FNSFMB401 Assessment 2 - Performance: Prepare Loan Application

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F NSF M B 40 1 Pr e par e l oan ap pli cati o n on b e h al f o f f i nanc e or mor tgag e
broking clients
As se ssm e n t 2 - P e rfo rm a n c e

Assessment information
You work as a mortgage broker for ZYX Financial Services Pty Ltd (ZYX). XYZ represents a number of
Australian home loan lenders.
New clients, Sam and Michelle have come to you for advice about obtaining a home loan.
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.
S e c t io n 1 – Re vie w Cl ie nt In fo r m a ti o n Re qu ir e m e nts
Download and review the Home Loan Enquiry Case Study, located in the Assessment Resources
folder.
Se c t io n 2 – A ss e ss C l ie nt H o m e L o a n
Now complete each of the following steps:
1. Assess whether a home loan application by Sam and Michelle, based on typical current lender
requirements, is likely to be successful. Provide detailed explanations in support of your
answer.
Sam and Michelle are earnings quite well on an annual basis. But the savings they could make out
of it is quite less for meeting the repayment requirements if they applied for the home loan of $600000
but there savings are quite impressive towards making repayments.
However, there is an option available to this couple of getting lender mortgage insurance which
would be helpful for them in obtaining home loan for the purpose of getting owner occupied house. As
per the requirements of LMI, the borrower need to make deposit not less than 10% of the loan amount
which is not at all refundable and non-transferable (Meredith and Darroch, 2018). Here Sam and Michelle
could put down a deposit equivalent to 10% and the LMI would be helpful in assuring the repayments on
time. Also, if they are the buyers of home for the first time, then they will also get eligible for the grant