Saskatchewan Mortgage Associate Exam 2025 – 400 Free Practice Questions to Pass the Exam

To determine the correct amount of Laurel's second mortgage, one would need to apply the conventional understanding of second mortgages within the context of real estate financing. A second mortgage is typically taken out in addition to an existing first mortgage and is secured against the same property. The amount of a second mortgage is usually determined by the remaining equity in the property after the first mortgage is accounted for.

If the answer provided indicates that Laurel's second mortgage is $200,000, it suggests that this amount is either the remaining equity available to her after considering the first mortgage or reflects the total she secured through the second mortgage agreement. This amount could also correlate with standard lending practices where secondary financing is often a percentage of the home value or the equity present after the existing mortgage is settled.

In this case, the context would imply that Laurel's scenario aligns with typical financial scenarios where a second mortgage is intended to leverage home equity without exceeding the value of the first mortgage, supporting the validity of the $200,000 figure presented. The other amounts would either exceed what might be reasonably secured by a second mortgage or fall below common lending thresholds based on average home equity utilization trends.