QFA LOANS - SAMPLE PAPER
1ACTUAL EXAM 2026/2027 |
PATIENTS 1–6 STUDY GUIDE &
PRACTICE REVIEW | VERIFIED
ANSWERS
A lender generally charges a lower interest rate on a housing loan because:
ie ie ie ie ie ie ie ie ie ie ie ie
A the loan is secured against the property.
ie ie ie ie ie ie ie
B they are required to do so by the Consumer
ie ie ie ie ie ie ie ie ie
Credit Act, 1995. ie ie
C the loan is unsecured.
ie ie ie ie
D they are required to do so by the Consumer Protection Code. - ANSWERS-A
ie ie ie ie ie ie ie ie ie ie ie ie ie
1.2 - Individual Loan Needs
ie ie ie ie
Finn buys a car by taking out a Personal Payment Plan (PPP). When will Finn be the l
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
egal owner of the car?
ie ie ie ie
A As soon as the contract is signed.
ie ie ie ie ie ie ie
B After he pays an initial deposit.
ie ie ie ie ie ie
C When the final payment has been made.
ie ie ie ie ie ie ie
D When 50% of all payments have been made. - ANSWERS-C
ie ie ie ie ie ie ie ie ie ie
1.2.1 Different forms of Loans
ie ie ie ie
To which of the following consumers do the provisions of the Consumer Protection C
ie ie ie ie ie ie ie ie ie ie ie ie ie
ode, 2012 NOT apply? ie ie ie
A Janet, who has borrowed €10,000 as a personal loan from Clear Bank.
ie ie ie ie ie ie ie ie ie ie ie ie
B Jennifer, who has engaged the services of a Debt Management firm to act on her b
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
ehalf with her creditors. ie ie ie
C Ross, who has taken out a life assurance policy with his local Credit Union.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
D James, who has received finance under a hire-purchase agreement. - ANSWERS-
ie ie ie ie ie ie ie ie ie ie ie
D
1.6.2 Consumer Protection Code, 2012
ie ie ie ie
Mary referred a complaint she had made about Delta Bank to the Financial Services
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
and Pensions Ombudsman (FSPO) as she was unhappy with their final response. Th
ie ie ie ie ie ie ie ie ie ie ie ie
e FSPO upheld Mary's complaint and awarded her compensation of €50,000. Delta B
ie ie ie ie ie ie ie ie ie ie ie ie
ank wish to appeal the FSPO's decision.
ie ie ie ie ie ie
Within how many days of the FSPO's decision must Delta Bank submit their appeal to
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
the High Court?
ie ie ie
A 15 days
ie ie
B 20 days
ie ie
C 30 days
ie ie
,D 35 days - ANSWERS-D
ie ie ie ie
1.5.3.1 Financial Services and Pensions Complaints Process
ie ie ie ie ie ie
Which of the following is not an element of a valid contract?
ie ie ie ie ie ie ie ie ie ie ie
A Consideration
ie
B Acceptance
ie
C Verification
ie
D Capacity - ANSWERS-C
ie ie ie
1.7.1 Essential Elements of a Valid Contract
ie ie ie ie ie ie
Philip agrees to offer West Bank collateral security against a housing loan. This most
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
likely means that Philip is providing:
ie ie ie ie ie
A a third party, who will agree to make the loan repayments if he defaults on his loan.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
B a legal mortgage over the freehold property.
ie ie ie ie ie ie ie
C a personal covenant to repay the loan.
ie ie ie ie ie ie ie
D an assignment of a home contents insurance policy. - ANSWERS-A
ie ie ie ie ie ie ie ie ie ie
2.4 - Security for Housing Loans
ie ie ie ie ie
In the early years of a loan which is arranged on a capital and interest basis, the:
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
A largest part of the monthly payment is used to pay the interest charge.
ie ie ie ie ie ie ie ie ie ie ie ie ie
B capital portion reduces quickly.
ie ie ie ie
C interest portion is suspended.
ie ie ie ie
D largest part of the monthly payment is used to pay off the capital sum borrowed. -
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
ANSWERS-A
ie
2.10.1 - Capital and interest ie ie ie ie
Rita holds a variable rate mortgage with Beta Bank. Beta Bank must provide Rita with
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
a notification advising her of any change in the interest rate:
ie ie ie ie ie ie ie ie ie ie ie
A as soon as the bank becomes aware that they are changing the interest rate.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
B no later than 10 business days following a change in the ECB refi rate.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
C at least 20 business days in advance of any interest rate change.
ie ie ie ie ie ie ie ie ie ie ie ie
D at least 30 days in advance of any interest rate change. - ANSWERS-D
ie ie ie ie ie ie ie ie ie ie ie ie ie
2.12 Housing Loan Interest Rates
ie ie ie ie
What factor(s) determine how a mortgage lender calculates their variable mortgage in
ie ie ie ie ie ie ie ie ie ie ie
terest rates? ie
(i) Cost of funds.(ii) Competition in the market place. (iii) Profit margin.
ie ie ie ie ie ie ie ie ie ie ie
A (i) only.
ie ie
B (i) and (ii) only.
ie ie ie ie
C (i) and (iii) only.
ie ie ie ie
D (i), (ii) and (iii) - ANSWERS-D
ie ie ie ie ie ie
2.11.1 - Standard Variable Rate ie ie ie ie
, Why might a fixed rate mortgage be the MOST suitable mortgage for a first time buye
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
r?
A Lenders offer higher Loans to Value (LTV) for fixed rate mortgages than for variabl
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
e rate mortgages.
ie ie
B Fixed rate borrowers are not usually required to take out mortgage protection cover
ie ie ie ie ie ie ie ie ie ie ie ie ie
.
C The borrower can get a higher rate of mortgage interest tax relief.
ie ie ie ie ie ie ie ie ie ie ie ie
D The repayments are guaranteed not to increase during the fix period, offering the b
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
orrower stability. - ANSWERS-D ie ie ie
2.11.3 - Fixed Rate ie ie ie
Where a lender intends to charge a redemption fee, it is required to provide to the bor
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
rower with: ie
(i) a copy of the loan offer.
ie ie ie ie ie ie
(ii) a worked example of the redemption charge specific to their circumstances.
ie ie ie ie ie ie ie ie ie ie ie
(iii) details on how the charge is calculated.
ie ie ie ie ie ie ie
A (i) only.
ie ie
B (i) and (ii) only.
ie ie ie ie
C (ii) and (iii) only.
ie ie ie ie
D (i), (ii) and (iii). - ANSWERS-C
ie ie ie ie ie ie
2.11.3 - Fixed Rate ie ie ie
A wayleave is:
ie ie
A a covenant prohibiting a business to be carried out within a premises.
ie ie ie ie ie ie ie ie ie ie ie ie
B hunting and fishing rights on the land of another.
ie ie ie ie ie ie ie ie ie
C a right of way across land to carry in gas pipes and lay cables.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
D a right of way enjoyed by a property owner over the lands of another. - ANSWERS-
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
C
2.5.3 - Rights and Interests over Land
ie ie ie ie ie ie
David and Margaret own an investment property on a 60:40 basis as tenants in com
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
mon and have a mortgage of €500,000 outstanding on the property. They do not hav
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
e any mortgage protection cover.
ie ie ie ie
If David dies, Margaret is legally liable for:
ie ie ie ie ie ie ie
A none of the outstanding mortgage as the bank will automatically write-
ie ie ie ie ie ie ie ie ie ie ie
off the balance.
ie ie
B 40% of mortgage outstanding.
ie ie ie ie
C 60% of mortgage outstanding.
ie ie ie ie
D 100% of mortgage outstanding. - ANSWERS-D
ie ie ie ie ie ie
2.7.3 - Tenants in common ie ie ie ie
Compound Interest is where interest charged: ie ie ie ie ie
A is deducted from the original loan amount on an annual basis.
ie ie ie ie ie ie ie ie ie ie ie
B only relates to repayments on outstanding arrears.
ie ie ie ie ie ie ie
C is added to the loan amount and from then on the new loan amount equals the origi
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
nal capital and the interest charge.
ie ie ie ie ie
1ACTUAL EXAM 2026/2027 |
PATIENTS 1–6 STUDY GUIDE &
PRACTICE REVIEW | VERIFIED
ANSWERS
A lender generally charges a lower interest rate on a housing loan because:
ie ie ie ie ie ie ie ie ie ie ie ie
A the loan is secured against the property.
ie ie ie ie ie ie ie
B they are required to do so by the Consumer
ie ie ie ie ie ie ie ie ie
Credit Act, 1995. ie ie
C the loan is unsecured.
ie ie ie ie
D they are required to do so by the Consumer Protection Code. - ANSWERS-A
ie ie ie ie ie ie ie ie ie ie ie ie ie
1.2 - Individual Loan Needs
ie ie ie ie
Finn buys a car by taking out a Personal Payment Plan (PPP). When will Finn be the l
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
egal owner of the car?
ie ie ie ie
A As soon as the contract is signed.
ie ie ie ie ie ie ie
B After he pays an initial deposit.
ie ie ie ie ie ie
C When the final payment has been made.
ie ie ie ie ie ie ie
D When 50% of all payments have been made. - ANSWERS-C
ie ie ie ie ie ie ie ie ie ie
1.2.1 Different forms of Loans
ie ie ie ie
To which of the following consumers do the provisions of the Consumer Protection C
ie ie ie ie ie ie ie ie ie ie ie ie ie
ode, 2012 NOT apply? ie ie ie
A Janet, who has borrowed €10,000 as a personal loan from Clear Bank.
ie ie ie ie ie ie ie ie ie ie ie ie
B Jennifer, who has engaged the services of a Debt Management firm to act on her b
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
ehalf with her creditors. ie ie ie
C Ross, who has taken out a life assurance policy with his local Credit Union.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
D James, who has received finance under a hire-purchase agreement. - ANSWERS-
ie ie ie ie ie ie ie ie ie ie ie
D
1.6.2 Consumer Protection Code, 2012
ie ie ie ie
Mary referred a complaint she had made about Delta Bank to the Financial Services
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
and Pensions Ombudsman (FSPO) as she was unhappy with their final response. Th
ie ie ie ie ie ie ie ie ie ie ie ie
e FSPO upheld Mary's complaint and awarded her compensation of €50,000. Delta B
ie ie ie ie ie ie ie ie ie ie ie ie
ank wish to appeal the FSPO's decision.
ie ie ie ie ie ie
Within how many days of the FSPO's decision must Delta Bank submit their appeal to
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
the High Court?
ie ie ie
A 15 days
ie ie
B 20 days
ie ie
C 30 days
ie ie
,D 35 days - ANSWERS-D
ie ie ie ie
1.5.3.1 Financial Services and Pensions Complaints Process
ie ie ie ie ie ie
Which of the following is not an element of a valid contract?
ie ie ie ie ie ie ie ie ie ie ie
A Consideration
ie
B Acceptance
ie
C Verification
ie
D Capacity - ANSWERS-C
ie ie ie
1.7.1 Essential Elements of a Valid Contract
ie ie ie ie ie ie
Philip agrees to offer West Bank collateral security against a housing loan. This most
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
likely means that Philip is providing:
ie ie ie ie ie
A a third party, who will agree to make the loan repayments if he defaults on his loan.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
B a legal mortgage over the freehold property.
ie ie ie ie ie ie ie
C a personal covenant to repay the loan.
ie ie ie ie ie ie ie
D an assignment of a home contents insurance policy. - ANSWERS-A
ie ie ie ie ie ie ie ie ie ie
2.4 - Security for Housing Loans
ie ie ie ie ie
In the early years of a loan which is arranged on a capital and interest basis, the:
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
A largest part of the monthly payment is used to pay the interest charge.
ie ie ie ie ie ie ie ie ie ie ie ie ie
B capital portion reduces quickly.
ie ie ie ie
C interest portion is suspended.
ie ie ie ie
D largest part of the monthly payment is used to pay off the capital sum borrowed. -
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
ANSWERS-A
ie
2.10.1 - Capital and interest ie ie ie ie
Rita holds a variable rate mortgage with Beta Bank. Beta Bank must provide Rita with
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
a notification advising her of any change in the interest rate:
ie ie ie ie ie ie ie ie ie ie ie
A as soon as the bank becomes aware that they are changing the interest rate.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
B no later than 10 business days following a change in the ECB refi rate.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
C at least 20 business days in advance of any interest rate change.
ie ie ie ie ie ie ie ie ie ie ie ie
D at least 30 days in advance of any interest rate change. - ANSWERS-D
ie ie ie ie ie ie ie ie ie ie ie ie ie
2.12 Housing Loan Interest Rates
ie ie ie ie
What factor(s) determine how a mortgage lender calculates their variable mortgage in
ie ie ie ie ie ie ie ie ie ie ie
terest rates? ie
(i) Cost of funds.(ii) Competition in the market place. (iii) Profit margin.
ie ie ie ie ie ie ie ie ie ie ie
A (i) only.
ie ie
B (i) and (ii) only.
ie ie ie ie
C (i) and (iii) only.
ie ie ie ie
D (i), (ii) and (iii) - ANSWERS-D
ie ie ie ie ie ie
2.11.1 - Standard Variable Rate ie ie ie ie
, Why might a fixed rate mortgage be the MOST suitable mortgage for a first time buye
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
r?
A Lenders offer higher Loans to Value (LTV) for fixed rate mortgages than for variabl
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
e rate mortgages.
ie ie
B Fixed rate borrowers are not usually required to take out mortgage protection cover
ie ie ie ie ie ie ie ie ie ie ie ie ie
.
C The borrower can get a higher rate of mortgage interest tax relief.
ie ie ie ie ie ie ie ie ie ie ie ie
D The repayments are guaranteed not to increase during the fix period, offering the b
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
orrower stability. - ANSWERS-D ie ie ie
2.11.3 - Fixed Rate ie ie ie
Where a lender intends to charge a redemption fee, it is required to provide to the bor
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
rower with: ie
(i) a copy of the loan offer.
ie ie ie ie ie ie
(ii) a worked example of the redemption charge specific to their circumstances.
ie ie ie ie ie ie ie ie ie ie ie
(iii) details on how the charge is calculated.
ie ie ie ie ie ie ie
A (i) only.
ie ie
B (i) and (ii) only.
ie ie ie ie
C (ii) and (iii) only.
ie ie ie ie
D (i), (ii) and (iii). - ANSWERS-C
ie ie ie ie ie ie
2.11.3 - Fixed Rate ie ie ie
A wayleave is:
ie ie
A a covenant prohibiting a business to be carried out within a premises.
ie ie ie ie ie ie ie ie ie ie ie ie
B hunting and fishing rights on the land of another.
ie ie ie ie ie ie ie ie ie
C a right of way across land to carry in gas pipes and lay cables.
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
D a right of way enjoyed by a property owner over the lands of another. - ANSWERS-
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
C
2.5.3 - Rights and Interests over Land
ie ie ie ie ie ie
David and Margaret own an investment property on a 60:40 basis as tenants in com
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
mon and have a mortgage of €500,000 outstanding on the property. They do not hav
ie ie ie ie ie ie ie ie ie ie ie ie ie ie
e any mortgage protection cover.
ie ie ie ie
If David dies, Margaret is legally liable for:
ie ie ie ie ie ie ie
A none of the outstanding mortgage as the bank will automatically write-
ie ie ie ie ie ie ie ie ie ie ie
off the balance.
ie ie
B 40% of mortgage outstanding.
ie ie ie ie
C 60% of mortgage outstanding.
ie ie ie ie
D 100% of mortgage outstanding. - ANSWERS-D
ie ie ie ie ie ie
2.7.3 - Tenants in common ie ie ie ie
Compound Interest is where interest charged: ie ie ie ie ie
A is deducted from the original loan amount on an annual basis.
ie ie ie ie ie ie ie ie ie ie ie
B only relates to repayments on outstanding arrears.
ie ie ie ie ie ie ie
C is added to the loan amount and from then on the new loan amount equals the origi
ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie ie
nal capital and the interest charge.
ie ie ie ie ie
