BC Mortgage Broker Exam 2025/2026
Exam Questions and Detailed Answers |
Get it 100% Correct Answers
Criminal rate under Criminal Code - 🧠 ANSWER ✔✔Interest rate > 60%
(What legislation?)
Prepayment privilege in the Interest Act - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔There is no restriction with
private vendor financing regarding loan to value
Disguised Mortgage - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Limits vendor's
(seller's) liabilities if (1) residential purpose (2) lender's approval of
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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) - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Interest on arrears - a lender
cannot charge a higher interest on monies owning after default
Section 10 of Interest Act - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Lender can seek this relief if
no equity in the mortgaged property. If granted, the lender (1) become
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Exam Questions and Detailed Answers |
Get it 100% Correct Answers
Criminal rate under Criminal Code - 🧠 ANSWER ✔✔Interest rate > 60%
(What legislation?)
Prepayment privilege in the Interest Act - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔There is no restriction with
private vendor financing regarding loan to value
Disguised Mortgage - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Limits vendor's
(seller's) liabilities if (1) residential purpose (2) lender's approval of
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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) - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Interest on arrears - a lender
cannot charge a higher interest on monies owning after default
Section 10 of Interest Act - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Lender can seek this relief if
no equity in the mortgaged property. If granted, the lender (1) become
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
