Certificate IV in Finance and Mortgage Broking Oral Assignment

This document is the oral assignment for the FNS40815 Certificate IV in Finance and Mortgage Broking (CIVMBv4). It includes instructions for completing and submitting the assignment, preparation for the oral assessment, oral responses to questions, and a role play. The document also provides information on how to use the study plan, saving and submitting your work, and the marking process. The oral assignment is an opportunity to demonstrate competency in several units of competency, and you must be deemed competent in all assessment items to be awarded your qualification.

Oral Assignment
Certificate IV in Finance and Mortgage Broking
(CIVMB_OR_v4)
Audio
Student identification (student to complete)
Please complete the fields shaded grey.
Student number
Oral assignment result (assessor to complete)
Result — first submission (Details for each activity are shown in the table below)
Parts that must be resubmitted:
Result — resubmission (if applicable)
Result summary (assessor to complete)
Time First submission Resubmission (if required)
Preparation
for oral
assessment
Part 1 Instructions n/a n/a
Part 2 Preparation for oral assignment Not yet demonstrated Not yet demonstrated
Oral
assessment
Part 3 Oral response to questions 10 minutes Not yet demonstrated Not yet demonstrated
Part 4 Role play 10 minutes Not yet demonstrated Not yet demonstrated
Total time required 20 minutes
Feedback (assessor to complete)
[insert assessor feedback]
CIVMB_OR_v4

Before you begin
Read everything in this document before you start your oral assignment for the FNS40815
Certificate IV in Finance and Mortgage Broking (CIVMBv4).
About this document
This document is the oral assignment — half of the overall written and oral assignment.
This document includes the following parts:
• Part 1: Instructions for completing and submitting this assignment
• Part 2: Preparation for oral assessment
• Part 3: Oral responses to questions (10 minutes)
• Part 4: Role play (10 minutes).
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 oral assignment within your enrolment period. Your study plan is in the KapLearn Certificate IV in
Finance and Mortgage Broking (CIVMBv4) subject room.
You will need to start preparing for your oral assignment a few weeks before the written and
oral assignment is due.
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Part 1: Instructions for completing and submitting
this oral assignment
Completing the oral assignment
For this oral assignment you are required to complete the following tasks:
• Part 2: Preparation for oral assessment: You must complete and submit your responses in this
document.
• Part 3: Oral response to questions: To be completed by audio recording. Your assessor will complete the
checklist.
• Part 4: Role play: To be completed by audio recording with a volunteer. Your assessor will complete the
checklist.
More information regarding requirements for the oral assignment are provided in the resources in your
subject in KapLearn.
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_OralSubmissionNumber
(e.g. 12345678_CIVMB_OR_v4_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.
Submitting the oral assignment
You must submit your completed oral assignment (Word document) in a compatible Microsoft Word
document. You need to save and submit this entire document.
Do not remove any sections of the document.
Do not save your completed oral assignment as a PDF.
You will also need to upload an audio recording of your oral assessment.
The oral assignment (in Word) and the audio recording must all be completed before submitting it to Kaplan
Professional Education. Incomplete oral assignment documents and/or audio recordings will be returned to
you unmarked.
When you submit your written and oral assignment in KapLearn, the File submissions box will list the
maximum size for new files and the maximum number of attachments. Once you submit your
oral assignment and audio recording for marking you will be unable to make any further changes to it.
You are able to submit your written and oral assignment earlier than the deadline if you are confident you
have completed all parts and have prepared a quality submission.
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Refer to your study guide so you can plan ahead to complete your audio recording before the written and
oral assignment is due.
For more information see the resources in your subject about how to organise and upload your audio
recording in KapLearn.
Note: The written assignment (in Word), oral assignment (in Word) and audio recording must all be
submitted together.
The oral assignment marking process
You have 26 weeks from the date of your enrolment in this subject to submit your completed
oral assignment and audio recording.
If you reach the end of your initial enrolment period and have been deemed ‘Not Yet Competent’ 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 assignments and return it to you in the Certificate IV in Finance and
Mortgage Broking (CIVFMBv4) subject room in KapLearn under the ‘Written and Oral Assessment’ page.
Make a reasonable attempt
You must demonstrate that you have made a reasonable attempt to complete all the parts of your oral
assessment. Failure to do so will mean that your oral 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 assessment.
How your oral assignment is graded
Oral assessment 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 competent or not yet competent for
this oral assessment.
Your assessor will follow the below process when marking your oral assignment:
• Assess your responses in each part of the oral assessment, and then determine whether you have
demonstrated competence in each question or checklist.
• Determine if, on a holistic basis, your responses have demonstrated overall competence.
You must be deemed competent in all assessment items in order to be awarded your qualification,
including demonstrating competency in:
• all of the exam questions
• the written and oral assignment.
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‘Not yet competent’ and resubmissions
Should parts of your oral 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 the assessment result is ‘not yet demonstrated’.
You may be asked to re-record a part of your audio recording or to answer some written questions in this
document. Use a different text colour for any written sections of 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 oral 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 oral assignment is your opportunity to demonstrate your competency against these units:
FNSSAM403 Prospect for New Clients
FNSCRD301 Process applications for credit
FNSFMB401 Prepare loan application on behalf of finance or mortgage broking clients
FNSFMB402 Identify client needs for broking services
FNSFMB403 Present broking options to client
FNSFMB501 Settle applications and loan arrangements in the finance and mortgage broking industry
FNSFMK505 Comply with financial services regulation 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 service to customers
BSBCUS402 Address customer needs
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 you can do the following steps:
1. Read the resources and watch the video about oral assignment in your subject in KapLearn.
2. 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.
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Part 2: Preparation for oral assessment
To prepare for your oral assessment you are required to complete the following questions:
Question 1
How do you assess the need to adjust your interpersonal style to talk with different types of client?
Provide two (2) examples (e.g. where there is a language difficulty).
In this scenario, most of the cases, we look to find out a common language in which the client feels
comfortable for instance in English and thereafter undertake our conversation in order to complete the
meeting.
The other method used has been providing video presentation with the help of images and graphics with
the help of which the client will have an idea about what is being conveyed to them.
Question 2
You have a new client, Jeff Smith, and have just made an appointment to meet with him.
Compose a professional email to send to Jeff, confirming the appointment, outlining the purpose and time
of your first meeting. Your email should also name the document/s you have attached for him to read prior
to this meeting. (For this assessment there is no need to attach the document/s.)
To,
Jeff Smith
47 Kline Road,
Queensland
Dear Mr Smith,
This letter is with regards to your telephonic conversation which was undertaken yesterday. As per our
discussion, we had decided on having a meeting on 21st February 2019. This mail is in regards to the
confirmation of our meeting on the abovementioned date. As scheduled, the purpose of the meeting is to
provide you advice with regards to your future investments as per your future goals. An ideal meeting
would be held where all your queries will be met. The meeting will be held at your place and this is a gentle
reminder to maintain all the related documents during the time of meeting. The time of meeting as decided
will be at 5 pm.
I look forward for the meeting on the abovementioned date with you. In case of any change of plan with
regards to the meeting kindly drop a mail on this thread so that we can further discuss over it.
Regards
John Ronald
Question 3
In Parts 3 and 4 to this assessment you will act as a broker and will be required to make an audio recording.
Prepare a list of resources and equipment you will need for these oral assessments.
The lists of tools that will be required are:
 An audio recorder
 A recording mic
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 A headphone
Question 4
Aside from the resources and equipment identified in Question 3 what will you do to prepare for the
delivery of the loan proposal in Part 4 Role play? You can refer to the case study information in Part 4.
What communication techniques would you use to respond to any difficult questions.
This question demonstrates your ability to plan ahead for your interaction with the customer.
Face to face meetings is one of the sources that can be used with the help of which any sort of queries
and discrepancies can be cleared off. Telephonic conversations are even undertaken in case of emergency
or long distance communications with the help of which these issues can be sorted.
Assessor feedback: Resubmission required?
No
Page 7 of 33

Part 3: Oral response to questions
Make a 10 minute recording of yourself answering the following questions. Before you start make sure you
have read the resources in your subject in KapLearn to assist you with your oral assessment by audio
recording. Leave the second column blank so your assessor can record a summary of your oral response.
You will need to rehearse your responses before the oral assessment, to ensure that your responses are
within the maximum timeframe.
(Note: No volunteer is required when you complete these questions.)
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Questions Summary of oral response (assessor only)
1. You are a broker who charges a fee for
your service. You are meeting a new client,
Stephanie Jones, for the first time at your
office after an initial cold call. The purpose
of the meeting is so that you can start to
gather information about her existing
financial situation and needs. After
introducing yourself to Stephanie, there
are two documents you must provide her
with, as well as disclosures you are
required to make.
Name the two (2) documents you must
provide to Stephanie and explain the
disclosures. In your answer, give one (1)
example of how you would check with her
that she understands these disclosures.
(Disclosures should include, but are not limited to, the
range and limitation of your services, complaint handling
process and the way you are remunerated.)
Answer
You: Hello Stephanie, how are you doing
today?
Stephanie: I am fine, thank you
You: It’s a good thing that you could come
down to my office, I needed to give you
these documents and also explain some
disclosures.
Stephanie: Yeah I guessed that, so what are
these disclosures
You: Let me hand you these documents first.
This one is the term of agreement between
use stating my role and also the basic
knowledge of your business. The other
document is Financial Service guide which
will be give you all info on the type of
services and all the other legal
requirements. The former agreement deed
you need to sign.
Stephanie: Ok where do I need to sign.
You: Here and on the next pages as well. Full
Signature please. Ok now about those
disclosures, the Financial Service guide
contains most of the same such as name of
the broker, my track record, rules and
regulations. For any kind of financial
Page 9 of 33

Questions Summary of oral response (assessor only)
advice, I would require full disclosure from
your end as well such as your objectives
and goals, financing capability.
Lastly I would explain in details regarding the
product which I have advised for relaying
all benefits and requirements of the same.
Stephanie: Ok I get you.
You: These are very important. Now I want
you to go through them and ensure that
every point is clear to you.
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Questions Summary of oral response (assessor only)
2. Stephanie has acknowledged that she
understands the two documents and
disclosures. She then begins to tell you
more about her current financial situation.
Describe how you could:
• encourage Stephanie to express her
needs and goals
• determine her current investment and
assets position
• consider various home loan options for
her.
Answer
You: Ok now do you have any queries
regarding the disclosure or the two
documents which I presented to you.
Stephanie: No, I think I am ok with it. But If I
have any doubt I would consult you.
You: Yes, you can consult me anytime. Now I
need you to tell me your goals so that I
can suggest you some best product
where you can make investments.
You: I would also need some details about
your financial situation such as all assets
you own, liabilities that is due, any
liquidity issues, any past debts
everything. This would help me to
advise you better.
Stephanie: Ok I would provide you with all the
details in a client information form
which you have provided.
You: Ok there are a variety of home loan
options such as flexi variable interest
option, fixed interest option, AMP
program. Now I would be in a better
position to describe you in details after
you provide me with info sheet.
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Questions Summary of oral response (assessor only)
3. This is Stephanie’s first home purchase.
She is very happy with all of your advice
and has made a decision on which loan
option she would like to take. She now asks
‘what happens from here?’
Describe to Stephanie how you will assist
her by:
• outlining the key documents you will
require from her
• describing the steps that will occur from
this meeting through to the settlement
• liaising with all relevant parties to keep
the loan on track
• describing how you will keep her
informed.
Answer:
You: Ok, I think that you are satisfied with the
responses that I have provided you
with. Now I would be requiring a letter
of consent for proceeding further. A list
of assets which can be offer as collateral
for the loan. Your basic documents will
also be required.
Stephanie: Ok I have it all here with me now.
You: Now after this meeting, I would set a
meeting with the banker for the product
and bargain the interest rate as
discussed with you. I would submit all
the documents in a week’s time. I
estimate it will take 2 weeks more to
verify the documents and info provided
by you. The loan would be credited
directly to your account when all
processes are over.
You: I will keep in touch with you thought out
the process. I will be call you over phone
and will send emails so that you have a
record of the process.
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Questions Summary of oral response (assessor only)
4. After talking with friends,
Stephanie expresses some resistance with
committing and says she is a little worried
that possible increases in interest rate will
be too difficult for her to handle.
Identify and address the concern
underlying Stephanie’s resistance.
To address her concern, provide her with
options that will limit the impact of such
rises and reduce her risk.
Answer
You: Can you tell what is the main matter
which is concerning you regarding the
product which I have suggested.
Stephanie: Some of my friends have advised
that the interest rate of the product which
you have suggested would be high and I
think I cannot afford the same.
You: Stephanie you need to take my word for
this one as I would bargain the interest rate
for you and make sure that the same is
affordable for you. You need to understand
that I would always act in the best interest
for you.
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Questions Summary of oral response (assessor only)
5. A final decision on Stephanie’s loan
application has been deferred by the credit
approver due to property valuation coming
in $15,000 lower than purchase price and
taking LVR to just over 81%. The loan
required is 80% of the purchase price and
you are not sure Stephanie can come up
with more cash contribution right at this
time. You have spoken to the valuer,
who will not change the value.
Describe how you would approach the
lender to try to get the loan approved.
Assuming that all other aspects of the
proposal are strong, what would be some
key points of the applicant or the proposal
that you would emphasise to the lender in
a bid to get loan approved. You may make
positive assumptions about the applicant,
as considered appropriate.
You: Hello, I am here to discuss the position of
the client who has applied for loan from
your bank. I am of the belief that the all
documents which we have submitted
shows appropriate financial condition for
the client. The loan needs to be as per the
requirement of my client as she would not
be able to contribute any further for this
project. The collateral security which is
offered against the loan is also appropriate
and therefore the same needs to be
considered.
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Questions Summary of oral response (assessor only)
6. A few months have passed since
Stephanie’s loan was approved and settled.
Your broker business has now grown
substantially to the point you now employ
four staff members in support roles to
assist you and the two other brokers in
meeting clients’ demands and liaising with
lenders and other parties. You need to
restructure the business to improve
teamwork and processes.
Briefly outline what you would do to
initiate these improvements, taking into
account:
• how current allocation of duties could
be improved
• how data collection and storage could
be better managed across the team
• that you want to see improved
communications within the team.
The business needs effectively allocate the
duties of researching and
documentations and other initial start
up for the business. The segregation of
duties and communication of the
necessary steps is an important aspect
which needs to be considered for
improving the business structure.
Assessor checklist — oral responses to questions
Your assessor will complete the checklist for your oral response to each question. Demonstrated or
Not Yet Demonstrated
1 Demonstrates understanding of the duty of disclosure. Not yet demonstrated
2 Describes how to ascertain a client’s needs and determine their current financial position. Not yet demonstrated
3 Outlines the key documents required from a client during the loan application process. Not yet demonstrated
Describes the steps that occur in the loan process. Not yet demonstrated
4 Demonstrates understanding of how to identify and address client concerns. Not yet demonstrated
Demonstrates understanding of risks associated with various loan options. Not yet demonstrated
5 Describes how a mortgage broker would approach a lender to get a loan approved. Not yet demonstrated
6 Outline how a mortgage broker can restructure their business to improve teamwork and processes. Not yet demonstrated
Student resubmission response (if required by assessor):
Page 15 of 33

Assessor feedback: Resubmission required?
No
Page 16 of 33

Part 4: Role play
You will participate in a role play for a maximum of 10 minutes. The role play will be conducted by
audio recording. You will need a volunteer to assist you in the role play.
The role play will include you and a volunteer.
The volunteer needs to understand that this is part of your assessment. Provide a copy of the
‘Volunteer Guide’ in your KapLearn subject to your volunteer so they understand what they need
to do in your assessment.
Please note, that you will not be assessed on your acting ability, however you will be assessed on the
criteria listed below the task under assessor feedback.
When you have just started recording your role play, ask your volunteer if they give permission to be
included in the audio recording. The volunteer needs to agree before the recording may continue.
See the ‘resources’ in your subject in KapLearn to assist you in preparing for your role play.
Page 17 of 33

Role play case study — Philip and Jennifer Brown
Note: This Philip and Jennifer Brown case study is also used in the written assignment as part of this course.
It is recommended that you complete Tasks 1 and 2 of the Written Assignment prior to undertaking the
role play, as this will assist you in assessing the clients’ needs and potential loan structure that you can use
for this role play activity. Alternatively, in preparation for the role play, use the tools available to you
(e.g. loan calculators, lenders and Genworth websites), to prepare your presentation to the clients.
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 on lenders; have limited knowledge of the loan products available and basically are not sure what
is right for them.
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 a little work.
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
Landline 8123 1113
Mobile [phone]
The couple
Current address Unit 12, 22 Wentworth Lane, Highville, (Your state)
Philip and Jennifer have lived there since March 2012
Home phone [phone]
Page 18 of 33

Funds position
Purchase price $490,000
Client’s estimate of costs $25,000
Total required $515,000
Loan $440,000 + LMI
Client’s own contribution $75,000
Use fees and charges applicable to your state. If the servicing calculator you are using requires a postcode,
select one (1) 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) $1,600
Holden Commodore SS 2007 (Philip) $25,000
Kia Cerato Sport 2015 (Jennifer) $9,000
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.
Page 19 of 33

Employment and income
Philip (date of birth 21/2/87)
Position Team Leader (full time)
Employer ACE Pty Ltd, 101 City Rd, Westside (Your state)
Phone [phone]
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 [e-mail]
Jennifer (date of birth 8/10/88)
Position Accountant (full time)
Employer Tech City, 804 High Street, City East (Your state)
Phone [phone]
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 [e-mail]
Solicitor’s details
Jones and Co
22 High Street, City East (Your state)
Phone: [phone]
Email: jonesandco.net.au
The solicitor has quoted a fee of $1,500 for the conveyance.
Page 20 of 33

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.
Other information
• Jennifer has asked if there are any professional package benefits available because she is an accountant.
• 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 the sale.
• The couple do not plan to have children within the next 5 years.
• However, they do have plans to take a major overseas trip within 5 years.
• Philip is hoping for a promotion within the next 12 months upon possible retirement of a long-term
employee where he works.
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Task — Role play
You are required to complete the ‘role play oral assessment’ which should take a maximum of 10 minutes.
To set the scene for this role play:
• You are required to present your analysis and recommendations to your client (your volunteer).
• Due to the need to get an approval so contracts can be signed, an appointment has been made but
unfortunately one of them (this will depend on which role your volunteer plays — Philip or Jennifer)
cannot be present as he/she has had to go interstate urgently to visit a sick brother.
• Your clients do not wish to delay this meeting as they are keen to hear what you have to present —
information can be passed to the other over the phone, when needed.
• This oral presentation should focus on presenting your analysis of the couple’s current position,
loan prospects as well as your recommendation, covering the following essential points:
– a summary of your understanding of the clients’ needs (this could be an outline summary of their
proposed loan structure)
– a summary of their current financial position (use information from the case study)
– the product options you have considered that meet their needs (you should have researched at least
two lenders) and details of the loan features; use the internet or if working in industry,
internal software to do this
– the option you recommend and the reasons for the recommendation — explain how the
recommended product meets the clients’ needs (refer to the case study and explain why you are
recommending this lender)
– confirm the key disclosures that have already been supplied to clients in the Credit Guide
– invite questions from the client and respond accordingly.
There are no rules regarding the format of your presentation, however it must be presented so that it is
succinct and easily understood by clients. Please use the format that best suits you — this could include
covering the detail you have prepared in a written proposal document.
The role play requires the volunteer to ask at least three (3) questions — with suggested questions
provided in Volunteer Guide. However, the volunteer can ask other ‘unrehearsed’ questions if they wish.
Remember, you are not being judged on your acting ability. Your assessment is about how you
communicate and interact with the customer. You may need to adjust your presentation of the proposal,
depending on the time that the questions are asked. However; to manage time, you may ask the volunteer
to keep their questions until you have finished presenting your recommendations.
The assessment criteria you will be assessed on includes the following:
• appropriate introduction and building rapport
• explore solutions that meet clients’ goals and objectives
• present broker solution to clients’ request
• explain relative fees and charges
• collaborate on risk identification
• response to questions, record customer feedback and actions taken.
Role Play
You: Hello, Mr. Brown how are you today? It is wonderful to have you today in my office.
Philip: Hello, I am fine. When I started from home, I thought I would reach your office late but it seems I am
just about at right time.
You: Nah, you made it in time. You could have come earlier as I was free all morning. Why did not Mrs.
Brown Come?
Page 22 of 33

Philip: She had to go on a visit to her brother who is sick and we did not want to postpone this meeting as I
have a lot of discussion and also want to hear what you think of our situation.
You: I did not expect to set up a meeting so soon with you as I though you were going to go through the list
I had provided in our previous meeting. I was expecting that you would set up a meeting by the end of
the week. Did something come up which you wanted to discuss with me?
Philip: I was also not expecting this meeting but the recent development made me to set up this meeting. It
has come to my notice that the house which we have selected is still up for sale. My agent informed me
that new clients are coming and it would not be long before there is a further hike in the value of the
property due to high demand. I set up this meeting with the hope that you can suggest me loan options
so that I can proceed with the same. I do not want to delay any further so I set up this meeting.
You: Oh I see, I wish she could be here as well, I would have like her to listen to my plans as well before we
can move into the signing the contract. The property which have caught your attention, I looked into the
same and I came across that the property is a bit overvalued but the same is because of the location of
the house and the demand for the property in the market.
Philip: Yes, we realized that and we do not want to lose this house. My wife claims that this is her dream
house and she want to purchase the same. I had a talk with the agent earlier over phone and I learned
that many potential buyers are looking into the property. We need to move quickly with this loan issue.
As I have made it clear that we can contribute around $ 75000 from ourselves but the rest we need to
procure with the help of a loan.
You: Yes, I agree we need to move quickly with the plan and for this Purpose I agreed to the meeting set
today. We will be moving into the discussion regarding the loan options which I have short listed for
you. But First tell me your opinion on the list of loan products and their respective banks which I had
provided you with in our earlier meeting. Have you selected any probable options for the products
which suits your needs?
Philip: Yes, me and my wife did some research into the list you provided us in our last meeting and did
weight the pros and cons for each of the loan product which is provided by different banks. Frankly
speaking we found most of the options to be similar and could not point out the difference among
them. It would be better if you advise us with the best possible options so that we can proceed on the
same.
You: I have just sorted out the best possible options which is available to you for purchasing the house. I am
going to discusses one option at a time along with all features of the same, please give me your full
attention. One of the best options which is available in the market in terms of home loan is Professional
Package home loans solutions which is offered by AMP ltd. The banking institution is a very reputed one
therefore you can expect details in documents regarding the term of loans and other facilities which the
product is associated with. The loan can be taken for medium term or long term as per your choice. The
interest rate which is charged by the bank is 4.07% which appropriately suits your requirements. You
can easily borrow the loan for a period of 30 years with annual, monthly, weekly installments as per
your preference. The LVR of the loan is set to be 90% and the repayment schedule which is followed by
the bank is also appropriate and would meet your needs. Now let’s discuss some pros of the product
which I have pointed out. The loan has 100% offset account and redraw and extra payments facilities
which you had asked previously. Plus, the loan product is estimated to be most suitable for individuals
who are looking to purchase houses. The interest rate is low for refinancers and therefore this is a
option for you and this can be advantageous for you guys. The cons which I have identified is that the
loan product has a bit higher ongoing costs as annual fees is charged on the same. Are you still with me?
Philip: Yes, this product does meet our requirements, but will be viable to pay annual fees for the product?
You: Yes I think most of the loans option which has all these features has a annual fee slab attached to the
same. Take this as necessary costs which needs to be incurred for the loan.
Philip: I see, what other options do you have which you said would be discussing?
Page 23 of 33

You: The other option which I wanted to discuss is Flexi first option home loan which is available in your
area and the plan is especially developed to aid new people in their conquest for new homes. The banking
institutions which is providing the product is Westpac which is regarded as one of the reputed businesses
which is operating in Australia. The bank specializes in the kind of products especially loans. I am confident
that this would also suit your needs and is perfectly secure and does not have a complex process. The loan
is granted on the basis of eligibility criteria and the term can be mid-term or long term depending on the
needs of the client. The loan is available for the amount which you have stated in your initial requirement
document. The loan option from this bank can purchase you even a higher loan credit if you are willing to
take the same. The loan amount can be taken in more, the loan structure is variable and no additional
ongoing costs needs to be incurred by you. What more can you ask for?
Philip: Yes, this option does sound very promising and this can be the one which i think my wife would life.
However, there were other features which we had specially asked for, whether the same are present or
not?
You: I have closely considered every feature which you wanted from your loans product and on the basis of
the same I have short listed these, so rest assured that your requirement is being met at all level. Now, lets
discuss the pros and cons. Unlike the AMP loan option which I had discussed earlier this one has an LVR of
95% which means you are withdraw more which is your added advantage if you chose this option. This loan
facility has extra low rate of interest for new customers and as you have not taken any previous loans from
the bank, this will reduce you interest burden considerably. The loan option has the extra payment and
redraw option which was required by you guys and also there is no annual fee in this case which answers
your concerns regarding cost of serviceability of loans. Now, let me tell you this that most of the new
clients prefer such loans for purchasing a property just like your case as the overall costs which is
associated to the loan is reduced significantly. This loan has an advantage over all other products which I
have considered keeping your requirement under consideration. The other factors are also there which
needs to be considered by you before taking any decisions relating to the loan.
Philip: Ok then, we do not have to bear any additional costs on annual fees which was there in the previous
option and plus we would also be getting some discount on the interest rate for the loan as we are new
clients of the bank.
You: You have understood the main things which I discussed in the loan options. Now let me tell you that
the two options which I just now discussed with is the best options which is in the market considering the
requirements which are set out by you. Now what do you think of the loans options which I have provided
in front of you as I have discussed the features, which one do you think would be most suitable for your
requirements?
Philip: I am actually satisfied with both the loan options which you have discussed with me. Thank you, you
have analyzed the market effectively and sorted out the best options which makes our work much easier. If
my opinion was considered than I would be inclined to take the Westpac’s Flexi first option home loan
which effectively meet our all requirements and I think my wife would agree with me. I find second option
which you discussed quite compelling and the same is also a bit cost effective, so I think I would have
selected that one. What’s your opinion? Which one should we choose?
You: Very good, I would have also advised you to choose the Westpac’s Flexi first option home loan option
not only because it is a bit cost effective and reduces the level of interest burden over you but also due to
the fact that the LVR is 95% and also there is no annual fees for the product. The loan product is also
provided by one of the most reputable banks which is operating in the country. I would have recommended
you to select this option as the same meets all your initial requirements.
Philip: Then we should proceed with the Flexi first option home loan option. Ok then, can you set up a
meeting with the bank officials so that we can get off to a good start.
You: I can get you the access, a friend of mine is working there. You just need to go there and tell my friend
that you know me. I would before hand call my friend and alert him that you might be coming in next few
days.
Page 24 of 33

Philip: Thank you so much. This meeting has been productive and now we can finally proceed with our
plans. I would explain to my wife the plans which was discussed in this meeting and we would inform you
about the meeting with the bank when we set the same.
You: Now let’s talk about my fees, will you be paying me after procuring the loan before the same. You can
take your time and after the loan is procured, then you can make payments to me. This to reassure you that
there is no hurry when it comes to making payments to me.
Philip: Thanks, that would be great. I would contact you as soon as I get the loan amount and would
immediately make payments to you.
You: Ok Philip, do you have any more queries regarding the loan amount or any other features which I have
discussed so far?
Philip: No, I am satisfied for now and in case any questions arises I would be contacting you if that is ok with
you. I am quite happy and pleased with all your explanations and can say that this meeting was a grand
success.
You: You can contact me anytime and we can set a meeting again.
Assessor checklist — Role play
Assessor checklist completed after observing the audio recording of the role play Demonstrated or
Not yet demonstrated
1 Uses appropriate introduction and builds rapport Not yet demonstrated
2 Explores solutions that meet clients’ goals and objectives Not yet demonstrated
3 Presents appropriate broker solution to clients’ request Not yet demonstrated
4 Explains relative fees and charges Not yet demonstrated
5 Collaborates on risk identification Not yet demonstrated
6 Responds to questions, records customer feedback and actions taken Not yet demonstrated
Student resubmission response (if required by assessor):
Assessor feedback: Resubmission required?
No
Page 25 of 33

Extract of Client information collection tool/
Fact Finder from written assignment
This Client information collection tool/Fact Finder is the same information that you submitted in your
written assignment. Please copy all of the below information across from your written assignment into your
oral assignment.
Appointment date:
Appointment time:
Applicant 1 Applicant 2
Surname Brown Brown
Other names Philip Jennifer
Contact details Address Unit 12, 22 Wentworth Lane,
Highville,
Unit 12, 22 Wentworth Lane,
Highville,
Phone (W)
Phone (H) 9123 2121 9123 2121
Mobile [phone] 2033
Email [e-mail] [e-mail]
Employment ACE Pty Ltd, 101 City Rd, Westside Tech City, 804 High Street, City
East
How long? Since October 2005 Since March 2006
Previous employer (if less than two years) NA NA
How long? NA NA
Employment type
(FT/PT/Casual/Self-employed) Team Leader (full time) Accounting (Full time)
Gross income (p.a.) $58,000 p.a. $ 95,000 p.a.
Number of dependants NA NA
Motor vehicles Holden Commodore SS 2007 Kia Cerato Sport 2015
Loan purpose Purchase of a house property
Purchase price/Valuation $515,000
Deposit on property NA
Loan amount $ 440,000 +LMI
Borrowing capacity (using Genworth
serviceability calculation) Maximum amount which can be borrowed is $ 970,985
Page 26 of 33

Assets and liabilities
Assets Liabilities
Details Market value Details Monthly payments Amount owing
Owner Occupied Property at: NA Mortgage with: NA NA
Investment Property at: NA Mortgage with: NA NA
Cash at bank
(includes fixed deposits) 79600 Car leasing NA NA
Other cash
(includes offset accounts) NA Personal loans
1.
2.
$ 5600 $5600
Deposit paid on property NA Overdraft NA NA
Motor vehicles:
1. 2007 Commodore SS
2. Suzuki Baleno
$ 25,000
$9,000
Other loans:
1.
2.
NA NA
Personal effects $ 40,000 Credit card limit:
$
$4,000 $5,000
Business value (if self-employed) NA Credit card limit:
$
NA NA
Shares and investments Other: NA NA
Superannuation $ 100,000 Other: NA NA
Other assets (give details) NA Other: NA NA
Total assets $253,600 Total liabilities $ 9,600 $ 10,600
Surplus/deficiency:
CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)
Food/housekeeping $ 1,500
Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection) $ 200
Utilities (e.g. rates, gas, electricity, transport) $ 30
Transport (e.g. public transport, petrol, registration, repairs) $ 120
Education (e.g. school, college, university) $ 0
Dependents support (e.g. childcare, child maintenance) $ 0
Entertainment $ 400
Other (detail below: $ 500
MONTHLY LIVING EXPENSES $ 2,750
Page 27 of 33

Needs analysis
1 Name of your current lender? Westpac Bank
2 What type of mortgage loan do you have? Flexi first option home loan
3 Why did you choose this particular loan and lender? This particular bank loan is most appropriate for
new borrowers and has all the facilities 5required
by the client.
4 What is the interest rate? 4.35%
5 What are your payments? Amount $ 1050
6 Frequency fortnightly repayment option
7 Do you know the fees and charges? Solictor’s fee and Agent fees
8 What is your proposed purpose for the loan you are
applying for? Purchasing a house property
9 Branch access available with current lender NA
10 Internet banking available with current lender NA
11 Phone banking available with current lender NA
12 Lenders not to be considered NA
13 Type of loan sought Variable interest loan
14 Preferred Interest rate range 4.15%- 4.50%
15 Payment frequency fortnightly
16 Redraw Available
17 Offset Available
18 Salary crediting NA
19 Low fees and charges NA
Page 28 of 33

Notes
NB: Providing substantive notes here is a compulsory part of your assessment.
Philip and Jennifer brown are young couples who want to purchase a new property as a house and would
occupy the same. The couple is planning to take a loan from a ban for which they have approached an
agent for getting an advice as to which product would be suitable for their needs. They have selected a
property for which the couple has shown interest.
The product which has been selected by the couple is flexi home variable interest loan which is available
from Westpac. The requirement of the loan product is given below in details:
• 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.
Page 29 of 33

Anticipated fees and charges
Anticipated purchase price $ 490,000
Deposit on property NA
Loan amount $ 440,000+ LMI
LVR 95%
Purchase costs
Stamp duty on transfer (include transfer fee) $ 3,000
Solicitor/conveyancer (estimate) $1,500
Rates and land taxes (estimate) $2,000
Pest inspection (estimate) $ 1,500
Building Inspection (estimate) $ 2,000
Borrowing costs
Application/establishment fee $ 2,000
Valuation fee $ 3,000
Security admin fee $ 2,000
Mortgage stamp duty $4,000
LMI NA
Registration of mortgage $ 1,000
Release of mortgage NA
Search fees $ 1,000
Other $ 2,000
Total of purchase costs $ 25,000
Page 30 of 33

Funds to complete
PURCHASE AND LOAN COSTS: AVAILABLE FUNDS:
Purchase price: $ 490,000 Deposit if paid NA
Lender application / valuation fees: $ 3,000 Cash savings: $ 75,000
Transfer stamp duty $ 3,000 Sale proceeds: NA
Solicitor fees: $ 1,500 Gift: NA
Other fees and charges $2,000 FHOG: NA
Other: NA
LMI: 1. $9,372 2. Add to Loan? Yes
TOTAL COSTS (A): $ 515,000 TOTAL OWN FUNDS (D): $ 75,000
LOAN AMOUNT REQUESTED (B): $ 440,000 OWN FUNDS REQUIRED (A-B) = C:
OWN FUNDS REQUIRED (A-B) = C $ 75,000 SURPLUS/SHORTFALL (D-C) Nil
Page 31 of 33

Loan interview diary
Name(s) of client(s) present at interview
Philip Brown
Jennifer Brown
Date of interview
28/1/2019
Location of interview
New South Wales, Australia
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? N
Do all of the clients clearly benefit from taking out this loan? Y/N
If not, what inquiries have been made to ascertain the level of benefit to each party of the loan?
Clients were clear that they would be benefitted from the services of the advisor. Further, the advisor
will provide the prospectus that will include the terms, conditions, serviced covered and fee structure
that will enable the clients to get better understanding.
Page 32 of 33

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? Y
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? Y
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.
Page 33 of 33