Case Study 1: Philip and Jennifer Brown

This case study focuses on the financial situation of Philip and Jennifer Brown, a young couple looking to buy their first home. It covers their background, property details, financial and employment information, and loan requirements.

Written Project
Certificate IV in Finance and Mortgage Broking
(CIVMB_AS_v5A3)
Student identification (student to complete)
Please complete the fields shaded grey.
Student number
Written Project overall result (assessor to complete)
First submission Not yet demonstrated
Resubmission (if applicable) Not applicable
CIVMB_AS_v5A3

Result summary (assessor to complete)
Section 1: Case study 1 — Philip and Jennifer Brown First submission Resubmission (if required)
Task 1 — Key terms, gathering and documenting client information Not yet demonstrated Not applicable
Task 2 — Assessing the clients’ situation Not yet demonstrated Not applicable
Task 3 — Borrowing options Not yet demonstrated Not applicable
Task 4 — Reasonable enquiries Not yet demonstrated Not applicable
Task 5 — First Home Owners Grant and home buyer assistance schemes Not yet demonstrated Not applicable
Task 6 — Professional network and loan settlement process Not yet demonstrated Not applicable
Task 7 — Interest rates Not yet demonstrated Not applicable
Section 2: Case study 2 — Richard and Pauline Jackson
Task 8 — Establishing level of financial knowledge Not yet demonstrated Not applicable
Task 9 — Responsible lending obligations Not yet demonstrated Not applicable
Task 10 — Self-employed special considerations Not yet demonstrated Not applicable
Task 11 — Advising on strategies Not yet demonstrated Not applicable
Task 12 — Impact of credit history Not yet demonstrated Not applicable
Task 13 — Dispute resolution Not yet demonstrated Not applicable
Task 14 — Effective access to files Not yet demonstrated Not applicable
Section 3: Case study 3 — Mary Jane Smith
Task 15 — Prepare and check a loan application Not yet demonstrated Not applicable
Section 4: Working in financial services
Task 16 — Financial services legislation and industry codes of practice Not yet demonstrated Not applicable
Task 17 — Design a document Not yet demonstrated Not applicable
Task 18 — Applying principles of professional practice to work in the financial
services industry Not yet demonstrated Not applicable
Task 19 — Develop and maintain in-depth knowledge of products and
services used by an organisation Not yet demonstrated Not applicable
Please note: To pass this written Project , you will need to be assessed as DEMONSTRATED in either your
first submission or your resubmission in all tasks above.
Task feedback
Please refer to the assessor’s detailed feedback found at the end of each task so that you know what to do
for any tasks you need to resubmit.
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Before you begin
Read everything in this document before you start your written Project for Certificate IV in Finance and
Mortgage Broking (CIVMB_AS_v5A3).
About this document
This document is the written Project — half of the overall Written and Oral Project .
This document includes the following parts:
• Instructions for completing and submitting this Project
• 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.
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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 Project 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 Project
Completing the written Project
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 Project s.
• Name your file as follows: Studentnumber_SubjectCode_Project _versionnumber_Submissionnumber
(e.g. 12345678_CIVMB_AS_v5A3_Submission1).
• Include your student ID on the first page of the Project .
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 Project 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.
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Submitting the written Project
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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 Project as a PDF.
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to you unmarked. The written Project must be submitted together with the oral Project . If you do not
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Once you submit your written Project for marking you will be unable to make any further changes to it.
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The written Project marking process
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If you reach the end of your initial enrolment period and have been deemed ‘Not yet demonstrated’ in one
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assessment tasks during the initial enrolment period.
Your assessor will mark your written and oral Project and return it to you in the Certificate IV in
Finance and Mortgage Broking (CIVMBv5) subject room in under the ‘Assessment’ tab.
Make a reasonable attempt
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your written Project . Failure to do so will mean that your Project will not be accepted for marking;
therefore you will not receive the benefit of feedback on your submission.
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Project 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.
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Your assessor will follow the below process when marking your Project :
• 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 Project .
‘Not yet demonstrated’ and resubmissions
Should sections of your Project 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 resubmission responses. You only need to respond to
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 Project , 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 Project 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 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 Project 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 Project 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.
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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 [phone]
Mobile [phone]
The applicants
Current address Unit 12, 22 Wentworth Lane, Highville, (Your state)
Philip and Jennifer have lived there since March 2015
Home phone [phone]
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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) $1,600
Holden Colorado 2012 (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.
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Employment and income
Philip (date of birth 21/2/87)
Position Team Leader (full time)
Employer ACE Limited 101 City Rd, Westside (Your state)
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
Jennifer (date of birth 8/10/88)
Position Accountant (full time)
Employer Tech city 804 High Street, City East (Your state)
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
Solicitor’s details
Jones and Co
22 High Street, City East (Your state)
Phone
Email
The solicitor has quoted a fee of $1,500 for the conveyance.
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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:
1. The loan application fee is waived under a Special Offer.
2. For this Project , your chosen lender uses Genworth for Lenders Mortgage Insurance – you must use the
Genworth LMI Calculator in this Project : <https://www.genworth.com.au/lenders/lmi-tools/lmi-
premium-estimator/>. For Project purposes, please use the Upfront LMI premium generated by the
calculator.
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, Jennifer has confirmed that she has not renewed her industry association membership.
• Jennifer previously owned and lived in an apartment with her two older sisters when they attended
university, however they sold this property 12 months ago — minimal profit was made from the sale.
• Plans to start a family are five years away.
• They do have plans to take a major overseas trip prior to starting a family.
• 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.
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Project 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 Project 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 Project in Appendix 2).
3. You will need to complete the Genworth LMI Calculator and Genworth Serviceability Calculator to
assess the security, debt service and borrowing capacity for Jennifer and Philip 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 Project submission. This will
assist your assessor with providing feedback on your written and oral Project submission.
Note: Any assumptions you make should be listed and should not be in 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
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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.
Answer questions (a)–(j) for Task 2: Question 1 below.
Provide data to support your comments and conclusions. (450 words)
Note: The assessment of the clients’ needs is a critical prelude to you completing Part 4 of the
Oral Project requirement for this course.
(a) Does the application appear to meet legislative requirements? (e.g. NCCP)
Student response to Task 2: Question 1(a)
Answer here
As per the NCCP Act, credit provider to ensure a credit facility is suitable for the borrower. There
are two key elements that can affect the assessment of loan suitability which appear to have been
satisfied by initial assessment. There also doesn’t appear to be any conflict.
(b) According to the Genworth calculator, what is the maximum borrowing capacity of client?
Student response to Task 2: Question 1(b)
Answer here
Utilising the online calculator from Genworth, the loan value of 440,000 is only about 40% of their
serviceability at the actual rate and half at the stressed rate of 7%. (Please see the attach
Genworth calculation).
(c) Does the client have the capacity to meet deposit and total cash contribution for the loan required?
Student response to Task 2: Question 1(c)
Answer here
Yes
(d) What are the required repayments based on the loan required?
Student response to Task 2: Question 1(d)
Answer here
In terms repayment of loans the payments are recalculated each year and are based on the information
that is given. There are certain methods that need to be done in order to repayments of loans and it
sometime depends on the kind of loan it is and its requitements. Certain plans has been there for the
repayment of loans such as Extended repayment, graduate repayment, income repayment and Income
based repayments.
(e) What will the security be and is it an appropriate type of security?
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Student response to Task 2: Question 1(e)
Answer here
To give security or collateral to the banks many options are available but most appropriate type of security
will be Real estate. Benefits are it repay over longer tenure that will be beneficial, enjoying lower rate of
interest and getting tax benefits on interest payments.
(f) (i) Will Jennifer and Philip be required to pay Lenders Mortgage Insurance (LMI) and why?
(ii) If so, what would the premium be?
(iii) Name at least two (2) options borrowers have to pay the LMI fee.
Student response to Task 2: Question 1(f)
(i) Answer here Jeniffer and Philip were unable to pay Lender Mortage Insurance as they were not having
enough amount to get the sufficient loan.
(ii) Answer here
(iii) Answer here Borrower have two option either capitalise the cost into the loan and bringing the total
loan amount.
(g) What loan amount would you recommend, and why?
Student response to Task 2: Question 1(g)
Answer here
The loan amount recommend is $400000
(h) What is the likelihood that the clients will be able to meet all of their financial obligations?
Student response to Task 2: Question 1(h)
Answer here
They can save the income and kind to look into another option to increase their income sources to satisfy
the financial obligation.
(i) Do Jennifer and Philip qualify for concessions on any of the fees and charges? Why or why not?
Student response to Task 2: Question 1(i)
Answer here
No, any concession charges of any charges as they were not qualified for the loan requirement.
(j) What other issues may impact, now or in the future, on the clients’ ability to meet their obligations,
including any possible risks?
Student response to Task 2: Question 1(j)
Answer here
There are many issues that might impact the future possibility like unable to pay loan amount, increasing in
their expense and cost during their time, might face any major loss n future that will be difficult for them.
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2. 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? (50 words)
Student response to Task 2: Question 2
Answer here
The Genworth calculator use to calculate their initial serviceability stressed the loan amount from
the current rate of 4.5% to 7%. This brought the payments from $2,272.42 to $2,983.80 and
reduce their maximum loan amount from $1,169,853 to $890,944. In the current economic
climate with the headwinds over the global pandemic, it is estimated that RBA will not raising
rates for a year. This allows the borrowers to be confident in a floating rate loan at the current
levels to remain constant.
3. 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 3
Answer here
In order to remove their interest rate risk, the borrower can structure their mortgage inti some
fixed rate components. Most lender in Australia provide fixed rate loans typically between 1-5
years unlike the united states that regularly provide fixed rates of 15, 20 and 30 years. The
borrower can also have the option to trench their loan into several parts at the various fixed terms
or leave a portion in a floating rate product.
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
Page 14 of 74

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? Provide a minimum of two (2) options. (50 words)
Student response to Task 3
Answer here
They do not have many options available as loans greater than an 80% LVR in Australia require LMI
with few exceptions. This first is a professional license (CA or CPA, Solicitors, Doctors) that may
allow them to be waived at certain lending institutions. Another option to waived LMI is to have a
guarantor. If this is a lower cost option or available, then this would be an available option to
explore for the Philip and Jennifer.
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
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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. (150 words)
Student response to Task 4
Answer here
AS the NCCP Act 2009 is designed to protect consumer and ensure ethical and professional
standards in the finance industry. Six inquiries that should be made are as follows; credit in this
case study, is provided to purchase a residential property. Another, when it is a primary residence
or investment property. The third would be the consumer’s financial situation followed by their
requirements for the types of mortgage loans. The fifth may be the effect on rising interest rate
and family expenses as stressed by the Genworth serviceability calculator. Lastly, assessing
whether the credit contracts meets the consumer’s requirements and objectives.
These are all important terms as the sixth point raised addresses suitability. Ensuring from these
inquiries that the credit product is appropriate for the reason the clients are looking for a loan.
Ensuring the clients are in a suitable financial position with saving and stability of income. The
spirit of the act is too not creating a hardship if the clients get overextended.
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
Page 16 of 74

Task 5 — First Home Owners Grant and home buyer assistance
schemes
(a) 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.
Note: Please identify which State or Territory you are from in your answer. (100 words)
Student response to Task 5(a)
Answer here
The First Home Owner Grant (FHOG) is paid by the State Government to eligible first home
owners. The payment is made only after an application has been submitted to and approved by
RevenueSA or a financial institution authorised by RevenueSA to process applications.
(b) Who would be eligible and what would be their benefit?
Student response to Task 5(b)
Answer here
FHOG applies to the purchase or construction of a new residential property, including a house,
flat, unit, townhouse or apartment that meets local planning standards anywhere in South
Australia. FHOG ceased for established homes from 1 July 2014.
The market value of the property does not exceed $575 000, a $15 000 FHOG is potentially
available, provided that all other eligibility criteria are satisfied.
(c) Are Philip and Jennifer eligible for any assistance? Explain why.
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Student response to Task 5(c)
Answer here
Registered persons are individuals who may never have previously bought a house. They will be
candidates for the grant in the case of Philip and Jennifer Brown, as she shared a home with her 2
elder siblings in the discussion. Philip Brown would be able to earn the award, but he would not be
available in the event of a shared submission with Jennifer. Regarding stamp duty grants in South
Australia if an accommodation bought by way of a valid contract is over $500 000 worth of market
value, the buyer shall be entitled to a $21 330 stamp duty award. Since Philip and Jennifer's flat is
priced at $490,000, this would not be accessible. Then Philip and Jennifer are able to pay $500,000
for the apartments where they are entitled.
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
Page 18 of 74

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. (75 words)
Student response to Task 6: Question 1
Answer here
Real estate- I can consult directly with a real-estate firm and will remind the applicant of the pre-
approved, officially approved application and the deadline for payment. The property
development agent is an essential element to keep in the process. Creditor – The loan risk is very
low until the trustee has supplied the creditor with all the details required. I will remind the
creditor at any point of the development of the loan. Transporter- It is important that a direct line
of contact is established with the transporter creditors, so all the funds must be deposited with
the forwarding agent.
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. (50 words)
Student response to Task 6: Question 2
Answer here
Every week conferences: I'll have the chance to chat to experts on a weekly basis and get updates
about new goods and programs that might improve.
Teleconferences: Communicating to dealers would give me a clear guide if there are goods that I
could not have been sure about before.
Briefings: The current developments on manufactured goods will be provided to you during
seminars
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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.
(a) What process would you follow during your discussion with the clients to ensure you have a good
assessment of their needs? (50 words)
Student response to Task 6: Question 3(a)
Answer here
I might like to clarify the value of quality assurance when coping with such a significant financial
partnership, which could save costs if anything happens well after agreement.
● Home insurance provides coverage against injury or destruction of houses, particularly
apartments, units and townhouses.
● Insurance of content protects loss or injury to residential goods or services which is estate
leased or bought by the insured individual. The one scheme also blends buildings (home)
and material insurance.
● Personal responsibility applies to the obligation of the insured to compensate another
person for disability, sickness or death and negligence or harm to goods that another
person owns. Civil liability protection typically requires insurance plans on premises and
belongings.
● Mortgage insurance is a kind of life insurance intended to preserve one very particular yet
essential thing, which is your estate. The mortgage coverage policy may also refer to as a
new mortgage policy, if the borrower is not willing to afford the debt.
(b) Explain who you should refer Philip and Jennifer to obtain advice on these types of products?
(10 words)
Student response to Task 6: Question 3(b)
Answer here
They can prefer ant professional guide or experienced person who is in this field. to tell them about
consequences of the products. This will help them to take the right decision regarding this as they were
advice by professional person.
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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. (150 words)
Student response to Task 6: Question 4
Answer here
In the case, the broker is the intermediary man in the details exchanged with the customer,
dealer, transport provider and the solicitor on all facets of the loan process. For the involved
authorities to do what they're doing in some phases of the loan application process; everyone
should be told at the point of a loan.
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5. The 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’ within the toolbox document and
explain what the service standards and timelines are for the following steps: (50 words)
(a) Advising the client’s solicitor/conveyancer that the loan is approved.
Student response to Task 6: Question 5(a)
Answer here
● Workers must learn to respond efficiently and appropriately to telephone calls.
● Staff to accept feedback from their clients and respond within two (2) working days. If the
customer is not provided with a complete answer, please remind the customer and
monitor the status of your question or concern. It is necessary to keep the consumer up to
date with how the question or issue progresses.
● Professionals must ensure the execution of client-related activities in the time limits set.
Please keep the person and/or the provider updated if you are unable to maintain
schedules.
● Personnel to inform consumers within 24 hours of receiving mortgage approvals.
● Workers are enabled before they depart to ensure that communications and/or voicemail
messages from the office are sent.
● Personnel shall understand and respond in two (2) business days to any consumer
grievances.
● Make sure the solicitor / transporter information is stored on the register for each user.
● Strongly recommend the loan consent solicitor / transmitter (if customer acceptance)
within 24 hours.
(b) Advise the client’s solicitor/conveyancer that the loan documents have been executed by the
client and returned to the lender.
Page 22 of 74

Student response to Task 6: Question 5(b)
Answer here
This document and all loan other requirement related to these has properly executed by the clint and it
clearly scrutinize all process in better manner. It is important to get the approval from the clients.
(c) Advise the client and the client’s solicitor/conveyancer that the settlement date has been
confirmed.
Student response to Task 6: Question 5(c)
Client: This loan document has been executed and date is confirmed of loan settlement.
Answer here
Solicitor/Conveyancer:
Answer here
It is important to settle down the date of loan settlement to move ahead from this procedure and they
have fulfilled all requirements
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)
Page 23 of 74

Student response to Task 6: Question 6
Answer here
First, I 'd like to clarify to consumers that all the documentation related to the loan are carefully
reviewed prior to payment to make sure that they have the right facts and the proper execution of
the transactions. To guarantee that the terms applied to the loan authorisation are fulfilled.
Representing records are given and checked, if required, including arrangements and insurance
options. Accounts are created and routine payments arrangements for the transfer of credit funds
and approval of interest payments of loans are received as required. Mortgage protection is paid,
if required. In order to ensure authenticity, the definition of the mortgagor shall be reviewed for
transfer of title. Surveillance identification the provisions relating to shares are reviewed for loan
approval. Suitable workers are required to join in the arbitration. In compliance with corporate
procedures and instructions and laws, shares are licensed and signed. The completeness and
precision in all protection activities was checked and tested. Reimbursement of funds Permissions
from staff, including connections administrators, credit administrators or loan officers, to fund
drawing authorities shall be issued. Funds are allocated according to loan and corporate strategies
and procedures. Consumer contact shall be started in order to consult on deposits, government
loan start and other issues. Customer communications
After paying, the retailer or the dealer's or carrier's solicitor shall: pay the mortgage interest to the
corporation or agency responsible for the national government when it hasn't been paid. Lodge
records covering the transition of ownership with or without a current mortgage holder with both
the applicable state government agency. Informative of a shift in possession of other groups, such
as public entities, shareholders' businesses and service providers.
Page 24 of 74

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
Page 25 of 74

Task 7 — Interest rates
1. Conduct your own research and answer the following: (150 words)
(a) What is the role of the RBA with respect to the movements of interest rates?
Student response to Task 7: Question 1(a)
Answer here
Reserve Bank of Australia is known as RBA its main purpose is to maintain monetary market policy
and Australian economy so that they can main great contribution in their country’s economy. They
are setting low interest on home loan to control economy both situation which is not good for all
time and it is found from monetary policy 27 July 2017.
(b) Why is it important to have these controls and how do they impact mortgage loans in Australia?
Student response to Task 7: Question 1(b)
Answer here
As Reserve Bank main purpose is to control economy of Australia which is not an easy task and it
decrease the rate of interest regarding taking home loan. The low interest rate of home loan
create a great impact on mortgage loans in Australia because the people who were thinking about
taken mortgage loans will have to take less interest from the bank which is not great news for
them at all.
(c) Are banks obliged to follow the RBA cash rate? Explain the reason for your answer.
Student response to Task 6: Question 1(c)
Answer here
No, when the Reserve Bank raises or lowers the official cash rate, bank do the same with their
home loan interest rates. However, lenders have no legal obligation to mirror the Reserve Bank.
So, the cash rate is the market interest rate for overnight loans between financial institutions. It
serves as a benchmark for interest rates at which funds can be lent or borrowed in financial
markets, including for different sources of bank funding, such as wholesale debt and deposits.
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. (150 words)
(a) Explain the process you would use to research and identify the various product options available
to meet the needs of Philip and Jennifer.
Student response to Task 7: Question 2(a)
Answer here
There are few positive and negative comments which Philip & Jennifer get from their family and
friends. It creates problem or confusion while making decisions for fixing the loan.
(b) Explain to Philip and Jennifer two (2) advantages and two (2) disadvantages of fixing a loan over
different fixed rate terms.
Page 26 of 74

Student response to Task 7: Question 2(b)
Answer here
Advantage:
• If the loan if fixed than they will be able to purchase the house within a less time and will have
their own shelter.
• The interest rate which they choose to repayment will give proper knowledge. About their
savings.
• It will help to balance the cash outflow
• If loan is fixed than borrower can make another plan by considering this fact and buy freezing
this amount.
• It increase low capital expenditure.
Disadvantages :
• It increase debt
• Limit the loan access
• It helps to make the loan assessment
• Limit the benefit of tax
3. What other option/s can you suggest if they remain uncertain about whether to fix the interest rate on
their loan? (100 words)
Student response to Task 7: Question 3
Answer here
If Philip & Jennifer become confused regarding taking the loan yet than they should go for a consultation
where they can be able to come to an end of the discussion and can be take an effective decision for their
own benefits. The interest rate may become uncertain sometimes because it fluctuates with the living
styles of that country people and their economy. So, if they want to come for a solution, they consult a
professional and then should make final decisions in this case.
Page 27 of 74

Assessor feedback for Task 7 — Interest rates
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Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Page 28 of 74

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
Page 29 of 74

Project 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.
(100 words)
Student response to Task 8: Question 1
Answer here
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. (100 words)
Student response to Task 8: Question 2
Answer here
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. (a) 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. (20 words)
Student response to Task 8: Question 3(a)
Answer here
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?
Page 30 of 74

(b) 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? (20 words)
Student response to Task 8: Question 3(b)
Answer here
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?
(c) Advise where you would record the client’s responses. (20 words)
Student response to Task 8: Question 3(c)
Answer here
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
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Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Page 31 of 74

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)?
(100 words)
Student response to Task 9: Question 1
Answer here
According to ASIC 2009 in few cases credit is unsuitable for lender like if they could not able to meet the
following requirements and the objectives for taking the required loan. Here borrower faced substantial
hardship that means it becomes too hard to handle the situation and this type of critical situation is known
as substantial hardship. I would define substantial hardship by saying that people who are suffering from
difficult situation for having loss in the business and they lost the ability of fulfilling business objectives is
suffering from substantial hardship situation. So, at the end it can be said that before approving any loan or
credit from Bank and mortgage centre. There are few requirements of taking loan from bank for the lender
and if any of the requirement violates the current situation of market bank cannot be able to approve loan
for the lender.
2. What are the benefits of debt consolidation for Richard and Pauline? (50 words)
Student response to Task 9: Question 2
Answer here
As Richard and Pauline has six different types of loan on different lenders. Currently they must pay
$301500 to the lender which is quite difficult for them. So, in this case if they take a big loan from
bank to repay all the debt consolidation than it will reduce the amount of repayment, interest,
stress etc. These are the benefit of debt consolidation but apart from these benefits’ debt
consolidation helps to reduce the loan amount which will become easier for the two partners to
repay one loan instalment.
Page 32 of 74

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
Lender Interest rate Monthly repayment Debt
Answer here Answer here Answer here Answer here
One State Bank (home loan) 4.5% $1,368.05 $222,498.12
One State Bank (Other debts ) 4.5% $152.01 $24,722.01
Total $1520.06 $2,47,220.13
Their new monthly repayments would be $1520.06.
4. What savings will Richard and Pauline obtain in monthly repayments?
(Remember to show the calculation of how you determined the savings). (50 words)
Student response to Task 9: Question 4
Answer here
Previous repayment amounts are= ($1567+$240+90+$370+$850)= $3117
The monthly repayment of debt consolidation is $10,000
So, after debt consolidation with One State Bank Richard & Pauline monthly savings will be
=($10,000-$3147)
=$6853
So, after debt consolidation with One State Bank Richard & Pauline monthly savings will be
($3117-$1520.06)= $1596.94
Assessor feedback for Task 9 — Responsible lending obligations
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Question(s) that need to be resubmitted (if required) (List question numbers)
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Page 33 of 74

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? You must list a minimum of three (3) documents. (50 words)
Student response to Task 10: Question 1
Answer here
People beloved that who are self-employed it is difficult for them to mortgage their assets for
taking loan. But nowadays this statement becomes change because people who are working in
this sector for S long time it’s easier for them to approve the mortgage application. Richard and
Pauline need to submit few documents for assess their income as bank will give cash depending
on their income level. So, they need to Submit monthly, quarterly and yearly income and expense
document of previous five years. Bank must check the documents by visiting manually so that they
can sure about the fact that is they can have ability of repayment. Few other things that I need to
provide to obtain and add their income as a bank manager are given below-
• Document of a healthy deposit
• Good credit rating documents
• Income documents to cover mortgage repayment.
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. (100 words)
Student response to Task 10: Question 2
Answer here
The three extra documents I need to obtain and access in provide Mortgage Loan to the lender are
discussed below-
• Bank statement which is the most effective documents for self-employed people to get
mortgage. Bank statement will proof how much money Richard and Pauline enter in their accounts
and how much money does they cash out from the business. If their cash out from the business is
higher than cash in, then as a bank manager I will not have any option rather reject the proposal.
Because the bank statement clearly shown that they will not be able to repay us.
• Business activity statement need to be obtained by then so that I can measure about any tax
obligation and to prove this they need to provide previous 12 months documents.
• Letter from the accountant is the most important documents which I need to obtain so that I can
take decision while approving mortgage.
Page 34 of 74

3. Explain how applying for a Low-doc loan could lead the mortgage broker to be accused under NCCP
of recommending an ‘unsuitable’ product. (150 words)
Student response to Task 10: Question 3
Answer here
The meaning of low doc loans is providing loans to the people who are not verified yet by the
lender or the broker of mortgage. Low doc loans verified by the person himself and this is
designed primarily so that Bank can take proper care of self-employed borrowers who doesn’t
have any kind of proof to show their income level to take the mortgage. This kind of people are
using low doc loan where they can take loan by providing Les documents connected to the need of
loan and mortgage broker provide them this loan. The national consumer credit Protection Act
under 2009 recommend the protection of customers and lenders in taking mortgage. ‘Unsuitable’
is the common word within NCCP because it indicates people who can be able to prove that they
can meet the objectives and requirements of the loan along with can be repay money on time is
taking loan rather than unsuitable person. It increases responsibilities for customer to prove their
suitability rather lenders. This is the reason, people who doesn’t have enough time to stay in this
business world by self-employed come to low doc loan because they provide loan by having low
documents. Lender doesn’t take any traditional documents for borrowing money for the borrower
rather lenders make it easy for the people who are self-employed but having problems due to face
losses in the business.
Assessor feedback for Task 10 — Self-employed special considerations
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Page 35 of 74

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.
(150 words)
Student response to Task 11
Answer here
• 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.
The Snowball plan:
Advantages:
• It includes additional people while researching the market
• It targets small markets and use unique way to identify target population
• The plan or method provide best result in qualitative research rather than quantitative.
Disadvantages:
• This method may sometimes biased in the business
• It has limited resources to use for helping then to achieve the aim of getting mortgage at a lower
interest rate for their business.
Page 36 of 74

Assessor feedback for Task 11 — Advising on strategies
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Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Page 37 of 74

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. (100 words)
Student response to Task 12: Question 1
Answer here
 Equifax: Equifax credit file includes personal information (your name, address, Social
Security number, and date of birth.) Credit account information is reported to Equifax by
your lenders and creditors and includes the types of accounts, the date those accounts
were opened, your credit limit or loan amount, account balances, and your payment
history. They are kept two types of inquiries: “soft” and “hard.” Also, contains information
about bankruptcy public records and related details such as the filing date and chapter.
This company has different account know as collections accounts which includes past-due
accounts that have been turned over to a collection agency. These can include credit
accounts as well as accounts with doctors, hospitals, banks, retail stores, cable companies
or mobile phone providers.
 Experian: they are kept 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.
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. (50 words)
Student response to Task 12: Question 2
Answer here
As Richard decides to obtain credit report from credit rating agency wither from Equifax or Dun &
Bradstreet so there are some procedures which he must need to be followed. First off all I need to call India
customer service centre and should tell them for providing me the credit report urgently and indicate they
will take my application as a grant and will send the report within 15 days from the day of call. They
normally do three weeks for provide indicated report of Asia Dakota they have too much damn with all
important data and then make to make a super dropping document which you the counting different kinds
of data like deposit, income, bank statement etc.
Page 38 of 74

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. (50 words)
Student response to Task 12: Question 3
Answer here
the files which are recorded different kinds of document regarding credit and borrowing displays
some information unfortunately. But as it is known to all that every problem has some recognized
solution if someone want to solve any kind of problem they will obviously find any solution
regarding this statement I came to know that there are few options to rectify error in the files of
the document. Equifax website is one kind of credit rating agency who provide credit to borrower
at a lower risk and Richard take mortgage Loan or credit from this website so it is obvious he will
provide all kind of information related to the business is given to the website company. but
recently he faced problem of some important data has been shown as error which need to be
rectified by the management and this is the reason, I mail them about the error. In the mail I
mention all the required problems which causes the air so that management and fixed up easily
but to rectified it Richard must wait for Atlas 30 days.
4. What obligation does the Privacy Act impose on the Lender to supply the client, in terms of providing
certain information, if they decline an application due to the content of the credit agency file?
(50 words)
Student response to Task 12: Question 4
Answer here
If a loan is declined because of the information in a credit report, lender 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. Provide three (3) possible alternate options that you could suggest to Richard and Pauline in the event
that the loan application was rejected by the lender you initially proposed it to, due to their credit
report? (50 words)
Page 39 of 74

Student response to Task 12: Question 5
Answer here
if the loan is declined by a mainstream lender, I will advise to go with non-bank financial institution
(Click Loans, Firstmac, Homestar etc.) who offers mortgages and other types of loans. All different
lender has a different policy and requirement. But this time I will make sure that all documents
should be up to date. Richard and Pauline Jackson are self-employed, so they have tax return
document, moreover, they have more than two year of experience in their own industry which is
fulfill main requirement for self-employed person. They also do regular payment of credit card and
there is nothing adverse was recorded on their credit file which already in favour of those. I will
check credit file and if I will see anything which did not expected, I will try to fix it out before
declined the application. Second, I will negotiate with lender if they have any potential issue to
decline a loan application.
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
Page 40 of 74

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 1(a)
Customer Complaint Report
Customer name Answer here Richard
Title (Mr, Mrs, etc.) Family Name (surname) Given names
Answer here Mr. Answer here Jackson Answer here Richard and Pauline
Service being provided to client
Answer here
Financial Advisor and Broker
Nature of complaint
Answer here
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 1(b)
Answer here
The main role of the credit and investment of batsman in the area process is salt 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. Australian Information Commissioner approved CRO for
handling privacy of the customers by maintaining privacy act under 1988. 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.
Page 41 of 74

(c) Refer to the ‘Example of an Organisation’s Policies and Procedures within the toolbox document.
Produce a short report for your manager that 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 1(c)
Answer here
If any person has 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.
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
Answer here
Our role is to assist consumers and small businesses to reach agreements with financial firms
about how to resolve their complaints. We are impartial and independent. We do not act for
either party to advocate their position. If a complaint does not resolve between the parties, we
will decide an appropriate outcome.
Regulatory Guide 267 Oversight of the Australian Financial Complaints Authority (RG 267) sets out
which financial firms must be members of AFCA and how ASIC will perform its oversight role in
relation to AFCA.
AFCA is a single dispute resolution scheme for financial services and commenced operations on 1
November 2018. AFCA can resolve complaints that a financial firm could not resolve at IDR.
Prior to the commencement of AFCA, there were two schemes approved under the Corporations
Act and the National Consumer Credit Protection Act operating in the Australian financial and
credit industries.
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
Answer here
$5,00,000 could be the maximum financial compensation limit amount payable to a consumer
borrower through AFCA for a claim for direct financial loss.
Page 42 of 74

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
Page 43 of 74

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. (30 words)
Student response to Task 14
Answer here
Consumer advisor can solve this issue as their has duties and responsibility to address the issue of their
clients at effective manner. They used to understand the problem that they were facing and accordingly
provide them solution of this problem.
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
Page 44 of 74

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 Project .
Page 45 of 74

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’s personal 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
Page 46 of 74

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
Answer here
Employee records must:
be in a form that is readily accessible to a Fair Work Inspector
be in a legible form and in English (preferably in plain, simple English)
be kept for seven years
not be altered unless for the purposes of correcting an error
not be false or misleading to the employer's knowledge.
Employee records are private and confidential. Generally, no one can access them other than the
employee, their employer, and relevant payroll staff. Employers must make copies of an
employee’s records available at the request of an employee or former employee.
Page 47 of 74

4. Refer to the ‘Example of an Organisation’s 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)
Answer here
AFCA replaces the three former EDR schemes of the Financial Ombudsman Service (FOS), the
Credit and Investments Ombudsman (CIO) and Superannuation Complaints Tribunal (SCT) with the
aim of providing consumers access to a single EDR scheme.
Membership of the company will be required under law or a licence condition of a financial firm.
AFCA operations are financed by contributions made by its members. The scheme is free to
consumers.
AFCA:
 is the single point of contact for complainants for EDR services
 has higher monetary limits
 is more accountable to users, including by having an independent assessor to deal with
complaints about its handling of disputes
 has rules (terms of reference) to support its dispute resolution functions and legislation in
the case of superannuation disputes.
(b) Legislative requirements (particularly NCCP).
Student response to Task 15: Question 4(b)
Answer here
The National Consumer Credit Protection Act 2009, or the NCCP Act, is legislation that’s designed
to protect consumers and ensure ethical and professional standards in the finance industry.
Lenders and mortgage brokers must hold a credit licence or be registered as an authorised credit
representative and must adhere to the rules set out in the NCCP.
The NCCP Act is regulated and enforced by ASIC in accordance with the National Credit Code
(NCC).
Page 48 of 74

(c) Industry Code of Practice.
Student response to Task 15: Question 4(c)
Answer here
The purpose of an industry code is to ensure industry compliance with an agreed upon set of
objectives that benefit workers, employers and consumers. These objectives usually concern the
promotion of best industry practice, improving safety standards and enhancing consumer
confidence. Similarly, the purpose and objectives must be clear and communicated to
stakeholders, industry participants and consumers.
An industry code of conduct will set out a framework for compliance through provisions such as:
 Specific measures for compliance, relevant guidelines, standards and practices;
 Risk management strategies;
 Complaint handling schemes and sanctions for non-compliance; and
 An outlined process for periodic review of the code.
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
Page 49 of 74

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 codes of practice in the mortgage broking
Industry. (40 words)
Student response to Task 16: Question 1
Answer here
https://www.legislation.gov.au/WhatsNew
https://www.aph.gov.au/parliamentary_business/bills_legislation
Industry code
https://www.business.gov.au/Products-and-services/Fair-trading/Codes-of-conduct
https://www.nhvr.gov.au/safety-accreditation-compliance/industry-codes-of-practice
2. Describe the key features of:
(a) The National Consumer Credit Protection Act 2009. (150 words)
Student response to Task 16: Question 2(a)
Answer here
One of the key provisions of the National Consumer Credit Protection Act 2009 (NCCP Act) was the
introduction of a national licensing requirement for entities/individuals that engage in credit
activities. The license required is an Australian Credit License (ACL), this is to prove that the entity
is licensed to provide credit activities and not breaking the law
(b) The Privacy Act.
Student response to Task 16: Question 2(b)
Answer here
The Privacy Act prohibits the disclosure of a record about an individual from a system of records
absent the written consent of the individual, unless the disclosure is pursuant to one of twelve
statutory exceptions.
Page 50 of 74

(c) Code of Practice.
Student response to Task 16 Question 2(c)
Answer here
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, and
should be followed unless another solution with the same or better health and safety standard is
in place
3. How would you communicate any changes in legislation or codes of practice to colleagues? (50 words)
Student response to Task 16: Question 3
Answer here
One-on-one training
A business representative — such as the owner, manager, supervisor, HR staff member or trainer
— could work through the code of conduct and other requirements and expectations with existing
employees.
Online training course
Codes of conduct can be delivered online in a format that allows staff to work through topics at
their own pace (although a deadline should be set to ensure it is done in a timely manner). After
completing the course, staff should be able to print a competency certificate as proof that they
understand the code.
Company intranet
Providing the code of conduct on the company intranet allows all staff to access it when they need
to.
Employee handbook
A printed version of your employee handbook left in a communal area such as a staff room will
provide staff easy access to the code of conduct when required.
Page 51 of 74

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
Answer here
Record-keeping systems need to consider the:
 nature of information to be stored and retrieved;
 security and access of files and information (particularly computer records);
 validity and reliability of the information collected and the system on which it is recorded;
 resources and training required; and
 length of time that the records should be kept
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
Page 52 of 74

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
Answer here
Add photo
To the individual, CPD: • improves your personal and professional abilities • increases your ability
to spot opportunities and cope with change and challenges • helps you plan your development to
fit the way you learn best • helps you make the best use of resources • encourages you to
proactively plan a career path • gives you professional recognition • helps you develop networks
and professional contacts • helps you to keep up to date with developments within the
profession• shows your commitment to continuing improvement • enhances your current position
and improves job
Monitoring the hours, you are allocating to your CPD helps you assess how effectively you are
using your time. Remember to count the time preparing for, spent at and following up
professional meetings that you are using as development opportunities, as well as the time spent
reading and at conferences and courses. Once you have acquired the skill, do not count hours
performing it. Be rigorous about adding only time spent in purposeful, new learning rather than
hours just doing your job. As a guide, if you are doing a professional CPD scheme you are required
to complete a minimum of 35 hours each year – a conservative figure that most people far exceed.
Page 53 of 74

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
Page 54 of 74

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
comprehensiv
e 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
Page 55 of 74

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
Page 56 of 74

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
Answer here
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.
Page 57 of 74

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)
Answer here
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.
(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)
Answer here
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.
Page 58 of 74

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
Page 59 of 74

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
Answer here
Lender: A lender is an individual, a public or private group, financial institute or
the government that makes funds available to another with intrest charge.
Borrower: An eligible person who will be primarily responsible for the repayment
of borrowed money with intrest charge.
Lessor and lessee Answer here
A lessee: A person who rents land or property from a property owner.
A lessor: A person who grants a lease to someone else.
Mortgagee and
mortgagor
Answer here
Mortgagee: A lender who lends money to a borrower for the purpose of
purchasing real estate.
Mortgagor: A borrower who borrow money from a lender for the purpose of
purchasing real estate.
2. In your own words, and using the grid below; explain what the different documentation required by a
lender is:
Credit check
authority signed
Answer here
Credit check authority is a document that lenders require in order to assess the
credit rating of borrower. Credit check authority documents grant lenders the
authority to request credit reports from credit reporting agencies on behalf of
borrowers.
Guarantees Answer here
Guarantees are promises made to assume the obligation of loan repayments if a
borrower’s defaults on a loan.
Loan contract Answer here
Loan contracts are legally binding agreements between borrowers and lenders.
Loan contracts state agreements of lenders to lend funds and borrowers to repay
those funds.
Page 60 of 74

Periodical
payment
authority
Answer here
Periodical payment authority is a document that lenders require in order to
withdraw funds directly from a borrower’s account as repayment on loan. The
main purpose of periodical payments is for the convenience of borrowers and to
pay off loan balance more quickly by avoiding interest charges.
Signed
application form
Answer here
Loan application forms are collections of documents that lenders require to be
completed by borrowers when seeking mortgage loans from lenders. Loan
applications require that borrowers provide a variety of details concerning their
financial situation.
3. In your own words, and using the grid below; describe:
The negotiation
process
Answer here
Negotiation with financial institutions to arrange loan or credit. A mortgage
brokers are specialising in home loans and can negotiate on behalf of borrower.
Page 61 of 74

Appendix 2: Client information collection tool/Fact finder
Appointment date: Student to insert date 7/04/2021
Appointment time: Student to insert time11:15am
Applicant 1 Applicant 2
Surname Brown Brown
Other names Philip Jennifer
Contact details Address Unit 12, 22 Wentworth Lane,
Highville, SA.
Unit 12, 22 Wentworth Lane,
Highville,SA.
Phone (W)
Phone (H)
Mobile
Email
Employment ACE_Team Leader TECH CITY_Accountant
How long? Since October 2005 Since March 2006
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 Self Self
Motor vehicles
Make/Model/Year/Value $ 25,000 9,000
Loan purpose Purchase a home
Purchase price/Valuation 4,90,000
Deposit on property 50,000
Loan amount 4,40,000
Borrowing capacity (using Genworth
serviceability calculation) $890,944.00
Page 62 of 74

Assets and liabilities
Assets Liabilities
Details Market value Details Monthly payments Amount owing
Owner Occupied Property at: 490,000 Mortgage with: $2,983.80 $440,000
Investment Property at: N/A Mortgage with: N/A 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.
2.
$180 $5,600
Deposit paid on property (only if
paid) 50,000 Overdraft N/A N/A
Motor vehicles:
1. Holden Commodore
2. Kia Cerato
25,000
9,000
Other loans:
1.
2.
N/A N/A
Personal effects 40,000 Credit card limit:
4000 120 200
Business value (if self-employed) N/A Credit card limit:
5000 150 1600
Shares and investments N/A Other: N/A N/A
Superannuation 90,000 Other: N/A N/A
Other assets (give details) N/A Other: N/A N/A
Total assets $7,83,600 Total liabilities $3433.8 $447,400
Surplus/deficiency: (Total assets less Total liabilities) $3,36,200
Page 63 of 74

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)
Food/housekeeping 200
Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection) 62+62
Utilities (e.g. rates, gas, electricity, transport) 160
Transport (e.g. public transport, petrol, registration, repairs) 320+320
Education (e.g. school, college, university) 200
Dependents support (e.g. childcare, child maintenance) N/A
Entertainment (include online subscriptions, e.g. Netflix/Stan) 20
Other (detail below): 1440
MONTHLY LIVING EXPENSES 2750
Page 64 of 74

Needs analysis
1 Name of your current lender? Capital Bank
2 What type of loans do you have? Personal loan
3 Why did you choose this particular loan and lender? Having a, A/c with Bank
4 What is the interest rate on your current loan? Unknown
5 What are your payments? Amount 180
6 Frequency Monthly
7 Do you know the fees and charges? Unknown
8 What is your proposed purpose for the loan you are applying for? Purchasing Home
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 Unknown
13 Type of loan sought Home loan
14 Preferred Interest rate range 2.50% to 4.50%
15 Payment frequency Forth night
16 Redraw Yes
17 Offset No
18 Salary crediting Unknown
19 Low fees and charges 0
Notes
NB: Providing substantive notes here is a compulsory part of your assessment.
Answer here
In non-audit and liability contracts, including evaluating future financial reports and non-audit
analyses of past financial records, methodological techniques are often widely used. Although the
ISAs do not include the use of analytical techniques in these agreements, the rules for their use are
appropriate.
Page 65 of 74

Anticipated fees and charges
Anticipated purchase price 490,000
Deposit on property 50,000
Total Loan amount 440,000
LVR % 90%
Purchase costs 20830
1500Stamp duty on transfer
Transfer of Land Registration fee
Solicitor/conveyancer Fee 605
Rates and land taxes (estimate) 300
Pest inspection (estimate) 400
Building Inspection (estimate) 20830
Borrowing costs N/A
N/AApplication/establishment fee
Valuation fee 250
Security admin fee 7985
LMI 173
Registration of mortgage 350
Discharge/Release of mortgage fee N/A
Search fees N/A
Other 32,393
Total purchase and borrowing costs N/A
Page 66 of 74

Funds to complete
PURCHASE AND LOAN COSTS: AVAILABLE FUNDS:
Purchase price: 490000 Deposit if paid 0
Lender application/valuation fees: 0 Cash savings: 78000
+1600(cheque a/c)
79600
Transfer of Land Stamp duty
Transfer of Land Registration fee 20830 Sale proceeds: 0
Land titles office/Government
registration fees 4269 Gift: 0
Solicitors fees: 1500 FHOG: 0
Other 0 Other: 0
Lenders Mortgage Insurance
Added to Loan 7985 Other: 0
TOTAL COSTS (A): 524,584 TOTAL OWN FUNDS (D): 79,600
LOAN AMOUNT REQUESTED (B): 440,000 + 7985 OWN FUNDS REQUIRED (A–B) = C: 76,599
OWN FUNDS REQUIRED (A–B) = C 76,599 SURPLUS/SHORTFALL (D–C) 3001
Page 67 of 74

Loan interview diary
Name(s) of client(s) present at interview
Philip
Jennifer
Date of interview
12/04/2022
Location of interview
Unit 1 92 sessiede lane Edgartown, SA-5084
Indicate all clients who were interviewed in person
Philips
Jennifer
Do all of the clients appear to clearly understand English? Y/N
If not, have the services of an interpreter been recommended? Y/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?
Yes, all of the clients appear to clearly understand English.
They were asked questions relating to application of loan amount, Interest on loan amount and
amount must be paid on forth night.
Are any clients acting as though they are under duress or other disability? Y/N
Are any clients acting as though they are unsure of anything about the loan? Y/N
Are any of the clients acting as though they are unable to comprehend their obligations? Y/N
Are there any guarantors? Y/N
Page 68 of 74