RECA FUNDAMENTALS OF MORTGAGE
BROKERAGE 2026 FINAL PAPER COMPLETE
REVISION QUESTIONS WITH FULL SOLUTIONS
◉ Accelerated Payments. Answer: 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. Answer: national
designation for mortgage professionals in Canada issued by the
Canadian Association of Accredited Mortgage Professionals
◉ Adjustable Rate Mortgage - ARM. Answer: 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. Answer: 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. Answer: 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. Answer: ability of an individual to carry the cost of
ownership of a property in relation to his or her available income
◉ Agency. Answer: 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. Answer: industry member who is expressly or implicitly
authorized to act or represent another person
◉ Agreement for Sale. Answer: 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. Answer: national, member-
based association that offers real estate appraiser designations in
Canada
,◉ AIDA. Answer: Attention, Interest, Desire, Action - design of
advertisements
◉ Alberta Land Surveyor's Association - ALSA. Answer: 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. Answer: Alberta's
professional association of licensed mortgage brokers and mortgage
associates
◉ Alberta Real Estate Foundation - AREF. Answer: 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. Answer: 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. Answer: gradual retirement of a debt by means of
installment payments which often includes principal and interest
◉ Amortization Period. Answer: 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. Answer: 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. Answer: interest rate stated on a
yearly basis that represents the cost of a mortgage
◉ Applicant. Answer: all borrowers, co-borrowers and guarantors
on the mortgage loan
◉ Appraisal. Answer: 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
BROKERAGE 2026 FINAL PAPER COMPLETE
REVISION QUESTIONS WITH FULL SOLUTIONS
◉ Accelerated Payments. Answer: 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. Answer: national
designation for mortgage professionals in Canada issued by the
Canadian Association of Accredited Mortgage Professionals
◉ Adjustable Rate Mortgage - ARM. Answer: 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. Answer: 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. Answer: 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. Answer: ability of an individual to carry the cost of
ownership of a property in relation to his or her available income
◉ Agency. Answer: 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. Answer: industry member who is expressly or implicitly
authorized to act or represent another person
◉ Agreement for Sale. Answer: 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. Answer: national, member-
based association that offers real estate appraiser designations in
Canada
,◉ AIDA. Answer: Attention, Interest, Desire, Action - design of
advertisements
◉ Alberta Land Surveyor's Association - ALSA. Answer: 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. Answer: Alberta's
professional association of licensed mortgage brokers and mortgage
associates
◉ Alberta Real Estate Foundation - AREF. Answer: 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. Answer: 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. Answer: gradual retirement of a debt by means of
installment payments which often includes principal and interest
◉ Amortization Period. Answer: 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. Answer: 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. Answer: interest rate stated on a
yearly basis that represents the cost of a mortgage
◉ Applicant. Answer: all borrowers, co-borrowers and guarantors
on the mortgage loan
◉ Appraisal. Answer: 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
