BC Mortgage Broker exam Questions Answered Correctly Latest Version 2025
Criminal rate under Criminal Code - Answers Interest rate > 60% (What legislation?)
Prepayment privilege in the Interest Act - Answers 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 - Answers There is no restriction with private vendor financing regarding
loan to value
Disguised Mortgage - Answers 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 - Answers 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) - Answers 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 - Answers 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 - Answers Interest on arrears - a lender cannot charge a higher interest on
monies owning after default
Section 10 of Interest Act - Answers 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 - Answers 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 - Answers 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 - Answers A borrower cannot be prevented by the terms of the mortgage from eventually
redeeming his property
Collateral advantages - Answers Something other than the payment of interest
e.g.
Criminal rate under Criminal Code - Answers Interest rate > 60% (What legislation?)
Prepayment privilege in the Interest Act - Answers 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 - Answers There is no restriction with private vendor financing regarding
loan to value
Disguised Mortgage - Answers 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 - Answers 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) - Answers 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 - Answers 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 - Answers Interest on arrears - a lender cannot charge a higher interest on
monies owning after default
Section 10 of Interest Act - Answers 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 - Answers 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 - Answers 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 - Answers A borrower cannot be prevented by the terms of the mortgage from eventually
redeeming his property
Collateral advantages - Answers Something other than the payment of interest
e.g.
