Certificate IV in Mortgage Broker and Finance

This document provides information on Certificate IV in Mortgage Broker and Finance. It includes assumptions, assessments, and a sample approval letter. The document also includes details on assets, liabilities, income, and expenditure.

Running head: CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Certificate IV in Mortgage Broker and Finance
Name of the Student:
Name of the University:
Authors Note:

1CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Contents
Assumptions:...................................................................................................................................2
Assessment three:............................................................................................................................2
Assessment Five:.............................................................................................................................3
Sample Approval Letter:................................................................................................................10
References:....................................................................................................................................14

2CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Assumptions:
In this document the information has been provided to fill Certificate IV for Mortgage
Loan. Due to lack of information number of fields have been left vacant. It is important to note
that the monthly food and other expenses have been assumed to complete the document (Reed,
2016). In respect of various fees where no particular information has been given it has been
assumed no such fees are required to be paid for the mortgage loan.
Assessment three:
Exercise: Glenworth Net Disposable Income ratio (NDI) for the applicant is 0.61 (as can be seen
in the calculation
Step 2:
Maximum borrowing capacity for these applicants is $500,000.
Q4.10:
Credit guide is to be used to obtain borrowers instructions.
Q5.17:
In Property Registration office in NSW titles interests are registered. Option (b) is the correct
option.
Upfront after settlement:
Upfront after settlement of 0.715% is to be paid which will be (450000 x 0.715%) = $3,217.50
(Mailer, 2015).

3CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Ongoing each month:
The largest monthly payment would be (450000 x 0.165%) = $742.50.
Estimated total fees payable
Application fee: 0
Lender's mortgage insurance 0
Valuation fees 0
Rate lock fee 0
Transfer duty 0
Settlement fee 3217.5
Discharge fees 0
Legal fees 1500
Other fees 250
Total 4967.5
Assessment Five:
Task 1: Loan application:
Task 2:

4CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Step 3:
Assets and liabilities:
Assets Amount ($) Liabilities Amount
($)
Motor vehicle: Car loan 6,000.0
0
Holden Commodore
18,000.00
Credit Card liability 8,500.0
0
Investment in shares
15,000.00
Cash (including savings )
125,000.00
Superannuation
118,500.00
Other assets
60,000.00
Total
336,500.00
Total 14,500.
00

5CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Future monthly repayments
Particulars Amount ($) Amount
($)
Total net monthly income (A) 7,047.
00
8,456.
40
Current monthly living expenses
Food / house keeping 1,200.
00
1,320.
00
Insurance 150.
00
165
.00
Transport 250.
00
275
.00
Education 400.
00
440
.00
Dependants support 300.
00
330
.00
Entertainment 150.
00
165
.00

6CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Other 400.
00
440
.00
Current monthly living expenses 2,850.
00
Future monthly living expenses 3,135.
00
Current monthly expenditure in total 4,750.
00
Future monthly expenditure in
total
5,321.
40
Net surplus per month (Total) 2,297.
00
Future Net surplus per month
(Total)
1,725.
60
Assessment five:
Task 1: Loan Application:
Assets
Address State Postcod
e
Value
Property 1
Property 2
Property 3
Property 4

7CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Make Model Year Value
Vehicle 1 Holden
Commodore
Commodor
e
2011 18000
Vehicle 2 Holden
Barina
Barina 2009 8500
House contents 60000
Shares / others 15000
Bank Branch Value
Cash at bank
Account 1
Account 2
Others 1
Savings 2 Westpac 75000
Savings 3 St. George 50000
Superannuation 11000
0
Misc.

8CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Are you a guarantor for any
other loan
Yes No Total
Liabilities
Home loans Lender Limit Int. rate Total
owing
Min.
monthl
y
To be
paid
Property 1 45000
0
Property 2
Property 3
Property 4
Personal loan / leases Lender Limit Int. rate Total
owing
Min.
monthl
y
To be
paid
Car loan 400
Credit cards Bank name Limit Int. rate Total Min. To be

9CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
owing monthl
y
paid
Bank 1 Westpac 10000 18% 8500 300
Bank 2
Bank 3
Retail store cards/ interest free facility Limit Int. rate Total
owing
Min.
monthl
y
To be
paid
Card 1
Card 2
Total
owing
Min. monthly
Rent / Board 1300
Tax liability
Family maintenance
HECS / HELP payments

10CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Supplementary living
expenses
Not Applicable
Details of solicitor Already provided
Security
Property details Home Name to be on the
title
Applicant
1
David John
Willis
Applicant
2
Purchase price 500000 Purpose Owner occupied
Property
address
NSW
Suburb State NSW Post code 2170
Contract for access Phone [phone]
Applicant 1 David John
Willis
Applicant 2 Jasmine Marry Willis
Category A Category A
Number 123456 Number 456789
Place of issue NSW Place of issue NSW

11CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Date of issue Date of issue
Expiry date Expiry date
DOB May 05,1980 DOB 15-Mar-82
International passport (current) International passport (current)
Number NA NA
Country Australia Country Australia
Date of issue Date of issue
Expiry date Expiry date
DOB May 05,1980 DOB 15-Mar-82
Sample Approval Letter:
Step 2:
As requested the “offset” account is a special account where,
A borrower’s saving bank account or transaction bank account is linked with his home loan
account to ensure payment of less interest on the home loan. The proportion of account balance,
i.e. savings account or transaction, is offset against the home loan of the borrower on a regular
basis and only the difference between the loan amount and the offset amount is considered for
charging interest (Liu & Roca, 2015).

12CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Step 5
Monthly financial position Current Proposed
Monthly after tax income in total (A): 7047 8456.4
Monthly loan repayments in total / rent (B): 1900 3200
Monthly living expenses in total ©: 2,850.00 3,135.
00
Monthly net surplus in total (A- B-C) 2,297.00 2,121.
40
Reasonable estimate of commission Up-front after settlement
We estimate this to be $ 3217.5
The largest payment is estimated
to be
742.5
Income and expenditure
Future monthly repayments
Particulars Amount ($) Amount
($)

13CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Total net monthly income (A) 7,047.
00
Current monthly living expenses
Food / house keeping 1,200.
00
1,320.
00
Insurance 150.
00
165
.00
Transport 250.
00
275
.00
Education 400.
00
440
.00
Dependants support 300.
00
330
.00
Entertainment 150.
00
165
.00
Other 400.
00
440
.00
Current monthly living expenses 2,850.
00
Future monthly living expenses 3,135.
00

14CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
Current monthly expenditure in total 4,750.
00
Future monthly expenditure in
total
5,321.
40
Net surplus per month (Total) 2,297.
00
Future Net surplus per month
(Total)
1,725.
60
International passport:
No details regarding the International Passport is available thus, no information in international
passport segment (Campbell & Cocco, 2015).

15CERTIFICATE IV IN MORTGAGE BROKER AND FINANCE
References:
Campbell, J. Y., & Cocco, J. F. (2015). A model of mortgage default. The Journal of
Finance, 70(4), 1495-1554.
Liu, B., & Roca, E. (2015). What drives mortgage fees in A ustralia?. Accounting &
Finance, 55(3), 861-880.
Mailer, C. (2015). The Frankenstein Mortgage: Conceptual inconsistency and the quest for legal
coherence in the Torrens system.
Reed, R. (2016). The relationship between house prices and demographic variables: An
Australian case study. International Journal of Housing Markets and Analysis, 9(4), 520-
537.