QFA – LOANS EXAM UPDATED
QUESTIONS AND CORRECT ANSWERS.
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: - ANS 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: - ANS 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? - ANS 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 - ANS (i) and (ii) only.
A remortgage would NOT normally be used for the purpose of: - ANS selling an interest in
the property.
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, Which of the following statements MOST accurately describes the term 'cost of credit' in
relation to a loan? - ANS 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. - ANS €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? - ANS 13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: - ANS 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. - ANS (i) (iii) only
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS AND CORRECT ANSWERS.
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: - ANS 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: - ANS 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? - ANS 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 - ANS (i) and (ii) only.
A remortgage would NOT normally be used for the purpose of: - ANS selling an interest in
the property.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Which of the following statements MOST accurately describes the term 'cost of credit' in
relation to a loan? - ANS 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. - ANS €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? - ANS 13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: - ANS 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. - ANS (i) (iii) only
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
