Certificate IV in Finance and Mortgage Broking Study Material

CERTIFICATE IV IN
FINANCE AND
MORTGAGE BROKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

PART A
Question 5
(c) Both unregulated and regulated
Question 13
1. Preliminary assessment
2. Credit Guide
3. Credit Quote
4. Credit Proposal
Question 15
Australian Securities and Investments Commission Act 2001, is a legislation which is
predominantly based on a “Risk” framework.
Question 16
1. It describes standards of good practice and service.
2. The information relevant and useful for customers are also disclosed by this code.
3. Their objective also includes the promotion of informed and effective relationship
between banks and its customers.
4. The code also state that banks have to disclose the procedures of resolutions of disputes
for customers.
Question 17
The full form of FBAA is “Finance Brokers Association of Australia”.
Question 18
The name of document developed by the MFAA as a set of principles for the guidance of a
member broker is “Code of Practice”.
Question 19

The repayment related to credit card is based on the limit of credit card. It is because
credit limit grant by the lender denotes the maximum amount that borrower can spend using the
credit card at the given span of time. Thus, the repayment of credit card is based on the credit
card limits grant by lenders or banks.
Question 20
False
Question 21
True
Question 22
(a) Debt Servicing Ratio
Question 23
The AAPR represent “Average Annual Percentage Rate”.
Question 24
The amount available to First Home Buyer under the First Home Owner Grant (FHOG) based on
the various states are as follows:
Queensland = In this state, the property is capped at $750000
New South Wales = Here, property capped at $ 650000
Victoria = In this state, property of first home buyer capped at $750000
South Australia = In this state, no property cap is applies
Tasmania = No property cap is applies
Australian Capital Territory = No property cap applies
Northern Territory = In this territory, property capped at $750000
Western Australia = Property capped is applies to first home buyer at $750000
Question 25