QFA – LOANS ACCURATE EXAM
QUESTIONS WITH 80 ACTUAL QUESTIONS
AND DETAILED ANSWERS / QFA FINANCIAL
PLANNING ERRORS EXAM EXPERT
VERIFIED FOR GURANTEED PASS / LATEST
UPDATE
Janice wants to ensure that her mortgage will be fully repaid at the end of the
mortgage term, assuming all repayments are made when due.
Which of the following is the LEAST suitable mortgage type(s) for her?
(i) Capital and interest mortgage.
(ii) Annuity mortgage.
(iii) Interest only mortgage. - CORRECT ANSWER ✔✔- (iii) Interest only mortgage.
Ciara took out her first qualifying home loan in September 2008. In March 2012,
she moved house and took out a new qualifying home loan.
All things remaining the same, how long may Ciara claim mortgage interest tax
relief in respect of this new loan? - CORRECT ANSWER ✔✔- Until 31st December
2017.
Pg. 1
,Michael obtained a mortgage of €200,000 to purchase a residential investment
property in 2016.
How much of the interest on this loan, if any, can be offset against rental income?
- CORRECT ANSWER ✔✔- 75%
Ruth's mortgage lender will stress test her housing loan repayments to determine
if she could make the repayments if:
(i) she lost her job.
(ii) the lender was taken over by another lender.
(iii) mortgage interest rates increase from their current levels. - CORRECT
ANSWER ✔✔- (i), (ii), and (iii).
Patricia is arranging an interest only housing loan with Barrow Bank. The loan
amount is €200,000 over a 20-year period. Barrow Bank's standard variable
interest rate is 4.5% (CPT €7.14).
Calculate Patricia's interest only, mortgage
repayment in the first month. - CORRECT ANSWER ✔✔- €750
Household Insurance covers which of the following risk(s)?
(i) Legal liability.
(ii) Serious illness.
(iii) Home loan arrears. - CORRECT ANSWER ✔✔- (i) Legal liability.
Pg. 2
,When offering a property insurance policy to a borrower, a lender is required by
the
Consumer Protection Code, 2012, to advise the borrower that in the event of a
claim on the insurance policy:
(i) the lender may appoint its own expert to undertake restitution work.
(ii) it is the borrower's responsibility to
ensure the work is completed before the
next mortgage repayment is due.
(iii) the loan must be repaid in full. - CORRECT ANSWER ✔✔- (i) only.
If an individual wishes to set up as a mortgage intermediary in Ireland, they must
be authorised by the: - CORRECT ANSWER ✔✔- Central Bank of Ireland
When a mortgage agent is providing a terms of business to a new consumer, the
document MUST include:
(i) the regulatory status of the mortgage agent.
(ii) a general statement of charges imposed directly for its services.
(iii) the agent's VAT number. - CORRECT ANSWER ✔✔- (i) and (ii) only
Home reversionary schemes are normally only provided to individuals who are: -
CORRECT ANSWER ✔✔- Over the age of 65
Pg. 3
, During an interview for a mortgage, Helen refuses to provide information sought
by Marley Mortgage Brokers in compliance with the Consumer Protection Code.
What action MUST Marley Mortgage Brokers now take? - CORRECT ANSWER ✔✔-
Inform Helen that they do not have the relevant information necessary to assess
suitability for a product and they cannot offer a service to her.
The Criminal Justice (Money Laundering and Terrorist Financing) Act, 2010,
requires reasonable measures to be taken to verify the identity of any client,
where it is proposed to provide a service to that client involving a once-off
transaction or linked transactions of more than what MINIMUM value? -
CORRECT ANSWER ✔✔- €15,000
Under the Consumer Protection Code, when recommending a financial product to
a consumer, a Reasons Why Statement MUST be provided by:
(i) home reversion firms.
(ii) mortgage lenders.
(iii) retail credit firms. - CORRECT ANSWER ✔✔- (i), (ii) and (iii).
James, a solicitor, during the conveyancing process is required to confirm that a
property has good marketable title.
What is the name of the document he will use? - CORRECT ANSWER ✔✔- A
certificate of title.
Pg. 4
QUESTIONS WITH 80 ACTUAL QUESTIONS
AND DETAILED ANSWERS / QFA FINANCIAL
PLANNING ERRORS EXAM EXPERT
VERIFIED FOR GURANTEED PASS / LATEST
UPDATE
Janice wants to ensure that her mortgage will be fully repaid at the end of the
mortgage term, assuming all repayments are made when due.
Which of the following is the LEAST suitable mortgage type(s) for her?
(i) Capital and interest mortgage.
(ii) Annuity mortgage.
(iii) Interest only mortgage. - CORRECT ANSWER ✔✔- (iii) Interest only mortgage.
Ciara took out her first qualifying home loan in September 2008. In March 2012,
she moved house and took out a new qualifying home loan.
All things remaining the same, how long may Ciara claim mortgage interest tax
relief in respect of this new loan? - CORRECT ANSWER ✔✔- Until 31st December
2017.
Pg. 1
,Michael obtained a mortgage of €200,000 to purchase a residential investment
property in 2016.
How much of the interest on this loan, if any, can be offset against rental income?
- CORRECT ANSWER ✔✔- 75%
Ruth's mortgage lender will stress test her housing loan repayments to determine
if she could make the repayments if:
(i) she lost her job.
(ii) the lender was taken over by another lender.
(iii) mortgage interest rates increase from their current levels. - CORRECT
ANSWER ✔✔- (i), (ii), and (iii).
Patricia is arranging an interest only housing loan with Barrow Bank. The loan
amount is €200,000 over a 20-year period. Barrow Bank's standard variable
interest rate is 4.5% (CPT €7.14).
Calculate Patricia's interest only, mortgage
repayment in the first month. - CORRECT ANSWER ✔✔- €750
Household Insurance covers which of the following risk(s)?
(i) Legal liability.
(ii) Serious illness.
(iii) Home loan arrears. - CORRECT ANSWER ✔✔- (i) Legal liability.
Pg. 2
,When offering a property insurance policy to a borrower, a lender is required by
the
Consumer Protection Code, 2012, to advise the borrower that in the event of a
claim on the insurance policy:
(i) the lender may appoint its own expert to undertake restitution work.
(ii) it is the borrower's responsibility to
ensure the work is completed before the
next mortgage repayment is due.
(iii) the loan must be repaid in full. - CORRECT ANSWER ✔✔- (i) only.
If an individual wishes to set up as a mortgage intermediary in Ireland, they must
be authorised by the: - CORRECT ANSWER ✔✔- Central Bank of Ireland
When a mortgage agent is providing a terms of business to a new consumer, the
document MUST include:
(i) the regulatory status of the mortgage agent.
(ii) a general statement of charges imposed directly for its services.
(iii) the agent's VAT number. - CORRECT ANSWER ✔✔- (i) and (ii) only
Home reversionary schemes are normally only provided to individuals who are: -
CORRECT ANSWER ✔✔- Over the age of 65
Pg. 3
, During an interview for a mortgage, Helen refuses to provide information sought
by Marley Mortgage Brokers in compliance with the Consumer Protection Code.
What action MUST Marley Mortgage Brokers now take? - CORRECT ANSWER ✔✔-
Inform Helen that they do not have the relevant information necessary to assess
suitability for a product and they cannot offer a service to her.
The Criminal Justice (Money Laundering and Terrorist Financing) Act, 2010,
requires reasonable measures to be taken to verify the identity of any client,
where it is proposed to provide a service to that client involving a once-off
transaction or linked transactions of more than what MINIMUM value? -
CORRECT ANSWER ✔✔- €15,000
Under the Consumer Protection Code, when recommending a financial product to
a consumer, a Reasons Why Statement MUST be provided by:
(i) home reversion firms.
(ii) mortgage lenders.
(iii) retail credit firms. - CORRECT ANSWER ✔✔- (i), (ii) and (iii).
James, a solicitor, during the conveyancing process is required to confirm that a
property has good marketable title.
What is the name of the document he will use? - CORRECT ANSWER ✔✔- A
certificate of title.
Pg. 4
