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Exam (elaborations)

Qfa Loans - Sample Paper 1 2 Exam (2026/2027) Questions And Correct Answers

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QFA Loans - Sample Paper 1 2 EXAM (2026/2027) QUESTIONS AND CORRECT ANSWERS

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QFA Loans - Sample Paper 1 2
EXAM (2026/2027) QUESTIONS
AND CORRECT ANSWERS
Acvlendercvgenerallycvchargescvacvlowercvinterestcvratecvoncvacvhousingcvloancvbecause:
Acvthecvloancviscvsecuredcvagainstcvthecvproperty.
BcvtheycvarecvrequiredcvtocvdocvsocvbycvthecvConsumer
CreditcvAct,cv1995.
Ccvthecvloancviscvunsecured.
DcvtheycvarecvrequiredcvtocvdocvsocvbycvthecvConsumercvProtectioncvCode.cv-cvANSWERS-
A

1.2cv-cvIndividualcvLoancvNeeds

FinncvbuyscvacvcarcvbycvtakingcvoutcvacvPersonalcvPaymentcvPlancv(PPP).cvWhencvwillcvFinn
cvbecvthecvlegalcvownercvofcvthecvcar?

AcvAscvsooncvascvthecvcontractcviscvsigned.
BcvAftercvhecvpayscvancvinitialcvdeposit.
CcvWhencvthecvfinalcvpaymentcvhascvbeencvmade.
DcvWhencv50%cvofcvallcvpaymentscvhavecvbeencvmade.cv-cvANSWERS-C

1.2.1cvDifferentcvformscvofcvLoans

TocvwhichcvofcvthecvfollowingcvconsumerscvdocvthecvprovisionscvofcvthecvConsumercvProtec
tioncvCode,cv2012cvNOTcvapply?
AcvJanet,cvwhocvhascvborrowedcv€10,000cvascvacvpersonalcvloancvfromcvClearcvBank.
BcvJennifer,cvwhocvhascvengagedcvthecvservicescvofcvacvDebtcvManagementcvfirmcvtocvactcv
oncvhercvbehalfcvwithcvhercvcreditors.
CcvRoss,cvwhocvhascvtakencvoutcvacvlifecvassurancecvpolicycvwithcvhiscvlocalcvCreditcvUnion.
DcvJames,cvwhocvhascvreceivedcvfinancecvundercvacvhire-purchasecvagreement.cv-
cvANSWERS-D



1.6.2cvConsumercvProtectioncvCode,cv2012

MarycvreferredcvacvcomplaintcvshecvhadcvmadecvaboutcvDeltacvBankcvtocvthecvFinancialcvSe
rvicescvandcvPensionscvOmbudsmancv(FSPO)cvascvshecvwascvunhappycvwithcvtheircvfinalcv
response.cvThecvFSPOcvupheldcvMary'scvcomplaintcvandcvawardedcvhercvcompensationcv
ofcv€50,000.cvDeltacvBankcvwishcvtocvappealcvthecvFSPO'scvdecision.
WithincvhowcvmanycvdayscvofcvthecvFSPO'scvdecisioncvmustcvDeltacvBankcvsubmitcvtheircva
ppealcvtocvthecvHighcvCourt?
Acv15cvdays
Bcv20cvdays
Ccv30cvdays
Dcv35cvdayscv-cvANSWERS-D

,1.5.3.1cvFinancialcvServicescvandcvPensionscvComplaintscvProcess

Whichcvofcvthecvfollowingcviscvnotcvancvelementcvofcvacvvalidcvcontract?
AcvConsideration
BcvAcceptance
CcvVerification
DcvCapacitycv-cvANSWERS-C

1.7.1cvEssentialcvElementscvofcvacvValidcvContract

PhilipcvagreescvtocvoffercvWestcvBankcvcollateralcvsecuritycvagainstcvacvhousingcvloan.cvThi
scvmostcvlikelycvmeanscvthatcvPhilipcviscvproviding:
Acvacvthirdcvparty,cvwhocvwillcvagreecvtocvmakecvthecvloancvrepaymentscvifcvhecvdefaultscvoncv
hiscvloan.
Bcvacvlegalcvmortgagecvovercvthecvfreeholdcvproperty.
Ccvacvpersonalcvcovenantcvtocvrepaycvthecvloan.
Dcvancvassignmentcvofcvacvhomecvcontentscvinsurancecvpolicy.cv-cvANSWERS-A

2.4cv-cvSecuritycvforcvHousingcvLoans

Incvthecvearlycvyearscvofcvacvloancvwhichcviscvarrangedcvoncvacvcapitalcvandcvinterestcvbasis,cv
the:
Acvlargestcvpartcvofcvthecvmonthlycvpaymentcviscvusedcvtocvpaycvthecvinterestcvcharge.
Bcvcapitalcvportioncvreducescvquickly.
Ccvinterestcvportioncviscvsuspended.
Dcvlargestcvpartcvofcvthecvmonthlycvpaymentcviscvusedcvtocvpaycvoffcvthecvcapitalcvsumcvborro
wed.cv-cvANSWERS-A

2.10.1cv-cvCapitalcvandcvinterest

RitacvholdscvacvvariablecvratecvmortgagecvwithcvBetacvBank.cvBetacvBankcvmustcvprovidecvR
itacvwithcvacvnotificationcvadvisingcvhercvofcvanycvchangecvincvthecvinterestcvrate:
Acvascvsooncvascvthecvbankcvbecomescvawarecvthatcvtheycvarecvchangingcvthecvinterestcvrat
e.
Bcvnocvlatercvthancv10cvbusinesscvdayscvfollowingcvacvchangecvincvthecvECBcvreficvrate.
Ccvatcvleastcv20cvbusinesscvdayscvincvadvancecvofcvanycvinterestcvratecvchange.
Dcvatcvleastcv30cvdayscvincvadvancecvofcvanycvinterestcvratecvchange.cv-cvANSWERS-D

2.12cvHousingcvLoancvInterestcvRates

Whatcvfactor(s)cvdeterminecvhowcvacvmortgagecvlendercvcalculatescvtheircvvariablecvmortg
agecvinterestcvrates?
(i)cvCostcvofcvfunds.(ii)cvCompetitioncvincvthecvmarketcvplace.cv(iii)cvProfitcvmargin.
Acv(i)cvonly.
Bcv(i)cvandcv(ii)cvonly.
Ccv(i)cvandcv(iii)cvonly.
Dcv(i),cv(ii)cvandcv(iii)cv-cvANSWERS-D

2.11.1cv-cvStandardcvVariablecvRate

, WhycvmightcvacvfixedcvratecvmortgagecvbecvthecvMOSTcvsuitablecvmortgagecvforcvacvfirstcvti
mecvbuyer?
AcvLenderscvoffercvhighercvLoanscvtocvValuecv(LTV)cvforcvfixedcvratecvmortgagescvthancvforcv
variablecvratecvmortgages.
BcvFixedcvratecvborrowerscvarecvnotcvusuallycvrequiredcvtocvtakecvoutcvmortgagecvprotectio
ncvcover.
CcvThecvborrowercvcancvgetcvacvhighercvratecvofcvmortgagecvinterestcvtaxcvrelief.
DcvThecvrepaymentscvarecvguaranteedcvnotcvtocvincreasecvduringcvthecvfixcvperiod,cvofferin
gcvthecvborrowercvstability.cv-cvANSWERS-D

2.11.3cv-cvFixedcvRate

Wherecvacvlendercvintendscvtocvchargecvacvredemptioncvfee,cvitcviscvrequiredcvtocvprovidecvto
cvthecvborrowercvwith:

(i)cvacvcopycvofcvthecvloancvoffer.
(ii)cvacvworkedcvexamplecvofcvthecvredemptioncvchargecvspecificcvtocvtheircvcircumstances.
(iii)cvdetailscvoncvhowcvthecvchargecviscvcalculated.
Acv(i)cvonly.
Bcv(i)cvandcv(ii)cvonly.
Ccv(ii)cvandcv(iii)cvonly.
Dcv(i),cv(ii)cvandcv(iii).cv-cvANSWERS-C

2.11.3cv-cvFixedcvRate

Acvwayleavecvis:
Acvacvcovenantcvprohibitingcvacvbusinesscvtocvbecvcarriedcvoutcvwithincvacvpremises.
Bcvhuntingcvandcvfishingcvrightscvoncvthecvlandcvofcvanother.
Ccvacvrightcvofcvwaycvacrosscvlandcvtocvcarrycvincvgascvpipescvandcvlaycvcables.
Dcvacvrightcvofcvwaycvenjoyedcvbycvacvpropertycvownercvovercvthecvlandscvofcvanother.cv-
cvANSWERS-C



2.5.3cv-cvRightscvandcvInterestscvovercvLand

DavidcvandcvMargaretcvowncvancvinvestmentcvpropertycvoncvacv60:40cvbasiscvascvtenantscvi
ncvcommoncvandcvhavecvacvmortgagecvofcv€500,000cvoutstandingcvoncvthecvproperty.cvThe
ycvdocvnotcvhavecvanycvmortgagecvprotectioncvcover.
IfcvDavidcvdies,cvMargaretcviscvlegallycvliablecvfor:
Acvnonecvofcvthecvoutstandingcvmortgagecvascvthecvbankcvwillcvautomaticallycvwrite-
offcvthecvbalance.
Bcv40%cvofcvmortgagecvoutstanding.
Ccv60%cvofcvmortgagecvoutstanding.
Dcv100%cvofcvmortgagecvoutstanding.cv-cvANSWERS-D

2.7.3cv-cvTenantscvincvcommon

CompoundcvInterestcviscvwherecvinterestcvcharged:
Acviscvdeductedcvfromcvthecvoriginalcvloancvamountcvoncvancvannualcvbasis.
Bcvonlycvrelatescvtocvrepaymentscvoncvoutstandingcvarrears.
Ccviscvaddedcvtocvthecvloancvamountcvandcvfromcvthencvoncvthecvnewcvloancvamountcvequalsc
vthecvoriginalcvcapitalcvandcvthecvinterestcvcharge.

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Uploaded on
September 15, 2026
Number of pages
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Written in
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