Are You Smarter Than A Mortgage Adviser?

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| By TheMortgageLab
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TheMortgageLab
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Quizzes Created: 1 | Total Attempts: 48
| Attempts: 52
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  • 1/8 Questions

    In mortgage terms, what does LVR stand for?

    • Low Value Residence
    • Loan to Value Ratio
    • Looking Very Ridiculous
    • Lending Via Relations
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About This Quiz

How much do you know about getting a mortgage? Attempt this basic Adviser quiz to test your knowledge!

Are You Smarter Than A Mortgage Adviser? - Quiz

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  • 2. 

    Your client is buying a house for $632,000.  They tell you they have exactly 20% to use as a deposit.  How much do they have?  

    • $63,200

    • $126,400

    • $12,640

    • Not enough info

    Correct Answer
    A. $126,400
    Explanation
    20% of $632,000 is $126,400.
    A deposit can be made up of equity in a current property, cash savings, gifts from family, KiwiSaver (under certain circumstances) and the HomeStart Grant.

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  • 3. 

    Your client has a small, unpaid default on their Credit Report.  Is it still possible for them to get a mortgage?

    • Nope. They're out of the market for life.

    • Their only option is to wait until their Credit Report is clear

    • Yes, if they are willing to pay a higher interest rate

    Correct Answer
    A. Yes, if they are willing to pay a higher interest rate
    Explanation
    There are lenders who, for a slightly higher interest rate, will lend to customers with bad credit. The interest rate will depend on how bad their report is. Buyers should automatically discount this. If they are buying sensibly, the additional interest can be worthwhile versus missing out on capital growth or a good opportunity.

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  • 4. 

    A Mortgage Adviser should (choose 2 options)

    • Launder your ill-gotten gains into a tax haven

    • Reduce stress throughout the mortgage process

    • Guide you to the right bank for your needs

    • Contract bind you into inescapable debt

    Correct Answer(s)
    A. Reduce stress throughout the mortgage process
    A. Guide you to the right bank for your needs
    Explanation
    A Mortgage Adviser should reduce stress throughout the mortgage process by providing guidance and support to the client. They should also guide the client to the right bank for their needs, ensuring that they find the most suitable mortgage option.

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  • 5. 

    Do you have to buy Life and Health insurance from the same bank you have your mortgage with?

    • Yes, this is a requirement of getting a mortgage from the banks

    • No, the bank does not require you to get Life and Health insurance

    Correct Answer
    A. No, the bank does not require you to get Life and Health insurance
    Explanation
    Life and Health insurance is a very good idea when you have a mortgage. However, it is not a pre-requisite to getting a loan (otherwise customers with existing health problems wouldn't be able to get mortgages). It is best to use an Insurance Adviser when you are getting a new policy to make sure you are going to the best insurance company for your needs.

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  • 6. 

    Which type of apartment is easier to get a mortgage on?

    • Freehold

    • Leasehold

    Correct Answer
    A. Freehold
    Explanation
    Apartments can be Leasehold or Freehold. Generally, if you are buying a leasehold apartment, you aren't buying the land and are required to pay rent to the land owner. This increases over the years and can lead to the apartment decreasing in value if that rent becomes too high. Leasehold apartments are therefore often cheaper than freehold but banks are a little more nervous to lend against them.

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  • 7. 

    You live 30 minutes drive from Auckland CBD.  How many cars are likely to cut you off without using their indicator on any given commute?

    • None. Auckland is a blissful place to drive

    • I don't know. Roughly 80?

    Correct Answer
    A. I don't know. Roughly 80?
    Explanation
    We love you Auckland but you don't love indicating to change lanes.

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  • 8. 

    The word mortgage comes from a legal term in The Middle Ages meaning

    • Castle Loan

    • Death Pledge

    • Farewell Soul

    • More Stone

    Correct Answer
    A. Death Pledge
    Explanation
    Death Pledge. The Terms and Conditions are a little more relaxed these days...

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Quiz Review Timeline (Updated): Aug 22, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Aug 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 06, 2018
    Quiz Created by
    TheMortgageLab
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