cash-on-hand that you can
The Smith Manoeuvre Chequing Account should be linked to the non-deductible amortizing loan portion of the mortgage.
*
True
False
The Debt Swap accelerator involves applying a consistent, monthly amount as a monthly prepayment against the non-deductible loan portion of the mortgage, reborrowing it from the line of credit, and getting it invested. This can be monies that were getting invested directly each month, in which case it does not count as ‘new money’ or it can be a voluntary amount from personal cash flow which is ‘new money’.
*
True
False
Assume $30,000 of investment assets in an open account which were purchased with cash (not borrowed). This investment is redeemed for cash and Debt Swapped. Ignoring taxation on the redemption and assuming the same growth rate whether the investment is Debt Swapped or not:
*
The investment portfolio at any given time in the future would be the same whether debt swapped or not considering the $30,000 is effectively continuously invested.
The investment portfolio at any given time in the future would be higher for the debt swapped $30,000 considering the tax relief that the investor would receive and be able to invest.
The Debt Swap accelerator, ignoring prepayment privileges, can be implemented:
*
Only at initial financing into a readvanceable mortgage
Only at initial financing into a readvanceable mortgage or at mortgage renewal
At initial financing or any time prior to, but not including, mortgage renewal
At any time including at initial financing, prior to renewal, or at renewal
At any time other than initial financing into a readvanceable mortgage
When using existing investments to implement The Debt Swap accelerator, you should only use non-paid up investments.
*
True
False
If I redeem investment assets that were purchased with money borrowed from the secured line of credit, which of the following is not an acceptable use of the redemption proceeds because it will pollute the deductibility of the investment loan:
*
Purchase a different investment directly and immediately
Pay down the investment loan balance immediately
Prepay the non-deductible mortgage loan and reborrow to invest
Pay down the investment loan balance and then reborrow and purchase a different investment
The Cash Flow Diversion accelerator means you are diverting proprietorship income as mortgage prepayments, then reborrowing to service the proprietorship expenses.
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True
False
The Cash Flow Diversion accelerator involves diverting investment distributions/dividends that would otherwise go to automatically purchasing additional shares or units to instead be paid in cash, used to prepay the non-deductible loan portion of the mortgage, then reborrowed to invest.
*
True
False
The Cash Flow Dam accelerator to The Smith Manoeuvre only increases your securities investment portfolio value over time if proprietorship revenues exceed expenses considering the proprietorship expenses need to be serviced with the borrowed money.
*
True
False
The Cash Flow Dam accelerator relies on your business being incorporated.
*
True
False
If you are implementing the Cash Flow Dam accelerator, the most important reason to have a dedicated proprietorship bank account is:
*
We want an account where we can isolate and track the proprietorship revenues
We want an account where we can isolate and track the borrowing prior to servicing the proprietorship expenses
As regards implementing the Cash Flow Dam accelerator in The Smithman Calculator, if proprietorship expenses are greater than revenues, the calculator assumes that the monthly proprietorship shortfall will be covered by funds completely outside of any values used by the calculator. That being said, the calculator does allow the user the option to add the shortfall amount as a mortgage prepayment each month in which case the benefits will increase:
*
True
False
The Cash Flow Dam accelerator involves applying proprietorship revenues as prepayments against the non-deductible loan portion of the mortgage, reborrowing the funds, and then servicing the proprietorship expenses.
*
True
False
By default, The Smithman Calculator applies the selected DRiP accelerator distribution percentage:
*
Monthly
Quarterly
Bi-Annually
Annually
As regards the DRiP accelerator, taking the dividends generated by your investments in cash rather than having the dividends automatically and immediately reinvested:
*
Will change the taxation treatment of the dividends
Will not change the taxation treatment of the dividends
The DRiP accelerator involves regularly using excess cash from personal cash flow to service incremental interest expense on the investment loan, thereby increasing the amount available to invest each month.
*
True
False
The Prime the Pump accelerator on The Smithman Calculator requires the user, by default, to add the related incremental interest as a mortgage prepayment because:
*
If the user cannot come up with the cash from income to cover the incremental interest, perhaps they can’t afford this additional borrowing in the first place
Without doing so, there is no way the incremental interest, which starts immediately, can be serviced
Of the potential rate disparity between the amortizing loan and the line of credit
Invalid question – there is no incremental interest related to Priming the Pump
The Prime the Pump accelerator is available to implement if there is available credit on the line of credit portion of the mortgage. It can be implemented at closing of the mortgage or the available credit can be sat on and used at some point in the future.
*
True
False
For the Prime the Pump accelerator, The Smithman Calculator calculates the related incremental interest from the additional borrowing and applies this amount as a monthly prepayment from personal cash flow because:
*
This is incremental borrowing and if the user does not add this amount from personal cash flow, then this related interest will decrease the amount of funds available to invest each month.
This is incremental borrowing and if the user cannot cover this incremental interest from personal cash flow, maybe they should not be borrowing it in the first place.
None of the above
Both of the above
Not that it can’t be done, but it does not make too much sense to implement any of the accelerators when undertaking The Smith Manoeuvre Lite.
*
True
False
The Fraser Finagle was developed in order to reduce the total amount of interest paid on a fully converted mortgage by transferring higher-rate interest-only deductible investment loan debt to a lower rate deductible amortizing loan via a balance transfer.
*
True
False
If amortizing loan rates and interest-only LOC rates warrant (i.e. loan rates are lower than interest-only rates), we can execute The Fraser Finagle. What this accomplishes is:
*
It reduces the total monthly interest payment.
It allows the homeowner to maintain, effectively, interest-only payments even while making principal plus interest payments on the balance.
It allows the homeowner to reduce the amount of deductible debt over time if desired, which can be accomplished by simply not reborrowing any (or only some) of the newly available credit each month.
All of the above
In order to implement the Fraser Finagle, the borrower must requalify considering they are shifting an interest-only secured line of credit balance to an amortizing loan with a term to maturity.
*
True
False
The ‘Fraser Finagle’ can only be implemented once the mortgage conversion is complete.
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True
False
If your home (consumer item) is security for the loan, any borrowing for investment purposes made against it is non-deductible unless the loan terms are interest-only.
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True
False
Investing in which of the following would not qualify for deductibility of interest on money borrowed to ‘invest’?
*
Mutual fund
Shares of your friend’s corporation
Silver bars
Bond fund
When we borrow to invest, in order to be able to deduct the interest paid on that borrowing, we must invest in (select most appropriate):
*
An open account or a cash account
An open account or a registered account
A tax-advantaged account or a cash account
A cash account or trust account
‘Adjusted Cost Base’ refers to:
*
The market value of one’s investments
The amount one is considered to have invested in any given investment
The cost of tax incurred, calculated by market value minus book value
The actual cost of one’s investment only when adjusted for inflation
If I purchase an investment for $10,000 and it sends me a monthly distribution of $70 which is considered entirely Return of Capital, then after the first year, the investment’s Adjusted Cost Base will be:
*
$10,840
$10,000
$9,930
$9,160
If, instead of using the monthly distributions for personal cash flow, I immediately reinvested the Return of Capital distributions into the same investment, then after the first year, the investment’s Adjusted Cost Base will be:
*
$10,840
$10,000
$9,930
$9,160
If I borrowed the $10,000 in order to purchase that investment which sends out the monthly Return of Capital distributions which are not reinvested, then after a full year, the amount of interest I can deduct for that twelfth month-end will be the amount of interest paid on:
*
$10,840
$10,000
$9,930
$9,160
It does not make sense to implement The Smith Manoeuvre unless you have maxed out your registered contributions.
*
True
False
The calculation to determine ‘real’ rate of interest (not including inflation) on a deductible loan, where “Rate” is the rate of interest and MTR is ‘marginal tax rate’, is:
*
Rate/(1+MTR)
Rate*(1-MTR)
MTR/(1+Rate)
MTR*(1-Rate)
If I am at the 40% marginal tax rate and the rate on my tax-deductible loan is 3.95%, then my ‘real’ rate of interest (not including inflation) is 2.37%.
*
True
False
As regards taxation and ‘deemed disposition’, the Canada Revenue Agency treats a transfer in-kind of assets from a Tax-Free Saving Account to a non-registered account differently than a transfer in-kind of assets from an RRSP Account to a non-registered account.
*
True
False
If my investment portfolio acquired with borrowed money has a book value of $100,000 and a market value of $110,000, then I have $10,000 in capital gains. I am able to transfer up to $10,000 in-kind to a registered investment and not taint the 100% deductibility of the investment loan that was used to acquire the initial assets.
*
True
False
If a straight HELOC is obtained in second position behind an amortizing loan, the following is true (select one answer only):
*
The limit on the HELOC will increase only when requested on-line by the homeowner, therefore it is impractical when implementing The Smith Manoeuvre
The limit on the HELOC will automatically readvance only if the homeowner sets it up to do so upon initial registering of the HELOC
The limit on the HELOC may be increased but it will require a full application and only up to a maximum loan-to-value ratio of 80%
The limit on the HELOC may be increased but it will require a full application and only up to a maximum loan-to-value ratio of 65%
Your client ran into a financial emergency which could be solved no other way but by redeeming assets originally purchased with money borrowed from the line of credit portion of the readvanceable mortgage. You notify your client that they must execute a balance transfer to shift newly non-deductible debt from the deductible investment loan portion of the mortgage to the existing non-deductible amortizing loan portion of the mortgage because the proceeds of redemption went to a non-deductible use. The asset redemption was for $20,000 and represented 5% of the total portfolio value. The balance transfer amount should be:
*
5% of the investment loan balance
$20,000 of the investment loan balance
Consolidating non-deductible consumer debt into your mortgage:
*
Will increase your total household debt
Will not increase your total household debt
We would be interested in preserving existing unsecured tax-deductible debt upon finance/refinance into a readvanceable mortgage because:
*
Larger interest payments mean larger tax deductions
Lower interest payments mean more to invest
By preserving deductible debt we are reducing the non-deductible portion of the mortgage
By paying out the higher rate deductible loan we are reducing total household debt
A ‘salvaged payment’ refers to:
*
The amount of money that only a deductible loan required for servicing prior to preservation
The amount of money that only a non-deductible loan required for servicing prior to consolidation
The former mortgage payment after mortgage conversion is complete
The amount of money that either a deductible or non-deductible loan required prior to preservation or consolidation
If we apply salvaged payments from preservation of deductible debt as prepayments against the non-deductible mortgage loan each month:
*
We are speeding up the conversion of the mortgage
We are investing more for our financial future each month
Both of the above
None of the above
When a homeowner is moving house while still implementing The Smith Manoeuvre on the house being sold, it is important to match possession dates on the sale and purchase in order to maintain as much existing deductible debt on the new readvanceable mortgage if the homeowner’s Smith Manoeuvre is to continue on the new house.
*
True
False
Two conditions need to be satisfied when porting deductible debt from the mortgage secured by the house being sold to the readvanceable mortgage secured by the house being purchased:
*
Match closing dates, minimum 20% down payment on the purchase
Match possession dates, minimum 20% down payment on the purchase
Sale date closing must precede purchase date closing, minimum 20% down payment on the purchase
Match closing dates, minimum 25% down payment on the purchase
In the previous example, the relevance of the minimum down payment is to (choose the best answer):
*
Ensure there is enough equity to absorb a meaningful amount of deductible debt from the mortgage being discharged
Qualify for a readvanceable mortgage to enable continuation of the conversion process
Avoid mortgage insurance costs on top of the new readvanceable mortgage
The Superficial Loss Rule, as it relates to the Debt Swap accelerator, is meant to guard against the taxpayer reducing capital gains owed…
*
By selling an asset at a loss and repurchasing an identical asset within 30 days
By selling an asset at a loss and repurchasing an identical asset within 45 days
By selling an asset at a loss and repurchasing an identical asset within 60 days
By selling an asset at a loss and repurchasing an identical asset within 90 days
In Canada, the taxpayer has the legal right to structure their financial affairs to their best tax advantage.
*
True
False
‘Tax avoidance’ is illegal.
*
True
False
The two types of prepayment penalties that can be calculated and charged by mortgage lenders are:
*
Three-months mortgage payment and ‘interest rate differential’ (IRD)
Three-months interest and IRD
IRD and ‘months-to-term’ (MTT)
MTT and three-months interest
IRD penalties apply mostly to variable rate mortgages.
*
True
False
Risk _________ refers not to how much or little risk one is comfortable with, but how much risk one can actually handle given their situation.
*
Tolerance
Aversion
Capacity
Ability
Market risk can be reduced over time by:
*
Portfolio rebalancing and diversification
Sector and geographic concentration
Sector concentration
Geographic concentration
For holding cash which will be needed in the short-term, which one of the following is the least suitable?
*
Cash
High Interest Savings Account
GIC
ETF
‘Regulatory Risk’ is reduced by the very long-term nature of The Smith Manoeuvre strategy
*
True
False
Generally, the tax relief accounts for about one-third of the benefit of The Smith Manoeuvre and two-thirds is due to getting invested earlier.
*
True
False
If I borrow $30,000 and, along with $10,000 of my own cash, invest and subsequently sell the investment at $35,000, my loss is:
*
12.5%
16.7%
50%
66.7%
KYC stands for ‘Know Your Client’. This is a regulatory requirement which aims to ensure the advisor is familiar with each client’s situation and investments recommended to investors are suitable.
*
True
False
Fraser Smith published The Smith Manoeuvre in:
*
2000
2001
2002
2003
VanCity collaborated with Fraser in the beginning by:
*
Developing the first readvanceable mortgage in Canada
Securing a second mortgage for clients in the form of a line of credit, the limit of which would be increased periodically upon application
Offering an unsecured line of credit to clients, the limit of which would be increased periodically upon application
Offering a secured line of credit to clients, the limit of which would be periodically increased automatically
When using The Smithman Calculator, if the client is refinancing into a readvanceable mortgage from a mortgage which is unsuitable for The Smith Manoeuvre, we can keep their monthly cash outlay for the regular mortgage payment on the new mortgage approximately the same as the old mortgage by manually altering the:
*
Mortgage balance
Mortgage rate
Mortgage term
Mortgage amortization
In some circumstances, with The Smithman Calculator, if we wish to improve the initial results of The Smith Manoeuvre, we could __________:
*
Accept the maximum offered by the lender in order to maximize the amount that will readvance
Request a lower total loan limit than the maximum offered by the lender to maximize the amount that will readvance
PAMS
Profil
La calculatrice Smithman
À notre sujet
À notre sujet
Allocutions
Qu’est-ce que La manœuvre Smith?
Dans les médias
Produits
Livre La manœuvre Smith
La Calculatrice Smithman
Devenir un professionnel accrédité de La manœuvre Smith
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