QFA Loans EXAM QUESTIONS AND ANSWERS
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: - CORRECT ANSWER✅✅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: - CORRECT ANSWER✅✅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? - CORRECT ANSWER✅✅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 - CORRECT ANSWER✅✅(i) and (ii) only.
A remortgage would NOT normally be used for the purpose of: - CORRECT ANSWER✅✅selling an
interest in the property.
Which of the following statements MOST accurately describes the term 'cost of credit' in relation to a
loan? - CORRECT ANSWER✅✅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. - CORRECT ANSWER✅✅€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? - CORRECT ANSWER✅✅13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: - CORRECT ANSWER✅✅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. -
CORRECT ANSWER✅✅(i) (iii) only
Mortgage arrears arise: - CORRECT ANSWER✅✅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? - CORRECT ANSWER✅✅A standard financial statement
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: - CORRECT ANSWER✅✅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: - CORRECT ANSWER✅✅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? - CORRECT ANSWER✅✅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 - CORRECT ANSWER✅✅(i) and (ii) only.
A remortgage would NOT normally be used for the purpose of: - CORRECT ANSWER✅✅selling an
interest in the property.
Which of the following statements MOST accurately describes the term 'cost of credit' in relation to a
loan? - CORRECT ANSWER✅✅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. - CORRECT ANSWER✅✅€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? - CORRECT ANSWER✅✅13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: - CORRECT ANSWER✅✅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. -
CORRECT ANSWER✅✅(i) (iii) only
Mortgage arrears arise: - CORRECT ANSWER✅✅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? - CORRECT ANSWER✅✅A standard financial statement
