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BC Mortgage Broker exam Questions and
Answers (100% Correct Answers) Already
Graded A+
Criminal rate under Criminal Code Ans: Interest rate > 60% (What
legislation?)
Prepayment privilege in the Interest Act Ans: Right of prepayment for an
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"individual" for mortgage term over 5 years. Term includes any extensions
unless date of mortgage changed to renewal date (mutually agreed).
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Vendor Take-Back Mortgage Ans: There is no restriction with private
vendor financing regarding loan to value
Disguised Mortgage Ans: Purpose of transaction (a transfer) is to offer
property as security; Transfer can regain title through the equity of
redemption
Assumed mortgage under Property Law Ans: Limits vendor's (seller's)
liabilities if (1) residential purpose (2) lender's approval of purchaser in
writing (3) transfer is within 3 months of approval (4) lender's access to
financial info of purchaser (5) mortgage is expired and no demand of
repayment is made within 3 months.
Equitable Mortgage (i.e. not a legal mortgage) Ans: By way of (1)
handing over to lender the duplicate certificate of title (2) agreement to
grant an mortgage (3) disguising a mortgage as a transfer
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Section 3 of Interest Act Ans: If a document mentions interest but no
rate is fixed in the agreement or by law, the rate of interest is 5% p.a.
Section 8 of Interest Act Ans: Interest on arrears - a lender cannot
charge a higher interest on monies owning after default
Section 10 of Interest Act Ans: Right to prepay a mortgage (plus 3 month
of interest): (1) individual borrower; (2) mortgage not repayable until
after 5 years; (3) 5 years expiration has passed (unless the mortgage is
renewed and date of mortgage changed to renewal date)
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Order absolute of foreclosure Ans: Lender can seek this relief if no equity
in the mortgaged property. If granted, the lender (1) become registered
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owner (2) vacant possession (3) equity of redemption extinguished (4)
personal covenant in the mortgage extinguished.
Section 6 & 7 of Interest Act Ans: For blended payments, S.6 requires
statement of interest rate calculated annually or semi-annually "not in
advance". S.7 interest rate per statement of interest rate is lower than
repayment clause, the lower rate applies.
clogging Ans: A borrower cannot be prevented by the terms of the
mortgage from eventually redeeming his property
Collateral advantages Ans: Something other than the payment of
interest
e.g.
1) Beer from the brewery
1
BC Mortgage Broker exam Questions and
Answers (100% Correct Answers) Already
Graded A+
Criminal rate under Criminal Code Ans: Interest rate > 60% (What
legislation?)
Prepayment privilege in the Interest Act Ans: Right of prepayment for an
© 2026 Assignment Expert
"individual" for mortgage term over 5 years. Term includes any extensions
unless date of mortgage changed to renewal date (mutually agreed).
Guru01 - Stuvia
Vendor Take-Back Mortgage Ans: There is no restriction with private
vendor financing regarding loan to value
Disguised Mortgage Ans: Purpose of transaction (a transfer) is to offer
property as security; Transfer can regain title through the equity of
redemption
Assumed mortgage under Property Law Ans: Limits vendor's (seller's)
liabilities if (1) residential purpose (2) lender's approval of purchaser in
writing (3) transfer is within 3 months of approval (4) lender's access to
financial info of purchaser (5) mortgage is expired and no demand of
repayment is made within 3 months.
Equitable Mortgage (i.e. not a legal mortgage) Ans: By way of (1)
handing over to lender the duplicate certificate of title (2) agreement to
grant an mortgage (3) disguising a mortgage as a transfer
, For Expert help and assignment handling,
2
Section 3 of Interest Act Ans: If a document mentions interest but no
rate is fixed in the agreement or by law, the rate of interest is 5% p.a.
Section 8 of Interest Act Ans: Interest on arrears - a lender cannot
charge a higher interest on monies owning after default
Section 10 of Interest Act Ans: Right to prepay a mortgage (plus 3 month
of interest): (1) individual borrower; (2) mortgage not repayable until
after 5 years; (3) 5 years expiration has passed (unless the mortgage is
renewed and date of mortgage changed to renewal date)
© 2026 Assignment Expert
Order absolute of foreclosure Ans: Lender can seek this relief if no equity
in the mortgaged property. If granted, the lender (1) become registered
Guru01 - Stuvia
owner (2) vacant possession (3) equity of redemption extinguished (4)
personal covenant in the mortgage extinguished.
Section 6 & 7 of Interest Act Ans: For blended payments, S.6 requires
statement of interest rate calculated annually or semi-annually "not in
advance". S.7 interest rate per statement of interest rate is lower than
repayment clause, the lower rate applies.
clogging Ans: A borrower cannot be prevented by the terms of the
mortgage from eventually redeeming his property
Collateral advantages Ans: Something other than the payment of
interest
e.g.
1) Beer from the brewery
