Identify Client Needs for Broking Services

FNSFMB402 IDENTIFY
CLIENT NEEDS FOR
BROKING SERVICES

TABLE OF CONTENTS
WRITTEN ACTIVITY....................................................................................................................4
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Explanation of information related to finance and broking processes and products..................8
Documenting and analysing client’s financial position..............................................................9
Complying with the company policy and relevant legislations in the context of disclosure to
facilitate informed decisions.......................................................................................................9
Building rapport with client...........................................................................................................10
Explanation of broking process.................................................................................................10
Clarification on role of a broker................................................................................................10
Providing information to client.................................................................................................11
Confirming the understanding of the client..............................................................................11
Information regarding the complaints procedure......................................................................11
Determining the client financial situation......................................................................................11
Disclosing facts.........................................................................................................................11
Current investment and assets position of the client.................................................................12
Initial analysis of financial position..........................................................................................12
Determination of clients goals and priorities.................................................................................12
Clarifying expectations.............................................................................................................12
Exploring difference between products....................................................................................12
Responding................................................................................................................................12
Determining client’s priorities..................................................................................................13
Seeking specialist advice...........................................................................................................13

RESEARCH TASK AND WIRTTEN / ORAL QUESTIONS.....................................................13
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REFERENCES..............................................................................................................................18

WRITTEN ACTIVITY
1
Variable and fixed interest rates
Fixed interest rate loan is the one where in the rate of interest is same for the entire borrowing
period. The fixed interest rates can be simply stated that at the cost of borrowing of the amount
of money remains same of constant throughout the life of the tenure of the loan (Gyorki, Harris-
Roxas and Lewis, 2018).
In contrast to this SIM the variable interest rate loans are the one there in the interest rate is being
adjusted over the time in response to the change within the market. The variable interest rate is
the rate at which varies relating to different changes within different factors.
Types of mortgage accounts
There are many different types of mortgage accounts which can be undertaken by person. The
several types of mortgage loans are as follows-
Bridging loan- this is a type of loan which is undertaken if the person is buying a new property
while they are also looking to sell their existing property. This is a bridging gap because you are
the person is seeking to sell of their old property and to buy a new property and for the difference
amount they will take the loan.
Construction loan- not the type of mortgage account where in a construction loan is the one
which specialises in helping and meeting the unique need of ongoing payment across the whole
process of construction.
Procedure and principles of deposit bonds
The deposit bond is a guarantee by an insurance company made to the seller of the property that
they will complete the purchase (Bowley, 2017). The deposit on a home purchase is normally
paid when the contract is being exchanged and the major benefit of deposit bond is that it is
ready to exist to cash with no need to defend to the savings. The procedure for applying for a
deposit bond is as follows-
 Your home loan approval
 A copy of the Contract for property sold that will assist in the purchase of your new
property