QFA LOANS - SAMPLE PAPER 1|
QFA LOANS - SAMPLE PAPER
2|WITH QUESTIONS EACH AND
CORRECT VERIFIED ANSWERS
(100% CORRECT ANSWERS)
(NEWLY UPDATED
2026!!){GRADED A+]
A lender generally charges a lower interest rate on a housing loan because:
A the loan is secured against the property.
B they are required to do so by the Consumer
Credit Act, 1995.
C the loan is unsecured.
D they are required to do so by the Consumer Protection Code. - CORRECT
ANSWER ✅✅ - A
1.2 - Individual Loan Needs
Finn buys a car by taking out a Personal Payment Plan (PPP). When will Finn be
the legal owner of the car?
A As soon as the contract is signed.
,B After he pays an initial deposit.
C When the final payment has been made.
D When 50% of all payments have been made. - CORRECT ANSWER ✅✅ - C
1.2.1 Different forms of Loans
To which of the following consumers do the provisions of the Consumer
Protection Code, 2012 NOT apply?
A Janet, who has borrowed €10,000 as a personal loan from Clear Bank.
B Jennifer, who has engaged the services of a Debt Management firm to act on her
behalf with her creditors.
C Ross, who has taken out a life assurance policy with his local Credit Union.
D James, who has received finance under a hire-purchase agreement. - CORRECT
ANSWER ✅✅ - D
1.6.2 Consumer Protection Code, 2012
Mary referred a complaint she had made about Delta Bank to the Financial
Services and Pensions Ombudsman (FSPO) as she was unhappy with their final
response. The FSPO upheld Mary's complaint and awarded her compensation of
€50,000. Delta Bank wish to appeal the FSPO's decision.
Within how many days of the FSPO's decision must Delta Bank submit their
appeal to the High Court?
A 15 days
B 20 days
C 30 days
D 35 days - CORRECT ANSWER ✅✅ - D
,1.5.3.1 Financial Services and Pensions Complaints Process
Which of the following is not an element of a valid contract?
A Consideration
B Acceptance
C Verification
D Capacity - CORRECT ANSWER ✅✅ - C
1.7.1 Essential Elements of a Valid Contract
Philip agrees to offer West Bank collateral security against a housing loan. This
most likely means that Philip is providing:
A a third party, who will agree to make the loan repayments if he defaults on his
loan.
B a legal mortgage over the freehold property.
C a personal covenant to repay the loan.
D an assignment of a home contents insurance policy. - CORRECT ANSWER
✅✅ - A
2.4 - Security for Housing Loans
In the early years of a loan which is arranged on a capital and interest basis, the:
A largest part of the monthly payment is used to pay the interest charge.
B capital portion reduces quickly.
C interest portion is suspended.
, D largest part of the monthly payment is used to pay off the capital sum borrowed.
- CORRECT ANSWER ✅✅ - A
2.10.1 - Capital and interest
Rita holds a variable rate mortgage with Beta Bank. Beta Bank must provide Rita
with a notification advising her of any change in the interest rate:
A as soon as the bank becomes aware that they are changing the interest rate.
B no later than 10 business days following a change in the ECB refi rate.
C at least 20 business days in advance of any interest rate change.
D at least 30 days in advance of any interest rate change. - CORRECT ANSWER
✅✅ - D
2.12 Housing Loan Interest Rates
What factor(s) determine how a mortgage lender calculates their variable mortgage
interest rates?
(i) Cost of funds.(ii) Competition in the market place. (iii) Profit margin.
A (i) only.
B (i) and (ii) only.
C (i) and (iii) only.
D (i), (ii) and (iii) - CORRECT ANSWER ✅✅ - D
2.11.1 - Standard Variable Rate
Why might a fixed rate mortgage be the MOST suitable mortgage for a first time
buyer?
QFA LOANS - SAMPLE PAPER
2|WITH QUESTIONS EACH AND
CORRECT VERIFIED ANSWERS
(100% CORRECT ANSWERS)
(NEWLY UPDATED
2026!!){GRADED A+]
A lender generally charges a lower interest rate on a housing loan because:
A the loan is secured against the property.
B they are required to do so by the Consumer
Credit Act, 1995.
C the loan is unsecured.
D they are required to do so by the Consumer Protection Code. - CORRECT
ANSWER ✅✅ - A
1.2 - Individual Loan Needs
Finn buys a car by taking out a Personal Payment Plan (PPP). When will Finn be
the legal owner of the car?
A As soon as the contract is signed.
,B After he pays an initial deposit.
C When the final payment has been made.
D When 50% of all payments have been made. - CORRECT ANSWER ✅✅ - C
1.2.1 Different forms of Loans
To which of the following consumers do the provisions of the Consumer
Protection Code, 2012 NOT apply?
A Janet, who has borrowed €10,000 as a personal loan from Clear Bank.
B Jennifer, who has engaged the services of a Debt Management firm to act on her
behalf with her creditors.
C Ross, who has taken out a life assurance policy with his local Credit Union.
D James, who has received finance under a hire-purchase agreement. - CORRECT
ANSWER ✅✅ - D
1.6.2 Consumer Protection Code, 2012
Mary referred a complaint she had made about Delta Bank to the Financial
Services and Pensions Ombudsman (FSPO) as she was unhappy with their final
response. The FSPO upheld Mary's complaint and awarded her compensation of
€50,000. Delta Bank wish to appeal the FSPO's decision.
Within how many days of the FSPO's decision must Delta Bank submit their
appeal to the High Court?
A 15 days
B 20 days
C 30 days
D 35 days - CORRECT ANSWER ✅✅ - D
,1.5.3.1 Financial Services and Pensions Complaints Process
Which of the following is not an element of a valid contract?
A Consideration
B Acceptance
C Verification
D Capacity - CORRECT ANSWER ✅✅ - C
1.7.1 Essential Elements of a Valid Contract
Philip agrees to offer West Bank collateral security against a housing loan. This
most likely means that Philip is providing:
A a third party, who will agree to make the loan repayments if he defaults on his
loan.
B a legal mortgage over the freehold property.
C a personal covenant to repay the loan.
D an assignment of a home contents insurance policy. - CORRECT ANSWER
✅✅ - A
2.4 - Security for Housing Loans
In the early years of a loan which is arranged on a capital and interest basis, the:
A largest part of the monthly payment is used to pay the interest charge.
B capital portion reduces quickly.
C interest portion is suspended.
, D largest part of the monthly payment is used to pay off the capital sum borrowed.
- CORRECT ANSWER ✅✅ - A
2.10.1 - Capital and interest
Rita holds a variable rate mortgage with Beta Bank. Beta Bank must provide Rita
with a notification advising her of any change in the interest rate:
A as soon as the bank becomes aware that they are changing the interest rate.
B no later than 10 business days following a change in the ECB refi rate.
C at least 20 business days in advance of any interest rate change.
D at least 30 days in advance of any interest rate change. - CORRECT ANSWER
✅✅ - D
2.12 Housing Loan Interest Rates
What factor(s) determine how a mortgage lender calculates their variable mortgage
interest rates?
(i) Cost of funds.(ii) Competition in the market place. (iii) Profit margin.
A (i) only.
B (i) and (ii) only.
C (i) and (iii) only.
D (i), (ii) and (iii) - CORRECT ANSWER ✅✅ - D
2.11.1 - Standard Variable Rate
Why might a fixed rate mortgage be the MOST suitable mortgage for a first time
buyer?
