RECA FUNDAMENTALS OF MORTGAGE BROKERAGE EXAM
WITH HIGH-YIELD QUESTIONS, DETAILED
ANSWERS,MORTGAGE BROKERAGE PRINCIPLES,
REGULATORY COMPLIANCE, ETHICS AND PROFESSIONAL
STANDARDS, MORTGAGE PRODUCTS AND LENDING
PRACTICES, REAL-WORLD CASE SCENARIOS, TEST-TAKING
STRATEGIES, AND COMPREHENSIVE LICENSING EXAM
PREPARATION TOOLS – 2026/2027 LATEST UPDATED
EDITION
AACI
Accredited Appraiser Canadian Institute - designation granted by Appraisal
Institute of Canada
Accelerated Payments
payment options stream whereby the monthly mortgage payment is either split in
half or in quarters and is paid every two weeks (bi-weekly) or every week (weekly)
Accredited Mortgage Professional - AMP
national designation for mortgage professionals in Canada issued by the Canadian
Association of Accredited Mortgage Professionals
Adjustable Rate Mortgage - ARM
mortgage where the interest rate and payments are increased or decreased at
predetermined intervals based on a rate market review conducted by the lender.
,The interest rate charged on the mortgage may be linked to the lender's prime rate
or a pre-selected index rate
Adjustments
financial calculations made regarding the costs for the respective parties associated
with a mortgage or real estate transaction at the time of closing (eg. property taxes)
Affidavit
formal written statement of fact sworn to or affirmed by the author and witnessed
as to the authenticity of the author's signature before a person such as a notary or
commissioner of oaths who is authorized to administer an oath
Affordability
ability of an individual to carry the cost of ownership of a property in relation to
his or her available income
Agency
consensual relationship created by contract or law where one party, the principal,
grants authority for another party, the agent, to act on behalf of and under the
control of the principal to deal with a third party and where the agent accepts
responsibility for representing the principal
Agent
industry member who is expressly or implicitly authorized to act or represent
another person
,Agreement for Sale
A financial arrangement between a seller and buyer in which the seller carries the
financing for the buyer's purchase of the property. However, the title remains in the
name of the seller until such time as the funds are re-paid by the buyer
Appraisal Institute of Canada - AIC
national, member-based association that offers real estate appraiser designations in
Canada
AIDA
Attention, Interest, Desire, Action - design of advertisements
Alberta Land Surveyor's Association - ALSA
self-governing professional association legislated under the Land Surveyors' Act of
Alberta that regulates the practice of land surveying for the protection of the public
and the administration of the profession
Alberta Mortgage Brokers Association
Alberta's professional association of licensed mortgage brokers and mortgage
associates
Alberta Real Estate Foundation - AREF
organization created under Alberta's Real Estate Act to promote the development
of educational initiatives for real estate industry members and consumers, support
, law reform and research in respect of the real estate industry, and other projects
and activities to advance and improve the real estate industry
Alberta Securities Commission - ASC
regulatory agency responsible for administering the province's securities laws and
ensuring that persons who sell securities in Alberta are registered and conduct
themselves according to applicable laws and professional standards
Amortization
gradual retirement of a debt by means of installment payments which often
includes principal and interest
Amortization Period
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
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
interest rate stated on a yearly basis that represents the cost of a mortgage
WITH HIGH-YIELD QUESTIONS, DETAILED
ANSWERS,MORTGAGE BROKERAGE PRINCIPLES,
REGULATORY COMPLIANCE, ETHICS AND PROFESSIONAL
STANDARDS, MORTGAGE PRODUCTS AND LENDING
PRACTICES, REAL-WORLD CASE SCENARIOS, TEST-TAKING
STRATEGIES, AND COMPREHENSIVE LICENSING EXAM
PREPARATION TOOLS – 2026/2027 LATEST UPDATED
EDITION
AACI
Accredited Appraiser Canadian Institute - designation granted by Appraisal
Institute of Canada
Accelerated Payments
payment options stream whereby the monthly mortgage payment is either split in
half or in quarters and is paid every two weeks (bi-weekly) or every week (weekly)
Accredited Mortgage Professional - AMP
national designation for mortgage professionals in Canada issued by the Canadian
Association of Accredited Mortgage Professionals
Adjustable Rate Mortgage - ARM
mortgage where the interest rate and payments are increased or decreased at
predetermined intervals based on a rate market review conducted by the lender.
,The interest rate charged on the mortgage may be linked to the lender's prime rate
or a pre-selected index rate
Adjustments
financial calculations made regarding the costs for the respective parties associated
with a mortgage or real estate transaction at the time of closing (eg. property taxes)
Affidavit
formal written statement of fact sworn to or affirmed by the author and witnessed
as to the authenticity of the author's signature before a person such as a notary or
commissioner of oaths who is authorized to administer an oath
Affordability
ability of an individual to carry the cost of ownership of a property in relation to
his or her available income
Agency
consensual relationship created by contract or law where one party, the principal,
grants authority for another party, the agent, to act on behalf of and under the
control of the principal to deal with a third party and where the agent accepts
responsibility for representing the principal
Agent
industry member who is expressly or implicitly authorized to act or represent
another person
,Agreement for Sale
A financial arrangement between a seller and buyer in which the seller carries the
financing for the buyer's purchase of the property. However, the title remains in the
name of the seller until such time as the funds are re-paid by the buyer
Appraisal Institute of Canada - AIC
national, member-based association that offers real estate appraiser designations in
Canada
AIDA
Attention, Interest, Desire, Action - design of advertisements
Alberta Land Surveyor's Association - ALSA
self-governing professional association legislated under the Land Surveyors' Act of
Alberta that regulates the practice of land surveying for the protection of the public
and the administration of the profession
Alberta Mortgage Brokers Association
Alberta's professional association of licensed mortgage brokers and mortgage
associates
Alberta Real Estate Foundation - AREF
organization created under Alberta's Real Estate Act to promote the development
of educational initiatives for real estate industry members and consumers, support
, law reform and research in respect of the real estate industry, and other projects
and activities to advance and improve the real estate industry
Alberta Securities Commission - ASC
regulatory agency responsible for administering the province's securities laws and
ensuring that persons who sell securities in Alberta are registered and conduct
themselves according to applicable laws and professional standards
Amortization
gradual retirement of a debt by means of installment payments which often
includes principal and interest
Amortization Period
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
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
interest rate stated on a yearly basis that represents the cost of a mortgage
