QFA - Loans Exam Questions with Correct Answers Latest Update 2025-2026
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: - Answers a lender offering a loan to a borrower, on condition that the
borrower uses some other financial service of the lender.
Title documents refer to: - Answers the documents used to record the transfer of a property
from one person to another.
The Irish Credit Bureau typically holds a borrower's payment history and profile going back over
WHAT repayment period? - Answers 24 months.
Frank arranges a remortgage with Nore Bank. This means that the purpose of his
loan is MOST likely:
(i) to consolidate existing debt.
(ii) to release equity for non-debt related purposes.
(iii) to sell a portion of his interest in his property in return - Answers (i) and (ii) only.
A remortgage would NOT normally be used for the purpose of: - Answers selling an interest in
the property.
Which of the following statements MOST accurately describes the term 'cost of credit' in
relation to a loan? - Answers It is the total projected loan repayments over the term of the
mortgage less the capital borrowed.
Some years ago, Alice bought her
apartment for €275,000, and borrowed
€250,000. The mortgage outstanding on
her apartment today is €225,000. The
apartment now has a market value of
€175,000. Calculate Alice's negative equity. - Answers €50,000
Rebecca takes out a lifetime mortgage of
€100,000 at an interest rate of 5.5%. She
, pays no interest or capital repayments on
this loan. How many years would it take for
the loan outstanding to double? - Answers 13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: - Answers are in danger of going into financial difficulties and may not be able to
make their mortgage repayments.
The Code of Conduct on Mortgage Arrears offers protection to:
(i) owner occupiers who are in arrears.
(ii) property owners of any residential property.
(iii) owner occupiers, whilst not yet experiencing financial difficulty, are in danger of going into
arrears. - Answers (i) (iii) only
Mortgage arrears arise: - Answers as soon as an individual fails to make a full mortgage
repayment as outlined in their contract.
What document would a lender use to
assess a borrower's financial situation
when reviewing alternative repayments
arrangements? - Answers A standard financial statement
Under the Code of Conduct on Mortgage
Arrears, a lender can impose further
charges and/or surcharges on arrears
arising on a mortgage account where: - Answers the borrower is not co-operating
A borrower would be deemed to be noncooperating if they:
(i) refuse to engage with the lender.
(ii) fail to make an honest disclosure of their
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: - Answers a lender offering a loan to a borrower, on condition that the
borrower uses some other financial service of the lender.
Title documents refer to: - Answers the documents used to record the transfer of a property
from one person to another.
The Irish Credit Bureau typically holds a borrower's payment history and profile going back over
WHAT repayment period? - Answers 24 months.
Frank arranges a remortgage with Nore Bank. This means that the purpose of his
loan is MOST likely:
(i) to consolidate existing debt.
(ii) to release equity for non-debt related purposes.
(iii) to sell a portion of his interest in his property in return - Answers (i) and (ii) only.
A remortgage would NOT normally be used for the purpose of: - Answers selling an interest in
the property.
Which of the following statements MOST accurately describes the term 'cost of credit' in
relation to a loan? - Answers It is the total projected loan repayments over the term of the
mortgage less the capital borrowed.
Some years ago, Alice bought her
apartment for €275,000, and borrowed
€250,000. The mortgage outstanding on
her apartment today is €225,000. The
apartment now has a market value of
€175,000. Calculate Alice's negative equity. - Answers €50,000
Rebecca takes out a lifetime mortgage of
€100,000 at an interest rate of 5.5%. She
, pays no interest or capital repayments on
this loan. How many years would it take for
the loan outstanding to double? - Answers 13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: - Answers are in danger of going into financial difficulties and may not be able to
make their mortgage repayments.
The Code of Conduct on Mortgage Arrears offers protection to:
(i) owner occupiers who are in arrears.
(ii) property owners of any residential property.
(iii) owner occupiers, whilst not yet experiencing financial difficulty, are in danger of going into
arrears. - Answers (i) (iii) only
Mortgage arrears arise: - Answers as soon as an individual fails to make a full mortgage
repayment as outlined in their contract.
What document would a lender use to
assess a borrower's financial situation
when reviewing alternative repayments
arrangements? - Answers A standard financial statement
Under the Code of Conduct on Mortgage
Arrears, a lender can impose further
charges and/or surcharges on arrears
arising on a mortgage account where: - Answers the borrower is not co-operating
A borrower would be deemed to be noncooperating if they:
(i) refuse to engage with the lender.
(ii) fail to make an honest disclosure of their
