Assessing Clients' Loan Application and Borrowing Options

This document discusses the assessment of clients' loan application and borrowing options. It covers topics such as legislative requirements, borrowing capacity, repayment requirements, security, concessions, and potential risks. The document provides data and analysis to support the assessment.

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 — Responsible lending obligations Not yet
demonstrated
Not applicable
Task 9 — Self-employed special considerations Not yet
demonstrated
Not applicable
Task 10 — Advising on strategies Not yet
demonstrated
Not applicable
Task 11 — Impact of credit history Not yet
demonstrated
Not applicable
Task 12 — Dispute resolution Not yet
demonstrated
Not applicable
Section 3: Case study 3 —
Mary Jane Smith
Task 13 — Prepare and check a loan application Not yet
demonstrated
Not applicable
Section 4: Working in financial
services
Task 14 — Financial services legislation and industry
codes of practice
Not yet
demonstrated
Not applicable
Task 15 — Design and produce a document Not yet
demonstrated
Not applicable
DIPMB1_AS_v3A1

Task 16 — Applying principles of professional practice to
work in the financial services industry
Not yet
demonstrated
Not applicable
DIPMB1_AS_v3A1

Task 1 — Key terms, gathering and documenting client information
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.
Comment on issues such as:
• does it appear to meet legislative requirements (e.g. NCCP)
• maximum borrowing capacity of client
• capacity to meet deposit and total cash contribution for the loan required
• repayment requirements based on the loan required
• what the security will be and if it is appropriate
• do Jennifer and Phillip require Lenders Mortgage Insurance (LMI), and if so, how much will
it cost and what are the options to pay the fee
• what loan amount would you recommend, and why
• likelihood that the clients will be able to meet all their financial obligations
• do Jennifer and Philip qualify for concessions on any of the fees and charges
• 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)
Note: The assessment of the clients’ needs is a critical prelude to you completing Part 4 of
the Oral project requirement for this course.
Student response to Task 2: Question 1
The client is meeting all the legislative requirement of NCCP in order to borrow a home loan. It
includes that the borrower is a natural person. The charge is made for providing the credit and credit
provider provides the credit in course of a business. In the given case, the purpose of the borrower
behind borrowing home loan is to purchase and renovate the residential property for household
purpose. 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 (Bergmann, 2020).
The maximum borrowing capacity of the Philip and Jennifer is $1,519,000. The total loan amount
of the Philip and Jennifer is $446424 which is 440000 + 1.46% (LMI). The capacity of the client to
meet deposit is 10% which is $50000 and the clients are able to meet the capacity of the deposit.
The capacity of the Philip and Jennifer to meet the deposit amount is less than the total contribution
of $50000 for the loan requirement. It indicates that Philip and Jennifer are able to meet the 10% of
the initial deposit of home loan. The total cash contribution of the client for the loan requirement is
$75000 which includes $50000 of initial deposit and $25000 is the fees and charges of the lender.
The total amount of home loan required by Philips and Jennifer is $446424 at their initial stage.
Repayment requirement of the loan is that the tenure of the home loan is 30 years and the variable
interest rate of the home loan is 4.50% per year (Pawson, Milligan and Yates, 2020). The
requirement of the loan is also that the LMI is capitalized in the principal amount of the home loan.
The fortnightly repayment facility is also available to the client in order to half the repayment. The
lenders require 10% of the home's purchase price as initial deposit and remaining 90% as LVR.
Security in the case of home loan is a property security which guarantees the lenders that the
DIPMB1_AS_v3A1

original value of the security is higher than the loan amount and secures the loan. In this case, there
is no security provided by the Philip and Jennifer to the lender on order to secure the loan indicate
that the risk of losing the loan amount is high. In case if lender make compulsory security
requirement, then it will reduce the risk of the lenders. In this case, there is the requirement of LMI
and the cost of the cost of Lenders Mortgage Insurance is 1.46% which is $6424. Generally there
are two option is available to the borrowers in order to pay the fees of Lenders Mortgage Insurance
is an up-front fees and by capitalization in the amount of the home loan. Philips and Jennifer chose
the capitalization option to pay the fees of LMI to the lender. The loan amount that is suggestible to
the Philips and Jennifer is same $440000 that is approx 90% LVR. It is because the capacity of the
borrowers to pay the initial deposit is 50000 which is the approx 10% of the purchases price of the
home. But they can also borrow the loan up to their maximum borrowing capacity which is
$1,519,000 as per the joint annual salary and expenses of both Philip and Jennifer.
For the payment of the 50000 if initial deposit and 25000 of fees Philip and Jennifer can utilize their
joint saving account with amount $78000. The joint annual earning of the couple is $153000 and
annual expense is $33000, credit limit of $9000, personal loan payment of $2160 and the EMI of
$2262, the couple left with the saving of $81696 which indicate that the client is able to meet all
their financial obligations. Philip is a manager of the company and is not allowed for any
concession in the LMI fees and charges. But Jennifer is an accountant and as it is mentioned in the
provision of the home loan that the accountant LMI home loan is get waived if their maximum loan
value is up to $2 million and 90% of the property value is cover in the loan amount. As Jennifer is
meeting all the eligibility criteria of the LMI exemption, so lenders have to offer the no LMI home
loan to the couple in case if loan is taken by only Jennifer not jointly. As the interest rate of the
home loan is variable in nature, so it is one of the risk issue arise in future and the ability to meet
with issue is depends upon the percentage of change in interest rate.
2. (a) 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? (100 words)
Student response to Task 2: Question 2(a)
In case if the interest is increased by 3%, then the variable interest rate of the home loan in the
present case moved from the 4.50% to the 7.50% which also make changes in the loan repayment
amount. When the interest rate is 4.50%, then the EMI of the loan is $2262, total interest payable is
$367883 and the total payment including interest is $814307. In case of new interest rate of the
home loan of 7.5%, the loan is increased by $859, total interest payable and total payment is
increased by $309419 (Paterson and Howell, 2018). Because of the increase in the EMI, the couple
left with the saving of $71388 which shows that they are able to meet this extra repayments.
(b) 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 2(b)
In order to remove the interest rate risk one option that the client can adopt is by going with the
fixed rate of interest (Nicholson, Skelton and Tarr, 2019). Despite this, the client can also borrow
the large amount of the loan in order to reduce the rate of the interest. Borrowing the loan equal to
80% of the property value also reduces the interest rate risk.
DIPMB1_AS_v3A1

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
DIPMB1_AS_v3A1

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? (100 words)
Student response to Task 3
The way that the Philips and the Jennifer couple can adopt in order to avoid the cost of the Lenders
Mortgage Insurance is by saving the bigger deposits for the purchase of the affordable loan. This
further reduces the amount of loan to low value ratio and help the couple in avoiding the LMI of the
home loan (North and Wilson, 2020). The another way to avoid the LMI of the loan is by arranging
the any family guarantee and property security in order to cover the loan security. Being a doctor,
accountant any professional service also help in avoiding the Lenders Mortgage Insurance of the
home loan.
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
DIPMB1_AS_v3A1

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. (200 words)
Student response to Task 4
Six reasonable inquiries that the lenders have to make with the clients in order to reduce the risk of
the lender:
 What was the impact of the credit contract on the client when they enter into the complex
and unsuitable credit contract.
 Whether the client is the new or the existing customer of the credit provider.
 Whether the client has the capacity to enter into the credit contract after meeting its fixed
and variable expenses.
 The current salary of the client and the nature of the source of the client salary.
 The desired credit card limit of the clients and the period for which the credit is required.
 Recent income tax return, payroll slip and the statement of their income from their
accountant.
The importance of inquiries about the borrower's objectives, requirements and financial situations
help the lenders to know the clients profitability and the stability (Bhutta and Keys, 2017). This
further help the lenders to know whether the client has any assets to cover the home loans security
or not. It also helps the lenders to know the deposit capacity of the clients and the nature of the
source of the income.
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
DIPMB1_AS_v3A1

Task 5 — First Home Owners Grant and home buyer assistance schemes
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, who would be eligible and what would be
their benefit? Are Philip and Jennifer eligible for any assistance?
Note: Please identify which State or Territory you are from in your answer. (150 words)
Student response to Task 5
The state from where the Philips and Jennifer belong is the New South Wales of the Australia. The
eligibility criteria available to the first home buyer assistance under First Home Owner's Grant
scheme is if a client purchase existing home having value less than 650000 then they need not to
pay any transfer duty (Bhutta and Ringo, 2017). And if the value of the property is exists between
the 650000 and the 800000 and apply for concessional transfer rate than the amount of concession
is based upon the value of existing property. In the given case, Philip and Jennifer's purchase
existing home and the property value is 490000, then they are eligible for the full exemption of the
stamp duty.
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
DIPMB1_AS_v3A1

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. (100 words)
Student response to Task 6: Question 1
The three parties who are not directly involved in the processing of a loan is Glenn Brown brother
of Philip's, Real estate agent and the seller of the property. The role of the Glenn Brown is the pre-
settlement of the property purchase id that he reffer the Philip's and Jennifer's to the lender in order
to borrow the home loan (Koeppl and MacGee, 2017). The role of the Real state agent is to place a
meeting between the Philips and Jennifer's and the seller of the home. The real estate agent role is
intermediary. The role of seller in this case is that they are the owner of the home.
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. (100 words)
Student response to Task 6: Question 2
The first way towards maintaining the professional network is organizing and prioritize the current
connections on the social medias such as Facebook, twitter, Instagram etc. By showing the care
towards the professionals in order to stay in touch such as emails, phone calls etc (Park, 2020). is
also one way to maintain relevant network with the professionals. By offering the professional any
help in case they are in need of any help and by help them in case if the professional deals with any
challenge is the way to develop relevant network.
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. What process would you follow
during your discussion with the clients to ensure you have a good assessment of their needs?
(100 words)
Student response to Task 6: Question 3
The brokers are the professionals who experienced the different ins and outs of the claims process.
They build a strong relationship with the companies by working daily with the insurance companies.
The brokers are able to negotiate with the insurer on behalf of the clients in case if the things are not
straightforward with the claim (Park, 2018). The brokers are the one who truly take care of all the
issues the client faces while selecting the lender and also while taking the loan for the home.
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. (100 words)
Student response to Task 6: Question 4
The real estate brokers are not directly involve in the lending process or the buying and selling
agreement of the property, but they help the seller in knowing the market value of the property.
They also help the seller in providing the best client who can offer them the highest price of the
property (Ouazad and Kahn, 2019). Brokers of the real estate are the one who find the buyer for the
seller of the real estate property and they find the seller for the buyer of the real estate property. In
the given case the Philips and Jennifer come across the seller of the home through real estate broker
only.
DIPMB1_AS_v3A1

5. 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’ document in toolbox and
explain what the service standards and timelines are up to and including the issue of offer letter
and mortgage documents. (100 words)
Student response to Task 6: Question 5
The mortgage the confirmation of mortgage loan has been checked and approved by person. The
time taken by company to proceed the loan into person account and amount deduction and total
amount revived by the person and interest details and EMI's of person monthly wise will be given in
the time line (Wu and et.al., 2017).
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)
Student response to Task 6: Question 6
Solicitors are the one who gives legal advice to the private and the commercial clients in case if they
enter into any agreement with the others. The solicitor himself responsible for not able to solving the
legal issues related to the clients. In case if the solicitor is busy, they can call the branch and also
email the person who are practicing under the solicitor to solve the issues of the Philips and
Jennifer's (Competition and Consumer Commission, 2020). The client also file complaint against the
solicitor that they are proceeding the lending process and also not forwarding the work to the other
solicitor. The role of the solicitor is to provide all the legal advice to their client in case if they sign
the agreement. If solicitor are busy, then they have to tell this to the clients before entering into the
agreements.
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
DIPMB1_AS_v3A1

Task 7 — Interest rates
1. Conduct your own research and answer the following:
(a) What is the role of the RBA with respect to the movements of interest rates?
(b) Why is it important to have these controls and how do they impact mortgage
loans in Australia?
(c) Are banks obliged to follow the RBA cash rate? Explain the reason for your
answer.
(200 words)
Student response to Task 7: Question 1(a)–(c)
RBA form monetary policy that also involve declaration of the interest rate. It takes decision over
interest rate that further influence over interest charge by other banking and financial institutions.
The policy directly influence the further borrowing transactions in Australia. Banks come under the
RBA which is further influenced the interest rate (Wong and et.al., 2018). Monetary policy is
unanimous of the entire country which further influence every single aspect of the policy making in
country.
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.
(a) Explain the process you would use to research and identify the various
product options available to meet the needs of Philip and Jennifer.
(b) Explain to Philip and Jennifer two (2) advantages and two (2) disadvantages
of fixing a loan over different fixed rate terms.
(150 words)
Student response to Task 7: Question 2(a)–(b)
The research in respect to the interest rate can be done with the support of professionals. They can
further go through internet to search the entire information. As internet disclose the different
product options. The information sources provide different advantages like it clarify the client about
the product. Interest rate also clarifies in this. There are certain disadvantage like many times
information do not modify by these information sources (Wilhelmsson, 2020). Also the
professionals in greed of grating customer spread wrong information that is further mislead the
entire information.
3. What other option/s can you suggest if they remain uncertain about whether to fix the rate on
their loan? (100 words)
Student response to Task 7: Question 3
They can visits to branch location in search of information. This will led them towards the right
information. Interest in loans are rather fix or flexible. The current loan do not offer fixed interest
that indicate as the interest will remain flexible.
Assessor feedback for Task 7 — Interest rates
DIPMB1_AS_v3A1

(Insert Feedback)
Question(s) that need to be resubmitted
(if required)
(List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
DIPMB1_AS_v3A1

Section 2: Case study 2 — Richard and Pauline Jackson
DIPMB1_AS_v3A1

Task 8 — 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)? (150 words)
Student response to Task 8: Question 1
Substantial hardship is denoted as unanticipated emergency that is caused due to an event outside
of the control of an individual. Substantial hardship demonstrate as an event causes to some
financial failures over the dependents of borrower. RG 209 issues of ASIC indicated that a
product is not suited if consumer is unable to comply with financial obligation (Herbst, 2018). The
issue is related to evaluation about the individual capacity and potential of customers in respect to
the repaying obligations.
2. What are the benefits of debt consolidation for Richard and Pauline? (100 words)
Student response to Task 8: Question 2
Debt consolidation will allow the Richard and Pauline to easily manage the repayment deadline. It
further lower the interest rate over borrowing. It minimizes risk of collateral repossession. It
further regulates the fixed payment amount in respect to loans and due amount (Amurwon and
et.al., 2017). It also supports in reducing risk value. It reduces the monthly expenditure in respect
to debt repayment. This will further support the Richard and Pauline to improve the credit score.
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 8: Question 3
Lender Interest rate Monthly repayment Debt
One State Bank 4.50% $1898 300000
Total 4.50% 1898 300000
DIPMB1_AS_v3A1

4. What savings will Richard and Pauline obtain in monthly repayments?
(Remember to show the calculation of how you determined the savings). (100 words)
Student response to Task 8: Question 4
Richard and Pauline will save $1219 (3117 – 1898). They will get significant advantage in
repaying every monthly installment due to the inclusion of all the debts in housing loan. This
saving will further improve the buying power of the individuals. $1219 is a significant amount
that can further support the Richard and Pauline in repaying all dues and also meet the monthly
expenditure of both the individuals (Moore and Doyon, 2018).
Assessor feedback for Task 8 — Responsible lending obligations
(Insert Feedback)
Question(s) that need to be resubmitted
(if required)
(List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
DIPMB1_AS_v3A1

Task 9 — 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? (150 words)
Student response to Task 9: Question 1
Richard and Paulie both are business personals. They need to submit the return over the income of
business. In process of taking loan over business income tax returns needs to be submitted. Based
on the income demonstrated under the return filled total income is analysis of both Richard and
Paulie. Total income they earn are presented under the return submitted. This is a conclusive basis
to project the income of both the individuals. Income of self employers are always tough to guess
as it is impossible to predict the existing income based on previous income structure (Shulman,
2018). Income tax return will project the exact income earned by both Richard and Paulie. Eturn
contain all types of income such as salary, business, rental and all other types of sources of
income. This is the only way to identify the income of self-employed individual.
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. (150
words)
Student response to Task 9: Question 2
In case of Low doc application extra documents like borrower income declaration, ABN and
Business Activity Statement are also the additional documents that needed to be submitted by the
business entity. These documents are the additional requirements associated with the loan
application under low doc application. Borrower income declaration is the self projection of
borrower in respect to its income. This document clearly define the amount of income it earns
every month or year (Loan and et.al., 2018). ABN further demonstrate about the income of an
individual. Activity based statement also disclose all types of activities about the business
organization. Activities demonstrate about the income of the Richard and Pauline. All these
documents demonstrate about the income in different ways. In case of loan income of the borrower
play huge role as it demonstrate about the repaying capacity of the borrower. Based on the income
overall purchasing power of the borrower is identified ad which further reflect the individual
potential ability to meet up its loan liability.
3. Explain how applying for a Low-doc loan could lead the mortgage broker to be accused under
NCCP of recommending an ‘unsuitable’ product. (250 words)
Student response to Task 9: Question 3
DIPMB1_AS_v3A1

Low doc loan is a process in which lender approve the home loan of the borrower without
availability of income verification. In case of loan income verification play a huge role as it
directly demonstrate the income of the individual taking loan. This process allow the lender to
assess and analysis of the income capacity and potential of the borrower. As this process do not
required income verification that also causes to bad debt in many cases. Many times under this
practice due to the unavailability of the proper income records of the borrower lender allow the
money more than the actual capacity of the borrower. In such a circumstance the product is called
as unsuited. In context to loan suitability of borrower to meet all requirements so that there are no
further issues arises in repayment of respected loan (Wilkinson, Antoniades and Halvitigala,
2018). NCCP clearly disclosed all key requirements associated with loan payment and borrowing
terms. When any unsuited product arises in the mortgage than the broker also get accused. This
further include such loans that are taken out of the fake documentation. In case of loan documents
are essential as all further inquiries are proceeded based on the information submitted. All loans
taken based on fake documentations are disclosed as suited. This is the responsibility of the
Mortgage broker to assess the authenticity of the documents submitted in the whole transaction. If
any casual arises after the loan has been given proper inquiry over the mortgage broker is
established to identify whether the broker is under guilty or not.
Assessor feedback for Task 9 — Self-employed special considerations
(Insert Feedback)
Question(s) that need to be resubmitted
(if required)
(List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
DIPMB1_AS_v3A1

Task 10 — 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. (300 words)
Student response to Task 10
Loan repayment is a process in which individual try to clear the liability. Richard and Pauline can
use strategy such as increased repayment with rise of income. They can use investment to repay the
debt value. The changes can also made in lifestyle so that buying power could have been increased.
These are the three different strategies that could have been implemented to repay the total debt
amount in a convenient way possible. These strategies will favor the Richeard and Pauline to
flexibly repay the entire loan amount. In case of long term loan like home loan where the total
tenure is approximately 30 years in time flexibility become very important as a borrower. Igf the
proper flexibility is not maintained in the loan repayment than failures can be faced by the borrower
in against to repay the entire loan value (Porzio, Sampagnaro and Verdoliva, 2020). These strategies
would support the individual to easily manage all dues against the loan repayment. Flexibility is
very important in monthly installment and other expenditure associated with the individual. Loan
repayment needed to be convenient enough especially the loans like home loan which contain the
age of 30 years. These strategies would allow them to flexibly manage all dues. These strategies
would support in restricting loan value in a certain time in process of repaying all dues. The major
emphasis in these strategies over the buying power of the individual when it comes to repaying the
overall dues.
Assessor feedback for Task 10 — Advising on strategies
(Insert Feedback)
Question(s) that need to be resubmitted
(if required)
(List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
DIPMB1_AS_v3A1

Task 11 — 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. (200
words)
Student response to Task 11: Question 1
Credit rating are the score of an individual generate out of the loan repayment. Agencies like
Experience, Equifax and Illion are directly involved under the credit rating score. These
organizations allow the banks a financial institution to identify the credit score of an individual. The
credit rating agencies analysis the credit score of the borrower based on the past history of the
individual against taking loans. IN the present case Richard re-payed the loan of his wife. The
failure of the wife in repayment of loan will not effect the Riched as the loan was take by the wife.
Also the Richrd helped his wife in repaying the due (Juru, 2019). There will be not any impact over
the credit score of the Rchrd just because it has helped the wife to repay the due installments. This
becomes essential for the individual to repay all installments on time as it affect the credit score but
in case the individual is repaying loan of its relative it will not impact over the credit score of its
own.
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. (100 words)
Student response to Task 11: Question 2
Time required for the agencies like Equifax and Illion to provide the copy of credit score is 30 to 45
days. This time is the maximum expected time needed for these agencies to provide the copy. There
is a set procedure through which an individual can apply in these agencies in order to get the copy
of the credit score.
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. (150 words)
Student response to Task 11: Question 3
In case of any error in the credit score occurred individual can apply over the help center to rectify
such an error. This will take some time to respond the help center. Instructor will help the individual
in guiding the further process to erase such an error (Namvar and et.al.,, 2018). Help center
executive will listen to the person and based on that it give a instant solution of the problem. This
will favor the individual in solving any query and doubt related to the credit score ratings.
DIPMB1_AS_v3A1

4. What obligation does the Privacy Act imposes on the Lender to supply the client, in terms of
certain information, if they decline an application due to the content of the credit agency file?
(100 words)
Student response to Task 11: Question 4
Information or data protection act is applicable over the financial institutions. They should not be
disclose any personal information of client with anyone. In case of any breach in this legislation the
respected bank and institution will have to bear the legal obligation. Proper compensation will have
to bear to the lender in case of breach of the agreement. Information is very crucial and in case of
any transaction occurred in the banking sector institute carry the responsibility where they can not
share the information of client with any other individual.
5. What alternate options can you suggest to Richard and Pauline in the event that the loan was
rejected by the lender you initially proposed due to a credit report? (150 words)
Student response to Task 11: Question 5
Richard and Pauline can apply in other institutions and banking organizations for the same loan.
This is an instant option available in front of them in case of loan application get rejected due to the
low credit score. Further they contain an option where they can wait form the few months like two
or three to get improve the credit score. There are other options like taking gold loan to improve the
credit score and then to apply back for the home loan (Kraal, Haritos and Cantley-Smith, 2020). All
these are the key options or choices available for the Richard and Pauline. Under all these strategic
choices they will get to address different requirements associated with the credit score. These
options are based on the circumstances of increasing the credit score of the borrower.
Assessor feedback for Task 11 — 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
tudent response to Task 12: Question 1a
Customer
Complaint Report
Customer name Richard
Title (Mr, Mrs, etc.) Family Name (surname) Given names
Mr Jackson Pauline Jackson
Service being
provided to client
DIPMB1_AS_v3A1

Home Loan
Nature of complaint
Delay in Loan
Processing.
(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 12: Question 1b
Delay in lending process system due to shortage of staff , transfer of documentation, checking of all
documents of both the partners and weak financial statement may create some delay in processing.
(c) Refer to the ‘Example of an Organisations Policies and Procedures’
document in the toolbox. Produce a short report which 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 12: Question 1c
Technology can be used to update the file procedure of period that can be tracked through app or
company portal. Time taken by bank should be clear to customer that are taken by company. The
credit report of customer should be clear that can is providing to customer. Different policies should
be made for urgent files where customer wants urgent credit from bank. The income source are
verified, insurance of customers and inspection of their history and background.
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 12: Question 2
Financial ombudsman is a service of ombudsman in united Nation. They work as a resolution that's
fair and impartial. It is free and easy to use service that settle complaint between the business and
customers that provide financial service. They have the power to put thing right according to fair
and impartially. The role of Australian financial complaint authority in external dispute resolution
that they work as an independent and impartial. They bring the appropriate outcome when decision
is unable to make. They provide compensation of loss suffer due to firm's error of inappropriate
conduct of activity. They not impose fine to those companies or charge with mistake. The option
that is available to the claimant after the determination is made is that claimant can either cover it's
all losses by the company on their behalf or compensation is being provided to claimant. If the loss
is huge or their impact is high they also claim company to take resign from responsible person.
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.
DIPMB1_AS_v3A1

Student response to Task 12: Question 3
Maximum limit is $500,000 directly or indirectly.
Assessor feedback for Task 12 — 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
Section 3: Case study 3 — Mary Jane Smith
Task 13 — Prepare and check a loan application
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 13: Question 3
The Three different errors which are passport, Bank debit card and Medicare card. Driver license is a
document that permitted a person to drive the motor car on public places. Pay slip is basically the
note that is given to employee by employer when they have been paid, detailing the amount of given
payment with tax deduction and insurance deduction.
4. Refer to the ‘Example of an Organisations 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 13: Question 4(a)
The current pay slip of Mary and credit card statement.
DIPMB1_AS_v3A1

(b) Legislative requirements (particularly NCCP).
Student response to Task 13: Question 4(b)
Rental properties of Marry and Last 12 months ATO tax portal statements from the ATO shows the
legislative requirement.
(c) Industry Code of Practice.
Student response to Task 13: Question 4(c)
Council approved plans and specifications and Copy of contract/offer including title details
Assessor feedback for Task 13 — 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
Section 4: Working in financial services
Task 14 — 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 Industry codes of practice. (50 words)
Student response to Task 14: Question 1
SLP Amendment -information bullet and Alert for individual Act or Regulation are the two main
website to keep updated with legislative changes.
For industry code of practice BBC and Economic Times should be prefered.
2. Describe the key features of:
(a) The National Consumer Credit Protection Act 2009. (150 words)
Student response to Task 14: Question 2(a)
DIPMB1_AS_v3A1

The key feature of The National Consumer Credit Protection Act 2009 is to protect the consumers
and ensure the ethical and professional standards are maintained by financial industry. They work
for the consumers to protect the interest from company fraud or any mislead activities that are
conducted in a form of financially are governed under the National consumer Credit protection act
2009. It allows ethical working between lenders and brokers that must hold credit lenience or
registered under authorized credit Representative. The rules and regulation is implied on both
parties that must be followed to protect the consumers from fraud and misleading by brokers. The
charges are made on provision of credit which is provided by creditor for business purpose in a
ethical manner and no unethical activities are being conducted by any of them.
(b) The Privacy Act.
Student response to Task 14: Question 2(b)
The privacy act is a principle piece of Australian legislation which is working for protecting the
handling of personal information and storing of data securely. This include the collection of data,
usage of data and disclose of personal information in public federal and private sector.
(c) Code of Practice.
Student response to Task 14 Question 2(c)
The main function are complying with all laws in country, maintain correct and relevant standards,
arranging appropriate finance support for people etc.
3. How would you communicate any changes in legislation or codes of practice to colleagues?
(100 words)
Student response to Task 14: Question 3
The communicate with colleagues for the change in legislation or code of practice can be done
through messaging app, personal groups chat, through emails or physical communication by face to
face. The most appropriate way is to communicate with face to face for understand better
information and opinion of other person. Better understanding and more effective communication
need to be done at a time of face to face conversation.
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)
DIPMB1_AS_v3A1

Student response to Task 14: Question 4
These are very crucial and personal information of individual that need to keep secret from others.
This can be done through protecting this information in a safe portal where only top authority or
authorize person can access the information for business use only and not personal use.
Assessor feedback for Task 14 — 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
Task 15 — Design and produce a document
Student response to Task 15
Date Activity Duration Content Method Location CPD points
15 March,
2021
Communicat
ion skill
4 Weeks Communicat
ion skill will
support to
perform
better
operation
Active
listening
ability.
Observation.
Australia 4
21
March,2021
Presentation
skill
6 weeks Observation,
creative,
writing,
decision
making
practices
(Huijsmans
and et.al.,
2019).
Presentation
model.
Australia 5
26 March,
2021.
Management
ability
6 weeks Critical
lerning,
decision
making,
meditation
and other
such
Management
model.
Australia 5
DIPMB1_AS_v3A1

activities.
Assessor feedback for Task 15 — Design a 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
DIPMB1_AS_v3A1

Task 16 — 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 16
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?
MFAA Initial
compliance
park.
This course is
about to assist
the brokers of
finance in
understand
about the
legislation.
This event is
enrolled by
any individual
interested in
brokering
(Sinha,
Sawaliya and
Sinha, 2020).
This event will
allow to gain an
idea about all
key legislation.
$ 73000 to $84000 18
MFAA
Experience and
skill education
This is about
the loan
writing
experience.
This course
will allow the
complete
knowledge and
guidance about
the brokerage
business.
This will favor
to get
professional and
practice
knowledge
about the sector
(Ngoc Bich and
et.al., 2019).
$ 70000 to $80000 19
Assessor feedback for Task 16 — 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
DIPMB1_AS_v3A1

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
Philip and Jennifer Brown
Lessor and
lessee
Mortgagee and
mortgagor
2. In your own words, and using the grid below; explain what the different documentation required
by a lender is:
Credit check
authority signed
Equifax, Check you credit and Experian.
Guarantees Glen Brown
Loan contract 0 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: Loan application fee is waived under Special Offer.
Periodical
payment
authority
Philip and Jennifer
Signed
application
form
Answer here
DIPMB1_AS_v3A1

3. In your own words, and using the grid below; describe:
The negotiation
process
Negotiation for applicable will be waived under the special offer. Higher authority
of bank will take a call over negotiuation.
DIPMB1_AS_v3A1

Appendix 2: Client information collection tool/Fact finder
Appointment date: Student to insert date
Appointment time: Student to insert time
Applicant 1 Applicant 2
Surname Jacksone Jacksone
Other names Richard Pauline
Contact
details
Address 46 walters road, Ritchfield 46 walters road, Ritchfield
Phone (W)
Phone (H)
Answer here Answer here
Mobile Answer here Answer here
Email Answer here Answer here
Employment Self employment Self employment
How long? 8 years 8 years
Previous employer (if less than
two years) Answer here Answer here
How long? Answer here Answer here
Employment type
(FT/PT/Casual/Self-employed) Answer here Answer here
Gross income (p.a.) Answer here Answer here
Number of dependants 0 0
Motor vehicles $15,000 $15,000
Loan purpose Overcome
existing debt
Purchase price/Valuation Answer here
Deposit on property Answer here
Loan amount $300,000
Borrowing capacity (using
Genworth serviceability
calculation)
$300,000
DIPMB1_AS_v3A1

Assets and liabilities
Assets Liabilities
Details Market value Details Monthly
payments
Amount owing
Owner Occupied
Property at: 46 Walters
Road,
Ritchfield
Mortgage with: Answer here Answer here
Investment Property at: Answer here Mortgage with: Answer here Answer here
Cash at bank
(includes fixed deposits) Answer here Car leasing Answer here Answer here
Other cash
(includes offset accounts) Answer here Personal loans
1.
2.
$1,567.00
$240.00
$90.00
$370.00
$850.00
$270,000
$8,000)
$3,800
$3,400
$15,000
Deposit paid on property
(only if paid) Answer here Overdraft Answer here Answer here
Motor vehicles:
1.
2.
$15,000
$25,000
Other loans:
1.
2.
Answer here Answer here
Personal effects Answer here Credit card limit:
Answer here
Answer here Answer here
Business value (if self-
employed) Answer here Credit card limit:
Answer here
3% every month Answer here
Shares and investments Answer here Other: Answer here Answer here
Superannuation $75000 Other: Answer here Answer here
Other assets (give details) $75700 Other: Answer here Answer here
Total assets 680700 Total liabilities 2267 285000
Surplus/deficiency: (Total assets less Total liabilities) $395700
DIPMB1_AS_v3A1

CURRENT MONTHLY LIVING EXPENSES
(Provide a breakdown of the total amount
listed in the case study — use your discretion)
Food/housekeeping $1500
Insurance (e.g. motor vehicles, home contents/ building, medical,
life/income protection) $3500
Utilities (e.g. rates, gas, electricity, transport) $1000
Transport (e.g. public transport, petrol, registration, repairs) $1200
Education (e.g. school, college, university) $500
Dependents support (e.g. childcare, child maintenance) $800
Entertainment (include online subscriptions, e.g. Netflix/Stan) $600
Other (detail below): $500
MONTHLY LIVING EXPENSES $9400
DIPMB1_AS_v3A1

Needs analysis
1 Name of your current lender? First and Last
Bank
2 What type of mortgage loan do you have? Home loan and
credit card loan
3 Why did you choose this particular loan and lender? Affordable
interest rate
and repayment
4 What is the interest rate? 5.70%
5 What are your
payments?
Amount $1567
6 Frequency Every month
7 Do you know the fees and charges? Yes
8 What is your proposed purpose for the loan you are
applying for? Overcome debt
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 Yes
13 Type of loan sought Home loan
14 Preferred Interest rate range 4% to 7%
15 Payment frequency Monthly basis
16 Redraw Answer here
17 Offset Answer here
18 Salary crediting Answer
19 Low fees and charges $7800
DIPMB1_AS_v3A1

Notes
NB: Providing substantive notes here is a compulsory part of your assessment.
Total due value, interest charge, repayment and all aspects of the loan is clear to the borrower. All
terms has been clarified related to loan.
DIPMB1_AS_v3A1

Anticipated fees and charges
Anticipated purchase price Answer here
Deposit on property Answer here
Loan amount Answer here
LVR Answer here
Purchase costs
Stamp duty on transfer (include
transfer fee) Answer here
Solicitor/conveyancer (estimate) Answer here
Rates and land taxes (estimate) Answer here
Pest inspection (estimate) Answer here
Building Inspection (estimate) Answer here
Borrowing costs
Application/establishment fee Answer here
Valuation fee Answer here
Security admin fee Answer here
LMI Answer here
Registration of mortgage Answer here
Release of mortgage Answer here
Search fees Answer here
Other Answer here
Total purchase and borrowing
costs Answer here
DIPMB1_AS_v3A1

Funds to complete
PURCHASE AND LOAN COSTS: AVAILA
BLE
FUNDS:
Purchase price: $490,000 Deposit if paid Answer here
Lender application/valuation
fees: Answer here Cash savings: Answer here
Transfer stamp duty/transfer
fee Answer here Sale proceeds: Answer here
Government registration
fees Answer here Gift: Answer here
Solicitors fees: Answer here FHOG: Answer here
Other Answer here Other: Answer here
Lenders Mortgage Insurance
Added to Loan Yes / No
Answer here Other: Answer here
TOTAL COSTS (A): $490,000 TOTAL OWN FUNDS (D): Answer here
LOAN AMOUNT
REQUESTED (B): $270,000 OWN FUNDS REQUIRED
(A–B) = C: Answer here
OWN FUNDS
REQUIRED (A–B) = C $270,000 SURPLUS/SHORTFALL
(D–C) Answer here
DIPMB1_AS_v3A1

Loan interview diary
Name(s) of client(s) present at interview
Richard Jackson
Pauline Jacksone
Date of interview
Answer here
Location of interview
Ritchfield
Indicate all clients who were interviewed in person
Richard Jackson
Pauline Jackson
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?
Answer here
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
If yes is answered to any of the above questions, have the clients been advised to seek
the services of a lawyer or financial adviser? Y/N
DIPMB1_AS_v3A1

Provide details of other pertinent information obtained during the loan interview which may be of
interest or of any unusual circumstances you may wish to record.
Answer here
DIPMB1_AS_v3A1

Cover sheet
Applicant name Richard and Pauline Jackson
Broker name Answer here
Contact phone/Mobile Answer here
Email address Answer here
Solicitor/conveyancer details
Name Answer here
Address Answer here
Contact phone/Mobile Answer here
Email address Answer here
Loan summary
Loan amount $270,000
Loan term Answer here
Variable or Fixed rate Answer here
Principal and Interest or Interest only Answer here
Broker notes and recommendation
All terms and condition of the loan are already prescribed to the borrower.
DIPMB1_AS_v3A1

Loan application details
Applicant 1 Applica
nt 2
Personal details
Surname Jackson
Other names Richard and Pauline
Date of Birth Answer here
Marital Status Married
Number of Dependents 0
Contact
details
Current address Answer here
Time at address Answer here
Phone (W)
Phone (H)
Answer here
Mobile Answer here
Email Answer here
Previous Address (if less than 2
years) Answer here
Current employment
details
Employer and contact details Self employment
Job Title Answer here
Employment type
(FT/PT/Casual/Self-employed) Business
How long? 8 years
Previous employer (if less than
two years) Answer here
How long? Answer here
Employment type
(FT/PT/Casual/Self-employed) Answer here
Income details
DIPMB1_AS_v3A1

Applicant 1 Applica
nt 2
Gross salary per annum Answer here
Monthly net salary Answer here
Social security Answer here
Pension Answer here
Other — specify Answer here
Loan details
Loan product 1
Product name Home loan Loan amount $270,000
Loan term (years) Answer here Interest 5.70%
Loan purpose Clear debt
Options required
Security details
Security property 1
Address of property Answer here
Estimated value/purchase
price Answer here
Property type Answer here Number of bedrooms Answer here
LVR Answer here Approx. floor area (if
known) Answer here
DIPMB1_AS_v3A1

Assets and liabilities
Savings, term deposits and other accounts
Name of institution Account type Owner Current balance
Answer here Answer here Applicant 1: %
Applicant 2: %
Answer here
Investments including superannuation, life insurance, shares, trusts
Name of institution Investment type Owner Current balance
Answer here Answer here Applicant 1: %
Applicant 2: %
Answer here
Motor vehicles
Make and model Year built Owner Market value
Answer here Answer here Applicant 1: %
Applicant 2: %
Answer here
Other assets including personal effects, cash, boats, tools of trade etc.
Personal effects and household items
(furniture, electrical goods, clothing, jewellery, etc.) Applicant 1: %
Applicant 2: %
Answer here
Others Applicant 1: %
Applicant 2: %
Answer here
Total assets A
n
s
w
e
r
h
e
r
e
DIPMB1_AS_v3A1

Liabilities
Credit cards
Name of Lender Borrower Interest rate Limit Balance
Answer here Applicant 1: %
Applicant 2: %
% Answer here Answer here
Answer here Applicant 1: %
Applicant 2: %
% Answer here Answer here
Other loans
Lender and loan type Borrower Loan
repayment
Limit Balance
Applicant 1: %
Applicant 2: %
$ $ $
Total liabilities A
n
s
w
e
r
h
e
r
e
Surplus/deficiency A
n
s
w
e
r
h
e
r
e
DIPMB1_AS_v3A1

REFERENCES
Books and Journals
Wong, S. Y. and et.al., 2018. Improving information gathering and distribution on sustainability
features in the Australian residential property market. Journal of Cleaner Production. 184.
pp.342-352.
Wilhelmsson, M., 2020. What Role Does the Housing Market Play for the Macroeconomic
Transmission Mechanism?. Journal of Risk and Financial Management. 13(6). p.112.
Herbst, D., 2018. Liquidity and Insurance in Student Loan Contracts: The Effects of Income-Driven
Repayment on Borrower Outcomes.
Amurwon, J. and et.al., 2017. “Helping my neighbour is like giving a loan…”–the role of social
relations in chronic illness in rural Uganda. BMC health services research. 17(1). pp.1-12.
Moore, T. and Doyon, A., 2018. The uncommon nightingale: sustainable housing innovation in
Australia. Sustainability. 10(10). p.3469.
Shulman, J. G., 2018. Regulating Online Marketplace Lending: To Be a Bank or Not to Be a
Bank. Rutgers Computer & Tech. LJ. 44. p.163.
Loan, F. A. and et.al., 2018. Open Access Religious Journals-An Analytical Study of the
DOAJ. Library Philosophy and Practice. 2018.
Wilkinson, S., Antoniades, H. and Halvitigala, D., 2018. The future of the Australian valuation
profession: New knowledge, emerging trends and practices. Property Management.
Porzio, C., Sampagnaro, G. and Verdoliva, V., 2020. Lost in Translation: The determinants and the
effect of soft information dispersion in bank lending. Global Finance Journal. 43.
p.100418.
Juru, M., 2019. The role of real estate practitioners in the financial market. Aspects of Real Estate
Theory and Practice in Zimbabwe: An Exploratory Text. p.249.
Namvar, A. and et.al.,, 2018. Credit risk prediction in an imbalanced social lending
environment. arXiv preprint arXiv:1805.00801.
DIPMB1_AS_v3A1

Kraal, D., Haritos, V. and Cantley-Smith, R., 2020, March. Tax law, policy and energy justice: Re-
thinking biofuels investment and research in Australia. In Australian Tax Forum (Vol. 35,
No. 1, pp. 31-58).
Sinha, P., Sawaliya, P. and Sinha, P., 2020. Surviving Coronavirus scare: A journey of stock
market amid a slowdown in Indian Economy.
Ngoc Bich, N. and et.al., 2019. Salience and impact of health warning label on cigarette packs in
Vietnam: findings from the Global Adult Tobacco Survey 2015. Behavioral Medicine.
45(1). pp.30-39.
Huijsmans, I. and et.al., 2019. A scarcity mindset alters neural processing underlying consumer
decision making. Proceedings of the National Academy of Sciences. 116(24). pp.11699-
11704.
DIPMB1_AS_v3A1

Bergmann, M., 2020. The Determinants of Mortgage Defaults in Australia–Evidence for the
Double-trigger Hypothesis (No. rdp2020-03). Reserve Bank of Australia.
Pawson, H., Milligan, V. and Yates, J., 2020. Housing Policy in Australia. Springer Singapore.
Paterson, J. and Howell, N., 2018. Everyday consumer credit overview of Australian law regulating
consumer home loans, credit cards and car loans: Background Paper 4.
Nicholson, G., Skelton, R. and Tarr, J. A., 2019. An exploratory study of regulatory failure in the
Australian home mortgage market. Journal of Consumer Affairs, 53(1), pp.126-166.
North, G. and Wilson, T., 2020. Has the Australian prudential regulation authority done enough to
meet its legislated objectives and prepare Australia for the next financial
crisis?. UNSWLJ, 43, p.552.
Bhutta, N. and Keys, B. J., 2017. Eyes wide shut? Mortgage insurance during the housing boom.
Working Paper.
Bhutta, N. and Ringo, D., 2017. The effect of interest rates on home buying: Evidence from a
discontinuity in mortgage insurance premiums.
Koeppl, T. V. and MacGee, J., 2017. Mortgage Insurance Deductibles: An Idea Whose Time Hasn't
Come. CD Howe Institute Commentary, 485.
Park, K. A., 2020. Choice, capital, and competition: Private mortgage insurance application and
availability. Housing Policy Debate, 30(2), pp.137-163.
Park, K. A., 2018. Appraiser independence, bias and mortgage insurance claims. Bias and
Mortgage Insurance Claims (June 18, 2018).
Ouazad, A. and Kahn, M., 2019. Mortgage finance in the face of rising climate risk. NBER working
paper, (w26322).
Wu, Y. C., and et.al., 2017. Fair valuation of mortgage insurance under stochastic default and
interest rates. The North American Journal of Economics and Finance, 42, pp.433-447.
Competition, A. and Consumer Commission, 2020. Home loan price inquiry: interim report.
Schmulow, A., Fairweather, K. and Tarrant, J., 2019. Restoring confidence in consumer financial
protection regulation in Australia: A Sisyphean task?. Federal Law Review, 47(1),
pp.91-120.
Johnson, D., Rodwell, J. and Hendry, T., 2021. Analyzing the Impacts of Financial Services
Regulation to Make the Case That Buy-Now-Pay-Later Regulation Is
Failing. Sustainability, 13(4), p.1992.
DIPMB1_AS_v3A1