BC Mortgage Broker exam
Criminal rate under Criminal Code - ANS-Interest rate > 60% (What legislation?)
Prepayment privilege in the Interest Act - ANS-Right of prepayment for an "individual" for
mortgage term over 5 years. Term includes any extensions unless date of mortgage changed to
renewal date (mutually agreed).
Vendor Take-Back Mortgage - ANS-There is no restriction with private vendor financing
regarding loan to value
Disguised Mortgage - ANS-Purpose of transaction (a transfer) is to offer property as security;
Transfer can regain title through the equity of redemption
Assumed mortgage under Property Law - ANS-Limits vendor's (seller's) liabilities if (1)
residential purpose (2) lender's approval of purchaser in writing (3) transfer is within 3 months of
approval (4) lender's access to financial info of purchaser (5) mortgage is expired and no
demand of repayment is made within 3 months.
Equitable Mortgage (i.e. not a legal mortgage) - ANS-By way of (1) handing over to lender the
duplicate certificate of title (2) agreement to grant an mortgage (3) disguising a mortgage as a
transfer
Section 3 of Interest Act - ANS-If a document mentions interest but no rate is fixed in the
agreement or by law, the rate of interest is 5% p.a.
Section 8 of Interest Act - ANS-Interest on arrears - a lender cannot charge a higher interest on
monies owning after default
Section 10 of Interest Act - ANS-Right to prepay a mortgage (plus 3 month of interest): (1)
individual borrower; (2) mortgage not repayable until after 5 years; (3) 5 years expiration has
passed (unless the mortgage is renewed and date of mortgage changed to renewal date)
Order absolute of foreclosure - ANS-Lender can seek this relief if no equity in the mortgaged
property. If granted, the lender (1) become registered owner (2) vacant possession (3) equity of
redemption extinguished (4) personal covenant in the mortgage extinguished.
Section 6 & 7 of Interest Act - ANS-For blended payments, S.6 requires statement of interest
rate calculated annually or semi-annually "not in advance". S.7 interest rate per statement of
interest rate is lower than repayment clause, the lower rate applies.
clogging - ANS-A borrower cannot be prevented by the terms of the mortgage from eventually
redeeming his property
Criminal rate under Criminal Code - ANS-Interest rate > 60% (What legislation?)
Prepayment privilege in the Interest Act - ANS-Right of prepayment for an "individual" for
mortgage term over 5 years. Term includes any extensions unless date of mortgage changed to
renewal date (mutually agreed).
Vendor Take-Back Mortgage - ANS-There is no restriction with private vendor financing
regarding loan to value
Disguised Mortgage - ANS-Purpose of transaction (a transfer) is to offer property as security;
Transfer can regain title through the equity of redemption
Assumed mortgage under Property Law - ANS-Limits vendor's (seller's) liabilities if (1)
residential purpose (2) lender's approval of purchaser in writing (3) transfer is within 3 months of
approval (4) lender's access to financial info of purchaser (5) mortgage is expired and no
demand of repayment is made within 3 months.
Equitable Mortgage (i.e. not a legal mortgage) - ANS-By way of (1) handing over to lender the
duplicate certificate of title (2) agreement to grant an mortgage (3) disguising a mortgage as a
transfer
Section 3 of Interest Act - ANS-If a document mentions interest but no rate is fixed in the
agreement or by law, the rate of interest is 5% p.a.
Section 8 of Interest Act - ANS-Interest on arrears - a lender cannot charge a higher interest on
monies owning after default
Section 10 of Interest Act - ANS-Right to prepay a mortgage (plus 3 month of interest): (1)
individual borrower; (2) mortgage not repayable until after 5 years; (3) 5 years expiration has
passed (unless the mortgage is renewed and date of mortgage changed to renewal date)
Order absolute of foreclosure - ANS-Lender can seek this relief if no equity in the mortgaged
property. If granted, the lender (1) become registered owner (2) vacant possession (3) equity of
redemption extinguished (4) personal covenant in the mortgage extinguished.
Section 6 & 7 of Interest Act - ANS-For blended payments, S.6 requires statement of interest
rate calculated annually or semi-annually "not in advance". S.7 interest rate per statement of
interest rate is lower than repayment clause, the lower rate applies.
clogging - ANS-A borrower cannot be prevented by the terms of the mortgage from eventually
redeeming his property
