1
Fundamentals of Mortgage Brokerage Questions with
Answers (100% Correct Answers)
AACI Answer: Accredited Appraiser Canadian Institute - designation
granted by Appraisal Institute of Canada
Accelerated Payments Answer: payment options stream whereby the
monthly mortgage payment is either split in half or in quarters and is
paid every two weeks (bi-weekly) or every week (weekly)
Accredited Mortgage Professional - AMP Answer: national
designation for mortgage professionals in Canada issued by the
Canadian Association of Accredited Mortgage Professionals
Adjustable Rate Mortgage - ARM Answer: mortgage where the
interest rate and payments are increased or decreased at
predetermined intervals based on a rate market review conducted by
the lender. The interest rate charged on the mortgage may be linked to
the lender's prime rate or a pre-selected index rate
Adjustments Answer: financial calculations made regarding the costs
for the respective parties associated with a mortgage or real estate
transaction at the time of closing (eg. property taxes)
© 2025 All rights reserved
,2
Affidavit Answer: formal written statement of fact sworn to or
affirmed by the author and witnessed as to the authenticity of the
author's signature before a person such as a notary or commissioner of
oaths who is authorized to administer an oath
Affordability Answer: ability of an individual to carry the cost of
ownership of a property in relation to his or her available income
Agency Answer: consensual relationship created by contract or law
where one party, the principal, grants authority for another party, the
agent, to act on behalf of and under the control of the principal to deal
with a third party and where the agent accepts responsibility for
representing the principal
Agent Answer: industry member who is expressly or implicitly
authorized to act or represent another person
Agreement for Sale Answer: A financial arrangement between a seller
and buyer in which the seller carries the financing for the buyer's
purchase of the property. However, the title remains in the name of the
seller until such time as the funds are re-paid by the buyer
© 2025 All rights reserved
,3
Appraisal Institute of Canada - AIC Answer: national, member-based
association that offers real estate appraiser designations in Canada
AIDA Answer: Attention, Interest, Desire, Action - design of
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Alberta Land Surveyor's Association - ALSA Answer: self-governing
professional association legislated under the Land Surveyors' Act of
Alberta that regulates the practice of land surveying for the protection
of the public and the administration of the profession
Alberta Mortgage Brokers Association Answer: Alberta's professional
association of licensed mortgage brokers and mortgage associates
Alberta Real Estate Foundation - AREF Answer: organization created
under Alberta's Real Estate Act to promote the development of
educational initiatives for real estate industry members and
consumers, support law reform and research in respect of the real
estate industry, and other projects and activities to advance and
improve the real estate industry
Alberta Securities Commission - ASC Answer: regulatory agency
responsible for administering the province's securities laws and
© 2025 All rights reserved
, 4
ensuring that persons who sell securities in Alberta are registered and
conduct themselves according to applicable laws and professional
standards
Amortization Answer: gradual retirement of a debt by means of
installment payments which often includes principal and interest
Amortization Period Answer: length of time required to repay a
mortgage by equal installments of periodic content payments.
Repayments of principal and interest in "blended" amounts. Fully
amortized means complete repayment without a balloon payment at
the end of the amortization period
Amortization Schedule Answer: table illustrating the amount of
principal and interest that comprise each of the periodic installments
and the outstanding principal balance of the loan after each level
payment is made
Annual Percentage Rate - APR Answer: interest rate stated on a yearly
basis that represents the cost of a mortgage
Applicant Answer: all borrowers, co-borrowers and guarantors on the
mortgage loan
© 2025 All rights reserved
Fundamentals of Mortgage Brokerage Questions with
Answers (100% Correct Answers)
AACI Answer: Accredited Appraiser Canadian Institute - designation
granted by Appraisal Institute of Canada
Accelerated Payments Answer: payment options stream whereby the
monthly mortgage payment is either split in half or in quarters and is
paid every two weeks (bi-weekly) or every week (weekly)
Accredited Mortgage Professional - AMP Answer: national
designation for mortgage professionals in Canada issued by the
Canadian Association of Accredited Mortgage Professionals
Adjustable Rate Mortgage - ARM Answer: mortgage where the
interest rate and payments are increased or decreased at
predetermined intervals based on a rate market review conducted by
the lender. The interest rate charged on the mortgage may be linked to
the lender's prime rate or a pre-selected index rate
Adjustments Answer: financial calculations made regarding the costs
for the respective parties associated with a mortgage or real estate
transaction at the time of closing (eg. property taxes)
© 2025 All rights reserved
,2
Affidavit Answer: formal written statement of fact sworn to or
affirmed by the author and witnessed as to the authenticity of the
author's signature before a person such as a notary or commissioner of
oaths who is authorized to administer an oath
Affordability Answer: ability of an individual to carry the cost of
ownership of a property in relation to his or her available income
Agency Answer: consensual relationship created by contract or law
where one party, the principal, grants authority for another party, the
agent, to act on behalf of and under the control of the principal to deal
with a third party and where the agent accepts responsibility for
representing the principal
Agent Answer: industry member who is expressly or implicitly
authorized to act or represent another person
Agreement for Sale Answer: A financial arrangement between a seller
and buyer in which the seller carries the financing for the buyer's
purchase of the property. However, the title remains in the name of the
seller until such time as the funds are re-paid by the buyer
© 2025 All rights reserved
,3
Appraisal Institute of Canada - AIC Answer: national, member-based
association that offers real estate appraiser designations in Canada
AIDA Answer: Attention, Interest, Desire, Action - design of
advertisements
Alberta Land Surveyor's Association - ALSA Answer: self-governing
professional association legislated under the Land Surveyors' Act of
Alberta that regulates the practice of land surveying for the protection
of the public and the administration of the profession
Alberta Mortgage Brokers Association Answer: Alberta's professional
association of licensed mortgage brokers and mortgage associates
Alberta Real Estate Foundation - AREF Answer: organization created
under Alberta's Real Estate Act to promote the development of
educational initiatives for real estate industry members and
consumers, support law reform and research in respect of the real
estate industry, and other projects and activities to advance and
improve the real estate industry
Alberta Securities Commission - ASC Answer: regulatory agency
responsible for administering the province's securities laws and
© 2025 All rights reserved
, 4
ensuring that persons who sell securities in Alberta are registered and
conduct themselves according to applicable laws and professional
standards
Amortization Answer: gradual retirement of a debt by means of
installment payments which often includes principal and interest
Amortization Period Answer: length of time required to repay a
mortgage by equal installments of periodic content payments.
Repayments of principal and interest in "blended" amounts. Fully
amortized means complete repayment without a balloon payment at
the end of the amortization period
Amortization Schedule Answer: table illustrating the amount of
principal and interest that comprise each of the periodic installments
and the outstanding principal balance of the loan after each level
payment is made
Annual Percentage Rate - APR Answer: interest rate stated on a yearly
basis that represents the cost of a mortgage
Applicant Answer: all borrowers, co-borrowers and guarantors on the
mortgage loan
© 2025 All rights reserved
