QFA LOANS SAMPLE PAPER 1 AND PAPER 2 WITH
100 QUESTIONS EACH AND CORRECT VERIFIED
ANSWERS (100% CORRECT ANSWERS)
(NEWLY UPDATED 2026!!)
John, who has a number of investment properties, receives total rental income of
€60,000. In 2019, John also pays loan interest of €60,000 on all his investment
property loans.
On how much of this rental income will John be taxed?
A Nil.
B €15,000
C €40,000
D €60,000 - CORRECT ANSWER ✔✔- A
3.7 - Tax relief on residential investment property loans
For the purposes of Capital Gains Tax, a chargeable gain is the:
A allowable deduction on a chargeable item.
B difference between the purchase price and the sale price (less allowable costs)
arising from the sale of an asset.
C incidental expenditure arising for the sale of an asset.
D difference between the expenditure incurred when selling an asset and
purchasing a new asset. - CORRECT ANSWER ✔✔- B
1
,3.7.1 - Capital Gains Tax
Which of the following incentives does the government funded Help to Buy
Scheme provide to eligible first-time buyers?
A Refund of any Capital Gains Tax paid.
B Unlimited threshold for Capital Acquisitions
T ax.
C Refund of Income Tax and DIRT.
D Refund of Stamp Duty. - CORRECT ANSWER ✔✔- C
3.4 Help to Buy Scheme
Which of the following factors does a lender look at when assessing the
MAXIMUM loan it is prepared to offer an individual borrower?
(i) Profit the loan will generate.
(ii) Borrower's loan to income limit. (iii) Loan to Value ratio.
A (i) and (ii) only.
B (i) and (iii) only.
C (ii) and (iii) only.
D (i), (ii) and (iii). - CORRECT ANSWER ✔✔- C
4.1 Assessing a loan application
2
,Which of the following factors need to be considered when comparing competing
loans, in order to recommend an appropriate housing loan?
(i) Affordability.
(ii) Flexibility.
(iii) Investment risks.
A (i) and (ii) only.
B (i) and (iii) only.
C (ii) and (iii) only.
D (i), (ii) and (iii). - CORRECT ANSWER ✔✔- D
4.2 - Assessing a loan application
Housing loan lenders cannot NORMALLY lend more than 90% of the value of a
property to first time buyers, because:
(i) they will be in breach of money laundering regulations.
(ii) the lender has limited resources.
(iii) they are limited from doing so by the Central Bank of Ireland.
A (i) only.
B (iii) only.
C (ii) and (iii) only.
D (i), (ii) and (iii). - CORRECT ANSWER ✔✔- B
4.2.3 - Loan to Value (LTV) Limits
3
, Edward has been offered a housing loanwith a discounted variable rate of 3.2%
for6 months. At the end of the discounted period the rate charged will be the
standard variable rate which is currently
3.6%.
Under the Consumer Protection Code, when assessing Edward's ability to repay,
the lender is required to stress test his future affordability of the loan at what
rate?
A 3.60%
B 4.60%
C 5.20%
D 5.60% - CORRECT ANSWER ✔✔- D
4.3.3 - Affordability/Stress-Testing
Under the Consumer Protection Code a lender is NOT required to stress test a
home loan application for affordability if
A borrower is known to them.
B interest rate is more than 5%.
C loan relates to a private principle residence.
D interest rate is fixed for more than five years. - CORRECT ANSWER ✔✔- D
4.3.3 - Affordability/Stress-Testing
Ruth's mortgage lender will stress test her housing loan repayments to determine
if she could make the repayments if:
4
100 QUESTIONS EACH AND CORRECT VERIFIED
ANSWERS (100% CORRECT ANSWERS)
(NEWLY UPDATED 2026!!)
John, who has a number of investment properties, receives total rental income of
€60,000. In 2019, John also pays loan interest of €60,000 on all his investment
property loans.
On how much of this rental income will John be taxed?
A Nil.
B €15,000
C €40,000
D €60,000 - CORRECT ANSWER ✔✔- A
3.7 - Tax relief on residential investment property loans
For the purposes of Capital Gains Tax, a chargeable gain is the:
A allowable deduction on a chargeable item.
B difference between the purchase price and the sale price (less allowable costs)
arising from the sale of an asset.
C incidental expenditure arising for the sale of an asset.
D difference between the expenditure incurred when selling an asset and
purchasing a new asset. - CORRECT ANSWER ✔✔- B
1
,3.7.1 - Capital Gains Tax
Which of the following incentives does the government funded Help to Buy
Scheme provide to eligible first-time buyers?
A Refund of any Capital Gains Tax paid.
B Unlimited threshold for Capital Acquisitions
T ax.
C Refund of Income Tax and DIRT.
D Refund of Stamp Duty. - CORRECT ANSWER ✔✔- C
3.4 Help to Buy Scheme
Which of the following factors does a lender look at when assessing the
MAXIMUM loan it is prepared to offer an individual borrower?
(i) Profit the loan will generate.
(ii) Borrower's loan to income limit. (iii) Loan to Value ratio.
A (i) and (ii) only.
B (i) and (iii) only.
C (ii) and (iii) only.
D (i), (ii) and (iii). - CORRECT ANSWER ✔✔- C
4.1 Assessing a loan application
2
,Which of the following factors need to be considered when comparing competing
loans, in order to recommend an appropriate housing loan?
(i) Affordability.
(ii) Flexibility.
(iii) Investment risks.
A (i) and (ii) only.
B (i) and (iii) only.
C (ii) and (iii) only.
D (i), (ii) and (iii). - CORRECT ANSWER ✔✔- D
4.2 - Assessing a loan application
Housing loan lenders cannot NORMALLY lend more than 90% of the value of a
property to first time buyers, because:
(i) they will be in breach of money laundering regulations.
(ii) the lender has limited resources.
(iii) they are limited from doing so by the Central Bank of Ireland.
A (i) only.
B (iii) only.
C (ii) and (iii) only.
D (i), (ii) and (iii). - CORRECT ANSWER ✔✔- B
4.2.3 - Loan to Value (LTV) Limits
3
, Edward has been offered a housing loanwith a discounted variable rate of 3.2%
for6 months. At the end of the discounted period the rate charged will be the
standard variable rate which is currently
3.6%.
Under the Consumer Protection Code, when assessing Edward's ability to repay,
the lender is required to stress test his future affordability of the loan at what
rate?
A 3.60%
B 4.60%
C 5.20%
D 5.60% - CORRECT ANSWER ✔✔- D
4.3.3 - Affordability/Stress-Testing
Under the Consumer Protection Code a lender is NOT required to stress test a
home loan application for affordability if
A borrower is known to them.
B interest rate is more than 5%.
C loan relates to a private principle residence.
D interest rate is fixed for more than five years. - CORRECT ANSWER ✔✔- D
4.3.3 - Affordability/Stress-Testing
Ruth's mortgage lender will stress test her housing loan repayments to determine
if she could make the repayments if:
4
