AMPC Mortgage Designation Sample Questions

The AMPC / AMP route sits beside provincial mortgage licensing. Strong preparation should test borrower discovery, affordability, lender fit, renewal and refinance decisions, disclosure, conflicts, documentation, and ethical client communication.

Sample Exam Questions

Try these 12 original AMPC-style sample questions. They are not official Mortgage Professionals Canada questions.

Question 1

Topic: Borrower discovery

A borrower asks for the lowest posted rate but has unstable income and high short-term debt. What should the mortgage professional do first?

• A. Recommend the lowest rate without review
• B. Complete borrower discovery and assess affordability, income stability, debts, and product fit
• C. Ignore debt if the borrower has a down payment
• D. Tell the borrower every lender uses the same criteria

Best answer: B

Explanation: Mortgage suitability is not rate-only. Borrower facts, affordability, income, credit, product features, and lender criteria matter.

Question 2

Topic: Fixed vs variable

Which factor should be discussed when comparing fixed and variable mortgage rates?

• A. Payment stability, rate risk, prepayment terms, and client risk tolerance
• B. Only the advertised rate
• C. The broker’s favorite lender
• D. Whether the borrower likes round numbers

Best answer: A

Explanation: Fixed and variable choices involve trade-offs. The recommendation should connect product features to borrower needs and risk capacity.

Question 3

Topic: Disclosure

A broker will receive compensation from the lender. What should the broker consider?

• A. Disclosure and conflict-management requirements
• B. Hiding compensation from all records
• C. Recommending the highest compensation option automatically
• D. Avoiding written communication

Best answer: A

Explanation: Compensation can create a conflict or perceived conflict. Mortgage professionals should follow disclosure and suitability procedures.

Question 4

Topic: Prepayment

Why do prepayment privileges and penalties matter to a borrower?

• A. They affect flexibility if the borrower sells, refinances, or pays down principal early
• B. They guarantee approval
• C. They eliminate interest
• D. They matter only after default

Best answer: A

Explanation: Prepayment terms can materially affect borrower cost and flexibility. They should be explained before commitment.

Question 5

Topic: Renewal

A borrower is approaching renewal and wants to accept the first lender offer. What is the best advice process?

• A. Review current needs, rates, terms, penalties, and alternatives before deciding
• B. Accept automatically
• C. Ignore income changes
• D. Focus only on lender branding

Best answer: A

Explanation: Renewal is a decision point. Borrower circumstances and market options may have changed.

Question 6

Topic: Refinance

What should be considered before recommending refinancing to consolidate debt?

• A. Total cost, penalty, amortization impact, borrower behavior, and affordability
• B. Only the lower monthly payment
• C. Whether the old debt disappears from history
• D. Whether the borrower wants cash immediately

Best answer: A

Explanation: Debt consolidation can reduce monthly payments but increase total interest or risk if behavior does not change. Full cost matters.

Question 7

Topic: Documentation

Why should income documentation match the lender and product requirements?

• A. It supports approval quality and reduces misrepresentation risk
• B. It is optional in all cases
• C. It can be invented later
• D. It only matters after closing

Best answer: A

Explanation: Income support is central to underwriting and affordability. Documentation must be accurate and appropriate.

Question 8

Topic: Suitability

A borrower wants the maximum mortgage possible, but the payment would leave no room for property tax, repairs, or emergencies. What is the best concern?

• A. Affordability and payment shock risk
• B. The lender’s logo
• C. Whether the borrower can memorize the rate
• D. None, if approval is possible

Best answer: A

Explanation: Approval is not the same as suitability. The mortgage professional should consider realistic household cash flow and risk.

Question 9

Topic: Private mortgages

What is a key issue with private mortgage financing?

• A. Higher costs, shorter terms, risk, exit strategy, and disclosure need careful review
• B. It is always cheaper than bank financing
• C. It never requires documentation
• D. It guarantees long-term affordability

Best answer: A

Explanation: Private mortgages may solve access problems but can carry higher risk and cost. Exit strategy and disclosure are important.

Question 10

Topic: Client communication

A borrower misunderstands that a mortgage approval is guaranteed before lender review. What should the broker do?

• A. Explain conditions, underwriting, documentation, and approval limits clearly
• B. Confirm the guarantee to keep the borrower happy
• C. Avoid discussing conditions
• D. Tell the borrower to ignore lender requests

Best answer: A

Explanation: Mortgage professionals should avoid misleading expectations. Conditional approval and final funding are not the same.

Question 11

Topic: Ethics

A borrower asks the broker to alter income documents to qualify. What is the best response?

• A. Refuse and explain that accurate documentation is required
• B. Make the change if the borrower promises to pay
• C. Ask the borrower to submit the false document personally
• D. Hide the issue from the lender

Best answer: A

Explanation: Misrepresentation is improper and creates serious risk. The broker should refuse and follow required procedures.

Question 12

Topic: Lender fit

Why might two lenders give different results for the same borrower?

• A. Lender criteria, documentation requirements, product rules, risk appetite, and pricing can differ
• B. Every lender is identical
• C. Lender differences matter only for commercial loans
• D. The borrower should apply everywhere without disclosure

Best answer: A

Explanation: Lender fit is part of mortgage professional value. Criteria and product rules vary, so matching borrower facts to lender requirements matters.

Related pages

• Real estate and mortgage hub
• Ontario Mortgage Agent Level 1
• B.C. Mortgage Broker