Humber/Ontario Real Estate Course 2 Exam Practice

To whom must a credit union in Ontario provide mortgages?

1. Any resident of Ontario.

2. Only to its members.

3. Residents of Canada who meet eligibility criteria.

4. Only those purchasing residential properties.

The correct answer is: Only to its members.

A credit union in Ontario is a financial institution that is owned and operated by its members. Since credit unions are member-owned cooperatives, they have a specific mandate to serve their members and make their financial services available to their members. Providing mortgages exclusively to its members aligns with the basic principles and structure of credit unions. This ensures that the benefits of the credit union's operations are passed on to its members directly. Therefore, Option B is the correct choice. Options A, C, and D are incorrect because they do not align with the typical operations and member-focused approach of a credit union. Providing mortgages to any resident of Ontario (Option A), residents of Canada who meet eligibility criteria (Option C), or only those purchasing residential properties (Option D) would not be in line with the primary function and purpose of a credit union, which is to serve its own members.