FNS40815 FNSCRD301 Assessment 2 - Performance

FNS40815 Certificate IV in FINANCE & MORTGAGE
BROKING
FNSCRD301 Process applications for credit
Assessment 2 - Performance
FNS40815_ FNSCRD301 Assessment 2 REAA
Released November 2022
Page 1 of 5

Assessment information
As part of your training you have been asked to review some scenarios about
customer applications for credit.
Instructions to complete this assessment
In order to complete this assessment, you are required to complete the following
sections consecutively. Details and specific instructions are provided within each
section and on the form/templates provided.
Supporting documents
To find the relevant supporting documents, please refer to the Assessment
Resources folder, located within the FNSCRD301 Process applications for credit
section of your course
Review Loan Application Scenarios
Now complete each of the following steps:
1
. Based on the information provided in the case study and using the tools available to you
(e.g. loan calculators, including those available on lenders’ websites), provide your assessment of
the clients’ loan application.
Consider and comment on issues such as:
• maximum borrowing capacity of client
• capacity to meet deposit and total cash contribution for the loan required
• repayment requirements based on the loan required
• do they require Lenders Mortgage Insurance (LMI), and if so, how much will it cost and what are the
options to pay fee
• what loan amount would you recommend
• likelihood that the clients will be able to meet all their financial obligations
• any other issues that may impact, now or in the future, on the clients’ ability to meet their obligations,
including any possible risks.
Provide data to support your comments and conclusions. (750 words) In resource section template ASS 2
must be completed as part of this assessment
The solution to following issues are as follow:
 The maximum borrowing capacity is indicates the highest amount that the borrower can
pay for the home loan despite having all the changes that affect the borrowers borrowing
capacity such as change in interest rate. The maximum borrowing capacity of the Tim and
Tina is $580700 based on the 4.5% interest rate and minimum 10% loan deposit.
 The purchase price of the home is $490000 and the minimum deposit required is 10% of
the property value. So, the minimum $49000 deposit is required and as Tim and Tina is
contribution upto 75000 which include intial deposit of $50000 which is further above
V1.0 Document Owner: Released November 2022
Page 2 of 5