Sample questions: Mortgage associate (Alberta) exam

1. Under OSFI's minimum qualifying rate for uninsured mortgages, which of these contract rates would be qualified at the floor rate rather than with the buffer?

1. A contract rate of 3.29%
2. A contract rate of 3.19%
3. A contract rate of 3.89%
4. A contract rate of 3.49%

OSFI's MQR is the greater of the contract rate plus 2% or 5.25% (as of October 2026). The floor governs only when the contract rate is below 3.25%: 3.19% + 2% = 5.19%, so 5.25% is used. At 3.29% the buffer already gives 5.29%, which is above the floor.

2. Under the Rules, which description fits an "agent"?

1. A lender's employee who collects overdue mortgage payments from the borrowers
2. A licensee holding a broker licence who supervises the brokerage's associates
3. A licensee expressly or implicitly authorized to act for or represent another person
4. A licensee who has signed a designated brokerage agreement with a real estate buyer

Real Estate Act Rules s. 1(1)(a) defines an agent as a licensee who is expressly or implicitly authorized to act for or represent another person. A designated brokerage agreement (s. 1(1)(i.3)) is a real estate brokerage instrument, and supervising associates is a duty of the mortgage broker under s. 67(1)(f).

3. What is the minimum down payment for an insured purchase of a $450,000 condominium unit in Red Deer (as of October 2026)?

1. $45,000 minimum down payment
2. $90,000 minimum down payment
3. $25,000 minimum down payment
4. $22,500 minimum down payment

For a purchase price of $500,000 or less, CMHC's minimum down payment is 5% (as of October 2026): 0.05 × $450,000 = $22,500. $25,000 is 5% of the $500,000 threshold rather than of the price, and $45,000 (10%) and $90,000 (20%) are not the insured minimums at this price.

4. When must a licensee disclose to clients how the licensee will be paid for services?

1. At funding, when the fee appears on the lawyer's adjustments
2. Within 30 days after the client asks for it in a written request
3. Only once the lender has issued a written commitment to fund
4. At the earliest practical opportunity in dealing with the client

Real Estate Act Rules s. 41(c) requires licensees to disclose to their clients, at the earliest practical opportunity, how they will be paid for their services. For mortgage brokerages, s. 65(c)(iv) adds a written disclosure to borrowers of how the brokerage will be compensated for the transaction. Waiting until the commitment or funding defeats the purpose of the disclosure.

5. On February 12, 2026, the court grants an order nisi in the foreclosure of a house in Red Deer that is not farm land. Unless the court changes the period, when does the redemption period end?

1. February 12, 2027, one year after the order nisi
2. May 13, 2026, 90 days after the order nisi
3. August 12, 2026, six months after the order nisi
4. April 13, 2026, 60 days after the order nisi

Law of Property Act s. 41(1)(b) sets the redemption period in the order nisi at 6 months from the date the order is granted for land other than farm land, so February 12, 2026 + 6 months = August 12, 2026; farm land gets one year (s. 41(1)(a)). The court may shorten or extend the period having regard to factors such as the debtor's ability to pay and whether the land is abandoned (s. 41(2)). The 60-day figure belongs to caveat lapse notices.

6. An associate's goal is 48 funded deals a year. On her past results, 30% of leads become applications and 80% of applications fund. How many leads does she need?

1. 200 leads over the year
2. 60 leads over the year
3. 128 leads over the year
4. 160 leads over the year

Working backwards: 48 funded deals / 0.80 = 60 applications, and 60 applications / 0.30 = 200 leads (FMB Blueprint LO 5.4.8 on sales goal setting). 160 ignores the funding rate, 60 is the number of applications rather than leads, and 128 multiplies by the funding rate instead of dividing.

7. A fixed-rate mortgage is at 4.79% per annum, compounded semi-annually, not in advance, with monthly payments. What is the monthly periodic interest rate?

1. 0.403947% per month
2. 0.390662% per month
3. 0.395241% per month
4. 0.399167% per month

PMB Blueprint LO 2.17.1: i = (1 + 0.0479/2)^(1/6) - 1 = 0.395241% per month. Dividing 4.79% by 12 gives 0.399167% and ignores the semi-annual compounding, dividing the effective rate by 12 gives 0.403947%, and treating 4.79% as an effective annual rate gives 0.390662%.