Certificate IV in Finance and Mortgage Broking: 1425930

Before you begin

Read everything in this document before you start your written assignment for Certificate IV in Finance and Mortgage Broking (CIVMB_ASMG_v5A2).

About this document

This document is the written assignment — half of the overall Written and Oral Assignment.

This document includes the following parts:

•    Instructions for completing and submitting this assignment

•    Section 1: Case study 1 — Philip and Jennifer Brown

      A case study with a series of short-answer questions:

      –    Task 1 — Key terms, gathering and documenting client information

      –    Task 2 — Assessing the clients’ situation

      –    Task 3 — Borrowing options

      –    Task 4 — Reasonable enquiries

      –    Task 5 — First Home Owners Grant and home buyer assistance schemes

      –    Task 6 —Professional network and loan settlement process

      –    Task 7 — Interest rates

•    Section 2: Case study 2 — Richard and Pauline Jackson

      A case study and a series of short-answer questions:

      –    Task 8 — Establishing level of financial knowledge

      –    Task 9 — Responsible lending obligations

      –    Task 10 — Self-employed special considerations

      –    Task 11 — Advising on strategies

      –    Task 12 — Impact of credit history

      –    Task 13 — Dispute resolution

      –    Task 14 — Effective access to files

•    Section 3: Case study 3 — Mary Jane Smith

      A case study and a series of short-answer questions:

      –    Task 15 — Prepare and check a loan application

•    Section 4: Working in financial services

      –    Task 16 — Financial services legislation and industry codes of practice

      –    Task 17 — Design a document

      –    Task 18 — Applying principles of professional practice to work in the financial services industry

      –    Task 19 — Develop and maintain in depth knowledge of products and services used by an organisation

•    Appendix 1: Key terms

•    Appendix 2: Client information collection tool/Fact finder

•    Appendix 3: Loan application.

How to use the study plan

We recommend that you use the study plan for this subject to help you manage your time to complete the written assignment within your enrolment period. Your study plan is in the KapLearn Certificate IV in Finance and Mortgage Broking (CIVMBv5) subject room.

Instructions for completing and submitting the written assignment

Completing the written assignment

Saving your work

Download this document to your desktop, type your answers in the spaces provided and save your work regularly.

•    Use the template provided, as other formats will not be accepted for these assignments.

•    Name your file as follows: Studentnumber_SubjectCode_Assignment_versionnumber_Submissionnumber
(e.g. 12345678_CIVMB_AS_v5A2_Submission1).

•    Include your student ID on the first page of the assignment.

Before you submit your work, please do a spell check and proofread your work to ensure that everything is clear and unambiguous.

Word count

The word count shown with each question is indicative only. You will not be penalised for exceeding the suggested word count. Please do not include additional information which is outside the scope of the question.

Additional research

When completing the ‘Client information collection tool’ in Appendix 2, assumptions are permitted, although they must not be in conflict with the information provided in the Case study.

Throughout the assignment you will also be required to research additional information from other organisations in the finance industry to find the right products or services to meet your client’s requirements or to calculate any service fees that may be applicable.

Submitting the written assignment

Only Microsoft Office compatible written assignments submitted in the template file will be accepted for marking by Kaplan Professional Education. You need to save and submit this entire document.

Do not remove any sections of the document.

Do not save your completed assignment as a PDF.

The written assignment must be completed before submitting it to Kaplan Professional Education. Incomplete written assignments will be returned to you unmarked. The written assignment must be submitted together with the oral assignment. If you do not submit both completed assignments at the one time it will be returned to you unmarked.

The maximum file size is 20MB for the written and oral assignment. Once you submit your written assignment for marking you will be unable to make any further changes to it.

Once you submit your written assignment for marking you will be unable to make any further changes to it.

You are able to submit both assignments earlier than the deadline if you are confident you have completed all parts and have prepared a quality submission.

Please refer to the Assignment submission/resubmission videos in the Assessment section of KapLearn under your ‘Assignment Enrolment’ for details on how to submit/resubmit your written assignment.

Your Written Assignment and Oral Assignment must be submitted together on or before your due date. Please check KapLearn for the due date.

The written assignment marking process

You have 26 weeks from the date of your enrolment in this subject to submit your completed assignment.

If you reach the end of your initial enrolment period and have been deemed ‘Not yet demonstrated’ in one or more assessment items, then an additional four (4) weeks will be granted, provided you attempted all assessment tasks during the initial enrolment period.

Your assessor will mark your written and oral assignment and return it to you in the Certificate IV in Finance and Mortgage Broking (CIVMBv5) subject room in KapLearn under the ‘Assessment’ tab.

Make a reasonable attempt

You must demonstrate that you have made a reasonable attempt to answer all of the questions in your written assignment. Failure to do so will mean that your assignment will not be accepted for marking; therefore you will not receive the benefit of feedback on your submission.

If you do not meet these requirements, you will be notified. You will then have until your submission deadline to submit your completed written and oral assignment.

How your written assignment is graded

Assignment tasks are used to determine your ‘competence’ in demonstrating the required knowledge and/or skills for each subject. As a result, you will be graded as either Demonstrated or Not yet demonstrated.

Your assessor will follow the below process when marking your assignment:

•    Assess your responses to each question, and sub-parts if applicable, and then determine whether you have demonstrated competence in each question.

•    Determine if, on a holistic basis, your responses to the questions have demonstrated overall competence.

You must be deemed to be demonstrated in all assessment items in order to be awarded the units of competency in this subject, including:

•    all of the exam questions

•    the written and oral assignment.

‘Not yet demonstrated’ and resubmissions

Should sections of your assignment be marked as ‘not yet demonstrated’ you will be given an additional opportunity to amend your responses so that you can demonstrate your competency to the required level.

You must address the assessor’s feedback in your amended responses. You only need amend those sections where the assessor has determined you are ‘not yet demonstrated’.

Make changes to your original submission. Use a different text colour for your resubmission. Your assessor will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first assessor’s comments in your assignment, so your second assessor can see the instructions that were originally provided for you. Do not change any comments made by a Kaplan assessor.

Units of competency

This written assignment is your opportunity to demonstrate your competency against these units:

FNSCRD301	Process applications for credit
FNSFMB401	Prepare a loan application on behalf of finance or mortgage broking clients
FNSFMB402	Identify client needs for broking services
FNSFMB403	Present broking options to client
FNSFMK505	Comply with financial services legislation and industry codes of practice
FNSINC401	Apply principles of professional practice to work in the financial services industry
FNSINC402	Develop and maintain in-depth knowledge of products and services used by an organisation or sector
BSBITU306	Design and produce business documents
BSBCUS301	Deliver and monitor a services to customers
BSBCUS402	Address customer needs
FNSSAM403	Prospect for new clients
FNSFMB501	Settle applications and loan arrangements in the finance and mortgage broking industry

Note that the written and oral assignment is one of two assessments required to meet the requirements of the units of competency.

We are here to help

If you have any questions about this written assignment you can post your query at the ‘Ask your Tutor’ forum in your subject room. You can expect an answer within 24 hours of your posting from one of our technical advisers or student support staff.

Section 1: Case study 1 — Philip and Jennifer Brown

Background

Philip and Jennifer Brown are a young couple about to buy their first home. They have been married for five years and during that time have rented an apartment while saving for their own home.

Following a personal referral from Glenn Brown, Philip’s brother you have already had a first meeting with Philip and Jennifer to discuss their objectives and needs. They admitted they have little time to do much research of lenders, have limited knowledge of the loan products available and have approached you to guide them through the process as they are confused.

During (and subsequent) to your first meeting, Philip and Jennifer have provided the basic information documents — pay slips, tax returns, bank statements, property details for review/verification. You have now undertaken your preliminary assessment and need to discuss and present to them the proposal covering the options and your recommendations. It is important to get the proposal moving quickly, as the agent has indicated other parties are interested in the property.

They have been looking at properties for the past three months and have found a 10 year old established apartment that has really caught their eye, although they have some concern over the kitchen which requires some minor renovations.

They have not paid a deposit at this stage, but the Real Estate Agent has provided some guidance on additional fees and charges.

Following is a summary of the details of the property they wish to purchase, the couple’s financial and employment details, and the loan features they require.

The property

Address	Unit 1, 92 Seaside Lane Edgartown (Your state)
Purchase price	$490,000
Description	2 bedroom, 2 bathroom Strata Title apartment
Agent details	Stephanie Jones
Phone	8123 1113
Mobile	0412 880 088

The couple

Current address	Unit 12, 22 Wentworth Lane, Highville, (Your state)
Philip and Jennifer have lived there since March 2012
Home phone	9123 2121

Funds position

Purchase price	$490,000
Clients’ estimate of costs	$25,000
Total required	$515,000
Loan	$440,000 + LMI
Clients’ total contribution (including deposit of $50,000)	$75,000

Use fees and charges applicable to your state. If a servicing calculator you are using requires a postcode, select one that would represent a reasonable suburb/location in your city or state.

Assets

Capital Bank savings account (joint)	$78,000
Capital Bank cheque account (joint)	$1600
Holden Commodore SS 2007 (Philip)	$25,000
Kia Cerato Sport 2015 (Jennifer)	$9000
Superannuation — Capital Bank (Philip)	$28,000
Superannuation — Capital Bank (Jennifer)	$62,000
Household effects (insured value)	$40,000

Liabilities

Capital Bank personal loan (Philip)	$5,600 (repayments $180 p.m.)
Capital Bank Visa card (Philip)	$200 (limit $4,000)
Capital Bank Visa card (Jennifer)	$1,600 (limit $5,000)

Payments have always been met on time and any prior loans repaid in terms of contracts. The minimum monthly commitment on each of the credit cards should be calculated at 3% of the credit limit.

Living expenses

Annual expenditure for living expenses — $33,000.

Employment and income

Philip (date of birth 21/2/87)

Position	Team Leader (full time)
Employer	ACE Limited 101 City Rd, Westside (Your state)
Phone	9800 1111
Income (gross)	$58,000 p.a. monthly gross income: $4,833
Employer contact	Dwayne Johnson, HR Manager
Length of service	Since October 2005
Driver’s licence	8855KL
Email	philipb@ace.com.au

Jennifer (date of birth 8/10/88)

Position	Accountant (full time)
Employer	Tech city 804 High Street, City East (Your state)
Phone	9910 2033
Income (gross)	$95,000 p.a. monthly gross income: $7,917
Employer contact	Bruce Wayne, HR Manager
Length of service	Since March 2006
Driver’s licence	17016C
Email	jbrown@techcity.com.au

Solicitor’s details

Jones and Co

22 High Street, City East (Your state)

Phone: 82811382

Email: jonesandco.net.au

The solicitor has quoted a fee of $1,500 for the conveyance.

The loan requirements

•    30 year term

•    premium option home loan features

•    variable interest rate (for this case use 4.5% p.a.)

•    LMI to be capitalised

•    proposed settlement date — six weeks from exchange of contracts

•    ability to make additional payments from time to time without penalty

•    fortnightly repayment option

•    redraw facility

•    funds access via card.

Note: Loan application fee is waived under Special Offer.

Other information

•    They have advised that the Real Estate Agents have indicated they need to make a formal offer within the next 10 days, however they are reluctant to do so until they obtain an approval.

•    Jennifer has asked if there are any professional package benefits available because she is an accountant. However, she did confirm she has not maintained her continuing professional development.

•    Jennifer previously owned and lived in an apartment with her two older sisters when they attended university but they sold this before she married — they did not make a lot from sale.

•    Family plans are five years away.

•    They do have plans to take a major overseas trip before family comes along.

•    Philip is hoping for a promotion within the next 12 months upon possible retirement of a long-term employee where he works.

• They have also expressed a concern about the possibility of interest rates increasing.

Assignment tasks (student to complete)

Task 1 — Key terms, gathering and documenting client information

1.   Complete the ‘Key terms’ (located at the end of the written assignment in Appendix 1).

2.   Using the information provided in Case study 1, complete the ‘Client information collection tool’ (located at the end of the written assignment in Appendix 2).

3.   You will also need to complete the Genworth Serviceability Calculator to assess the security, debt service and borrowing capacity for Jennifer and Phillip Brown. To do this, follow these steps:

      (a)       Use the details in Case study 1.

      (b)                    Read the Genworth Calculator Supplementary Material Guide available in the Kaplearn CIVMBv5 subject room.

      (c)       Process the loan application using the Genworth Serviceability Calculator accessible here: <https://www.genworth.com.au/lenders/lmi-tools/serviceability-calculator>.

      (d)                    Once you have processed it, download a copy of the PDF and save it to your desktop.

      Note: You will need to upload a copy of this pdf with your written and oral assignment submission. This will assist your assessor with providing feedback on your written and oral assignment submission.

Note: Any assumptions you make should be listed and should not conflict with the case study information already provided.

Assessor feedback for Task 1 — Key terms, gathering and documenting client information

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 2 — Assessing the clients’ situation

1.   Based on the information provided in the case study and any other online tools used, you now need to assess the clients’ loan application paying particular attention that you have met legislative requirements, followed industry codes of practice and met lender credit policy.

      Comment on issues such as:

      •    does it appear to meet legislative requirements (e.g. NCCP)

      •    maximum borrowing capacity of client

      •    capacity to meet deposit and total cash contribution for the loan required

      •    repayment requirements based on the loan required

      •    what the security will be and if it is appropriate

      •    do Jennifer and Phillip require Lenders Mortgage Insurance (LMI), and if so, how much will it cost and what are the options to pay the fee

      •    what loan amount would you recommend, and why

      •    likelihood that the clients will be able to meet all their financial obligations

      •    do Jennifer and Philip qualify for concessions on any of the fees and charges

      •    any other issues that may impact, now or in the future, on the clients’ ability to meet their obligations, including any possible risks.

      Provide data to support your comments and conclusions. (750 words)

      Note: The assessment of the clients’ needs is a critical prelude to you completing Part 4 of the Oral assignment requirement for this course.

Student response to Task 2: Question 1

The provisions of NCCP Act are the basis on which the client has appropriately estimated the maximum borrowing capacity on the basis of which the loan would be approved for the client. The analysis of the borrowing capacity is important so that appropriate planning can be done regarding the finance sources. The analysis would use different calculators so that proper assessment can be made of the maximum borrowing capacity. The above comment are appropriately covered in the discussion below: The NCCP Act is quite strict in association of financial advisory services and the same requires the advisors to conduct a proper background check on the clients who are looking for the loan. The advisor is also required to check proper documents before the same is submitted to the lender bank. In the case of Philip and Jennifer, they have complied with all the provisions of the act and ensure that even the minor details are taken care of. The borrowing capacity of a client determines the amount of loan which the client can take from banks and it is imperative that the same is computed accurately. In the case of Philip and Jennifer, I would be estimating their borrowing capacity and for the same purpose, I would be using Genworth servicing calculators. On the basis of the borrowing capacity, I would be able to advise the client regarding how much capital can be applied for loan. As per my calculations, Philip and Jenifer have the maximum borrowing capacity of $1,218,269.00. As per the information which is provided to me by you, the amount would be invested in purchase of a new residential property. I think that the amount which I have computed would be more than sufficient for meeting the costs of the property. It is further from the fact sheet that I determined that you already have some savings which you want to save for maintenance of standard of living. The borrowing capacity for the clients portrayed in the above calculator. As per the present situation, the overall savings which the client has been able to accumulate is is $79600 out of which the client is willing to expend $ 75,000 towards the deposit amount of the residential property which would be of $490000. It is advisable that the client should focus on enhancing the savings further which would then mean that the client would be able to repay the loan in lesser time frame. Therefore, it is imperative that the client have $49395 in their hands because the loan amount including the LMI costs $448580 and an additional cost of expenses. The client’s needs to maintain proper savings so that the repayments of the principle amount can be initiated as soon as possible as this would reduce the interest burden on the clients. The client needs to incur an amount of $2,978.85monthly and for such purpose proper liquidity is essential for the client. As per the agreement between the lender and the borrower, the rate of interest is predetermined at 4.50%. They will pay 3.5% if they consider J.G. Wentworth broker. The case clearly shows that the client should choose lenders mortgage insurance and the amount which is computed for LMI is $8580. The client needs to make payments of this amount to the insurance company at interest rate of 4.5% for their buildings or life, income protection. There is always a lot of uncertainties available which can take place in future affecting the ability of the client to properly service the loans. There might arise a situation where either or both Philip or Jennifer might lose their jobs in future. In such a case, LMI would provide appropriate protection and would help the client to have access to a steady cash flow. In the case of accountants, the banks might be generous enough to offer discounts for loans which are taken and the same may even involving waiving off the LMI. This is done because accountants are known to have long and prospective careers due to their numerous opportunities in the market and also due to the fact that accountants are low risk borrowers. However, some minimum eligibility criteria need to be satisfied so that the borrower can qualify for the loan. This includes the minimum of gross income of $120000- $150000 pa. Hence, making Jennifer not qualify as she only has $95000 as earnings per annum. LMI are applicable to businesses or individuals who are taking 80% of the loan from the property and this is also used as a measure and ensures that safety is maintained in the work operations of the business. If recommendation is taken from the lenders and follow consumer protection act 2009 according to which all legal entities and constraints are already being and explained briefly so there should be no confusion can meet the objectives properly. There is various financial restriction like- fluctuation in interest rate, tax amount, charges etc, Financial terms and conditions are affected frequently by financial risk which is pretty common. For better conclusion in the end people come to take financial risks. If financial risk occur it may result in the negative impact on people mind and they will consider that borrower must have been aware of this risk while taking a loan.

2.   (a)       Most lenders stress test loan repayments by adding an additional 2–3% on to the loan repayments to make sure a borrower can afford the repayments. If interest rates moved 3% higher, what would Philip and Jennifer’s loan repayments be and do you think they would be able to cope with the extra repayments? (100 words)

Student response to Task 2: Question 2(a)

The client first and foremost needs to understand that the financial markets never remain stable and therefore due to fluctuations in the financial market, interest rates are also likely to change which would either increase or decrease their interest payments. It is advisable that the client also pay off a proportion of the principle amount along with the interest so that overall loan burden can be reduced. In the case of Philip and Jennifer, the monthly instalment which must be incurred is $2,978.85monthly. In case there is a hike in the interest rate of the loan then the revised instalments which the client needs to incur is estimated to be $3147

      (b)                    Identify appropriate product options you can present to the clients that may remove this interest rate risk? (50 words)

Student response to Task 2: Question 2(b)

The interest rate risks are a major consideration which impacts the financial situation of the client and this happens mainly due to fluctuations in the financial markets. It would be my suggestion to Philip and Jennifer to undertake the mortgage agreement under fixed rate system. This would make the interest rate fixed and therefore market fluctuations would not impact the finances of the client in any manner.

Assessor feedback for Task 2 — Assessing the clients’ situation

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 3 — Borrowing options

Although Philip and Jennifer are looking to borrow at approximately 90% LVR, what other options could you present that would avoid the cost of LMI? (100 words)

Student response to Task 3

The loan to value ratio is an important consideration when a client is looking to take a loan. The most suitable option which is available to the client in such a situation would be to ensure that the LVR is kept at a minimum rate so that their situation remains favourable. The LVR if kept low then the client would have a easier time in servicing of the loan and would also be able to make better comparisons. In case the LVR for the loan is not kept low then the client would be required to incur more interest at the end of the periods. One option which is available to the client is to use savings as much as possible so that the LVR can be reduced. Family members can act as a guarantor and use a portion of their own home’s equity to help their loved ones, the borrower, to secure a home loan. This would  be ample security for the bank to issue the loan and this also considerably reduces the LVR of the loan and can also help in promoting savings as LMI is also saved.

Assessor feedback for Task 3 — Borrowing options

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 4 — Reasonable enquiries

In the course of gathering information about the couple, you are required under the National Consumer Credit Protection Act 2009 to make all ‘reasonable’ enquiries to determine a borrower’s objectives, requirements and financial situation.

Identify at least six (6) ‘reasonable’ enquiries that you would make with the clients in the case study and explain why these enquiries are important in terms of NCCP compliance. (200 words)

Student response to Task 4

In order to collect vital information on the financial situation of the client, it is imperative that reasonable enquiries are undertaken so that informed decisions can be taken by the advisor. The availability of the information regarding the client is important for also knowing what kind of advises the clients are expecting and also regarding the goals and objectives of the client. The financial advisor needs to ensure that the enquiry requirements are undertaken as per the guidelines set by NCCP Act and on the basis of the same, the following six enquiries are required to be made from the client. The first question which the advisor usually wants to know is the amount of credit required and if the clients are aware of their borrowing capacity so that maximum limit can be known.The purpose of the loan is the next question to be asked so that the needs of the clients can be identified and classified appropriately.The time frame for which the loan is being taken is another important question and it is clear from the fact sheet that Philip and Jennifer requires loan for a period of 30 years so that they can properly service the same.The next question is also important as it deal with additional features which the clients expects in their loan products. Philip and Jennifer requested for an interest rate of 4.5% and presumably lower.The level of understanding which the client has regarding the risks and ongoing costs associated with the loan is also to be clarified so that transparency is maintained.I would also like to enquire whether they will be able to cope up with the current terms and conditions of the loan or not I have made enquiries about their current assets and liabilities.

Assessor feedback for Task 4 — Reasonable enquiries

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 5 — First Home Owners Grant and home buyer assistance schemes

Describe the First Home Owner’s Grant or home buyer assistance scheme benefits and stamp duty concessions that are available in your State or Territory, who would be eligible and what would be their benefit? Are Philip and Jennifer eligible for any assistance?

Note: Please identify which State or Territory you are from in your answer. (150 words)

Student response to Task 5

The First Home Owner’s Grant or home buyer assistance is a very helpful scheme which is used by the government for encouraging the people to purchase their own houses and for such a purpose specific amount of loan would be allowed. This loan is in the form of a grant which does not need to be repaid back to the government. As per the situation of the clients, if Philip and Jennifer gets applicable for such kind of loan than the loan period which would be allowed to them is for 30 years. This option would be of significant help to the clients and ensure that they are able to achieve their financial goals. The criteria which must be met in order to achieve such a loan is discussed below in details: The primary condition which must be satisfied is that the home selected must not be older than 5 years and the same can be of the value of $ 750,000 or less considering a residential property and the same should be the first sale for the property.In addition to this, stamp duty is applicable on the property depending on the value of the property and the nature of use for the same. In addition to this, the stamp duty is also computed considering the concession and exemptions which are associated with the property. If an individual is purchasing a building or a new home in Victoria region of Australia and the value of the property is up to $ 750,000 then the individual would be entitled to $ 20,000 as FHOG. In the case of Philip and Jennifer, the facts shows that they are not eligible for FHOG as Jennifer once owned a home which she lived in with her sisters. Therefore, it can be said that the criteria is not met and therefore the clients cannot opt for such an option. In the case of stamp duty exemption or concession, Philip and Jennifer would be eligible for taking the concession for the property which is to be their first home and the value for the same is up to $ 550,000.

Assessor feedback for Task 5 — First Home Owners Grant and home buyer assistance schemes

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 6 — Professional network and loan settlement process

1.   Name three (3) parties, who are not directly involved in the processing of a loan and what their role is. Explain how you would communicate with them in an efficient and effective manner so that they understand pre-settlement conditions and their involvement required. (100 words)

Student response to Task 6: Question 1

The parties who are directly involved in the loan processing procedures for a client are appropriately listed below in details: The real estate agent needs to be contacted  as he would be able to provide vital information whether the home if  new or not and also give an accurate estimate of the property value The insurance parties are another group who are not directly involved in the loan processing system and the main role which they perform is related to insurance of the property and maintenance of valid documents.The financial agents who set up the agreement are also not directly involved and their role is that of an intermediaries.

2.   Explain how you would develop and maintain relevant networks with professionals such as those you detailed above or other professionals to ensure you are up to date with the products or services they provide. (100 words)

Student response to Task 6: Question 2

The financial advisor needs to ensure that regular updates are available from different parties in the financial markets regarding the trends of the market and also the different products which are offered in the market. It is for this reason that a detailed analysis must be undertaken for any new product which is to be entering the market. Further, the business is required to make an assessment regarding the benefits and features of the products which is new in the market before the same can be offered as recommendations to the clients. This is the reason that proper financial product stock should be known by the financial advisor.

3.   You want to ensure that Philip and Jennifer have all the key insurance protections in place in case something unfortunate was to happen to one of them. What process would you follow during your discussion with the clients to ensure you have a good assessment of their needs? (100 words)

Student response to Task 6: Question 3

In order to get a proper assessment of the needs of the clients analysis must be made o the basis of the client fact sheet which is collected so that proper quality of information is available to the senior officials of the business. The broker would be following a process of active listening and show empathy towards the clients so that they can open up more towards their needs and portray their requirements in an appropriate manner.

4.   Briefly explain why it is important for the broker to remain informed of developments in the lending process despite not being actively involved at every stage. (100 words)

Student response to Task 6: Question 4

The broker has an important function in maintaining the mortgage functions and plays a pivotal role on behalf of the client. The broker can provide assistance at all stages of the lending process, despite not being required at each instance. With the wealth of experience that brokers have in dealing with the lending process, they can confirm and assist the consumer at each step of the way.  Keeping the broker informed will also ensure that the lending process is progressing without any issues or difficulties and if any arises, then from the expertise and experience of a mortgage broker, they will always be in a better position to advise and better give suggestions on the matter.

5.   Application form and related documents have now been signed and forwarded to the Lender for approval. Philip and Jennifer have agreed that you will keep their Solicitor informed of progress if/when the loan is approved.

      Refer to the ‘Example of an Organisation’s Policies and Procedures’ document in toolbox and explain what the service standards and timelines are up to and including the issue of offer letter and mortgage documents. (100 words)

Student response to Task 6: Question 5

The letter of mortgage is to be sent to the senior officials of the business so that proper analysis can be undertaken and proper assessment can be made regarding the financial operations of the business. The letter of offer and mortgage documents is required to be sent so that proper level of transparency is maintained.

6.   Clients have now called to execute loan offer and mortgage documents and are nervous that their Solicitor is very busy and difficult to contact. They want to know who will be responsible for what tasks from this point in the lead up to settlement and immediately following settlement.

      Explain to Philip and Jennifer who is responsible for completion of what tasks once the loan documents have been returned to the lender and in the lead up to settlement and once settlement occurs. Focus on the lending organisation and the client’s solicitor/conveyancer roles in this part of the lending process. (150 words)

Student response to Task 6: Question 6

The role of the solicitor is to undertake the legal process for the loans and ensure that the proper framework of financial reporting process is followed in the operations of the business. The solicitor would also examine the loan contract to ensure that whether the same legally binding or not and he must further ensure that all legal factors are complied with before the loan was processed or approved. In this manner the solicitor would be playing a major role in handling the loan of the business. The lending organization would be examine the worthiness of the client and would investigate if there are any credit records for the client. These activities would ensure that proper control is maintained in the operational process of the business.

Assessor feedback for Task 6 — Professional network and loan settlement process

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 7 — Interest rates

1.   Conduct your own research and answer the following:

      (a)       What is the role of the RBA with respect to the movements of interest rates?

      (b)                    Why is it important to have these controls and how do they impact mortgage loans in Australia?

      (c)       Are banks obliged to follow the RBA cash rate? Explain the reason for your answer.

      (200 words)

Student response to Task 7: Question 1(a)–(c)

The RBA is the central bank which oversees the banking operations in the country of Australia and therefore has an important role in ensuring that the financial markets are well regulated. The central bank also plays a vital role in shaping the economy. The interest rate can also be adjusted by the central bank and the same can have an impact on the savings and interests rate of the country and the intensity of the policy changes depends on the fact what the central bank is looking to achieve.The RBA has an important role of looking after the economy and further ensuring that a level of stability is maintained in the operations of the country. The RBA remains vigilant even when there are domestic and international fluctuations and ensures that the economy remains stable. Important situation such as high inflation, deflation, stagnation can be controlled following interest rate control method for keeping the economy stable.  Consider the following economic scenario – if interest rates are incredibly low, and the value of real property has increased as a result of cheap finance, and inflation is high as a result of all the increased spending, the RBA can increase rates to slow lending and stabilise discretionary spending.Banks are not obliged to follow the RBA cash rate. The RBA’s cash rate alone is not an accurate reflection of a bank’s funding costs, particularly since the GFC, which has left all banks with the task of raising funds in volatile global markets and through stronger competition for deposits. If the RBA were to raise or lower rates, there is also no guarantee that the banks would mirror the movement in the cash rate.

2.   Philip and Jennifer from Case study 1, have called to discuss whether they should fix the interest rate on their loan after having received several conflicting viewpoints from family and friends.

      (a)       Explain the process you would use to research and identify the various product options available to meet the needs of Philip and Jennifer.

      (b)                    Explain to Philip and Jennifer two (2) advantages and two (2) disadvantages of fixing a loan over different fixed rate terms.

      (150 words)

Student response to Task 7: Question 2(a)–(b)

Under the fixed rate system for charging interests, the interest which is to be paid by the clients would not vary in any manner and it does not matter how much the market fluctuates in such cases as the interest payments for the client would remain the same. This would reduce any risks which is related to fluctuations of interests rates. There are certain merits and demerits of fixing the interest rate. Philip and Jennifer need to know and understand before they can select their most viable option. These are: A fixed rate loan has the advantage that the level of risks would be low and the borrower would always know what amount of interest is to be paid.   The demerit is that if interest rates drop significantly, the borrower continues to pay the higher rate. In addition, a fixed rate loan can be harder to obtain from a lender due to higher payments.

3.   What other option/s can you suggest if they remain uncertain about whether to fix the rate on their loan? (100 words)

Student response to Task 7: Question 3

In case of any uncertainty than it is always preferable that the client contact a professional agency who looks after such services  The agency then can help the clients in making vital decisions on behalf of the clients considering their bests interests. The steps which would be taken by me for making suggestions for type of interest payments would firstly be to educate the clients on pros and cons related to both the systems. I would also be providing them examples of a loan product with both category of interest systems. I will show them how the interest rates in these products would behave in different adverse economic conditions that include upward and downward interest rate fluctuations and explain their consequences so as to make them get the picture and also show them how important it is to fix the loan so as they could plan their finances as their liabilities will be fixed to avoid getting caught up in the economic adversities.

Assessor feedback for Task 7 — Interest rates

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Section 2: Case study 2 — Richard and Pauline Jackson

Background

Richard and Pauline Jackson have a small mowing and gardening business in which they have been working for the last eight years. As it is only the two of them in the business they operate as a partnership.

They have approached you to help restructure their finance, as they are finding the management of their debts a struggle following the loss of one of their major commercial property contracts.

After further questioning, you realise that the situation is more serious than they originally explained; they had missed payments on their mortgage, only pay the minimum on their credit card of 3% each month and the work ute they have on lease is expiring. They have a $15,000 residual payment due and do not have the funds available.

They lost the major contract 12 months ago and fell behind on the mortgage payments soon after. They spoke to their lender (First and Last Bank) and a ‘hardship application’ was approved. The missed payments were corrected by extending the term of their loan. Nothing adverse was recorded on their credit file but they are still struggling with all the monthly commitments.

After reading the case study above and reviewing their funding position below, answer the questions that follow:

Assets

46 Walters Road, Ritchfield	$490,000
First and Last Bank savings account (joint)	$1,200
Little Saving Building Society cheque account (joint)	$2,300
Business debtors (unpaid invoices for work)	$6,200
Ford Utility, 3 years old (work vehicle)	$25,000
Holden Commodore, 7 years old (family car)	$15,000
Superannuation — AMB Insurance (Richard)	$46,000
Superannuation — AMB Insurance (Pauline)	$29,000
Household effects (insured value)	$66,000

Liabilities

Lender	Situation	Interest rate	Monthly repayment	Debt
First and Last Bank (home loan — joint)	Currently up to date though had three-month extension to contract after hardship application 12 months ago	5.7%	$1,567.00	$270,000
Big Bank Visa card (Richard)	Only able to repay 3% per month for last six months	18.95%	(pays 3% per month) $240.00	$7,800 (limit $8,000)
Little Bank Visa card (Pauline)	Only able to repay 3% per month for last six months Is over limit by $800	21.5%	(pays 3% per month) $90.00	$3,800 (limit $3,000)
My Domain Furniture Store	Did not keep to interest free contract and paying debt by instalments	28.50%	$370.00	$3,400
Super Car Loan lease	Four-year contract expiring next month and need $15,000 to pay residual	n/a	$850.00	$15,000 (residual)
Total			$3,117.00	$300,000

Assignment tasks (student to complete)

Task 8 — Establishing level of financial knowledge

1.   What communication skills would you use to establish rapport and build a relationship with clients. (150 words)

Student response to Task 8: Question 1

The communication style which is adopted while negating in communication with the client is important and for the same purpose I need to have proper command over my speaking skills. I would try to understand the concerns of Richard and Pauline and take into their concerns with empathy so that a personal connection can be developed with the client. I would also ask frequent questions so that it can be demonstrated to the client that I am engaged in active listing process and their concerns are being considered by me. In addition to this, if any doubt arises, I would raise query immediately so that a level of clarity is achieved in the decision making process. I would also try to engage in personal communication over personal topics so that proper rapport can be built with the client. This is an essential process for the clients and this helps them to open up appropriately.

2.   Refer to the ‘Example of an organisation’s policies and procedures’ document found in the toolbox and outline what service standards you should meet to provide a high level of service to clients. Include timelines for returning client enquiries etc. in your response. (150 words)

Student response to Task 8: Question 2

To understand them better I need effective business communication skills which include listening. This is critical for the success of any verbal communication. I will build this by showing interest and paying attention in what they are saying. I will maintain eye contact and use body expressions such as nodding to show that I have understood. I will ask questions to clarify and get a better understanding of the matter. These involves asking both closed questions and open questions.

3.   List two (2) questions that you would use to effectively communicate with the clients to confirm Richard and Pauline’s understanding and knowledge about credit and finance.

      List a further two (2) questions that you would ask to identify or confirm their current financial position, including establishing their requirements and objectives with the refinance?

      Advise where you would record the client’s responses.

      (150 words)

Student response to Task 8: Question 3

The questions which would be asked for ascertaining the understanding of the clients are listed below: Have you understood the guide which I just explained? Please feel free to ask any question regarding any part for which you are not clear? The questions which would be asked to identify or confirm their current financial position, including establishing their requirements and objectives with the refinance are listed below: Is there any loan presently that you are servicing and tell me about your credit history? What are the assets that you currently posses which makes part of your net worth? The responses which is provided by the client would be recorded in a fact file and the same would be preserved so that the same can be referred  back to in case such a need arises.

Assessor feedback for Task 8 — Establishing level of financial knowledge

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 9 — Responsible lending obligations

The National Consumer Credit Protection Act 2009 imposes ‘responsible lending’ obligations on brokers that must be satisfied by all people arranging loan applications. The primary objective under responsible lending guidelines is that the credit facility offered to the borrower is ‘not unsuitable’ for the borrower, meets their requirements and objectives and will not create substantial hardship.

1.   Refer to ‘What is substantial hardship?’ available in the toolbox. In your own words how would you define ‘substantial hardship’ (detailed information on this subject is found at RG 209 issued by ASIC)? (150 words)

Student response to Task 9: Question 1

According to ASIC 2009, credit is in few cases unfit for lenders as if they were unable to fulfil the following requirements and targets for the loan. In this case, the borrower faced substantial difficulties, which means that it is difficult to deal with the situation and this type of critical situation is known as substantial difficulties. Substantial Hardship is not clearly defined by National Credit Act or even by law. The definition can be made clear by analysing different case laws which are associated with substantial hardship. In simple words substantial hardship can be referred to as a situation where gross monthly income of an individual is below federal poverty line. This also means that the individual is facing significant financial disability. Loss of business by clients mean that this may translate to financial hardship. This may bring about difficulty in meeting obligations such as servicing of the loans, and any other financial liabilities. This may also translate to difficulty in meeting the living expenses and the daily cost of living. This may have an effect in the client’s credit ratings and may affect future ability to obtain loans.

2.   What are the benefits of debt consolidation for Richard and Pauline? (100 words)

Student response to Task 9: Question 2

Since Richard and Pauline have six different loans for various lenders. They are currently paying $ 301,500 to the lender, which is very difficult for them. In the case, the clients decide that they would take a large and on the basis of the same take a loan which can help the clients to reduce their servicing stress and ensure that the overall burden is reduced. The debt consolidation system would further ensure that the client’s needs to be service only one debt and this would be much easier to repay.

3.   Richard and Pauline have decided to consolidate their debts into their home loan with two splits, one for the existing home loan and a second split for all other debts.

      In the template below provide a new liabilities summary once Richard and Pauline have completed the debt consolidation including their new monthly repayments.

      Note: They have chosen to refinance with ‘One State Bank’ who are offering a 4.5% interest rate on a variable, principal and interest loan over 30 years.

Student response to Task 9: Question 3

Response Lender	Interest rate	Monthly repayment	Debt
First and Last Bank (home loan — joint)	5.7%	$1,567.00	$270,000
Big Bank Visa card (Richard)	18.95% (pays 3% per month)	$240.00	$7,800 (limit $8,000)
Little Bank Visa card (Pauline)	21.5% (pays 3% per month)	$90.00	$3,800 (limit $3,000)
My Domain Furniture Store	28.50%	$370.00	$3,400
Super Car Loan lease	n/a	$850.00	$15,000 (residual)
Total To be consolidated.		$3117	$300000
Total amount to be paid after consolidation. (4.5%)		$870.8	$313500

4.   What savings will Richard and Pauline obtain in monthly repayments?
(Remember to show the calculation of how you determined the savings). (100 words)

Student response to Task 9: Question 4

Previous repayment amounts are= ($1567+$240+90+$370+$850) = $3117 The monthly repayment of debt consolidation is $870.8 So, after debt consolidation with One State Bank Richard & Pauline monthly savings will be = ($3117-$870.8)

Assessor feedback for Task 9 — Responsible lending obligations

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 10 — Self-employed special considerations

1.   As Richard and Pauline are self-employed, what documents will you need to obtain to verify and assess their income? (150 words)

Student response to Task 10: Question 1

Final annual financial statements signed by the director’s partners for all borrowers and related entities covering a period of two consecutive years plus the personal taxation returns for each director/partner/ guarantor and trustee for the same two years. The supply of an ATO notice of assessment relating to the year’s tax returns is mandatory because this allows the lender some comfort that the tax returns being used to assess an applicant’s ability to repay a loan are legitimate.

Answer here

2.   If a Low-doc application is an option for the customer, name three (3) extra documents you will need to obtain and assess. Explain how each of these documents will establish their income. (150 words)

Student response to Task 10: Question 2

The three extra documents which I would be requiring to access in order to provide the mortgage loans to the lenders are discussed below in details- The bank statement is considered to be one of the most crucial documents for self-employed persons and the same is useful for getting any mortgage. The bank statement would provide appropriate proof regarding the money amounts which Richard and Pauline has in their accounts and how much money has been withdrawn by them. The clients are expected to maintain proper cash balance so that the mortgage application is not affected in any manner. Because the bank statement clearly shown that they will not be able to repay us. Business activity statement need to be obtained by them so that I can measure about any tax obligation which can help us to develop a proper understanding of the financial situation of the business..  Letter from the accountant is the most important documents which I need to obtain so that I can take decision while approving mortgage.

3.   Explain how applying for a Low-doc loan could lead the mortgage broker to be accused under NCCP of recommending an ‘unsuitable’ product. (250 words)

Student response to Task 10: Question 3

The low doc loans are often offered to people who are verified by the lenders and even the mortgage brokers and such individuals needs to be qualified for such kinds of loans. These types of loans are allowed by the banks so that it can provide assistance to individuals who do not have high profits to display and thereby proper care might be provided to such persons. Further, one other advantage of such types of loans is that the documentation required for such type of loan is less and therefore the complexity level is also low. The national consumer credit protection Act specifies that the credit takers needs to be protected and further lenders also needs to be careful.

Assessor feedback for Task 10 — Self-employed special considerations

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 11 — Advising on strategies

Following the presentation of your proposal, Richard and Pauline say that they would like your advice on strategies that could help them to repay their home loan as quickly as possible.

•    List at least three (3) strategies or methods that will help them achieve their aim.

•    Explain how each strategy will result in a home loan being repaid more quickly.

Note to students: You may refer to the MoneySmart website for information on this subject and your answer may also include, but not be restricted to, available mobile phone apps used for debt management. (300 words)

Student response to Task 11

Open an Offset Account The client has the advantage to choose an offset account which would allow the client to settle their loans in a quicker fashion.  The main benefits which i associated with an offset account are that the interest payments is quite easy to settle and payments just needs to be made on the principle amount of the loan. An instance can be given in this regard for the purpose of clarity so that proper meaning of offset account can be derived. An offset account for $ 60000 and a loan value of $ 40000 would mean that the interest payments would be computed on the figure of $ 340000. The interest saved in such an account is definaely higher in comparison to savings account and would definitely save interest payments and ensure that the loan is paid off sooner. The interest saved by having funds in an offset account is usually higher than would be received in a savings account and is not subject to income tax. This option would not only help in having immediate access to your money, but you will save on the amount of interest payable and pay off your home loan sooner. Increase the frequency of your repayments You could save on interest and pay off your mortgage sooner by making fortnightly or weekly repayments instead of monthly, and in turn build equity in your home. If you choose fortnightly repayments, you will pay half of your monthly repayments each fortnight. Because there are 26 fortnights every year, this is equivalent to making an extra month’s repayment each year. This means you’ll build equity in your home more quickly, plus pay off your loan sooner and save in interest. Money smart website: Advantage: • The people using this website can purchase new items effectively and ensure that proper selection is made • The person using such a web do not need to carry any cash for the purpose • The access to money which is available through the website are kept track of • They make one payment for consolidates bills Disadvantages: • The main problem which is related to the system is that the lender charge high interest for the same • In addition to interest, there is ongoing fees and other costs involved • In case the borrower loses track of the money, then it would cause confusion. • The impulse buying increase due to this reason. Debt consolidation: Advantage: • This has great advantage to use, as the due rates can be tracked easily. • The borrower who are using this have to pay single interest at a low cost • Through this method borrower can be pay all the lenders at a time and can stop increasing debts and debt interest • This method can be stopped total debts amount fees   charges Disadvantages: • If borrower sign up by using wrong debt information it will cause problem in the tracking because the amount they will enter that will be automatically loaded in the software. • Sometimes interest rate may increase due to government imposes • There are few agencies who counsel the borrower but they don’t provide valuable suggestions to the borrower they only think about their business.

Assessor feedback for Task 11 — Advising on strategies

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 12 — Impact of credit history

Richard tells you that his former wife failed to properly meet their unsecured personal loan debt obligations before they separated. Although he eventually repaid the debt, he is afraid that this incident may count against him when he applies for a loan. There are a few things Richard can do as he is concerned about his credit rating. What information would you provide in the following situations?

1.   Provide Richard with the details of two (2) major credit reporting agencies and explain what information may be recorded on his credit file. Information can be sourced from the websites of credit reporting agencies and the Office of the Australian Information Commissioner. (200 words)

Student response to Task 12: Question 1

The two major credit reporting agencies are given here with valid information such as- Experian: they are keep record of debt history of a borrower and find out the money which I have in my hand. Credit report such as-is debt history, in one history are kept by the lenders so that they can take further decisions while giving money. Credit agencies the people Robert long term the word words so that they can get rid of the debt who is create or increasing problems in their personal and professional life. Considering this fact experience working as a credit report agency and provide credit to the people who need this the most bye tracking their information Inna valid software so that when necessary they can find it and can use to access for future. • Equifax: The company has an efficient process for generating credit reports and the credit reports for the company mainly consists of personal information such as your full name, address, and Social Security number. The business utilises the most upgraded software for the purpose of maintaining information regarding the client and ensuring that accuracy is maintained when generating appropriate credit reports for the clients.

2.   Richard has decided he would like to obtain a copy of his credit report from either Equifax or illion Data Registries (formerly Dun & Bradstreet). Explain what options are available for the chosen provider, how long it takes to obtain a copy, and the associated costs. (100 words)

Student response to Task 12: Question 2

As Richard decides to obtain credit report from credit rating agency wither from Equifax or Dun & Bradstreet.   Using Equifax; One of the ways you can get a copy of your free credit report is by visiting www.annualcreditreport.com . By law, Richard is allowed to get one free copy of your credit report every 12 months from each of the three major credit bureaus — Equifax, Experian, and TransUnion. This is free for Richard is eligible for such credit score for making comparisons and knowing his credit score. In addition to this, there is also an option which is available to Richard is that of taking assistance from annual credit report services. Richard can also contact the annual credit report service:  By calling: (877) 322-8228; By mailing: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. In case, Richard decides to opt for the mail option then , he should be sure to include his name, Social Security number, current and previous addresses, date of birth, and telephone number. For his protection, he will also need to verify his identity with an acceptable form of identification such as drivers licence or passport. If Richard requests his report online, he should be able to access it immediately. If he orders it by phone, it will be mailed to him within 15 days. It is also an option available to Richard to contact the business for requesting credit report.

3.   If there are errors on file, what are the options for Richard to follow in order to have these errors rectified? To assist you with answering this question, refer to the Equifax website. (150 words)

Student response to Task 12: Question 3

In case of error on the file, Richard can rectify it by following the steps below.  1. Firstly, he needs to submit a request to equifax via there Corrections Portal. 2. Once they receive his request, they will provide him with written confirmation that it has been received. If all relevant information is provided it could be as simple as the making the necessary amendment e.g. updating a default to ‘paid’ or deleting a judgement. 3. Equifax contacts the credit provider. If necessary they will contact the credit provider on his behalf to have them verify the accuracy, or otherwise, of the correction request. 4. Equifax reviews the credit provider’s response. Equifax will then review the information given by the credit provider and make any amendments, if any, to the entry/entries on your credit report. 5. Equifax finalises the investigation. They will notify Richard in writing what the result of there investigation is. If a correction is required, Equifax will send you a letter notifying him that the correction has been made. Equifax will also issue him with an updated copy of your Equifax credit report so he can see what has changed.

4.   What obligation does the Privacy Act impose on the Lender to supply the client, in terms of certain information, if they decline an application due to the content of the credit agency file? (100 words)

Student response to Task 12: Question 4

If a loan is declined because of the information in a credit report, the credit provider must tell the applicant the reason for declining the application and give the applicant the name and address of the credit reporting agency. They must also tell the applicant that they have the right to access the agency’s file. This requirement is provided for in the privacy act.

5.   What alternate options can you suggest to Richard and Pauline in the event that the loan was rejected by the lender you initially proposed due to a credit report? (150 words)

Student response to Task 12: Question 5

If loans get rejected from the bank than Richard & Pauline need to be go for next backup. Injection Mein auto for various reason in terms of credit report because credit report is made based on bank statement and the worst business history. So if any kind of bad experience of faces India business them the lender can reject their proposal which is not good news for the border but he have to make another plan so that they can obtain the objectives of taking loan and can fulfil the requirement of the loan within required time. Borrower can use the consumer financial protection act to protect damages which occur for rejecting loan from the lender. They can give complaint to the credit agency that their report is wrong, and we need to rectify the wrong Information with effective prove. These are alternative way for Richard and Pauline.

Assessor feedback for Task 12 — Impact of credit history

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 13 — Dispute resolution

1.   Due to delays in loan processing, Richard has lodged a complaint with you about the time it’s taking to get an approval on the loan. Although you’ve explained that this is because of delays with the lenders processing system due to staff shortages, you’re concerned the matter may escalate beyond your control.

      (a)       You are now required to record Richard’s feedback by completing the Customer Complaint Report below.

Student response to Task 13: Question 1a

Customer Complaint Report
Customer name	Richard Jackson
Title (Mr, Mrs, etc.)		Family Name (surname)		Given names
Answer here		Jackson		Richard and Pauline
Service being provided to client
Financial adviser and Broker
Nature of complaint
Serious

      (b)                    Provide a response to Richard explaining the process going forward and what actions you will take regarding his complaint in the box below.

Student response to Task 13: Question 1b

In case of any further complaints than such compliant would be handled in a effective manner and the client can communicated directly regarding any problem which he faces.

      (c)       Refer to the ‘Example of an Organisations Policies and Procedures’ document in the toolbox. Produce a short report which identifies and recommends ways that you may be able to improve these Policies and Procedures, to keep clients like Richard up to date on the progress of the loan application in the box below:

Student response to Task 13: Question 1c

The business has the policy of firstly to hear out the concerns of the client by active listening technique and then suggest counter steps so that a proper negotiation can be done. The objective for the same is to ensure that the client remains happy.

2.   As a broker it is important to understand the role of the Financial Ombudsman. Explain the function and role of the Australian Financial Complaints Authority (AFCA) in the External Dispute Resolution (EDR) process and the options available to the claimant once a determination is made. (200 words)

Student response to Task 13: Question 2

The main role of the credit and investment of batsman in the area process is to solve different kinds of complaints among participants and the consumers of their scheme. These are not government fund and not regular Financial Service institutions whether they are doing their own business by supporting consumers and lenders while taking loan for debt management or any other cases. Participants are known as non-bank lenders, credit unions, debt collection firms, finance brokers, financial planners, service aggregator, etc. The members of the credit provided under either scheme which are recognized by OC even before they get permission for disclosure of credit information in credit report. If any person have complaint about the credit provider they can go directly to the CRO and they will get up supporting service from them for solving this type of problems. Once investigations have been finalised, following organisations policies and procedures, they are to inform the client to which is there right of the;  Outcome of the investigation, Reasons for arriving at the decision and Proposed solutions. The claimant or the client then has a choice to accept or reject the decision and any solutions proposed. If the customer chooses to reject the decision reached through the IDR process, Inform the customer of their right to take the matter to the relevant EDR service. Provide the customer with all the relevant information to allow them to take this course of action.

3.   What could be the maximum financial compensation limit amount payable to a consumer borrower through AFCA for a claim for direct financial loss? (10 words)

      Note: This may require some internet research.

Student response to Task 13: Question 3

The maximum monetary compensation limit which is set by AFCA in case of direct financial losses  is $ 5,00,000.

Assessor feedback for Task 13 — Dispute resolution

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 14 — Effective access to files

The loan application is finally approved. Loan offers have been produced by the lender, as have numerous documents that the client needs to access and review. The lender has requested these documents be forwarded as soon as they are available. Richard and Pauline are away at the moment and their email provider has a size limit on the data that can be sent via email. Name a service provider that could assist in solving this problem and explain how the service could assist with solving this problem. (70 words)

Student response to Task 14

There are different categorize service providers who can be able to assist in solving difficult problem in a proper and effective way. Pauline and Richard can get these documents through express postal services or parcel transfer services offer by some companies like DHL. To save on time, these documents can be delivered to them by sending the documents to them through express post services or through DHL or any other parcel delivery companies. They will then receive it in time, read through them and send them back with a feedback after their review. This will save on time and solve the email size limit problem hence getting the process still on track and on time.

Assessor feedback for Task 14 — Effective access to files

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Section 3: Case study 3 — Mary Jane Smith

Task 15 — Prepare and check a loan application

Mary Jane Smith: Client Background

Mary Jane Smith is a young professional, excelling in her career within the IT industry. She has saved hard and is ready to purchase a property of her own.

Her objective is to pay the loan down quickly and then use the equity in the property to purchase another. She would like to build a small property portfolio over the next eight to 12 years.

You have met with her a few times and exchanged several emails and telephone calls. She has complimented you on a few occasions for the service and guidance you have provided so far.

Mary has been cautious in finding and then negotiating the purchase of this property. It is now time to get an application to a lender. You have gathered appropriate documents and completed all necessary checks. Everything is looking positive to proceed.

1.   Using the details in the Example Fact Find for Mary Jane Smith in the Toolbox, prepare a loan application by completing Appendix 3 in this written assignment.

2.   Using the following list, select which basic items below will need to be gathered from Mary as the supporting documentation necessary for her loan application:

Personal details

☐  Birth certificate or driver’s license

☐  Passport or Birth certificate

☐  Bank debit card                         ☐ Medicare card                             ☐ Utility/Phone bill

☐  Last six months savings account statements

☐  Last three months credit card statements

Proof of income

☐ Three current pay slips

☐ Signed letter from employer on letterhead (must have ABN)

☐ Latest year’spersonal tax return and tax assessment notice

☐ If self-employed — last two-year financial tax return and assessment notices

☐ If self-employed and no financials — three of the following four:

      ☐ Last 12 months BAS returns

      ☐ Original signed letter from accountant detailing net income, and how it was ascertained

      ☐ Last six months business bank statements

      ☐ Last 12 months ATO tax portal statements from the ATO

☐ For rental properties — copy of last three months lease statements, copy of agreement or letter from real estate agent

Refinance

☐ Last six months loan statement

Property purchase

☐ Copy of contract/offer including title details

Construction

☐ Council approved plans and specifications

☐ Building contract

☐ Quotes for additional work

3.   Before submitting Mary’s loan application, you must check her details thoroughly to ensure accuracy. Using the following two items available in the toolbox, check that the personal details and current employment details section of Mary’s Fact Find document and loan application are accurate and identify three (3) errors. Write your answer in the box below.

      •    example driver’s license

      •    example pay slip.

Student response to Task 15: Question 3

The three errors which can be identified from the loan application document are listed below: •    example driver’s license       •    example pay slip. Fact find information sheet

4.   Refer to the ‘Example of an Organisations Policies and Procedures’ document in the toolbox and provide at least two (2) examples in each question of how Mary’s loan application complies with each of the below:

      (a)       The organisational credit policy.

Student response to Task 15: Question 4(a)

The organizational credit [policy is complied with as all the legal requirements are adhered to by the client and proper documentation is also provided.

      (b)                    Legislative requirements (particularly NCCP).

Student response to Task 15: Question 4(b)

The client has submitted all the documents for review to the financial advisor and then the same is also submitted for loan processing which shows that Mary has complied with NCCP requirements.

      (c)       Industry Code of Practice.

Student response to Task 15: Question 4(c)

The industry code of practice is also an important consideration which is met by following all relevant industry statues and compliance requirements.

Assessor feedback for Task 15 — Prepare and check a loan application

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Section 4: Working in financial services

Task 16 — Financial services legislation and industry codes of practice

1.   Conduct some research and identify two (2) websites that you could use to keep up to date with legislative changes and two (2) websites for changes in Industry codes of practice. (50 words)

Student response to Task 16: Question 1

The two websites which can be used for keeping up to dated with the changes in regulations are listed below: Federal Register of Legislation (2020). Available at: https://www.legislation.gov.au/ (Accessed: 31 July 2020). Lawlex Legal Database – Australian Legislation Updates (2020). Available at: https://infostore.saiglobal.com/en-au/standards-and-legislation/effective-regulatory-management/lawlex-legal-database-australian-legislation-updates/ (Accessed: 31 July 2020).

2.   Describe the key features of:

      (a)       The National Consumer Credit Protection Act 2009. (150 words)

Student response to Task 16: Question 2(a)

The National Credit Act applies to credit provided wholly or predominantly for personal, household or domestic purposes or to refinance such credit, as well as credit provided to purchase, renovate or improve residential property for investment purposes.

      (b)                    The Privacy Act.

Student response to Task 16: Question 2(b)

The Privacy Act regulates the way individuals’ personal information is handled. As an individual, the Privacy Act gives you greater control over the way that your personal information is handled

      (c)       Code of Practice.

Student response to Task 16 Question 2(c)

A code of practice can be a document that complements occupational health and safety laws and regulations to provide detailed practical guidance on how to comply with legal obligations

3.   How would you communicate any changes in legislation or codes of practice to colleagues? (100 words)

Student response to Task 16: Question 3

The changes to the legislations would be communicated to the colleagues by conducting a meeting for the same or by preparing a mail for the purpose of informing the colleagues regarding the legislative changes.

4.   An Australian Credit Licencee must maintain statutory records; such as financial records, membership certificates, insurance policies, training and risk assessment registers.

      Explain how these could be managed to ensure they are secure and available for easy retrieval when updating is required. (50 words)

Student response to Task 16: Question 4

The records regarding the clients and any other important information needs to be preserved by the advisor so that certain degree of transparency is maintained and proper adherence is also placed to privacy act.

Assessor feedback for Task 16 — Financial services legislation and industry codes of practice

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 17 — Produce a document

You have recently joined YS Finance, a small broking business. Your employer has asked you to design a personalised ‘CPD Register’ where you will record any training and personal development that you undertake in your role as a mortgage broker.

Using the organisational requirements from the ‘YS Finance Personalised CPD Register checklist’ in the toolbox, you will need to create a CPD Register in a new word document.

Your CPD Register should include a table with the following column headings:

•    date

•    activity

•    duration

•    content

•    method

•    location

•    CPD points allocated.

Once you have created your CPD Register, you will need to do the following:

1.   Save a copy of the CPD Register to your desktop.

2.   Print the document.

3.   Take a clear photo of the document and a screen snipping of the document from your screen.
To do this you will need to use the Snipping Tool on your device and a camera.

4.   Insert a copy of the photo and the screen snipping into the box below.

Remember to do the following:

•    Proofread your CPD Register prior to printing, to ensure there are no spelling errors.

•    Adhere to all of the organisational requirements outlined in the ‘YS Finance Personalised CPD Register checklist’.

Student response to Task 17

Assessor feedback for Task 17 — Produce a document

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 18 — Applying principles of professional practice to work in the financial services industry

As a mortgage broker, you are required to complete 20 points per annum of Continuous Professional Development (CPD). This task requires you to identify and evaluate appropriate professional development (PD) opportunities available to you in the industry. In this task, you will need to visit the Education and Events page on the Mortgage and Finance Association of Australia (MFAA) website: <https://www.mfaa.com.au/education-events/courses>.

Identify two (2) professional development events that you would like to attend after your studies and complete the table below.

Note: You can list events that are available online.

Student response to Task 18

Course Name	Describe what the event is about	Why have you selected this event?	How will this event help you to develop professionally in industry?	As a non-member, what is the fee associated with participating in this event?	What is the CPD value?
Self Managed Super Fund (SMSF)	The event is regarding the maintenance of of super annulation fund and proper adherence to relevant rules and regulations	This would give an indepth knowledge regarding super funds and how they operate	This event would ensure that my understanding of superannuation is boasted further and I am able to achieve more accuracy.	$880	22.00 hours
Mortgage Industry Understanding	This event would open new doors in the mortgage industry and help more professional development of	This course would provide a comprehensive overview of the Mortgage Industry and is ideally suited to those considering a career in Mortgage Broking	This event would help me in providing better opinions regarding mortgage values and options	$294	4.00 hours

Assessor feedback for Task 18 — Applying principles of professional practice to work in the financial services industry

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Task 19 — Develop and maintain in-depth knowledge of products and services used by an organisation

1.   There are three (3) main types of products used in finance and mortgage broking: variable rate home loans, fixed interest rate home loans and a line of credit.

      Using the table below, define each product, its strengths, its weaknesses and how it is promoted. You should list at least two (2) strengths and two (2) weaknesses for each product.

      Write this in your own words.

Student response to Task 19: Question 1

	Product/service definition	Strengths	Weaknesses	Promotion
Variable rate home loans	A variable interest rate loan is a loan where the interest charged on the outstanding balance fluctuates based on an underlying benchmark	With a variable interest loans, the borrower needs to pay lower interests	It Is a more complex in nature and therefore the same cannot be understood by everyone	Appropriately promoted
Fixed interest rate home loans	A fixed interest rate loan is a loan where the interest rate on the loan remains the same for the life of the loan.	This is a simple interest rate to understand and compute as well	The weakness for the same is that it has higher burden which impacts the borrower	Appropriately promoted
Line of credit	A line of credit (LOC) is a present borrowing limit that can be used at any time. … The borrower can access funds from the line of credit at any time as long as they do not exceed the maximum amount	This form of credits easier and convenient  and therefore the same is preferred	The rate of interest might be slightly on the higher side.	Appropriately promoted

2.   This exercise requires you to compare refinancing options for a home loan to report on the benefits and disadvantages of selecting a particular refinancing option.

      To complete this task, you will need to visit <www.canstar.com.au>.

      What service does Canstar provide?

Student response to Task 19: Question 2

Canstar helps the borrowers to get access to the top banks which are providing the loans and it allows the borrowers to make comparison so that the most appropriate option can be selected for the purpose of their needs.

3.   You now need to examine the current rate, comparison rate and monthly repayment applicable to refinancing a home loan by comparing home loans.

      Enter the following details to compare:

             Loan amount:   $350,000

             Loan purpose:  Refinance

             Type:                    Variable rate loan

             State:                   NSW

      Using the Sort feature on the website, fill in the table below for the product with:

Student response to Task 19: Question 3(a)–(c)

	Provider name	Loan type:	Current rate	Comparison rate	Monthly repayment
(a)       lowest comparison rate?	Greater Bank Great Rate Home Loan	Home loans	2.09%	3.53%	9357.85
(b)          highest monthly repayment?	Athena Variable Home Loan	Home loans	3.09%	2.64%	13,835.29
(c)       highest star rating?	Suncorp Back to Basics Home Loan	Home loans	2.78%	2.79%	12,447.29

4.   Answer the following questions about home loan products.

      (a)       As a mortgage broker, how would you keep informed about updates to the various home loan product options in your organisation or elsewhere?

Student response to Task 19: Question 4(a)

The mortgage broker role is to properly study the market and ensure whether any new products are entering the market and if so than the same must be studied. It is the role of the broker to look into the trends of the market and identify if any new product is entering the markets or not.

Answer here

      (b)                    Describe one (1) emerging trend in variable rate home loans.

                   Note: This may require some internet research.

Student response to Task 19: Question 4(b)

The RBA cuts can lower the interest of loans further  which is the case of variable loans. Therefore, it can be said that such interest rates on variable loans can become much lower.

Assessor feedback for Task 19 — Develop and maintain in-depth knowledge of products and services used by an organisation

(Insert Feedback)
Question(s) that need to be resubmitted (if required)	(List question numbers)
First submission	Not yet demonstrated
Resubmission (if required)	Not applicable

Appendix 1:  Key terms

1.   In your own words, and using the grid below; define and explain loan transaction terminology and definitions of the following:

Lender and borrower	A lender is an entity, a public or private group, or a financial institution that makes funds available to borrower with the expectation that the funds will be repaid.	Answer here
Lessor and lessee	The lessor is the owner of the property and does not use it for its own use, on the other hand, the lessee temporarily acquires the property and uses it for its own use	Answer here
Mortgagee and mortgagor	Mortgagee is a the lender who gives a secured loan and the Mortgagor is an individual who acquires a loan using his or her assets and pays interest as well as fixed instalments	Answer here

2.   In your own words, and using the grid below; explain what the different documentation required by a lender is:

Credit check authority signed	Credit Check is a way to determine the borrowers past loan and credit enquires and to check if they have defaulted on any previous loans.	Answer here
Guarantees	Guarantees is where the lender takes security over the period of the loan until it has been paid.	Answer here
Loan contract	A contract where the borrower and lender have agreed to loan amount to be paid over the loan period.	Answer here
Periodical payment authority	Periodical payment authority where you have given authorisation to an entity to make payments against a loan or credit card.	Answer here
Signed application form	Signed application form is where you have filled out your living expenses for the lender to determine	Answer here

3.   In your own words, and using the grid below; describe:

The negotiation process

Answer here

Appendix 2:  Client information collection tool/Fact finder

Appointment date: Student to insert date

Appointment time: Student to insert time

	Applicant 1	Applicant 2
Surname	Brown	Brown
Other names	Philip	Stephanie
Contact details	Address	Unit 12, 22 Wentworth Lane, Highville,	Unit 12, 22 Wentworth Lane, Highville,
Phone (W) Phone (H)	9123 2121	9123 2121
Mobile	9800 1111	9910 2033
Email	philipb@ace.com.au	jbrown@techcity.com.au
Employment	Team Leader (full time)	Accountant (full time)
How long?	15years	16 Years
Previous employer (if less than two years)	N/a	N/a
How long?	N/a	N/a
Employment type (FT/PT/Casual/Self-employed)	FT	FT
Gross income (p.a.)	$58,000	$95,000
Number of dependants	0	0
Motor vehicles	Holden Commodore SS 2007	Kia Cerato Sport 2015
Loan purpose	Purchase
Purchase price/Valuation	$490,000
Deposit on property	$50,000
Loan amount	$440,000 + LMI
Borrowing capacity (using Genworth serviceability calculation)	$1,218,269.00

Assets and liabilities

Assets	Liabilities
Details	Market value	Details	Monthly payments	Amount owing
Owner Occupied Property at:	N/a	Mortgage with:	NA	NA
Investment Property at:	N/a	Mortgage with:		N/A
Cash at bank (includes fixed deposits)	$79,600	Car leasing	N/A	N/A
Other cash (includes offset accounts)	N/A	Personal loans 1. Capital Bank personal loan (Philip) 2.	$180	$5,600
Deposit paid on property (only if paid)	N/A	Overdraft	N/A	N/A
Motor vehicles: 1. Holden Commodore SS 2007 2. Kia Cerato Sport 2015	$34,000	Other loans: 1. 2.	N/A	N/A
Personal effects	$40,000	Credit card limit: $4,000	$20	$200
Business value (if self-employed)	N/A	Credit card limit: $5000	$150	$1,600
Shares and investments	N/A	Other:	N/A	N/A
Superannuation	$90,000	Other:	N/A	N/A
Other assets (give details)		Other:	N/A	N/A
Total assets	$243,600	Total liabilities	$180	$7400

Surplus/deficiency: (Total assets less Total liabilities) $236,200

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)
Food/housekeeping	$1000
Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection)	$200
Utilities (e.g. rates, gas, electricity, transport)	$800
Transport (e.g. public transport, petrol, registration, repairs)	$400
Education (e.g. school, college, university)	N/A
Dependents support (e.g. childcare, child maintenance)	N/A
Entertainment (include online subscriptions, e.g. Netflix/Stan)	$500
Other (detail below):
MONTHLY LIVING EXPENSES	$2900

Needs analysis

1	Name of your current lender?	Gateway Bank
2	What type of mortgage loan do you have?	Premium Package
3	Why did you choose this particular loan and lender?	They have competitive rates
4	What is the interest rate?	4.5%
5	What are your payments?	Amount	Answer here
6	Frequency	Answer here
7	Do you know the fees and charges?	$1600
8	What is your proposed purpose for the loan you are applying for?	Purchase
9	Branch access available with current lender	Yes
10	Internet banking available with current lender	Yes
11	Phone banking available with current lender	Yes
12	Lenders not to be considered	Macquarie, DLF
13	Type of loan sought	Answer here
14	Preferred Interest rate range	Answer here
15	Payment frequency	Monthly
16	Redraw	Yes
17	Offset	Yes
18	Salary crediting	Answer here
19	Low fees and charges	Answer here

Notes

NB: Providing substantive notes here is a compulsory part of your assessment.

Philips and Jennifer also have FHA loan and they have to pay some substantial amount to the lenders, who is government.   They have good salary   They have no plan for children for next 5 years   They will arrange a big tour in next 5 years   Both (Husband & Wife) are at good positions in their companies   They have yearly expenses about $33000   They don’t Spend on education as they have no children   They demand Interest rate between 4.5%   They can pay the monthly instalment of the loan   They are well aware of the agent fees   They are excited about their new home

Anticipated fees and charges

Anticipated purchase price	$490000
Deposit on property
Loan amount	$ 50,000
LVR	$440,000
Purchase costs	89.7%
Stamp duty on transfer (include transfer fee)	$ 283.20
Solicitor/conveyancer (estimate)
Rates and land taxes (estimate)	$ 1500
Pest inspection (estimate)	$2975
Building Inspection (estimate)	$300
Borrowing costs	$400
Application/establishment fee	$300
Valuation fee
Security admin fee	$500
LMI	$600
Registration of mortgage	$0
Release of mortgage
Search fees	$8580
Other	$ 116.80
Total purchase and borrowing costs	$300

Funds to complete

PURCHASE AND LOAN COSTS:	AVAILABLE FUNDS:
Purchase price:	$490000	Deposit if paid	$50000
Lender application / valuation fees:	$300	Cash savings:	$79600
Transfer stamp duty	$ 283.20	Sale proceeds:	N/A
Solicitor fees:	$1500	Gift:	N/A
Other fees and charges	$5891.8	FHOG:	N/A
		Other:	N/A
LMI:	1. $8580	2.     Add to Loan?         Yes
TOTAL COSTS                              (A):	$497,975	TOTAL OWN FUNDS                  (D):	$79600
LOAN AMOUNT REQUESTED    (B):	$448580	OWN FUNDS REQUIRED  (A-B) = C:	$49395
OWN FUNDS REQUIRED   (A-B) = C	$49395	SURPLUS/SHORTFALL             (D-C)	$ 30,205

Loan interview diary

Name(s) of client(s) present at interview

Philip Brown

Jennifer Brown

Date of interview

20/04/2020

Location of interview

Brisbane

Indicate all clients who were interviewed in person

Philip Brown

Jennifer Brown

Do all of the clients appear to clearly understand English?                                                                                    Y

If not, have the services of an interpreter been recommended?                                                                      Y

Do all of the clients clearly benefit from taking out this loan?                                                                              Y

If not, what inquiries have been made to ascertain the level of benefit to each party of the loan?

The loan would be beneficial for the client as this would ensure that they have proper funds for the purpose of purchasing the residential property without hampering their current standard of living in any manner. Therefore it can be said that the loan would greatly benefits the clients in terms of meeting their financial requirements

The advisor would be also be benefiting as by setting up the loan he would be receiving fees for established loan appropriately.

The bank providing the loan would also benefit as interest would accrue on the loan which is to be provided to the client.

Are any clients acting as though they are under duress or other disability?                                                  N

Are any clients acting as though they are unsure of anything about the loan?                                            N

Are any of the clients acting as though they are unable to comprehend their obligations?                    N

Are there any guarantors?                                                                                                                                                 N

If yes is answered to any of the above questions, have the clients been advised to seek
the services of a lawyer or financial adviser?                                                                                                              N

Provide details of other pertinent information obtained during the loan interview which may be of interest or of any unusual circumstances you may wish to record.

The credit history of the client would be a special area of interests for the lenders as it would determine the ability of the clients to service different kinds of loans and also the present loan which is being taken.

Appendix 3:  Loan application

Cover sheet

Applicant name	Mary Jane Smith
Broker name	Andrew Sims
Contact phone/Mobile	(02) 9327 3221
Email address	MaryJane@hotmail.net

Solicitor/conveyancer details

Name	Michael Slater
Address	3 Edgewater Close, NSW
Contact phone/Mobile	(02) 4095 2433
Email address	na

Loan summary

Loan amount	$350,000
Loan term	12 years
Variable or Fixed rate	variable
Principal and Interest or Interest only	Principal and Interest

Broker notes and recommendation

The loam is being taken for building a portfolio which the client would be making so that proper refinance activities can be undertaken.

Loan application details

	Applicant 1	Applicant 2
Personal details
Surname	Smith
Other names	Mary Jane
Date of Birth	5/18/1988
Marital Status	single
Number of Dependents	NA
Contact details	Current address	96 Edward Bennett Drive
Time at address	3 years
Phone (W) Phone (H)	(02) 9327 3221
Mobile	(02) 9327 3221
Email	MaryJane@hotmail.net
Previous Address (if less than 2 years)	Answer here
Current employment details
Employer and contact details	Answer here
Job Title	Answer here
Employment type (FT/PT/Casual/Self-employed)	Answer here
How long?	Answer here
Previous employer (if less than two years)	Answer here
How long?	Answer here
Employment type (FT/PT/Casual/Self-employed)	Answer here
Income details
Gross salary per annum	300000
Monthly net salary	250000
Social security	na
Pension	na
Other — specify	na

Loan details

Loan product 1

Product name	Suncorp loans	Loan amount	$ 350000
Loan term (years)	12 years	Interest	6%
Loan purpose	Refinance
Options required

Security details

Security property 1

Address of property	Answer here
Estimated value/purchase price	Answer here
Property type	Answer here	Number of bedrooms	Answer here
LVR	Answer here	Approx. floor area (if known)	Answer here

Assets and liabilities

Savings, term deposits and other accounts

Name of institution	Account type	Owner	Current balance
Answer here	Answer here	Applicant 1: % Applicant 2: %	Answer here

Investments including superannuation, life insurance, shares, trusts

Name of institution	Investment type	Owner	Current balance
Answer here	Answer here	Applicant 1: % Applicant 2: %	Answer here

Motor vehicles

Make and model	Year built	Owner	Market value
Answer here	Answer here	Applicant 1: % Applicant 2: %	Answer here

Other assets including personal effects, cash, boats, tools of trade etc.

Personal effects and household items (furniture, electrical goods, clothing, jewellery, etc.)	Applicant 1:  % Applicant 2: %	Answer here
Others	Applicant 1: % Applicant 2: %	Answer here
Total assets	Answer here

Liabilities

Credit cards

Name of Lender	Borrower	Interest rate	Limit	Balance
Answer here	Applicant 1: % Applicant 2: %	%	Answer here	Answer here
Answer here	Applicant 1: % Applicant 2: %	%	Answer here	Answer here

Other loans

Lender and loan type	Borrower	Loan repayment	Limit	Balance
	Applicant 1: % Applicant 2: %	$	$	$
Total liabilities	Answer here
Surplus/deficiency	Answer here