QFA LOANS - SAMPLE PAPER 2
QUESTIONS WITH COMPLETE
SOLUTIONS
A gglifetime ggloan ggis ggwhere:
A gga ggproperty ggis ggjointly ggowned ggby ggthe gglender ggand
borrower.
B ggthe ggloan ggis ggrepaid ggfrom ggthe ggsale ggproceeds ggof ggthe ggproperty.
C ggthe ggborrower ggpays gga ggnotional ggrent ggfor gguse ggof ggthe ggproperty ggduring
ggtheir gglifetime.
D gga ggproperty ggis ggsold ggto ggthe ggfinancial gginstitution ggat gga ggdiscounted ggvalue
ggby gga ggborrower ggin ggarrears. gg- ggAnswer ggB
1.2.1 gg- ggDifferent ggforms ggof ggloans
A gghire ggpurchase ggagreement ggis ggwhere gga ggconsumer:
A ggpurchases gggoods ggnow ggfrom gga ggretailer ggwith ggthe ggaid ggof gga ggloan
ggprovided ggby gga ggfinance ggcompany.
B ggagrees ggto gghire gggoods ggfrom gga ggfinance ggcompany ggover gga ggparticular
ggperiod ggby ggpaying gga ggmonthly ggfee, ggand ggmust ggreturn ggthe gggoods ggto ggthe
ggfinance ggcompany ggat ggthe ggend ggof ggthe ggspecified ggtime.
C ggagrees ggto gghire gggoods ggfrom gga ggfinance ggcompany ggover gga ggparticular
ggperiod ggwith ggthe gggoods ggtransferring ggautomatically ggto ggthe ggconsumer ggat ggthe
ggend ggof ggthe ggperiod.
D ggagrees ggto gghire gggoods ggfrom gga ggfinance ggcompany ggover gga ggparticular
ggperiod ggwith ggthe ggoption ggto ggpurchase ggat ggthe ggend ggof ggthe ggperiod. gg-
ggAnswer ggD
1.2.2 gg- ggDifferent ggforms ggof ggloan
The ggFinancial ggServices ggand ggPensions ggOmbudsman ggCANNOT ggin ggany
ggcircumstances gginvestigate ggcomplaints ggabout gga ggregulated ggfinancial ggservices
ggprovider ggreceived ggfrom:
A ggan ggindividual ggwho gghas gga ggcomplaint ggrelating ggto gga ggmatter ggwhich
ggoccurred ggmore ggthan ggthree ggyears ggago.
B gga gglimited ggcompany ggwith gga ggturnover ggunder gg€3 ggmillion.
,C ggan ggindividual ggwho gghas ggnot gggone ggthrough ggthe gginternal ggcomplaints
ggprocedure ggof ggthe ggfinancial ggservices ggprovider.
D gga ggcharity, ggclub ggor ggpartnership. gg- ggAnswer ggC
1.5.3 gg- ggFinancial ggServices ggOmbudsman ggcomplaints ggprocess.
Under ggthe ggFamily ggHome ggProtection ggAct, gg1976, ggwhose gginterest ggis ggprimarily
ggprotected?
A ggA ggnon-owning ggspouse.
B ggThe ggmortgage gglender.
C ggA ggregistered ggproperty ggowner.
D ggThe ggchildren ggof ggthe ggregistered ggproperty ggowner. gg- ggAnswer ggA
1.6.5 gg- ggFamily ggHome ggProtection ggAct,1976
John ggis ggoffered gga gghousing ggloan ggby ggNore ggBank ggwhereby gginterest ggonly ggis
ggpayable ggfor ggthe ggfirst ggthree ggyears, ggafter ggwhich ggJohn ggwill gghave ggto ggmake
ggcapital ggand gginterest ggpayments.
John ggis ggat ggincreased ggrisk ggof ggnegative ggequity ggduring ggthe ggfirst ggthree ggyears
ggbecause:
A gginterest ggrates ggcould ggrise ggduring ggthis ggperiod.
B gginterest ggrates ggcould ggfall ggduring ggthis ggperiod.
C ggJohn's ggnet ggincome ggwill ggfall ggat ggthe ggend ggof ggthis ggperiod.
D ggno ggcapital ggis ggrepaid ggduring ggthis ggperiod. gg- ggAnswer ggD
2.10.2 gg- ggInterest ggonly
Which ggof ggthe ggfollowing ggstatements ggabout ggPension ggMortgages ggare ggaccurate?
(i) ggNo ggpayments ggare ggmade ggto ggthe ggpension ggpolicy ggthroughout ggthe ggterm ggof
ggthe ggagreement.
(ii) ggInterest ggonly ggrepayments ggare ggmade ggto ggthe ggmortgage ggduring ggthe ggterm
ggof ggthe ggagreement.
(iii) ggThere ggis gga ggrisk ggthat ggthe ggvalue ggof ggthe ggpension ggpolicy ggwill ggnot ggbe
ggsufficient ggto ggclear ggthe ggoutstanding ggcapital ggon ggthe ggexpiry ggdate ggof ggthe
ggmortgage.
A gg(ii) ggonly.
B gg(i) ggand gg(ii) ggonly. gg
C gg(ii) ggand gg(iii) ggonly. gg
D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggC
2.10.2 gg- ggInterest ggonly
To ggbe ggeligible ggfor gga ggRebuilding ggIreland ggHomeloan:
A ggit ggis ggsufficient ggfor ggone ggparty ggin gga ggjoint ggapplication ggto ggbe gga ggfirst-time
ggbuyer.
, B ggan ggapplicant ggmust ggbe ggin ggcontinuous ggemployment ggfor ggone ggyear ggas ggthe
ggprimary ggapplicant.
C gga ggself-employed ggapplicant ggmust ggsubmit ggtwo ggyears ggcertified ggaccounts.
D gga ggsingle ggappliacnt ggmust ggearn gga ggminimum ggof gg€75,000 ggper ggannum. gg-
ggAnswer ggC
2.3.6 gg- ggRebuilding ggIreland ggHome ggLoan
Which ggof ggthe ggfollowing ggfactors ggwill gginfluence gga gglender's ggdecision ggto
ggchange ggits ggvariable ggmortgage gginterest ggrate:
(i) ggEU gginflation ggrate.
(ii) ggcurrent ggwholesale ggmoney ggmarket ggrates ggand ggthe ggcost ggof ggthe gglender's
ggretail ggdeposits.
(iii) gglender's ggprofit ggmargin.
A gg(ii) ggonly.
B gg(i) ggand gg(iii) ggonly. gg
C gg(ii) ggand gg(iii) ggonly. gg
D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggC
2.11.1 gg- ggStandard ggVariable ggRate gg(SVR)
In ggyear ggthree ggof ggthe gglife ggof gga gghousing ggloan, gga ggmortgage gglender ggcan
ggcharge gga ggfee ggon ggearly ggredemption ggon ggwhich ggone ggthe ggfollowing?
A ggA ggdiscounted ggvariable ggrate ggmortgage ggwhere ggthe ggdiscount ggwas ggmore
ggthan gg0.75% ggper ggannum ggbelow ggthe ggstandard ggvariable ggfor ggone ggyear.
B ggA ggcurrent ggvariable ggrate ggloan ggwhich ggwas ggpreviously ggsubject ggto gga ggone
ggyear ggfixed ggrate ggperiod.
C ggA ggvariable ggrate ggmortgage ggwhich ggstarts ggat gg4.95% ggper ggannum, ggbut
ggwhere ggthe ggrate ggcannot ggexceed gg7% ggper ggannum ggfor ggthe ggfirst ggthree
ggyears.
D ggA ggfive ggyear ggfixed ggrate ggof gg3.9% ggper ggannum. gg- ggAnswer ggD
2.11.3 gg- ggFixed ggRate
Properties ggsold ggat ggauction ggare ggsold:
A ggsubject ggto ggloan ggapproval.
B ggwith gga ggcooling ggoff ggperiod ggof gg30 ggdays. gg
C ggunconditionally.
D ggsubject ggto ggcontract. gg- ggAnswer ggC
2.9.2 ggProperties ggsold ggat ggauction
Which ggof ggthe ggfollowing ggis ggnot ggtypically ggone ggof ggthe ggborrower's ggcovenants
ggthat ggappears ggin gga ggmortgage ggdeed?
A ggThe ggproperty ggmust ggbe ggkept ggin gggood ggrepair.
QUESTIONS WITH COMPLETE
SOLUTIONS
A gglifetime ggloan ggis ggwhere:
A gga ggproperty ggis ggjointly ggowned ggby ggthe gglender ggand
borrower.
B ggthe ggloan ggis ggrepaid ggfrom ggthe ggsale ggproceeds ggof ggthe ggproperty.
C ggthe ggborrower ggpays gga ggnotional ggrent ggfor gguse ggof ggthe ggproperty ggduring
ggtheir gglifetime.
D gga ggproperty ggis ggsold ggto ggthe ggfinancial gginstitution ggat gga ggdiscounted ggvalue
ggby gga ggborrower ggin ggarrears. gg- ggAnswer ggB
1.2.1 gg- ggDifferent ggforms ggof ggloans
A gghire ggpurchase ggagreement ggis ggwhere gga ggconsumer:
A ggpurchases gggoods ggnow ggfrom gga ggretailer ggwith ggthe ggaid ggof gga ggloan
ggprovided ggby gga ggfinance ggcompany.
B ggagrees ggto gghire gggoods ggfrom gga ggfinance ggcompany ggover gga ggparticular
ggperiod ggby ggpaying gga ggmonthly ggfee, ggand ggmust ggreturn ggthe gggoods ggto ggthe
ggfinance ggcompany ggat ggthe ggend ggof ggthe ggspecified ggtime.
C ggagrees ggto gghire gggoods ggfrom gga ggfinance ggcompany ggover gga ggparticular
ggperiod ggwith ggthe gggoods ggtransferring ggautomatically ggto ggthe ggconsumer ggat ggthe
ggend ggof ggthe ggperiod.
D ggagrees ggto gghire gggoods ggfrom gga ggfinance ggcompany ggover gga ggparticular
ggperiod ggwith ggthe ggoption ggto ggpurchase ggat ggthe ggend ggof ggthe ggperiod. gg-
ggAnswer ggD
1.2.2 gg- ggDifferent ggforms ggof ggloan
The ggFinancial ggServices ggand ggPensions ggOmbudsman ggCANNOT ggin ggany
ggcircumstances gginvestigate ggcomplaints ggabout gga ggregulated ggfinancial ggservices
ggprovider ggreceived ggfrom:
A ggan ggindividual ggwho gghas gga ggcomplaint ggrelating ggto gga ggmatter ggwhich
ggoccurred ggmore ggthan ggthree ggyears ggago.
B gga gglimited ggcompany ggwith gga ggturnover ggunder gg€3 ggmillion.
,C ggan ggindividual ggwho gghas ggnot gggone ggthrough ggthe gginternal ggcomplaints
ggprocedure ggof ggthe ggfinancial ggservices ggprovider.
D gga ggcharity, ggclub ggor ggpartnership. gg- ggAnswer ggC
1.5.3 gg- ggFinancial ggServices ggOmbudsman ggcomplaints ggprocess.
Under ggthe ggFamily ggHome ggProtection ggAct, gg1976, ggwhose gginterest ggis ggprimarily
ggprotected?
A ggA ggnon-owning ggspouse.
B ggThe ggmortgage gglender.
C ggA ggregistered ggproperty ggowner.
D ggThe ggchildren ggof ggthe ggregistered ggproperty ggowner. gg- ggAnswer ggA
1.6.5 gg- ggFamily ggHome ggProtection ggAct,1976
John ggis ggoffered gga gghousing ggloan ggby ggNore ggBank ggwhereby gginterest ggonly ggis
ggpayable ggfor ggthe ggfirst ggthree ggyears, ggafter ggwhich ggJohn ggwill gghave ggto ggmake
ggcapital ggand gginterest ggpayments.
John ggis ggat ggincreased ggrisk ggof ggnegative ggequity ggduring ggthe ggfirst ggthree ggyears
ggbecause:
A gginterest ggrates ggcould ggrise ggduring ggthis ggperiod.
B gginterest ggrates ggcould ggfall ggduring ggthis ggperiod.
C ggJohn's ggnet ggincome ggwill ggfall ggat ggthe ggend ggof ggthis ggperiod.
D ggno ggcapital ggis ggrepaid ggduring ggthis ggperiod. gg- ggAnswer ggD
2.10.2 gg- ggInterest ggonly
Which ggof ggthe ggfollowing ggstatements ggabout ggPension ggMortgages ggare ggaccurate?
(i) ggNo ggpayments ggare ggmade ggto ggthe ggpension ggpolicy ggthroughout ggthe ggterm ggof
ggthe ggagreement.
(ii) ggInterest ggonly ggrepayments ggare ggmade ggto ggthe ggmortgage ggduring ggthe ggterm
ggof ggthe ggagreement.
(iii) ggThere ggis gga ggrisk ggthat ggthe ggvalue ggof ggthe ggpension ggpolicy ggwill ggnot ggbe
ggsufficient ggto ggclear ggthe ggoutstanding ggcapital ggon ggthe ggexpiry ggdate ggof ggthe
ggmortgage.
A gg(ii) ggonly.
B gg(i) ggand gg(ii) ggonly. gg
C gg(ii) ggand gg(iii) ggonly. gg
D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggC
2.10.2 gg- ggInterest ggonly
To ggbe ggeligible ggfor gga ggRebuilding ggIreland ggHomeloan:
A ggit ggis ggsufficient ggfor ggone ggparty ggin gga ggjoint ggapplication ggto ggbe gga ggfirst-time
ggbuyer.
, B ggan ggapplicant ggmust ggbe ggin ggcontinuous ggemployment ggfor ggone ggyear ggas ggthe
ggprimary ggapplicant.
C gga ggself-employed ggapplicant ggmust ggsubmit ggtwo ggyears ggcertified ggaccounts.
D gga ggsingle ggappliacnt ggmust ggearn gga ggminimum ggof gg€75,000 ggper ggannum. gg-
ggAnswer ggC
2.3.6 gg- ggRebuilding ggIreland ggHome ggLoan
Which ggof ggthe ggfollowing ggfactors ggwill gginfluence gga gglender's ggdecision ggto
ggchange ggits ggvariable ggmortgage gginterest ggrate:
(i) ggEU gginflation ggrate.
(ii) ggcurrent ggwholesale ggmoney ggmarket ggrates ggand ggthe ggcost ggof ggthe gglender's
ggretail ggdeposits.
(iii) gglender's ggprofit ggmargin.
A gg(ii) ggonly.
B gg(i) ggand gg(iii) ggonly. gg
C gg(ii) ggand gg(iii) ggonly. gg
D gg(i), gg(ii) ggand gg(iii). gg- ggAnswer ggC
2.11.1 gg- ggStandard ggVariable ggRate gg(SVR)
In ggyear ggthree ggof ggthe gglife ggof gga gghousing ggloan, gga ggmortgage gglender ggcan
ggcharge gga ggfee ggon ggearly ggredemption ggon ggwhich ggone ggthe ggfollowing?
A ggA ggdiscounted ggvariable ggrate ggmortgage ggwhere ggthe ggdiscount ggwas ggmore
ggthan gg0.75% ggper ggannum ggbelow ggthe ggstandard ggvariable ggfor ggone ggyear.
B ggA ggcurrent ggvariable ggrate ggloan ggwhich ggwas ggpreviously ggsubject ggto gga ggone
ggyear ggfixed ggrate ggperiod.
C ggA ggvariable ggrate ggmortgage ggwhich ggstarts ggat gg4.95% ggper ggannum, ggbut
ggwhere ggthe ggrate ggcannot ggexceed gg7% ggper ggannum ggfor ggthe ggfirst ggthree
ggyears.
D ggA ggfive ggyear ggfixed ggrate ggof gg3.9% ggper ggannum. gg- ggAnswer ggD
2.11.3 gg- ggFixed ggRate
Properties ggsold ggat ggauction ggare ggsold:
A ggsubject ggto ggloan ggapproval.
B ggwith gga ggcooling ggoff ggperiod ggof gg30 ggdays. gg
C ggunconditionally.
D ggsubject ggto ggcontract. gg- ggAnswer ggC
2.9.2 ggProperties ggsold ggat ggauction
Which ggof ggthe ggfollowing ggis ggnot ggtypically ggone ggof ggthe ggborrower's ggcovenants
ggthat ggappears ggin gga ggmortgage ggdeed?
A ggThe ggproperty ggmust ggbe ggkept ggin gggood ggrepair.
