Bridge Loan
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Determine
To ascertain / to come to a decision, such as by investigation or reasoning
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
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Hold cursor over or click on each term to read its definition.
- Define a bridge loan.
- Explain the purposes for which a bridge loan may be used.
- Explain for whom a bridge loan may be suitable.
- Explain the costs that may be associated with a bridge loan, such as:
- Interest
- Administration fees
- Registration fees
- Legal Fees
- Explain the repayment requirements on a bridge loan.
- Explain the lender’s right to register an encumbrance against the property if a bridge loan is not repaid.
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
|
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define a bridge loan.
- Explain the purposes for which a bridge loan may be used.
- Explain for whom a bridge loan may be suitable.
- Explain the costs that may be associated with a bridge loan, such as:
- Interest
- Administration fees
- Registration fees
- Legal Fees
- Explain the repayment requirements on a bridge loan.
- Explain the lender’s right to register an encumbrance against the property if a bridge loan is not repaid.
Additional Knowledge Expected of CFP Professionals
- Calculate the amount of a bridge loan that may be required.
- Estimate the terms of a bridge loan.
- Estimate the cost of using a bridge loan.
- Determine how each of these factors may impact the suitability of a bridge loan:
- Purpose of credit or borrowed funds
- Amount of credit requested / required
- Ongoing need for borrowing capacity
- Expected variability of interest rates
- Cost, including interest and fees
- Impact on cash flow
- Payment options (schedule, amounts, options)
- Expected prepayments
- Collateral requirements
- Expected lifetime of collateral (if applicable)
- Closure requirements / costs
- Tax impact
- Evaluate how each of the factors may impact the suitability of a bridge loan.
previous / Overdraft Loan