FUNDAMENTALS OF MORTGAGE BROKERAGE 2025-
2026 EXAM QUESTIONS AND ANSWERS
Amortization - ANS>gradual retirement of a debt by means of
installment payments which often includes principal and interest
Amortization Period - ANS>length of time required to repay a mortgage
by equal installments of periodic content payments. Repayments of
principal and interest in "blended" amounts. Fully amortized means
complete repayment without a balloon payment at the end of the
amortization period
Amortization Schedule - ANS>table illustrating the amount of principal
and interest that comprise each of the periodic installments and the
outstanding principal balance of the loan after each level payment is
made
Annual Percentage Rate - APR - ANS>interest rate stated on a yearly
basis that represents the cost of a mortgage
Applicant - ANS>all borrowers, co-borrowers and guarantors on the
mortgage loan
,Appraisal - ANS>formal, impartial estimate or opinion of value, usually
written, of a specific and adequately described property, as of a specific
date and supported by the presentation and analysis of relevant data
Appraiser - ANS>accredited professional who sets a value upon real or
personal property in a manner that is independent, impartial and
objective
Arrears - ANS>past due payments
Assignee - ANS>person to which an assignment (transfer) of property,
rights or interest is made
Assignment of Mortgage - ANS>agreement that consists of transfer
(selling) of an interest and all rights in the mortgage contract and the
security in the property to a new lender or third-party in return for
payment of money
Assignor - ANS>person who makes a transfer under an assignment
Associate - ANS>individual who is authorized by RECA to hold that
classification of associate and to deal in mortgages on behalf of his or
her mortgage
Assumption - ANS>act of taking possession of mortgaged property
whereby the buyer accepts liability for the debt and takes responsibility
,of seller's existing mortgage at the interest rate and terms as laid out in
the original mortgage documents. The seller remains liable to the
mortgage lender unless the lender agrees to release the seller
ATB Financial - ANS>full-service financial institution established in
Alberta in 1938. Formerly the Alberta Treasury Branch (ATB), it has
been a provincial Crown corporation since 1997
Audit - ANS>independent examination of the accounting records and
other evidence relating to a business in order to support an impartial,
expert opinion regarding the fairness and reliability of financial
statements
Balance - ANS>amount of unpaid mortgage remaining after a payment
has been made
Balloon Payment - ANS>final payment of the mortgage made on the
maturity date to retire the debt in full. Such payments are most
common in commercial mortgage
Bankruptcy - ANS>legal process involving the surrender of certain
assets for disposition and the distribution of the proceeds to creditors
in exchange for financial relief or forgiveness from the debts. This
process is intended to provide a debtor with relief from his or her
debts, giving them a fresh start. It also stops creditors from taking
collection or legal action against the debtor
, Bankruptcy Insolvency Act - ANS>Federal legislation that governs the
process of bankruptcy and insolvency and defines the rights and
obligations of debtors and creditors. It allows fro the equitable
treatment of debtors and creditors and a fair distribution of the
proceeds of the debtor's disposed assets among the creditors
Bare Land Condominium - ANS>unit that is a two-dimensional plot on
the land. Results from the subdivision of land before construction
begins. A Real Property Report is required with a bare land
condominium
Barely Blended Condominium - ANS>unit with boundaries that are
defined by reference to walls, floors, and ceilings (three dimensions) of
a building. A barely blended condominium results from the re-division
of a bare land condominium unit into conventional condominium units.
May also be referred to as a re-divided bare land condo
Basis Point - ANS>unit of measure equal to 1/100th of one percent that
is normally used in quoting changes in interest rates or yields in debt
securities including mortgages
Beacon Score - ANS>number that is generated by the Equifax Credit
Bureau to rank the credit-worthiness of individuals
Blanket Mortgage - ANS>single mortgage registered against two or
more pieces of real property
2026 EXAM QUESTIONS AND ANSWERS
Amortization - ANS>gradual retirement of a debt by means of
installment payments which often includes principal and interest
Amortization Period - ANS>length of time required to repay a mortgage
by equal installments of periodic content payments. Repayments of
principal and interest in "blended" amounts. Fully amortized means
complete repayment without a balloon payment at the end of the
amortization period
Amortization Schedule - ANS>table illustrating the amount of principal
and interest that comprise each of the periodic installments and the
outstanding principal balance of the loan after each level payment is
made
Annual Percentage Rate - APR - ANS>interest rate stated on a yearly
basis that represents the cost of a mortgage
Applicant - ANS>all borrowers, co-borrowers and guarantors on the
mortgage loan
,Appraisal - ANS>formal, impartial estimate or opinion of value, usually
written, of a specific and adequately described property, as of a specific
date and supported by the presentation and analysis of relevant data
Appraiser - ANS>accredited professional who sets a value upon real or
personal property in a manner that is independent, impartial and
objective
Arrears - ANS>past due payments
Assignee - ANS>person to which an assignment (transfer) of property,
rights or interest is made
Assignment of Mortgage - ANS>agreement that consists of transfer
(selling) of an interest and all rights in the mortgage contract and the
security in the property to a new lender or third-party in return for
payment of money
Assignor - ANS>person who makes a transfer under an assignment
Associate - ANS>individual who is authorized by RECA to hold that
classification of associate and to deal in mortgages on behalf of his or
her mortgage
Assumption - ANS>act of taking possession of mortgaged property
whereby the buyer accepts liability for the debt and takes responsibility
,of seller's existing mortgage at the interest rate and terms as laid out in
the original mortgage documents. The seller remains liable to the
mortgage lender unless the lender agrees to release the seller
ATB Financial - ANS>full-service financial institution established in
Alberta in 1938. Formerly the Alberta Treasury Branch (ATB), it has
been a provincial Crown corporation since 1997
Audit - ANS>independent examination of the accounting records and
other evidence relating to a business in order to support an impartial,
expert opinion regarding the fairness and reliability of financial
statements
Balance - ANS>amount of unpaid mortgage remaining after a payment
has been made
Balloon Payment - ANS>final payment of the mortgage made on the
maturity date to retire the debt in full. Such payments are most
common in commercial mortgage
Bankruptcy - ANS>legal process involving the surrender of certain
assets for disposition and the distribution of the proceeds to creditors
in exchange for financial relief or forgiveness from the debts. This
process is intended to provide a debtor with relief from his or her
debts, giving them a fresh start. It also stops creditors from taking
collection or legal action against the debtor
, Bankruptcy Insolvency Act - ANS>Federal legislation that governs the
process of bankruptcy and insolvency and defines the rights and
obligations of debtors and creditors. It allows fro the equitable
treatment of debtors and creditors and a fair distribution of the
proceeds of the debtor's disposed assets among the creditors
Bare Land Condominium - ANS>unit that is a two-dimensional plot on
the land. Results from the subdivision of land before construction
begins. A Real Property Report is required with a bare land
condominium
Barely Blended Condominium - ANS>unit with boundaries that are
defined by reference to walls, floors, and ceilings (three dimensions) of
a building. A barely blended condominium results from the re-division
of a bare land condominium unit into conventional condominium units.
May also be referred to as a re-divided bare land condo
Basis Point - ANS>unit of measure equal to 1/100th of one percent that
is normally used in quoting changes in interest rates or yields in debt
securities including mortgages
Beacon Score - ANS>number that is generated by the Equifax Credit
Bureau to rank the credit-worthiness of individuals
Blanket Mortgage - ANS>single mortgage registered against two or
more pieces of real property
