Finance and Mortgage Broking Written Project

This task requires the student to define and explain loan transaction terminology and match document names with their definitions. The task aims to test the student's understanding of the common terms and document names used in the finance and mortgage broking industry.

Written Project

Certificate IV in Finance and Mortgage Broking
(CFMB_ASMG_v1A1)
Document classification: Confidential Page 2 of 128

Student identification (student to complete)
Please complete the fields shaded grey.
Student number
Document classification: Confidential Page 3 of 128

Written project overall result (assessor to complete)
First submission Not yet demonstrated
Resubmission (if applicable) Not applicable
Document classification: Confidential Page 4 of 128

Result summary (assessor to complete)
Section 1: Industry knowledge First submission Resubmission (if required)
Task 1 — Key terms Not yet demonstrated Not applicable
Task 2 — The Australian financial market Not yet demonstrated Not applicable
Task 3 — Financial services legislation and industry codes of practice Not yet demonstrated Not applicable
Task 4 — Products and services Not yet demonstrated Not applicable
Section 2: Business skills
Task 5 — Effective communication Not yet demonstrated Not applicable
Task 6 — Professional development Not yet demonstrated Not applicable
Task 7 — Customer service Not yet demonstrated Not applicable
Task 8 — Respond and report on complaints Not yet demonstrated Not applicable
Task 9 — Prospecting for new clients Not yet demonstrated Not applicable
Task 10 — Professional networks Not yet demonstrated Not applicable
Task 11 — Managing information Not yet demonstrated Not applicable
Section 3: The lending process
Task 12 — Understanding the client’s needs Not yet demonstrated Not applicable
Task 13 — Developing and presenting solutions Not yet demonstrated Not applicable
Task 14 — Packaging the application to send to the lender Not yet demonstrated Not applicable
Task 15 — Monitor the lending process Not yet demonstrated Not applicable
Section 4: Case Studies
Task 16 — Case study: Purchasing an owner-occupied home Not yet demonstrated Not applicable
Task 17 — Completing the Fact find Not yet demonstrated Not applicable
Task 18 — Assessing the clients’ situation Not yet demonstrated Not applicable
Task 19 — Presenting borrowing options and potential benefits Not yet demonstrated Not applicable
Task 20 — Supporting the client to settlement Not yet demonstrated Not applicable
Task 21 — Case study: Refinancing a home loan Not yet demonstrated Not applicable
Task 22 — Preparing a Preliminary Assessment Not yet demonstrated Not applicable
Task 23 — Case study: Purchasing an investment property Not yet demonstrated Not applicable
Task 24 — Preparing a loan proposal Not yet demonstrated Not applicable
Task 25 — Loan contracts and security documentation Not yet demonstrated Not applicable
Task 26 — Preparing the loan for settlement Not yet demonstrated Not applicable
Please note: To pass this written project, you will need to be assessed as DEMONSTRATED in
either your first submission or your resubmission in all tasks above.
Task feedback
Please refer to the assessor’s detailed feedback found at the end of each task so that you know what
to do for any tasks you need to resubmit.
Document classification: Confidential Page 5 of 128

Before you begin
Read everything in this document before you start your written project for Certificate IV in Finance
and Mortgage Broking (CFMB_v1).
Document classification: Confidential Page 6 of 128

About this document
This document is the written project — half of the overall Written and Oral Project.
This document includes the following parts:
• Instructions for completing and submitting this project
• Section 1: Working in financial services
A case study with a series of short-answer questions:
– Task 1 — Key terms
– Task 2 — Establishing a level of financial knowledge
– Task 3 — Financial services legislation and industry codes of practice
– Task 4 — Products and services.
• Section 2: Business skills
– Task 5 — Effective communication
– Task 6 — Professional development
– Task 7 — Customer service
– Task 8 — Respond and report on complaints
– Task 9 — Prospecting for new clients
– Task 10 — Professional networks
– Task 11 — Managing information.
• Section 3: The lending process
A case study with a series of short-answer questions:
– Task 12 — Understanding the client’s needs
– Task 13 — Developing and presenting solutions
– Task 14 — Packaging the application to send to the lender
– Task 15 — Monitor the lending process.
• Section 4: Case studies
– Task 16 — Case study — Purchasing an owner-occupied home
– Task 17 — Completing the Fact find
– Task 18 — Assessing the clients’ situation
– Task 19 — Presenting borrowing options and potential benefits
– Task 20 — Supporting the client to settlement
– Task 21 — Case study – Refinancing a home loan
– Task 22 — Preparing a preliminary assessment
– Task 23 — Case study – Purchasing an investment property
– Task 24 — Preparing a loan proposal
– Task 25 — Loan contracts and security documentation
– Task 26 — Preparing the loan for settlement.
Document classification: Confidential Page 7 of 128

How to use the study plan
We recommend that you use the study plan for this subject to help you manage your time to
complete the written project within your enrolment period. Your study plan is in the KapLearn
Certificate IV in Finance and Mortgage Broking (CFMBv1) subject room.
Document classification: Confidential Page 8 of 128

Instructions for completing and submitting the
written project
Document classification: Confidential Page 9 of 128

Completing the written project
Document classification: Confidential Page 10 of 128

Saving your work
Download this document to your desktop, type your answers in the spaces provided and save your
work regularly.
• Use the template provided, as other formats will not be accepted for these projects.
• Name your file as follows:
Studentnumber_SubjectCode_Project_versionnumber_Submissionnumber
(e.g. 12345678_CFMB_AS_v1A1_Submission1).
• Include your student ID on the first page of the project.
Before you submit your work, please do a spell check and proofread your work to ensure that
everything is clear and unambiguous.
Document classification: Confidential Page 11 of 128

Word count
The word count shown with each question is indicative only. You will not be penalised for
exceeding the suggested word count. Please do not include additional information which is outside
the scope of the question.
Document classification: Confidential Page 12 of 128

Additional research
When completing the ‘Client information collection tools’, assumptions are permitted although they
must not be in conflict with the information provided in the Case Studies. All assumptions must be
noted.
You may be required to conduct your own research in addition to the topic notes provided to source
information to answer some of the project questions. You may also be required to source additional
information from other organisations within the finance industry to find the products or services to
meet your client’s requirements, to source indicative interest rates and to calculate any fees and
charges that may be applicable.
Document classification: Confidential Page 13 of 128

Submitting the written project
Only Microsoft Office compatible written projects submitted in the template file will be accepted
for marking by Kaplan Professional Education. You need to save and submit this entire document.
Do not remove any sections of the document.
Do not save your completed project as a PDF.
The written project must be completed before submitting it to Kaplan Professional Education.
Incomplete written projects will be returned to you unmarked. The written project must be
submitted together with the oral project. If you do not submit both completed projects at the
one time it will be returned to you unmarked.
The maximum file size is 20MB for the written and oral project. Once you submit your
written project for marking you will be unable to make any further changes to it.
Once you submit your written project for marking you will be unable to make any further changes to
it.
You are able to submit both projects earlier than the deadline if you are confident you have
completed all parts and have prepared a quality submission.
Please refer to the Project submission/resubmission videos in the Assessment section of KapLearn
under your ‘Project Enrolment’ for details on how to submit/resubmit your written project.
Your Written Project and Oral Project must be submitted together on or before your due date.
Please check KapLearn for the due date.
Document classification: Confidential Page 14 of 128

The written project marking process
You have 26 weeks from the date of your enrolment in this subject to submit your
completed project.
If you reach the end of your initial enrolment period and have been deemed ‘Not yet demonstrated’
in one or more assessment items, then an additional four (4) weeks will be granted, provided you
attempted all assessment tasks during the initial enrolment period.
Your assessor will mark your written and oral project and return it to you in the Certificate IV in
Finance and Mortgage Broking (CFMBv1) subject room in KapLearn under the ‘Assessment’ tab.
Document classification: Confidential Page 15 of 128

Make a reasonable attempt
You must demonstrate that you have made a reasonable attempt to answer all of the questions in
your written project. Failure to do so will mean that your project will not be accepted for marking;
therefore, you will not receive the benefit of feedback on your submission.
If you do not meet these requirements, you will be notified. You will then have until your
submission deadline to submit your completed written and oral project.
Document classification: Confidential Page 16 of 128

How your written project is graded
Project tasks are used to determine your ‘competence’ in demonstrating the required knowledge
and/or skills for each subject. As a result, you will be graded as either Demonstrated or Not yet
demonstrated.
Your assessor will follow the below process when marking your project:
• Assess your responses to each question, and sub-parts if applicable, and then determine whether
you have demonstrated competence in each question.
• Determine if, on a holistic basis, your responses to the questions have demonstrated overall
competence.
You must be deemed to be demonstrated in all assessment items in order to be awarded the units
of competency in this subject, including:
• all of the exam questions
• the written and oral project.
‘Not yet demonstrated’ and resubmissions
Should sections of your project be marked as ‘not yet demonstrated’ you will be given an additional
opportunity to amend your responses so that you can demonstrate your competency to the
required level.
You must address the assessor’s feedback in your amended responses. You only need amend those
sections where the assessor has determined you are ‘not yet demonstrated’.
Make changes to your original submission. Use a different text colour for your resubmission.
Your assessor will be in a better position to gauge the quality and nature of your changes. Ensure
you leave your first assessor’s comments in your project, so your second assessor can see the
instructions that were originally provided for you. Do not change any comments made by a
Kaplan assessor.
Units of competency
This written project is your opportunity to demonstrate your competency against these units:
BSBPEF501 Manage personal and professional development
FNSCUS511 Develop and maintain professional relationships in financial services industry
FNSFMB411 Prepare loan applications on behalf of clients
FNSFMB412 Identify client needs and present broking options
FNSFMK515 Comply with financial services regulation and industry codes of practice
FNSINC411 Conduct work according to professional practices in the financial services industry
FNSINC412 Apply and maintain knowledge of financial products and services
FNSSAM411 Sell financial products and services
FNSFMB511 Implement credit contracts in preparation for settlement
FNSSAM403 Prospect for new clients
BSBOPS304 Deliver and monitor a service to customers
BSBOPS404 Implement customer service strategies
Note that the written and oral project is one of two assessments required to meet the requirements
of the units of competency.
Document classification: Confidential Page 17 of 128

We are here to help
If you have any questions about this written project, you can post your query at the ‘Ask your Tutor’
forum in your subject room. You can expect an answer within 24 hours of your posting from one of
our technical advisers or student support staff.
Document classification: Confidential Page 18 of 128

Project tasks (student to complete)
Please note: Throughout the project, you are to assume that you are a finance and mortgage broker.
If you are not currently in a finance and mortgage broker role, your answers are to reflect what you
would do if you were working in the finance and mortgage broking industry. You can also draw on
your current and past work experiences and refer to the topic notes. You may also need to conduct
your own research and consult with people who currently work within the finance and mortgage
broking industry.
Document classification: Confidential Page 19 of 128

Section 1: Industry knowledge
Document classification: Confidential Page 20 of 128

Task 1 — Key terms
Working in the finance industry requires you to have an understanding of the terminology used and
the names of documentation that you will deal with.
Demonstrate your understanding of some of the common terms and document names by completing
the following tables:
1. In your own words, complete the table below; define and explain loan transaction terminology
and definitions of the following:
Lender and
borrower Lender is a person that lend the money or borrow the finance from the borrower..
On the other hand borrower is the person borrow money from the entities provide
loans and borrowing to the person in need. Both the stakeholders are inter related
to each other.
Lessor and
lessee Lessor is the individual or an organization provide funds against the lease
agreement. Lessee is the one borrow funds from the lessor.
Mortgagee and
mortgagor Mortgagor is the one who lend the money and mortgagee is the one who borrow
the money.
2. In your own words, complete the table below; define and explain the documentation used by
lenders:
Credit check
signed authority Credit check signed authority is the authorized organization and institution that
look into the credit matter of the person seeking for the loan. The authority sign the
credit ratting of the person asking for the borrowing.
Guarantee Guarantee is the legal assurance granted to the lender on behalf of the borrower
against the borrowing. The guarantee is about to assure the lender that the money
will be returned and the person taking a loan will surely pay the money borrowed.
Loan contract Loan contract is the agreement of the contract is made between lender and
borrower.
Periodical
payment
authority
Periodically payment authority is the authority to make a periodic payment against
the borrowing is done. This is about to make repayment on a periodic basis.
Signed
application
form
Signed application form is a document that is completely signed. Every loan
agreement must be signed by the borrower and the lender as this is a legal
agreement between the parties.
Document classification: Confidential Page 21 of 128

3. In your own words, complete the table below; describe:
The negotiation
process Negotiation process is conducted before the loan agreement is made. This is about
to identify the middle ground on which the loan can be granted. Further at the time
borrower find it difficult and not being able to repay the loan negotiation is made.
Customer
Relationship
Management
(CRM) tool
CRM is an application that is used by the banker. This is an online application that
involve registering the interested customers or the people in taking loan from the
lender.
Certificate of
Currency Certificate of currency is a current policy in place as of the date of issue.
Assessor feedback for Task 1 — Key terms
(Insert feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 22 of 128

Task 2 ― The Australian financial market
The state of the economy and financial markets affects elements of lending, such as interest rates;
and also has an impact on consumers’ attitudes to borrowing and debt.
The Reserve Bank of Australia (RBA) is Australia’s central bank and is responsible for monetary
policy, financial and payment system policies, and other financial matters.
Task 2: Question 1
Research the RBA website and answer the following questions:
(a) List the three (3) statutory objectives (key elements) the RBA sets out to achieve. (20
words)
Hint/Tip:
There is a link to the website in the Toolbox.
Watch the Monetary Policy Framework video on the RBA website: <www.rba.gov.au/monetary-
policy>.
Student response to Task 2: Question 1(a)
 Stability of currency
 Maintenance of full employment
 Ensuring the welfare of people.
(b) The RBA meet on the first Tuesday of each month to review the cash rate.
Name three (3) things relevant to a mortgage broker’s role upon which the cash rate
impacts.
(25 words)
Student response to Task 2: Question 1(b)
Economy, lender pipeline and property location.
Assessor feedback for Task 2 — The Australian Financial Market
(Insert feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 23 of 128

Task 3 — Financial services legislation and industry codes of practice
Task 3: Question 1
Conduct some research to identify websites that you could use to keep up to date with regulatory
changes and changes in codes of practice in the mortgage broking industry.
Complete the table below with the following information:
• Two (2) Regulations/Legislations and two (2) codes of practice with which you must keep up to
date.
• For both, provide the website name and URL address, and explain how these websites are
helpful for keeping up to date with changes.
(40 words)
Student response to Task 3: Question 1
Regulation/
Legislation name
Website URL Address Explain how this website is
helpful to keep up to date
with changes
1. Regulatory guide
273
www.accc.gov.au This website is helpful for the
borrower to get all the
updates over the regulatory
guide 273.
2. Consumer credit
protection act
www.aph.gov.au This is supportive for the
borrower to get all insight
over consumer credit
protection act.
Code Name Website URL Address Explain how this website is
helpful to keep up to date
with changes
1. 273 www.accc.gov.au This website will certainly
allow all the insight over the
amendments.
2. 1968 www.aph.gov.au The website will support the
borrower to know all the
updates.
Document classification: Confidential Page 24 of 128

Task 3: Question 2
List two (2) risks and the consequences that are associated with not complying with the NCCP Act.
(30 words)
Student response to Task 3: Question 2
Legal license may ban by the authority. Charges may also imposed on the basis of the
seriousness of the fact not being complying with the act. Imprisonment is also permissible in case
the judge find it necessary.
Task 3: Question 3
In your own words, describe the key features of the Privacy Act 1988.
(30 words)
Student response to Task 3: Question 3
The privacy act 1988 involve collecting, use, storage and disclosure of personal information in the
federal public sector and private sector. This is about to protect the personal information by
disclosing into public domain.
Document classification: Confidential Page 25 of 128

Task 3: Question 4
(a) In your own words, describe the key features and the purpose of codes of practice.
(b) Provide one (1) example of how a code of practice would be implemented into a work
situation for a mortgage broker.
(50 words)
Student response to Task 3 Question 4
(a) Code of practice guide with the professional standards and code of conducts to maintain. This
involve the proper standards need to maintain based on the legal requirements.
(b) For example mortgage broker must not disclose the personal information of the client without
the consent of the customer.
Document classification: Confidential Page 26 of 128

Task 3: Question 5
(a) In your own words describe best interests duty.
(b) Provide one (1) example of how the best interests duty would be implemented into a work
situation for a mortgage broker.
(50 words)
Student response to Task 3: Question 5
(a) Best interest duty is a legislative requirement to ensure the processes and motivation of
financial advisor are focused on what is best for the client.
(b) For example mortgage broker can implement one single interest duty on the basis of its target
customers. This would involve the affordability of the client in against the loan is taken.
Task 3: Question 6
(a) How would you communicate changes in regulation, legislation, or codes of practice to
your colleagues?
(b) Explain how you would execute changes to your organisation’s policy, procedures and
practices to ensure that you are meeting the changes (for example, the introduction of best
interests duty).
(80 words)
Student response to Task 3: Question 6
(a) Communication can be done over phone calls, email and other form of communication.
Template can also be printed to provide the information. This would allow the colleagues to interact
about all the changes. Messenger tool can also be used by forming a group to communicate about all
the changes.
(b) Changes in the organisation policy can be implemented with the proper research about the
market and the target customers. This involves identifying the need and affordability of customer
and make changes accordingly.
Task 3: Question 7
If you were unsure of how to apply any regulation, legislation or codes of practice to your role or
interaction with a client, explain what you would do.
(30 words)
Student response to Task 3: Question 7
In case any misunderstanding about the information whole interacting with the client than
professional can verify the information before communicating with the customer. This would resist
the professional to misled client.
Task 3: Question 8
Remaining compliant with financial services regulation and industry codes of practice is vital.
One way to make sure compliance is being met is through monitoring or internal audits.
You have been asked by your manager to implement an internal monitoring/audit process for your
Document classification: Confidential Page 27 of 128

mortgage broking firm to ensure that the credit representatives are meeting their obligations with
regulation, legislation and codes of practice.
Outline the monitoring/audit process that you have implemented to ensure compliance. You should
include the following:
• How you will monitor/audit compliance.
• Who will undertake the monitoring/audit process.
• What tools you will use.
• How or where you will record the outcomes.
(150 words)
Student response to Task 3: Question 8
Audit compliance can be monitored with the proper verification of the information. Evaluation
activities can planned at an individual level. Periodic basis of evaluation can be done to monitor the
whole process. The individual can set its own performance standards and on the basis of the
standards that are set performance evaluation can be conducted. Monitoring audit process is totally
based on the self evaluation so the auditor itself can design and plan the activity to monitor and
review the performance. Tools like software, format and such other tools can be used, The separate
document will be maintained to record the documents. This will involve recording all the progress
and success that is achieved in against to the monitoring process is implemented. Personal
evaluation will completely support the auditor to ensure the authenticity of the whole practice is
performed. This would allow the auditor to record and verify the information in the separate
document.
Task 3: Question 9
What information provided by a client needs to be retained by a financial services organisation, like
a brokerage? (50 words)
Student response to Task 3: Question 9
Information of a client such as personal information that involve name, address and such other.
Income related information that involve the salary or the tax return. Bank statement is also
necessary to retain by the financial institutions as it is important to assess that borrower will be able
to repay the funds.
Assessor feedback for Task 3 — 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)
Document classification: Confidential Page 28 of 128

Task 4 — Products and services
The financial services industry is very competitive, with many organisations offering a number of
different lending and transactional products and services.
Organisations use a variety of approaches to market and promote their products and services.
It is very important that brokers are able to determine the right product and service to meet the
needs and requirements of their clients.
Some clients like to be able to combine their lending products with other banking products and
services. While it is important to have a thorough knowledge of lending products, it is also
important to be able to identify other relevant products and services to accommodate your client’s
needs and requirements.
Task 4: Question 1
Using the information in the topic notes in conjunction with your own research, complete the
product knowledge table below.
Student response to Task 4: Question 1
1. Variable rate home
loan — package
2. Fixed rate home
loan
3. Interest only home
loan
Financial institution
and name of
product
This rate is not fixed
and hence variable in
nature.
The rate of interest
will remain unchanged
through the course of
the loan.
Interest only loan is a
loan in which borrower
only get to pay the
interest hence the
principle value remain
unchanged.
Product
characteristics
(features)
(Minimum of three (3))
1. Rate of interest is
not fixed.
2. Security need to
deposit.
3. The tenure of loan is
fixed.
1. Rate of interest is
fixed.
2. Security is required.
3. Tenure is also fixed.
1. Interest rate may be
fixed or variable.
2. Security is required
against the loan.
3. Tenure is fixed.
Product purpose
(What would a client use
this for?)
The purpose of the
product is to cope up
with the current trend
related to interest. The
product purpose is to
change rate of interest
on the basis of the
market fluctuation.
The purpose is to keep
the interest rate fixed
hence customer get a
clear overview about
the repayment of loan.
The purpose is to
provide more feasibility
to the customer in
against to repay the
loan value.
Applicable fees and
charges Fees like processing
fees and insurance
charges are applicable.
Processing fees and
insurances charges are
applicable.
Processing fees and
insurances charges are
applicable.
Terms and
conditions of this
product
(Minimum of three (3))
1. Interest rate will not
be same.
2. Amount of
instalment will be
fixed.
1. Interest rate will be
fixed till the end of
the tenure.
2. Instalment value
1. Rate of interest may
be fixed or variable.
2. Instalment will
contain only the
Document classification: Confidential Page 29 of 128

3. Tenure will fix will remain fixed.
3. Tenure is also fixed.
interest amount.
3. Tenure will be fixed.
List one (1) strength
and one (1)
weakness
Strength: Provide
advantage every time
interest rate decreases.
Weakness: In case of
increase in interest rate
will further improve
the interest burden.
Strength: Interest
remain fixed.
Weakness: Even if the
decline in interest rate
will not reduce the
interest for the
customer.
Strength: Only the
interest will involve in
installments of every
month.
Weakness: client need
to repay the entire loan
value in the end of the
tenure.
4. Home equity loan
(line of credit)
5. Credit card 6. Personal overdraft
Financial institution
and name of
product
Home equity loan Credit card loan Overdraft facility
Product
characteristics
(features)
(Minimum of three (3))
1. Fixed amount of
loan.
2. Secured loan
3. Fixed tenure
1. Loan over credit
card
2. No interest rate
3. Repayment is easy
1. Limit of overdraft is
set.
2. Interest is chargeable
3. Tenure is fixed
Product purpose
(What would a client use
this for?)
The purpose is to
provide the secured
home loan.
The purpose is to
provide the credit for a
specific tenure.
Provide overdraft
facility.
4. Home equity loan
(line of credit)
5. Credit card 6. Personal overdraft
Applicable fees and
charges Processing fees and
insurance charges.
No fees No fees
Terms and
conditions of this
product
(Minimum of three (3))
1. Secured loan
2. Money is secured
against the value of
home
3. Tenure is fixed.
1. No interest is
applicable
2. Tenure is fixed
3. Credit limit is
accessible.
1. Limit is fixed
2. No interest
3. Tenure is fixed.
List one (1) strength
and one (1)
weakness
Strength: Secure loan
Weakness: Value of
home is increases.
Strength: no cost loan
Weakness: unsecured
Strength: No cost loan
Weakness: limited
amount
Task 4: Question 2
Conduct your own research on current home loan industry trends. Provide a minimum of three (3)
current trends. (50 words)
Student response to Task 4: Question 2
Document classification: Confidential Page 30 of 128

 Fixed interest home loan remain interest rate fixed.
 Variable interest home contain variable interest rate.
 Home equity loan provide secured home loan.
Task 4: Question 3
(a) How do financial service providers market and/or promote their products and services?
(b) Where can you locate a lending organisation’s current promotions and specials?
(c) Describe how you would identify clients whose needs match products and services that are
part of a current promotional strategy.
(d Describe how you can keep your product knowledge up to date. Include the methods
and/or systems you could use to maintain product knowledge.
(40 words)
Student response to Task 4: Question 3
(a) Advertisements channels are used to promote services.
(b) Promotions over social media and other advertisements sites.
(c) Analysis of the customer need and requirement will guide properly in such a matter.
(d) Regular studies, reading updates and such are the method to keep information up to date.
Document classification: Confidential Page 31 of 128

Task 4: Question 4
The Australian Banking Association’s (ABA) Banking Code of Practice (BCOP) outlines several
obligations for the provision of financial products and services. The Code can be downloaded from
the ABA website.
(a) List at least two (2) items of information that must be provided to a client when providing
financial products and services.
(b) Refer to the items you listed in part (a) and explain what the items clearly set out.
(c) What four (4) factors does the Code advise about providing banking services to vulnerable
clients?
(d) According to the BCOP, how would you identify (become aware of) a potentially
vulnerable client and a client on a low-income?
(100 words)
Student response to Task 4: Question 4
(a) List of document and loan repayment schedule.
(b) List of document involve complete details in respect to the documents that are required to grant
the loan. This involve the proper information about te type of document, legal charges and such
other information. Loan repayment schedule is a complete schedule to repay the entire loan value.
(c) Affordable EMI facilities, managing financial data effectively, communicate clearly in
respect to charges and proper support in case of any failure in loan repayment.
(d) Vulnerable customers are the one identify based on the extreme mood, poor concentration,
feeling overwhelmed by things and being emotional. Low income customer are identity based on
the income.
Task 4: Question 5
What is a deposit bond and when would it be suitable for a purchaser to use this product?
(Refer to the Toolbox or conduct your own research) (30 words)
Student response to Task 4: Question 5
Deposit bond allow the buyer to pay the security instead of cash up-to the value of 10% of the
purchase price. This is suitable in case of liquidity related issues face by the customer.
Assessor feedback for Task 4 — Products and services
Document classification: Confidential Page 32 of 128

(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 33 of 128

Section 2: Business skills
Document classification: Confidential Page 34 of 128

Task 5 ― Effective communication
Communication is vital in all interactions, particularly for successful team and client relationships
in business.
Answer the following questions using the information from the topic notes in conjunction with your
own research.
Task 5: Question 1
List a minimum of four (4) types of communication skills and explain why each is important for
effective business communication. (40 words)
Student response to Task 5: Question 1
Communication skills are classifies as verbal communication, non-verbal communication, written
communication and visual communication. All types of communication skill is suitable to convey
all different ideas and aspects related to the venture.
Task 5: Question 2
(a) Explain why listening is so important for effective communication.
(b) List three (3) barriers to effective listening.
(30 words)
Student response to Task 5: Question 2
(a) Listening allow the person to understand the message the other person is trying to deliver in the
communication.
(b) Evaluative listening, assumptive listening and self protective listening.
Task 5: Question 3
List five (5) tips to help someone communicate more effectively with different types of clients
(e.g. when dealing with a someone from a different cultural background, whose first language may
not be English or a difficult client). (50 words)
Student response to Task 5: Question 3
 Use the common language.
 Communicate in a way client can easily understand everything.
 Do not try to mislead customer in any given way.
 Listen properly to the customer.
 Solve all queries of client.
Document classification: Confidential Page 35 of 128

Assessor feedback for Task 5 — Effective communication
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 36 of 128

Task 6 — Professional development
Refer to the business profile for Capital City Finance and Mortgage Brokers (CCF & MB) located
in the subject room.
For this task you are to assume you are a mortgage consultant with the CCF & MB team.
Your manager has gone on extended leave and you have been given the task to step up into their
role for that period. You are responsible for the performance and development of yourself and your
team. You also have a new team member starting in your organisation. It is now your responsibility
to ensure that they are provided with the correct information and support to ensure they have the
best opportunity to succeed in your organisation.
You will be required to explain a number of items to your team, as well as support and guide them
to maintain their performance and professional development during this time.
Task 6: Question 1
(a) Explain why is it important for individual work goals to align to the organisation’s goals?
(b) Identify the types of organisational framework that you can refer to when planning your own
and your team’s work goals to ensure that they align to the organisation’s goals.
(c) List the colleagues you would consult with if you required clarification of your own role
responsibilities and how they fit into the wider organisation’s goals and objectives.
(80 words)
Hint/Tip:
You may be required to conduct your own research for this Task. Refer to the Toolbox for suggested
links.
Student response to Task 6: Question 1
(a) This is extremely important that an individual align the individual goal with the goal of the
organisation. This support the employee to perform in the organisation in the best of its own
capacity.
(b) Setting up clear objectives, get buy in from leadership, communicate goal on every level and
help employee achieve the goal. All these are a part of the framework that may adopt while align
individual objective with the company.
( c ) The management and leaders of the company can be communicated.
Document classification: Confidential Page 37 of 128

Task 6: Question 2
(a) Where would you document the new team member’s role responsibilities?
(b) How will you outline and document their role-specific targets?
(c) Explain how you will support the new team member to set goals to ensure they will
achieve their targets.
(d) Describe how you can use technology to help you manage the team’s work priorities.
(50 words)
Student response to Task 6: Question 2
(a) The new team member role can be documented in the excel file.
(b) On the basis to the need of the task and skill carry by the individual person outline and
documentation and their role specific targets.
( c ) The proper guidance can support the new team members to achieve the goal.
(d) Technology can involve at each individual level. Team members can involve technology at all
individual level.
Task 6: Question 3
What guidance can you provide the new team member to keep up to date with industry and product
knowledge? Provide a minimum of four (4) tips.
(50 words)
Student response to Task 6: Question 3
 Take regular research over industry trend.
 Proper coordination with product design and development team.
 Read product description.
Team meetings.
Task 6: Question 4
(a) Describe how you can encourage and facilitate personal and professional development for
you and your team?
(b) How can you record and document you and your team’s personal and professional
development goals?
(c) Explain the human resources policy and procedure at CCF & MB regarding the attendance
of professional development seminars, webinars and offsite development workshops.
(Refer to the example business profile for CCF & MB)
(50 words)
Student response to Task 6: Question 4
Document classification: Confidential Page 38 of 128

(a) Personal and professional development can encourage with proper motivation. Encourage team
members to grow the individual skill in order to achieve team goals in more efficient manner.
(b) Proper actions plan can maintain. Team review document can maintain to record all
developments.
( c ) CCF & MB follow the practice of conducting regular seminars on weekly and monthly basis.
Webinars also conduct to approach the personal and professional development.
Document classification: Confidential Page 39 of 128

Task 6: Question 5
(a) Describe how can you identify team health and wellbeing in the workplace.
(e.g. How would you know if your team is working well together and if individuals are okay).
(b) What strategies might you put into place to manage team health and wellbeing in your
workplace?
(80 words)
Student response to Task 6: Question 5
(a) At work place team health can identify with support of proper work life balance practices. This
would allow the management to effectively manage the work life of the employee and team
members.
(b) Managing team health can be coordinated with support of proper work load management,
incentive scheme and other health related benefits.
Document classification: Confidential Page 40 of 128

Task 6: Question 6
Part of your role requires you to monitor and measure your own performance.
(a) Complete the annual targets in your scorecard. (You may need to conduct some research for realistic targets – there is an example Scorecard
located in the Business Profile for CCF & MB)
(b) Complete the actual results up to Quarter 3. You notice you are behind in two Key Performance Indicators (KPIs). Record the results in the
Scorecard below.
Student response to Task 6: Question 6
Answer here
Goal Q1 Target
Actua
l
Result
% of Target
Q2
Targ
et Actual
Result
% of
Target Q3 Target Actual
Result
% of
Target Q4 Target Actual
End of year
result
% of Target
Improve
skill To learn new
skills
Hard
and
soft
skills
20% 50
%
Learn new
skills
30 Asses the
skill
develop
ment
Analysis
both
hard and
soft skills
40 Identify
the
improve
ment.
Assess skill
improvemen
t
80
Improve
performan
ce
Identify the key
performance
areas
All
areas
20 50 Identify the
area of
improvement
30 Frame
strategie
s
Identify
the area
of
improve
ment
50 Set goal
to
improve
the
performa
nce
Frame
planning to
improve
performance
80
Achieve
better
growth
Identify the
growth target
Set
goals
20 30 Identify goal
clearly
35 Know the
key areas
Set long
term
goals
40 Analysis
performa
nce
Proper
performance
assessment
70
Document classification: Confidential Page 41 of 128

Task 6: Question 7
Describe how you will monitor your own performance against your scorecard. (50 words)
Student response to Task 6: Question 7
Own performance can be monitored with the use of self evaluation technique. This will allow
analyzing the own performance.
Task 6: Question 8
(a) You are required to create a professional development plan (PDP).
(Refer to the Toolbox for a sample PDP or you can develop your own.)
Your PDP must include the following, namely:
• the two (2) KPIs from your scorecard for which you are behind as at Q3.
• a goal for each of those KPIs to ensure you will achieve them by Q4.
• the steps/actions you will take to achieve the goals.
• two (2) professional development areas that you would like to improve
• two (2) formal training or continuous professional development activities that
relate to the industry (refer to industry associations for ideas).
• the minimum amount of CPD points you would need to maintain if you were
a Mortgage and Finance Association of Australia (MFAA) member holding ‘loan writer’
status (link available in the Toolbox).
(b) Once you have completed your personal development plan, who will you seek feedback
from on the plan?
(150 words)
Student response to Task 6: Question 8
(a)
Area of improvement Goal KPI Training
Improve skill To learn hard and soft
skills
Skill evaluation and
monitoring the
performance
Skill development
training
Improve delegation
ability
To learn how to
delegate the work.
Performance
assessment and work
management analysis
Management and
leadership training.
(b) The feedback plan will send to the senior and head of department.
Task 6: Question 9
Now that you have developed your own PDP, prepare two (2) other PDPs, each containing a
minimum of two (2) development areas, for the following staff members:
(a) a loans administrative officer
(b) a mortgage broker who has recently joined the team.
(150 words)
Document classification: Confidential Page 42 of 128

Student response to Task 6: Question 9
(a) Personal development area
Area of improvement Goal KPI Training
Communication skill To improve the skill Self evaluation Digital training over
communication skill
Analytical skill To improve the skill Performance based Analytical training
(b) Personal development area
Area of improvement Goal KPI Training
Communication skill To improve the skill Self evaluation Digital training over
communication skill
Research skill To improve the skill Performance based Research training
Document classification: Confidential Page 43 of 128

Task 6: Question 10
Managing your time is vital to being able to juggle all of your work tasks, professional development
and personal life. Refer to the information provided in the topic notes as well conduct your own
research regarding the ‘important/urgent’ matrix.
There are many short videos available — for example, the Eisenhower matrix: How to manage your
tasks with Eisenhower, [online video], viewed 3 May 2021, <www.youtube.com/watch?
v=tT89OZ7TNwc>.
(a) Make a list of a minimum of twelve (12) tasks and activities a mortgage broker (or
mortgage consultant) would need to complete in their role. This should include anything that
requires your time — for example, team meetings, emails, personal emails, making a coffee,
processing your work, training etc.
(30 words)
Hint/Tip:
Refer to the example business profile for Capital City Finance & Mortgage Brokers (CCF & MB)
for a Mortgage Consultants Role description and list of role tasks.
When it comes to phone calls and emails, be specific about the types of phone calls or emails you
handle. For example, personal/social emails versus urgent email requests from a client.
Student response to Task 6: Question 10(a)
(a) Set goals, identify target market, visit, team meetings, emails, personal emails, frame strategies,
processing your work, training, analysis performance and identify the areas of improvement.
(b) Once you have listed your job tasks above (from part a), place each task in the appropriate
quadrant. (30 words)
Student response to Task 6: Question 10(b)
Important/Urgent
Set goals, identify target market, team meeting,
frame srtrategies, processing work.
Important/Not Urgent
Training, email
Not Important/Urgent
Personal emails,
Not Important/Not Urgent
Analysis performance and identify area of
improvement.
Assessor feedback for Task 6 — Professional development
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if re quired) Not applicable
Document classification: Confidential Page 44 of 128

Task 7 — Customer service
Customer service is integral to the success of any organisation and regardless of industry, customers
are placed at the core of everything businesses do. Therefore, being clear on your organisation’s
customer service standards is critical to ensure that the service you and your team provide is in line
with its culture and expectations.
Organisations establish customer service systems to ensure there is a consistently high standard of
service for customers from end to end, across all departments, involving all team members, and at
every touchpoint their customers have with their organisation.
It is important that the customer service system is continually monitored and reviewed to ensure
that the system remains effective.
For the following questions, reflect on your current or past organisation or conduct research to
explain how businesses approach gathering, monitoring and acting on feedback from internal and
external customers. Then answer the following questions.
Task 7: Question 1
List and explain three (3) processes that a business can use to gather feedback from its clients? (30
words)
Student response to Task 7: Question 1
Direct feedback, personal interview and over email.
Task 7: Question 2
Feedback is very important for a business to understand that the products and service that they
provide to their clients meets the expectations of the clients.
The feedback from the quarterly customer survey on the service and products provided has been
received by the business.
There are six (6) responses of feedback received:
1. ‘The broker was really helpful and responded quickly to my emails. They were very personable
and professional’: Sam Welsh
2. ‘I left a message on their message bank on Thursday night, leaving my details to be contacted the
next day. I didn’t get a response call until the following Thursday – I really couldn’t wait that
long as I had found a property and went elsewhere’: Anh Nam
3. ‘No one responded my calls in a timely manner, it was always 2 to 3 days later’: Mario Taranto
4. ‘I sent an email on the Friday and still did not have a response by the following Friday, I wasn’t
very happy with that’: Aya Farid
5. ‘I sent through a couple of emails with questions that I had regarding my loan application. The
response I received was not what I was expecting – very unprofessional’: Yarran Danggetti
6. ‘I am really happy with the products recommended to meet my needs for a home loan’: Dan
Wong
It is important to record and action this feedback.
Document classification: Confidential Page 45 of 128

Part 1
The feedback is to be recorded the client files.
(a) Select three (3) responses from above and record these details in the table below, including
what actions you would take.
(b) How would you confirm that the client’s expectations have been met in response to their
feedback?
Student response to Task 7: Question 2 Part 1
(a) Answer here
Client Name Feedback source Feedback comments Action required Action completed Y/N
Same Welsh Direct The broker was really
helpful and
responded quickly to
my emails. They
were very personable
and professional
Over imporve procesing Y
(b) In against to the feedback it can state that client expectations did meet. In response to the
feedback expectations of the client did fulfill.
Part 2
(a) Referring to the areas of concern in the survey responses above, write a customer service
improvement report including:
• three (3) areas where customer service can be improved. (What)
• a minimum of two (2) actions that would be required to implement the
improvements. (How)
• a list of the stakeholders that would need to be consulted to implement the
improvement, and an explanation of how you would communicate this with the
stakeholders. (Who)
(b) Write an email to a stakeholder identified in the table below explaining your recommendation
and how it will improve the area of customer service.
(100 words)
Hint/Tip:
Draw on your current and/or past experiences to answer this question. Refer to the Toolbox for
examples of customer service standards. You may also use the example business profile of CCF &
MB to answer this question. It is preferable that you relate the areas of customer service to the
finance and mortgage broking industry. You also may need to conduct your own research.
Student response to Task 7: Question 2, Part 2
(a)
Area for Improvement
Steps/Actions to implement
improvement the improvement
(min. of two (2) actions)
Communication to Stakeholders
(name the stakeholder by role)
Time frame to
complete
Document classification: Confidential Page 46 of 128

1. Approaching customers Proper communication and
understanding about customer need.
Over phone and direct
communication
3 weeks
2. Providing services Address the client requirements in
the best way possible and also to
provide authentic information.
Direct 2 weeks
3. Post service Focus on timely services. Take
review of service quality.
Over phone 4 weeks
(b) Considering the customer requirement is a key basis to improve the performance. Further
dealing with the issue of customer is a prominent way to allocate the practice.
Document classification: Confidential Page 47 of 128

Task 7: Question 3
(a) How can you and your team monitor the level of customer satisfaction in your workplace
in line with the service standards set?
(b) Provide two (2) suggestions for ensuring that team members are accountable for the
customer service standards in the workplace.
(75 words)
Student response to Task 7: Question 3
(a) Monitoring must be done regularly. Further the feedback strategy can follow to monitor the
level of customer satisfaction.
(b) Team members must look at all the areas of service allocation. This is suggested that solving
issues of customer is also require on a timely manner.
Assessor feedback for Task 7 — Customer service
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 48 of 128

Task 8 ― Respond and report on complaints
Task 8: Question 1
Refer to the Toolbox in your subject room for Policies and Procedures and links regarding handling
complaints and disputes, and respond to the following questions based on those documents:
(a) Who should a client refer their complaint to in the first instance?
(b) In accordance with the Banking Code of Practice, if a provider of financial products and
services is unable to provide a resolution within 30 days, what are the five (5) steps they must
take?
(50 words)
Student response to Task 8: Question 1
(a) Relation officer is the one client approach for addressing the complaint. Further the loan
manager can be communicated to resolve the issue.
(b) Customer must visit to the branch. Customer must address to the relationship manager about
the complaint. Ask questions about the improvement. Review the complaint. Take proper assurance
to solve the issue.
Task 8: Question 2
Consider the following scenario.
Mr Joseph Harper, a new customer, has called your office and has complained about the time it is
taking to receive a decision on his loan application, which was submitted 10 days ago.
The average turnaround time with the lender Joseph has applied to for a loan is 14 working days.
Additionally, the loan requires lenders mortgage insurance (LMI), which could add a further two
days to the assessment time frame.
The client is getting anxious as he has made an offer on a property subject to finance. There is only
14 days from date of offer to confirm finance approval before the property will go back on the
market, so he is very worried he may miss out on the property.
(a) Describe the steps you will take to resolve this complaint. Include the stakeholders you will
refer to in the resolution process.
(b) Describe the resolution you will communicate to Joseph.
You may refer to the Toolbox for Policies and Procedures regarding handling complaints and
disputes.
(80 words)
Student response to Task 8: Question 2
(a) Resolving complaint is done with placing the complaint with the respective party. In the
resolution process relationship manager, loan manager, branch manager and customer itself
can become a part of the process.
(b) Resolution will be communicated over phone calls and personal mail of the customer.
Document classification: Confidential Page 49 of 128

Task 8: Question 3
Complete the customer report below based on the scenario in question 2.
Student response to Task 8: Question 3
Customer complaint
report
Customer name
Title (Mr, Mrs, etc.) Family name (surname) Given names
Mr Harper Joseph
Service being provided to
client:
Loan related service
Nature of complaint:
Urgent
Outcome:
The application will be
reviewed by the back office.
Assessor feedback for Task 8 — Respond and report on complaints
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 50 of 128

Task 9 ― Prospecting for new clients
Finding sales prospects or people who are likely to become customers is necessary to ensure the
stability and growth of a business.
Task 9: Question 1
What communication methods can be used to prospect for new clients?
(30 words)
Student response to Task 9: Question 1
Communication method like direct and over mobile phone and email.
Task 9: Question 2
Refer to the Toolbox and the Client Prospecting Guidelines and answer the following questions:
(a) What are the four (4) steps you must include in your introduction when making a
prospective call?
(b) Following your introduction, what important question must you ask before continuing with
your call?
(c) What should you do if the prospect advises you that they do not wish to continue the call
and they do not wish to be contacted again?
(30 words)
Student response to Task 9: Question 2
(a) Addressing own name, place of business, reason of call and make detail and clear information.
(b) Hello sir how you doing?
(c) In such a situation understand the client situation and take steps accordingly.
Document classification: Confidential Page 51 of 128

Task 9: Question 3
You have made two (2) prospecting calls. As per the client prospecting guidelines located in the Toolbox, complete the client prospect register below
for the following scenarios:
(a) Call 1: You made a call to Rosie Abdul. Following your introduction, Rosie agreed to continue the call. Rosie has been considering
refinancing her home loan and seeking an increase to her loan so as she can renovate her kitchen. Rosie also said that the task of doing the
research for different lenders seems too daunting. She is not quite ready to begin the process, but she is interested in how your brokerage could
assist her. Rosie asked if you could call back in three months.
(b) Call 2: You just called Bruce O’Connor and introduced yourself and provided the purpose of the call. You asked Bruce permission to proceed
with the call. Bruce advised that he was not interested and did not want to receive calls from your firm in the future.
Student response to Task 9: Question 3
Client prospect register
Name Date Contact
method
Comment/outcome Follow up required (Y/N) Follow
up date
Do not call
(a) Rosie Abdul 24/12/2021 Phone call She is interested Y 24/03/20
22
No
(b) Bruce
O’Connor
24/12/2021 Phone call Not interested N Answer
here
Answer here
Document classification: Confidential Page 52 of 128

Task 9: Question 4
Refer to your contact with Rosie Abdul in Question 4. Three months has now passed, and you need
to call Rosie back.
Explain how you will prepare for your next call with Rosie. Include the following:
(a) The information you will require from Rosie.
(b) The information you should provide to Rosie about how your brokerage firm can assist her
and a brief outline of the application process.
(80 words)
Student response to Task 9: Question 4
(a) Information about the further loan processing that involve personal information, income related
details and other such information.
(b) Answer here
Task 9: Question 5
Refer to the Toolbox for the link to the following article:
6 Steps of a Successful Sales Process: Understanding both perspectives.
Explain the key features of the buying and selling process. (80 words)
Student response to Task 9: Question 5
Features like understand the need of customer, identify the requirement, assess about the
competitors and such are the key features. Communicating the entire message is also important.
Assessor feedback for Task 9 — Prospecting for new clients
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 53 of 128

Task 10 – Professional networks
You build on your network base each day at work as you interact with your colleagues, and internal
and external stakeholders. You even build networks in your social life.
Networks and professional connections are important as they can be helpful in building on your
industry knowledge, your career development and also to grow your business.
Hint/Tip:
Watch the video ‘Networking for Success’ – the link is in the Toolbox.
Internal networks – people you know and connect with inside your organisation, for example,
colleagues, people from other departments.
External networks – people you know and connect with outside of the organisation, for example,
other professionals who do not work in your organisation that are aligned with your work, industry
associations, family, friends, sporting clubs, social clubs, committees, children school,
social/professional media platforms.
Task 10: Question 1
(a) Identify and make a comprehensive list (minimum of ten (10) internal and external
networks). This can include networking groups and/or associations.
List people by their role rather than their names – if you are not currently working, you
can list the networks you would have in a mortgage broker role.
(b) From the list you created in part (a), choose six (6) networks. At least one (1) must be from
the financial services industry and one (1) must be a third-party referrer. The others may be
from any other connections. Complete the table below by outlining how your connection with
these networks is of benefit to you and to the broking business.
(c) From the list in Part (b), choose three (3) connections/networks. Explain how you develop
and maintain those relationships. Include how you will stay in contact and also how you will
enhance the relationship to ensure it remains mutually beneficial.
(d) Identify and explain the importance of three (3) communication channels and tools that you
use to develop and maintain professional relationships.
(100 words)
Student response to Task 10: Question 1
(a) LAN, PAN, MAN, WAN, WAN, SAN, VPN, personal network, CAN, System area network
and computerized network.
(b)
Network Benefit You
1. LAN It connect the whole data base.
2. PAN It is easy to coordinate.
3. MAN Effective for personal use.
Network Benefit to the business
4. Personal network Authentic
5. System area network Available large in number
6. Computerized network Easy to store.
Document classification: Confidential Page 54 of 128

(c)
Network/connection — Name Type of network/connections Actions you take to develop and maintain the
relationship
1. LAN System network Proper connectivity
2.PAN System network Proper coordination
3. MAN System network Prioritize individual requirements
(d)
Communication method What are the positive features of this method (why might you
use it)?
1. Phone calls Time saving mode of communication.
2. Email Authentic and convenience to store.
3. Direct Favorable to solve customer issues.
Task 10: Question 2
Explain how you will maintain policy, regulations and codes of practice when networking to
promote your business and enhance its reputation. Include how you would present yourself,
communicate and maintain client confidentiality. (30 words)
Student response to Task 10: Question 2
The proper system will design to maintain all the information. The system will be secured with the
use of password.
Task 10: Question 3
(a) Identify two (2) practices that could be implemented to improve business practices when it
comes to developing and maintaining networks.
(b) Explain which personnel you would involve in reviewing your network connections to
ensure that they are appropriate for your business’ needs and why you would involve them.
(75 words)
Student response to Task 10: Question 3
(a) When it comes to develop the network identify the capacity to store the data from the network.
Also the practice is to identify whether the data will be protected in the network.
(b) On the basis of the storage capacity of the network and the security aspect of the network.
Assessor feedback for Task 10 — Professional networks
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 55 of 128

Task 11 ― Managing information
Working as a broker in the financial services industry can involve working for a large or small
organisation. A comprehensive understanding of the organisation’s structure, management,
processes and policies is vital for success.
Refer to the Capital City Finance and Mortgage Brokers (CCF & MB) case study (Future
developments) located in the subject room.
CCF & MB have hired a new sales team member, and you are responsible for completing the
induction program.
Task 11: Question 1
Briefly explain how CCF & MB access information regarding updates to products and services in their
system.
(50 words)
Student response to Task 11: Question 1
Information is updated easily with the use of system. This involve regularly updating the available
information. The modification will be done over the existing information to update it.
Task 11: Question 2
Managing information in a mortgage broking firm may also apply to maintaining and upkeeping
compliance and licences. Refer to the Australian Securities and Investment Commission’s (ASIC)
website to answer the following question.
Australian credit licence holders are required to complete an Annual Compliance Certificate and
lodge it with ASIC.
Hint/Tip:
You will be required to conduct your own research — Refer to the Toolbox and ASICs website.
When completing the Annual Compliance there is specific information required to be provided to
ASIC upon lodgement. List the five (5) items that are required to be confirmed on the Annual
Compliance Certificate. (75 words)
Student response to Task 11: Question 2
 Is the complaint is authentic.
 Time of the complaint
 Seriousness of the complaints
 Progress made to solve the complaints
 Legal implication of complaint.
Assessor feedback for Task 11 — Managing information
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 56 of 128

Section 3: The lending process
Document classification: Confidential Page 57 of 128

Task 12 ― Understanding the client’s needs
Brokers have both ethical and legislative obligations to understand a client’s needs and objectives.
There are obligations for making reasonable inquiries and verifications under NCCPs responsible
lending obligations contained in ASIC’s Regulatory Guide 209 (RG209).
Research RG209.43 online and answer the following questions.
Task 12: Question 1
While it is important to understand your client’s needs and objectives to ensure that you recommend
a product that has all of the features and benefits they require, it is also important to understand
other requirements your client may have to ensure the product recommended is ‘not unsuitable’.
List at least four (4) types of ‘specific customer requirements’ your client may have.
Hint/Tip:
Refer to your topic notes and/or conduct your own research.
Choose requirements that may not necessarily be a product feature, for example, a client may want
a lender that they can visit or may need to sell the property in a specific time frame.
(20 words)
Student response to Task 12: Question 1
Answer here
The four types of 'specific customer requirements” that clients may have with the financial products
are as follows:
 High Quality customer services.
 Mobile and online access to loan amount.
 Security and fraud protection.
 Low fees of processing the loan.
Task 12: Question 2
When the loan is for a self-employed person, the lender will ask for financial information for the
business. What are the common financial records the lender will ask for? Provide a minimum of
three (3). (These must be in addition to what a PAYG client would provide.)
(20 words)
Student response to Task 12: Question 2
Answer here
The common financial records lenders will ask from the self-employed person are as follows:
 Income Statement
 Balance sheet
 Bank statement
Document classification: Confidential Page 58 of 128

Task 12: Question 3
(a) Explain the information that is contained in a credit report.
(b) Why it is important that the client provides all the details about their credit report to their
broker at the beginning of the loan process?
(c) What are the credit provider’s obligations to the client if a loan is declined due to their
credit report?
(d) What would you advise your client to do if their loan was declined due to their credit report?
(80 words)
Student response to Task 12: Question 3
(a) Answer here
The information contained in credit report are as follows:
(ci) Type of account
(cii) Date opened
(ciii) Credit limit or loan amount
(civ) Account Balance
(cv) Loan history
(b) Answer here
Checking credit history and scores is important for the broker because it helps them in
understanding their current credit position. With the help of this report, the broker can suggest that
whether the loan of the client is get approved by the banks of Australia or not.
(c) Answer here
The Credit provider is obliged to ask the lender for the reason why the loan of the client is declined.
After that, they are also liable for the examination of inaccuracies present in the credit report.
(d) Answer here
Being a broker, I would advise my client that they should talk to their credit provider and check the
errors in their credit report. I would recommend that they should establish the credit history and
check it on timely basis.
Assessor feedback for Task 12 — Understanding the client’s needs
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 59 of 128

Task 13 ― Developing and presenting solutions
Task 13: Question 1
The client solution is not just about providing a product that will meet their product needs.
Developing a solution for your client’s needs also involves the security or collateral that the lender
will require for that loan product.
(a) List a minimum of three (3) types of assets that lenders may take as collateral to secure a loan.
(This can be security for either consumer or commercial lending.)
(b) List a minimum of two (2) security documents that are required in order for the lender to have
control over the asset while the loan is in place.
(c) If a director offers their home (in their personal name) as security for lending in their
company name, what is the name of the security document that is required to link the asset to
the loan?
(d) From time to time a client may need to offer a second property to support a loan in order to
reduce the loan-value-ratio (LVR) to avoid LMI and meet lender requirements. What is this
name of this practice?
(50 words)
Student response to Task 13: Question 1
(a) Answer here
The three types of assets that lenders use as a collateral to secure a loan are as follows:
(ci) Personal real estate
(cii) Home equity
(ciii) Personal Vehicles
(b) Answer here
The two security documents which state that lender has control over the assets are as follows:
 Ownership paper of assets of applicants
 Share certificates issued in the name of borrowers.
(c) Answer here
The guaranteed and collateral agreement is a security document which link the personal assets of
the borrower to its business loan.
(d) Answer here
Additional collateral is a practice which state that clients need to offer a second property to support
a loan in order to reduce LVR and avoid LMI.
Assessor feedback for Task 13 — Developing and presenting solutions
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 60 of 128

Task 14 – Packaging the application to send to the lender
Packaging a home loan application is detailed and requires a mortgage broker to gather documents
to prepare the lending submission in accordance with the lender’s requirements.
While it is important to know what documents you will need to gather, it is also important that you
understand the information contained within the documents. For example, the frequency of income,
if overtime is included.
Task 14: Question 1
(a) Explain what documents you would gather to in order to verify:
(i) a PAYG employee’s income
(ii) a self-employed person’s income
(iii) rental income for an existing investment property.
(b) Choose three (3) documents that you listed in part (i). Write one (1) question that you could
ask the client to confirm you understand the information contained within each of the
documents provided.
(60 words)
Student response to Task 14: Question 1
(a)(i) Answer here = One month bank statement
(a)(ii) Answer here = Federal Tax returns
(a)(iii) Answer here = IRS Form 1040, Schedule E or a business tax return.
(b)
Document One (1) question to confirm information with your client
1. One month bank statement The question regarding the digital payment transactions are asked
to the clients to confirm the information.
2. Federal Tax returns The question regarding the income and expense verification
invoices is asked by broker.
3. IRS Form 1040, Schedule
E or a business tax return.
The broker will confirm the information by asking the questions
regarding proof of rent letter.
Document classification: Confidential Page 61 of 128

Task 14: Question 2
When submitting your client’s loan application, you also need to submit supporting documentation.
(a) Explain how you confirm that you have the correct supporting documents for your client’s
loan requirements in accordance with the lender’s requirements. (e.g. If the loan application
was for an investment property, think of what may be required as specific supporting
documents)
(b) Explain how you check the supporting documentation for accuracy and also to ensure that the
documents are in the right format and legible for the lender.
(40 words)
Student response to Task 14: Question 2
(a) In order to confirm that whether the broker have correct supporting document in accordance
with the lender requirements, the broker can link the documents that lenders require providing loan
with the documents available with the clients. For example, in order to confirm this in the case of
investment property loan the lender basically require the borrowers address proof, bank statement,
application form along with the mortgage, deeds and leases. This will helps them to confirm that
whether the client have correct supporting document or not.
(b) In order to check the accuracy of the supporting document and ensure that it is in the right
format, I will hire a legal team and expert.
Assessor feedback for Task 14 — Packaging the application to send to the lender
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 62 of 128

Task 15 ― Monitor the lending process
Some loan applications may require further information following submission. This often means
returning to the client to obtain the information.
Task 15: Question 1
Provide one (1) example of further information a lender may request. Explain common reasons for
the additional information.
(30 words)
Student response to Task 15: Question 1
Answer here
After loan submission, further information requested by lender could be providing various
documents such as tax returns and payslips, copy statement of financial statement,
consent for LMI, document stating value of property offered as security, etc. to complete
specific conditions of the loan required by the credit providers.
Assessor feedback for Task 15 — Monitor the lending 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
Document classification: Confidential Page 63 of 128

Section 3: The lending process
Document classification: Confidential Page 64 of 128

Task 12 ― Understanding the client’s needs
Brokers have both ethical and legislative obligations to understand a client’s needs and objectives.
There are obligations for making reasonable inquiries and verifications under NCCPs responsible
lending obligations contained in ASIC’s Regulatory Guide 209 (RG209).
Research RG209.43 online and answer the following questions.
Task 12: Question 1
While it is important to understand your client’s needs and objectives to ensure that you recommend
a product that has all of the features and benefits they require, it is also important to understand
other requirements your client may have to ensure the product recommended is ‘not unsuitable’.
List at least four (4) types of ‘specific customer requirements’ your client may have.
Hint/Tip:
Refer to your topic notes and/or conduct your own research.
Choose requirements that may not necessarily be a product feature, for example, a client may want
a lender that they can visit or may need to sell the property in a specific time frame.
(20 words)
Student response to Task 12: Question 1
Answer here
The four types of 'specific customer requirements” that clients may have with the financial products
are as follows:
 High Quality customer services.
 Mobile and online access to loan amount.
 Security and fraud protection.
 Low fees of processing the loan.
Task 12: Question 2
When the loan is for a self-employed person, the lender will ask for financial information for the
business. What are the common financial records the lender will ask for? Provide a minimum of
three (3). (These must be in addition to what a PAYG client would provide.)
(20 words)
Student response to Task 12: Question 2
Answer here
The common financial records lenders will ask from the self-employed person are as follows:
 Income Statement
 Balance sheet
 Bank statement
Document classification: Confidential Page 65 of 128

Task 12: Question 3
(a) Explain the information that is contained in a credit report.
(b) Why it is important that the client provides all the details about their credit report to their
broker at the beginning of the loan process?
(c) What are the credit provider’s obligations to the client if a loan is declined due to their
credit report?
(d) What would you advise your client to do if their loan was declined due to their credit report?
(80 words)
Student response to Task 12: Question 3
(a) Answer here
The information contained in credit report are as follows:
(cvi) Type of account
(cvii) Date opened
(cviii) Credit limit or loan amount
(cix) Account Balance
(cx) Loan history
(b) Answer here
Checking credit history and scores is important for the broker because it helps them in
understanding their current credit position. With the help of this report, the broker can suggest that
whether the loan of the client is get approved by the banks of Australia or not.
(c) Answer here
The Credit provider is obliged to ask the lender for the reason why the loan of the client is declined.
After that, they are also liable for the examination of inaccuracies present in the credit report.
(d) Answer here
Being a broker, I would advise my client that they should talk to their credit provider and check the
errors in their credit report. I would recommend that they should establish the credit history and
check it on timely basis.
Assessor feedback for Task 12 — Understanding the client’s needs
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 66 of 128

Task 13 ― Developing and presenting solutions
Task 13: Question 1
The client solution is not just about providing a product that will meet their product needs.
Developing a solution for your client’s needs also involves the security or collateral that the lender
will require for that loan product.
(a) List a minimum of three (3) types of assets that lenders may take as collateral to secure a loan.
(This can be security for either consumer or commercial lending.)
(b) List a minimum of two (2) security documents that are required in order for the lender to have
control over the asset while the loan is in place.
(c) If a director offers their home (in their personal name) as security for lending in their
company name, what is the name of the security document that is required to link the asset to
the loan?
(d) From time to time a client may need to offer a second property to support a loan in order to
reduce the loan-value-ratio (LVR) to avoid LMI and meet lender requirements. What is this
name of this practice?
(50 words)
Student response to Task 13: Question 1
(a) Answer here
The three types of assets that lenders use as a collateral to secure a loan are as follows:
(civ) Personal real estate
(cv) Home equity
(cvi) Personal Vehicles
(b) Answer here
The two security documents which state that lender has control over the assets are as follows:
 Ownership paper of assets of applicants
 Share certificates issued in the name of borrowers.
(c) Answer here
The guaranteed and collateral agreement is a security document which link the personal assets of
the borrower to its business loan.
(d) Answer here
Additional collateral is a practice which state that clients need to offer a second property to support
a loan in order to reduce LVR and avoid LMI.
Assessor feedback for Task 13 — Developing and presenting solutions
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 67 of 128

Task 14 – Packaging the application to send to the lender
Packaging a home loan application is detailed and requires a mortgage broker to gather documents
to prepare the lending submission in accordance with the lender’s requirements.
While it is important to know what documents you will need to gather, it is also important that you
understand the information contained within the documents. For example, the frequency of income,
if overtime is included.
Task 14: Question 1
(a) Explain what documents you would gather to in order to verify:
(i) a PAYG employee’s income
(ii) a self-employed person’s income
(iii) rental income for an existing investment property.
(b) Choose three (3) documents that you listed in part (i). Write one (1) question that you could
ask the client to confirm you understand the information contained within each of the
documents provided.
(60 words)
Student response to Task 14: Question 1
(a)(i) Answer here = One month bank statement
(a)(ii) Answer here = Federal Tax returns
(a)(iii) Answer here = IRS Form 1040, Schedule E or a business tax return.
(b)
Document One (1) question to confirm information with your client
1. One month bank statement The question regarding the digital payment transactions are asked
to the clients to confirm the information.
2. Federal Tax returns The question regarding the income and expense verification
invoices is asked by broker.
3. IRS Form 1040, Schedule
E or a business tax return.
The broker will confirm the information by asking the questions
regarding proof of rent letter.
Document classification: Confidential Page 68 of 128

Task 14: Question 2
When submitting your client’s loan application, you also need to submit supporting documentation.
(a) Explain how you confirm that you have the correct supporting documents for your client’s
loan requirements in accordance with the lender’s requirements. (e.g. If the loan application
was for an investment property, think of what may be required as specific supporting
documents)
(b) Explain how you check the supporting documentation for accuracy and also to ensure that the
documents are in the right format and legible for the lender.
(40 words)
Student response to Task 14: Question 2
(a) In order to confirm that whether the broker have correct supporting document in accordance
with the lender requirements, the broker can link the documents that lenders require providing loan
with the documents available with the clients. For example, in order to confirm this in the case of
investment property loan the lender basically require the borrowers address proof, bank statement,
application form along with the mortgage, deeds and leases. This will helps them to confirm that
whether the client have correct supporting document or not.
(b) In order to check the accuracy of the supporting document and ensure that it is in the right
format, I will hire a legal team and expert.
Assessor feedback for Task 14 — Packaging the application to send to the lender
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 69 of 128

Task 15 ― Monitor the lending process
Some loan applications may require further information following submission. This often means
returning to the client to obtain the information.
Task 15: Question 1
Provide one (1) example of further information a lender may request. Explain common reasons for
the additional information.
(30 words)
Student response to Task 15: Question 1
Answer here
After loan submission, further information requested by lender could be providing various
documents such as tax returns and payslips, copy statement of financial statement,
consent for LMI, document stating value of property offered as security, etc. to complete
specific conditions of the loan required by the credit providers.
Assessor feedback for Task 15 — Monitor the lending 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
Document classification: Confidential Page 70 of 128

Section 4: Case studies
Document classification: Confidential Page 71 of 128

Case study 1: Philip and Jennifer Brown
The case study is located in the subject room in KapLearn.
Often client meetings occur in the form of a face-to-face meeting, typically at the broker’s office or
in the client’s home or workplace. As technology has developed, it has made different forms of
client contact possible using software such as Zoom. Conducting online meetings has become more
acceptable and can also be quite convenient for some clients.
Task 16 ― Case study: Purchasing an owner-occupied home
It is time to prepare to meet with your first client, Philip and Jennifer Brown. As the broker, you
need to consider a range of obligations when dealing with a customer. This section will consider
some of these obligations.
Task 16: Question 1
You have just made an appointment over the phone to meet with Jennifer and Philip.
Prepare an email outlining the purpose of your first meeting. In the email, make sure you also cover
the following points.
(a) What documents would you attach to the email?
(b) Include the following information in your email:
(i) the services, values and capacity your organisation has to offer
(ii) your background, credentials and your role as their broker
(iii) the commercial relationship that your firm has with the product
providers (i.e. the lenders on your panel).
(50 words)
Hint/Tip:
You can base your response to Part (b) on the CCF & MB business case study located in the
subject.
Student response to Task 16: Question 1
(a) I would attach a file which contains the list of financial products with the email.
(b)(i) Answer here
(b)(ii) Answer here
(b)(iii) Answer here
To: Philips
From: Mortgage broker
Subject: Requesting meeting for financial products
Date: 20th December 2021
Dear sir/ mam,
I am writing this mail to request you a meeting to discuss your situation. My organization
providers the advisable service on best and suitable financial products. We provide financial
products which is highly valuable and meet the clients borrowing capacity. My role as broker is to
check the current financial position of clients in order to recommend best home loan. My firm
have a strong commercial relationship with the lenders such as Westpac, Capital Bank etc. which
Document classification: Confidential Page 72 of 128

help the client in getting best financial products.
Assessor feedback for Task 16 ― Purchasing an owner-occupied home
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 73 of 128

Task 17 ― Completing the fact find
Task 17: Question 1
From the information in Case Study 1 for Jennifer and Philip Brown, complete the following tasks.
(a) Using the client information collection tool/fact finder below, complete:
(i) assets and liabilities
(ii) needs analysis
(iii) credit representative notes
(iv) anticipated fees and charges
(v) funds to complete.
Student response to Task 17: Question 1
Document classification: Confidential Page 74 of 128

Client information collection tool/Fact finder
For the client information collections tool/fact finder tasks, you will need to calculate government
fees and charges as well as LMI where applicable.
For this project, Genworth is your lender’s LMI provider. Please use the Genworth LMI calculator
for all LMI calculations. There are links provided in the Toolbox to help you calculate the
applicable fees and charges.
Appointment date: 17th December, 2021
Appointment time: 12:30 PM
Applicant 1 Applicant 2
Surname Brown Brown
Other names N/a N/a
Contact details Address Unit 12, 22 Wentworth Lane,
Thomastown VIC 3074
Unit 12, 22 Wentworth Lane,
Thomastown VIC 3074
Phone (W)
Phone (H)
[phone] (03) 3332 4565
Mobile [phone] 345 749
Email [e-mail] [e-mail]
Employment Answer hereACE Limited, 101
City Road Westside, Melbourne
VIC 3000
Tech City, 804 High Street,
Docklands VIC 3008
How long? Started 15/7/2014 Started 30/6/2016
Previous employer (if less than two
years) Answer here Answer here
How long? N/a 5 years
Employment type
(FT/PT/casual/self-employed) Full Time Full Time
Gross income (p.a.) $58000 $95000
Number of dependants 0 0
Motor vehicles:
make/model/year/value $
Holden Colorado 2012 Kia Cerato Sport 2015
Loan purpose To Purchase for owned occupation
Purchase price/valuation $490000
Deposit on property $50000
Document classification: Confidential Page 75 of 128

Loan amount Note: The calculation of
LMI was computed on the basis of
purchase price of property. It is assumed
that the clients estimates of cost will
capitalise.
$440000 + $9430 (LMI) excluding stamp duty
Borrowing capacity
(using Genworth serviceability
calculation)
The clients have passed the borrowing capacity as per the
Genworth serviceability calculation.
Document classification: Confidential Page 76 of 128

Assets and liabilities
Assets L
i
a
b
i
l
i
t
i
e
s
Details Market value Details Monthly payments Amount owing
Owner occupied property at: N/a Mortgage with: N/a N/a
Investment Property at: N/a Mortgage with: N/a N/a
Cash at bank
(includes fixed deposits) $82000 Car leasing N/a N/a
Other cash
(includes offset accounts) $1600 Personal loans
1. Capital Bank
personal loan (Philip)
$180 $5600
Deposit paid on property (only
if paid) N/a Overdraft N/a N/a
Motor vehicles:
1. Holden Colorado 2012
2. Kia Cerato Sport 2015
$34000 Other loans:
1.
2.
N/a N/a
Personal effects $40000 Credit card limit:
Capital Bank Visa
card (Philip)
$200 $4000
Business value
(if self-employed) N/a Credit card limit:
Capital Bank Visa
card (Jennifer)
$1600 $5000
Shares and investments N/a Other: N/a N/a
Superannuation $90000 Other: N/a N/a
Other assets (give details) N/a Other: N/a N/a
Total assets $247600 Total liabilities $1980 $14600
Surplus/deficiency: (Total assets less Total liabilities) $233000
Document classification: Confidential Page 77 of 128

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)
Food/housekeeping $16000
Insurance (e.g. motor vehicles, home contents/ building, medical, life/income
protection) $5000
Utilities (e.g. rates, gas, electricity, transport) $3500
Transport (e.g. public transport, petrol, registration, repairs) $2500
Education (e.g. school, college, university) 0
Dependants support (e.g. childcare, child maintenance) 0
Entertainment (include online subscriptions, e.g. Netflix/Stan) $8000
Other (detail below): 0
MONTHLY LIVING EXPENSES $35000
Document classification: Confidential Page 78 of 128

Needs analysis
1 Name of your current lender? Capital Bank
2 What type of loans do you have? Personal Loan
3 Why did you choose this particular loan and lender? It is because the interest rate of loan
charged by Capital Bank is low as
compared to other lenders
4 What is the interest rate on your current loan? 4.99%
5 What are your payments? Amount $180
6 Frequency Monthly
7 Do you know the fees and charges?
8 What is your proposed purpose for the new loan you are
applying for? Purchase for owner-occupied
9 Branch access available with current lender No
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 All-in-one Home loan
14 Preferred Interest rate range 4% variable
15 Payment frequency Monthly
16 Redraw Yes
17 Offset Yes
18 Salary crediting Yes
19 Low fees and charges Yes
Document classification: Confidential Page 79 of 128

Credit representative notes
Note: Providing substantive notes here is a compulsory part of your assessment.
Answer here
Annual living expenditure of couple is $35000
LMI premium is capitalized in the loan amount.
The interest rate of loan is Variable 4%.
Document classification: Confidential Page 80 of 128

Anticipated fees and charges
Anticipated purchase price $490000
Deposit on property $50000
Total Loan amount $440000
LVR % 89.80%
Purchase costs $21370
Stamp duty – Transfer of Land
Registration fee – Transfer of Land $1247
Solicitor/conveyancer fee $1500
Rates and land taxes (estimate) 761.6
Pest inspection (estimate) N/a
Building inspection (estimate) N/a
Borrowing costs N/a
Application/establishment fee
Valuation fee N/a
Security admin fee N/a
LMI $9430
Registration of mortgage $121.40
Discharge/Release of mortgage fee N/a
Search fees N/a
Other N/a
Total purchase and borrowing costs $524430
Document classification: Confidential Page 81 of 128

Funds to complete
PURCHASE AND LOAN COSTS: A
V
A
I
L
A
B
L
E
F
U
N
D
S
:
Purchase price: $490000 Deposit if already paid to agent: N/a
Lender application/valuation fees: N/a Cash savings: $82000
Stamp duty payable ― Transfer of
Land $21370 Sale proceeds: N/a
Registration fee - Transfer of Land $1247
Registration of mortgage ― Land
Titles Office $121.40 Gift: N/a
Solicitors fees: $1500 FHOG: N/a
Other 761.6 Other: N/a
Lenders mortgage insurance ―
added to loan
$9430 Other: N/a
TOTAL COSTS (A): $524430 TOTAL OWN FUNDS (D): $82000
LOAN AMOUNT REQUESTED (B): $449430 OWN FUNDS REQUIRED (A–B) = C: $75000
OWN FUNDS REQUIRED (A–B) = C 75000 SURPLUS/SHORTFALL (D–C) $7000 (surplus)
Assessor feedback for Task 17 ― Completing the fact find
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 82 of 128

Task 18 — Assessing the clients’ situation
Based on the information gathered in the initial client meeting with Philip and Jennifer Brown (see
Case Study 1) and any other online tools used, you now need to assess the clients’ loan application,
paying particular attention that you have met regulations, legislative requirements, followed
industry codes of practice, and met lender credit policy.
Provide data to support your comments and conclusions.
Note: You will need to use this assessment of the clients’ needs to complete Part 2 of your Oral
Project.
Task 18: Question 1
Assume you have conducted your initial face-to-face meeting and have provided and sought the
necessary information from your clients. Explain a minimum of three (3) regulatory and legislative
requirements that you have met so far in dealing with this application. Include the documents you
would have provided to the client in the initial meeting.
Note: You are not charging a fee for service to your client.
(30 words)
Student response to Task 18: Question 1
Answer here
Three regulatory and legislative requirements are:
 Australian Securities and Investment commissions
 Australian Prudential Regulation Authority
 The National Consumer Credit Protection Act, 2009
The documents provided to the clients in the initial meeting are:
 Documents contain loan details including lenders name.
 Details of property required for collateral.
 Document containing amount of loan including interest rate.
 Loan application form.
Task 18: Question 2
As part of assessing the clients’ situation, a broker is required to determine the approximate cost of
LMI.
(a) Will Jennifer and Philip be required to pay LMI and why or why not?
(b) If so, what would the premium be?
(c) What two (2) options are available to borrowers to pay the LMI fee?
(40 words)
Hint/Tip:
The calculators are located in the Toolbox. Also, for the purposes of this project, you may use the
LMI premium excluding stamp duty.
Student response to Task 18: Question 2
Document classification: Confidential Page 83 of 128

(a) Answer here
Yes, Jennifer and Philip need to pay LMI because their LVR ratio is more than 80%. The LVR
ratio of couple is 89.80%
(b) Answer here
The amount of LMI premium excluding stamp duty is $9430.
(c) Answer here
The two option available to borrower for the payment of LMI fees is:
1. Payment from own fund.
2. Capitalize into loan amount.
Document classification: Confidential Page 84 of 128

Task 18: Question 3
In the previous question you used the Genworth LMI calculator to work out the LMI premium for
Philip and Jennifer Brown. There are other helpful tools located on the Genworth site that can assist
you with the preparation of a loan application.
On the Genworth website, under ‘Tools’, select the appropriate calculators to complete the
following:
(a) What is Philip and Jennifer’s maximum loan amount according to Genworth serviceability
calculation?
(b) What is their combined total gross and net incomes?
(c) What is the proposed monthly loan repayment, based on the actual interest rate? (Tip:
capitalise the LMI cost onto the loan amount.)
(30 words)
Student response to Task 18: Question 3
(a) Answer here
As per the Genworth Serviceability calculations, the maximum amount of loan for the Philip and
Jennifer is $449430 i.e., $440000 is of loan amount and $9430 is of LMI premium fees which is
capitalized in loan amount.
(b) Answer here
The combined total gross and net income of both Philip and Jennifer is $153000 and $118000 i.e.,
$153000 - $35000.
(c) Answer here
The proposed monthly loan repayment based on the 4% interest rate on the loan amount of $449430
will be $2145.65.
Task 18: Question 4
Based on what they have disclosed to you, does the client have the capacity to meet the deposit and
total cash contribution required for the property purchase? Explain why or why not.
(30 words)
Student response to Task 18: Question 4
Answer here
Yes, the client have the capacity to meet the deposit and other cash contribution required for the
property. It is because after meeting all the cost the client have the final surplus of $7000.
Task 18: Question 5
What is the security offered for this loan? Is it an appropriate type of security?
If so, explain why or why not. (30 words)
Student response to Task 18: Question 5
The property purchased by the couple itself is the security for this loan. No, the property is not the
appropriate type of security because the value of the security is less than the loan amount after
capitalising LMI that is, 490000 is less than 449430.
Document classification: Confidential Page 85 of 128

Task 18: Question 6
Prior to submitting the application, you are required to obtain a valuation on the property.
For the purposes of the project, the broker is to arrange the valuation of the security prior to
submitting the loan application.
(a) Complete the template below and prepare a letter to instruct the valuer to conduct a
valuation for Philip and Jennifer Brown.
(b) One completed and submitted, how and where would you file this for future reference?
(Consider correct document policies and procedures including legislation and security.)
Student response to Task 18: Question 6
(a) To: valuer
From: Broker1@CCF
Subject: Instruction as to property valuation
It is to inform you that Philip and Jennifer are interest in buying their first home at Wentworth Lane,
Thomastown VIC and are seeking for the home loan for which they need to provide their home as a
security for the loan. Therefore, you are requested to perform valuation of the property they are
interest in, so that their further loan proceedings can be undertaken.
Looking forward for your reply.
Property Valuation Request
Broker details Name Contact details
Jones and Co [phone]
Client name Loan type Loan amount
Philip Brown and Jennifer
Brown
Home Loan $440000
Loan purpose
Purchase  Refinance  Consolidation  Equity release 
Property type
Residential  Commercial  Vacant land  Land and construction 
Property address: Unit 1, 92 Golf Links Way, Bundoora VIC 3083
Title details
Volume: 10015
Folio: 326
Folio identifier: Volume / Folio number #1
Description
Year of construction 10 years
Number of bedrooms 2
Document classification: Confidential Page 86 of 128

Number of
bathrooms
2
Car accommodation Yes
Other rooms Kitchen
Other features Well furnished and located at the posh area of the suburb
Victoria.
Property value
Purchase price $ $490000 Date of contract 16 / 12 /
2021
or
Land purchase price $
Building contract $
Refinance ― estimated value range
From $
To $
Property use
Owner occupied 
Investment 
Holiday rental 
Rental income
Rent per month $ .00 Actual/Proposed
Valuation type:
Full valuation: 
Kerbside: 
Desktop: 
(b) All the documents received from the client will be stored both in physical form and in soft
copy as well. The policies and procedure of the broking and lending firm has been designed in a
way which fulfils the requirements of the Privacy Act. The software within which the information
will be stored would be a password protected one to ensure that there will be no information
leakage in the hands unwanted individuals.
Task 18: Question 7
After considering the client's financial position, what loan amount would you recommend, and
why?
(30 words)
Student response to Task 18: Question 7
Document classification: Confidential Page 87 of 128

Loan amount of $390000 or less would be recommended to ensure that the loan application would
get approved because lenders are interest in those proposals that are having 80% or less LVR.
Task 18: Question 8
What is the likelihood that the clients will be able to meet all of their financial obligations once the
loan is in place? (30 words)
Student response to Task 18: Question 8
After getting the loan, there are 100% chances that the client will be able to meet their all financial
obligations because the total income earned by Philip and Jennifer is $7917 + $4833 = $12750 per
month. Out of this earning they are required to make payment of their monthly living expenses of
($35000 / 12) $2917, towards monthly payment obligations on Philip's personal loan that is $180
per month and at last they need to make payment of 3% of their credit card limit as a minimum
monthly commitment which comes to $120 and $150 per month for Philip and Jennifer
respectively. Therefore, monthly savings of the couple is $12750 – 120 – 150 – 180 - 2917 = $9383.
If the couple will choose monthly repayment option, then the obligation would be amounted to
$2101 @ 4% per annum for the loan amount $440000 which could be easily met out of $9383
savings per month.
Task 18: Question 9
Under Responsible lending requirements, brokers also need to consider foreseeable changes in a
client’s financial position. What issues may impact the clients’ ability to meet their financial
obligations, including any possible risks, now or in the future? (40 words)
Student response to Task 18: Question 9
Issues such as risk of higher interest rate in the market when the client choose for variable interest
rate option and risk of losing job may affect the client's ability to meet their financial obligations
now or in the future. Also, the changing value of the property is a big issue for the client and may
affect their financial position.
Task 18: Question 10
Most lenders stress test home loan repayments by adding a 3.0% buffer to the interest rate to make
sure the borrower can afford the repayments over the medium term. If interest rates increased by
3.0%, what would Philip and Jennifer’s loan repayments be, and do you think they would be able to
cope with the extra repayment amount? (50 words)
Student response to Task 18: Question 10
If the interest rate would increase by 3%, then the rate will be current interest rate + 3% = 4% + 3%
= 7%. At this rate, the repayments of Philip and Jennifer would be $2927 per month. Yes, the couple
would be able to cope with the extra repayment amount as their savings per month after deducting
for their living expenses and recurring debt obligations towards credit card and personal loan is
$9383 which is sufficient for them to make extra and higher repayments on account of increasing
interest rates.
Document classification: Confidential Page 88 of 128

Task 18: Question 11
(a) Identify appropriate product options you can present to the clients that may remove this
interest rate risk?
(b) What advantage would this type of product provide for the customer?
(50 words)
Student response to Task 18: Question 11
(a) To remove interest rate risks, Client can opt for fixed interest rate loan to avoid risk of higher
or extra repayments. Also, Interest rate derivatives such as interest rate swaps can be used by client
to remove the interest rate risk which is helpful in heldging their position and safeguard themselves
from this risk.
(b) The advantage of opting for fixed interest rate loan is that there would be less payment of
interest at the time of higher interest rates in the market as the rate applicable would be the same
prevailing at the time loan has been taken.
Assessor feedback for Task 18 — 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
Document classification: Confidential Page 89 of 128

Task 19 — Presenting borrowing options and potential benefits
Task 19: Question 1
Although Philip and Jennifer (Case Study 1) are looking to borrow at approximately 90% LVR,
what other options may be available to them that would avoid the cost of LMI? Provide at least
three (3) options.
(100 words)
Student response to Task 19: Question 1
Options available to Philip and Jennifer to avoid the cost of LMI are as follows:
 The cost of LMI could be reduced by saving a larger portion for the deposit which would
result in getting lesser amount in terms of loan amount which results in lower LVR. For this
20% of the property value must be there to have 80% of LVR which results in no payment
of LMI.
 By getting a guarantor for the loan, client can avoid the cost of LMI.
 Qualifying for the first home loan deposit scheme also allows for avoiding the cost of LMI
as it is backed by federal government.
Task 19: Question 2
Describe the First Home Owner’s Grant or home buyer assistance scheme benefits and stamp duty
concessions that are available in the state where Philip and Jennifer are purchasing their home. Are
Philip and Jennifer eligible for any assistance? Explain why or why not? (100 words)
Student response to Task 19: Question 2
$10000 is a financial assistance provided under FHOG scheme on buying new home in Victoria.
Stamp duty exemption is available on property valued less than $600000. Yes, Philip and Jennifer
are eligible for this assistance because they are buying home for the first time where property value
is less than $750000 and purchase price is not more than $600000. They are above 18 years and
also an Australian citizen.
Task 19: Question 3
Philip and Jennifer have called to discuss an issue in relation to the product option you have
proposed. They are wondering whether it would be better to 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 address the issue raised and still 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 19: Question 3
Document classification: Confidential Page 90 of 128

(a) The options available are as follows:
 Fixed rate home loan products having all the features of the currently proposed loan.
 Using interest rate derivatives such as interest rate swaps which allows for paying
interest on a variable rate loan in to a fixed cost. It is done by facilitating exchange of
interest payment between the borrower and lender. This allows for coping with the
issue of interest rate risks and meeting the needs of the client as well.
(b) Advantages of fixing a loan are:
 Fixed rates are safer in a dynamic environment where the market is highly volatile and
constantly fluctuating.
 It allows for certainty of payment where the borrower need not to worry about how
much they have to pay.
Disadvantages of fixing a loan are:
 with the fall in the interest rates in market, there is no benefit for the borrower who
have obtained loans on fixed rates.
 Fixed interest rate are generally fixed at high by the lenders to allow them to cope up
with the falling interest rates in the market.
Document classification: Confidential Page 91 of 128

Task 19: Question 4
What other option/s can you suggest if Philip and Jennifer remain uncertain about whether to fix the
rate on their loan? (100 words)
Student response to Task 19: Question 4
There are various options available for Philip and Jennifer to overcome the interest rate risks:
 Buying interest rate futures where future contracts available on government bonds are
bought to hedge the position by locking in a particular interest rate.
 It would also be suggested to them to increase their additional repayments, so that their loan
could be repaid earlier and the long term risk associated with the interest rate could be
minimised.
Task 19: Question 5
You want to ensure that Philip and Jennifer have all the critical insurance protections in case
something unfortunate happened to one of them.
(a) What process would you follow during your discussion with the clients to ensure you have
a good assessment of their needs? (50 words)
Student response to Task 19: Question 5(a)
The process that would be followed is:
 Outlining the summary of the proposed loan.
 Briefing the summary of the client's financial position.
 Evaluating the options to ensure that how it would be helpful for the client in meeting their
needs.
 Finally recommending the option and stating reason for which it has been suggested.
 Inviting questions from client to resolve their queries and seeking their agreement for further
proceedings.
(b) Explain who you should refer Philip and Jennifer to obtain advice on these types of
products. (10 words)
Student response to Task 19: Question 5(b)
Financial market experts, competitive lenders, mortgage brokers and financial consultants could be
referred to for obtaining advice on such types of products.
Assessor feedback for Task 19 — Presenting borrowing options and potential benefits
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 92 of 128

Task 20 – Supporting the client to settlement
Although a broker does not participate in the settlement process, they still need to remain in touch
with all of the stakeholders until the loan settles.
Task 20: Question 1
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 20: Question 1
The broker has a very important role in getting loan approved from the lender and acts on behalf of
the client. They are meant for providing assistance at each and every step of the lending process
despite not required to get actively involved at all the stages. They help with their knowledge and
experience of how to deal with the lending process to their customers. When broker is informed
about each aspects of the lending process, many issues and difficulties that are likely to arise could
be avoided to a great extent as they are able to advice and suggest on various matters associated
with the loans processing.
Task 20: Question 2
The 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.
(a) To improve your service delivery standards and ensure you are communicating effectively
with Philip and Jennifer for the remainder of your interactions with them, you thought this
was an appropriate time to review your client service standards. Refer to the ‘Example of an
organisation’s policies and procedures’ document in the Toolbox under the section ‘client
service standards’. What evidence would you consider in your review of the service delivery
standards?
(b) Considering organisational policy and procedure, how would you document the
improvements and to whom in your organisation might you submit your review of the
standards?
(100 words)
Student response to Task 20: Question 2
(a) At the first hand, needs analysis has been done to ensure that the loan sought is not unsuitable
for the client. The broker has made inquiries related to Philip and Jennifer’s financial situation,
needs and objectives. The monthly obligations that the client needs to meet seems to be supported
by the client's ability to save on a monthly basis. The service standards must satisfy the requirement
of the ASIC.
(b) The documentation of the improvements will be done via mailing facility where a mail
consisting of all the recommendations needed for the improvements in organisational policies and
procedures will be mailed to the credit manager of the organisation.
Assessor feedback for Task 20 ― The loan approval and settlement process
Document classification: Confidential Page 93 of 128

(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 94 of 128

Case study 2: Mary Azacca
Case study 2 for Mary Azacca is located in your subject room in KapLearn.
Document classification: Confidential Page 95 of 128

Task 21 ― Case study 2: Refinancing a home loan
One of your clients, Adib Bursal, who has used your service for several years, has referred a work
colleague who is considering their options to refinance their loan. The colleague’s name is Mary
Azacca.
The initial meeting with Mary was conducted over Zoom. Following the meeting, Mary forwarded
basic information and documents sufficient to prepare a preliminary assessment.
Task 21: Question 1
A preliminary assessment is a document prepared by the broker and given to the borrower upon
request. However, before the assessment is prepared, the broker must have a comprehensive idea of
what the client requires.
To collect the information necessary to prepare a preliminary assessment, refer to case study 2 for
Mary Azacca and complete the following tasks.
(a) Using the client information collection tool/fact finder, complete:
– assets and liabilities
– needs analysis
– anticipated fees and charges
– funds to complete.
Student response to Task 21: Question 1
Document classification: Confidential Page 96 of 128

Client information collection tool/Fact finder
Appointment date: 15 december 2021
Appointment time: 11:50 am
Applicant 1
Surname JONES
Other names MARY
Contact details Address 8 North Road, Rockingham WA 6168
Phone (W)
Phone (H)
732459876
Mobile [phone]
Email [e-mail]
Employment Nursing unit Manager
How long? 18 years
Previous employer (if less than two
years) Answer here
How long? Answer here
Employment type
(FT/PT/casual/self-employed) (full time/shift work)
Gross income (p.a.) $95,000 p.a.
Net income (monthly) $7,917
Number of dependants 0
Motor vehicles:
make/model/year/value $
Holden Commodore SS 2007 =
$25,000
Nissan Qashqai 2019 = $25,000
Indian Scout Motorcycle 2018 =
$18,000
Loan purpose Loan refinancing
Purchase price/Valuation $550,000
Deposit on property $20,000
Loan amount $330000
Borrowing capacity
(using Genworth serviceability
calculation)
PASS (On the basis of data entered
pertaining to Mary's financial
condition it has been found that she
met the Genworth's
)
Document classification: Confidential Page 97 of 128

Assets and liabilities
Assets L
i
a
b
i
l
i
t
i
e
s
Details Market value Details Monthly payments Amount owing
Owner occupied property at: $550,000 Mortgage with: $2,292 $330,000
Investment property at: Answer here Mortgage with: Answer here Answer here
Cash at bank
(includes fixed deposits)
Western Bank savings account
Western Bank term deposit
$24,000
$10,000
Car leasing Answer here Answer here
Other cash
(includes offset accounts) 0 Personal loans
1.
2.
Answer here Answer here
Deposit paid on property
(only if paid) $20,000 Overdraft Answer here Answer here
Motor vehicles:
1. Holden Commodore SS
2007
2. Nissan Qashqai 2019
3. Indian Scout Motorcycle
2018
$25,000
$25,000
$18,000
Other loans:
1.
2.
Answer here Answer here
Personal effects $115,000 Credit card limit:
$5,000
$150 $700
Business value
(if self-employed) 0 Credit card limit:
Answer here
Answer here Answer here
Shares and investments $15,000 Other: Answer here Answer here
Superannuation — HESTA $480,000 Other: Answer here Answer here
Other assets (give details) Other: Answer here Answer here
Total assets
$1282000 Total liabilities $2442 $330700
Surplus/deficiency: (Total assets less Total liabilities) $951300
Document classification: Confidential Page 98 of 128

CURRENT MONTHLY LIVING EXPENSES
(Provide a breakdown of the total amount listed in the case
study — use your discretion)
Food/housekeeping 500
Insurance
(e.g. motor vehicles, home contents/ building, medical, life/income protection) 700
Utilities
(e.g. rates, gas, electricity, transport) 200
Transport
(e.g. public transport, petrol, registration, repairs) 300
Education (e.g. school, college, university) 0
Dependants support
(e.g. childcare, child maintenance) 0
Entertainment (include online subscriptions, e.g. Netflix/Stan) 200
Other (detail below): 433
MONTHLY LIVING EXPENSES $2333
Document classification: Confidential Page 99 of 128

Needs analysis
1 Name of your current lender? Simply Home
Loans
2 What type of loans do you have? Mortgage loan
– at variable
interest rate
3 Why did you choose this particular loan and lender? To finance
home buying
and in the
scenario of
falling interest
rates, variable
rates have been
chosen. The
lender has been
chosen due to
its popularity
across the
financial and
mortgage
industry.
4 What is the interest rate on your current loan? 4.80% p.a.
5 What are your payments? Amount $2,292
6 Frequency 12 times (monthly)
7 Do you know the fees and charges? No
8 What is your proposed purpose for the new loan you are
applying for? To make
additional
repayments
without
incurring
penalties.
Fortnightly
repayment
option, redraw
facility and
accessing fund
through card.
Also, to get
packages loan
product, so that
monthly
payment of
fees and
charges could
be avoided.
9 Branch access available with current lender Yes.
Document classification: Confidential Page 100 of 128

10 Internet banking available with current lender No.
11 Phone banking available with current lender No.
12 Lenders not to be considered Answer here
13 Type of loan sought premium
option home
loan features
14 Preferred interest rate range variable
interest rate
(4.0% p.a.)
15 Payment frequency fortnightly
repayment
option
16 Redraw Yes
17 Offset Yes
18 Salary crediting Yes
19 Low fees and charges Yes
Assessor feedback for Task 21 ― Refinancing a home loan: Gathering information
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 101 of 128

Task 22 ― Preparing a preliminary assessment
Preparing a preliminary assessment is required under the NCCP Act. In this task, you are required to
prepare a preliminary assessment for Case study 2: Mary Azacca.
Task 22: Question 1
Before preparing the preliminary assessment, under best interest duty, you need to assess if there is
a benefit to the customer by switching loans.
To determine if there is a benefit for the client you need to go to the MoneySmart website. Using
the mortgage switching calculator, you need to:
(a) provide the result using the calculator
(b) explain if the customer will benefit from switching lenders.
The MoneySmart link can be located in the Toolbox.
(50 words)
Student response to Task 22: Question 1
(a) By switching loan, if minimum repayments are made of $1831 per month, then the customer
will benefit from saving $40346 ($146 per month) throughout the life of the loan.
Further, if higher repayments of $1977 per month are made after switching the loan it would be
equivalent to the minimum repayments made for the current loan. As a result, the customer will
save $62701 ($257 per month) over the life of the loan. Also, loan would be paid off earlier by 31
months.
(b) Yes, the customer would get benefited by paying loan earlier and saving minimum of $146 and
maximum of $257 per month throughout the life of the loan.
Task 22: Question 2
Will Mary be required to pay LMI? Explain why or why not. (20 words)
Student response to Task 22: Question 2
No, Mary need not required to pay LMI as it is needed when there are chances of making default on
loan repayments and the amount that the lender can recover out of selling the security is lower than
the amount borrowed or outstanding. However, the value of property that has been occupied by
Mary itself is much higher than the loan amount and it is being expected by Mary that the value of
house property is likely to go higher in future where the house is existing now.
Task 22: Question 3
Using the information gathered from your customer, Mary Azacca, you are required to prepare the
preliminary assessment.
Part of the preparation will require you to use a home loan comparison website and use that
information to prepare the preliminary assessment below.
Document classification: Confidential Page 102 of 128

Preliminary Assessment
Student response to Task 22: Question 3
Applicant 1
Full name (Client 1) Mary Azacca
REQUIREMENTS AND OBJECTIVES
Reasons for seeking credit or reviewing an existing
contract, and the resulting benefit The reason for seeking credit is to refinance the
existing loan, to review the existing contract is to
avoid any payment of monthly fees and charges.
The resulting benefit would be saving minimum
amount of $146 and maximum amount of $257 on
a monthly basis along with making repayments in
less time.
Specific features requested, and any risks or costs Risk in terms of interest rate is possible as it could
go higher making the loan quite costly affair.
Some specific features requested are as follows:
 Redraw facility
 Offset account
 Access to funds through card
 Making additional repayments without
incurring penalties.
MONTHLY FINANCIAL POSITION
Current Proposed
Total monthly after tax income: (A) $7917 $7917
Total monthly repayments: (B) $150 + $2292 = $2442 $150 + $2000 = $2150
Total monthly living expenses: (C) $2333 $2333
TOTAL MONTHLY NET SURPLUS (A-B-C) $3142 $3434
Foreseeable material
financial changes, and
resulting plan to meet the
ongoing obligations
RECOMMENDED PRODUCT
PARTICULARS
PRODUCT 1 PRODUCT 2 PRODUCT 3
Lender’s name Victorian Mortgage group Choice Custom Choice Lend
Loan product: Home loan refinancing Premium option home loan
features
Standard packaged
loan
Loan Amount: $330000 $330000 $330000
Term in years 25 23 20
Monthly repayments $1788 $1921 $2000
Document classification: Confidential Page 103 of 128

CONFLICT OF INTEREST
DISCLOSURE:
Has any conflict of interest
which may disadvantage the
client been identified in
relation to the
recommended product?
No.
SUITABILITY:
I consider that based on the
information provided by the client
and further enquiries that the
loan proposal is
‘not unsuitable’ for the client.
Indicate yes or no and provide
supporting comments.
Yes, on the basis of information obtained from client and other
enquiries made for the purpose of ensuring that the loan is not
unsuitable, the loan product is best suited to the needs of the client
due to the following reasons:
 It provides for additional repayment facility along with the
option to switch on to fortnightly repayments.
 It provides for redraw facility and access to funds through
cards.
 The product has no service charge on a monthly basis and
also provides for lower variable interest rate that is 4% per
annum Against 4.8% per annum. Accordingly, the
recommended loan options and products are meant for
lowering overall expenses associated with the loan for the
client.
Task 22: Question 4
Of the three loans recommended in the preliminary assessment, which loan product would you
recommend to Mary, and why? (30 words)
Student response to Task 22: Question 4
Standard packaged loan would be recommeded to Mary out of the three loan products mentioned
above because it provides with the combination of all the facilities and features such as variable
lower interest rate per annum, redraw facility, fund accessing through cards and additional
repayment option without incurring any penalties. In addition to this, no monthly servicing charges
would be there after making one time payment while applying for the loan. This lump sum charges
borne by the customer at time of applying for loan is also very minimum.
Task 22: Question 5
Does Mary qualify for any government concessions or stamp duty reductions?
Explain why or why not. (20 words)
Student response to Task 22: Question 5
Yes, Mary is qualified for government concession in terms of family home guarantee which is
designed to support single parent purchasing their first home. This concession is available through
first home buyer having less than 160000 income per annum is not required to pay any duty while
purchasing their first home.
Task 22: Question 6
What other issues may impact, now or in the future, on the Mary’s ability to meet her obligations,
including any possible risks? (30 words)
Document classification: Confidential Page 104 of 128

Student response to Task 22: Question 6
Issues may be associated with the adoption of variable interest rate for the loan as it may happen in
the future than the interest rate would go higher which results in making higher monthly payments.
Also, if Mary would go for making additional repayments on a fornightly basis, then she fall in
financial crisis as her monthly savings are quite low and this could swiped off with the increase in
interest rates in future. Therefore, there is a possibility of interest rate risks which may affect Mary's
ability to meet her obligations.
Task 22: Question 7
You are required to present your analysis and recommendations to your client. On this occasion you
will make your presentation in an email. You will gather some of the information from your
preliminary assessment and you will also need to include the following information.
• Provide a brief summary of your understanding of the clients’ needs (this could be an outline
summary of their proposed loan structure).
• Provide a brief summary of the clients’ current financial position (use information from the case
study).
• Give an explanation of the product options evaluated that meet their needs (you should have
researched at least three (3) lenders as part of the preliminary assessment) and details of the loan
features. Use the internet or, if working in the industry, internal software to do this.
• Explain the option you recommend and the reasons for the recommendation — including the
loan amount, term and repayments. Explain how the recommended product meets the clients’
needs (refer to the case study)
• Invite questions from the client and respond in a follow-up email accordingly.
• Seek agreement from the client to proceed with the product recommendation.
(200 words)
Student response to Task 22: Question 7
Document classification: Confidential Page 105 of 128

To: Mary Azacca
From: broker1@CCF&MB.com.au
Subject: Recommendation for a home loan refinancing options
Dear Mary,
With regards to the meeting conducted over zoom and preliminary assessment prepared on the basis
of information and documents provided from your side, we have better understand your need which
has been summarised as follows:
 The loan product as provided by the Choice Lend is best as per your requirements because it
provides you with all the facility as requested by you such as redraw facility, additional
repayments without any penalties or charges and the interest that would be charged @4%
per annum will be variable in nature which get changed with the market conditions within
the Australian economy. Also, the loan of $330000 will be available for and can be repaid
within the duration of 20 years where facilities such offset account and fund accessibility via
card are also available. Further, the monthly repayment would be $2000 which is highly
supported by your financial situation.
 The loan options recommended here after taking into account the monthly repayment of
$150 towards credit card commitments, annual and monthly living expenditure of $28000
and $2333 respectively. Also, the property or security value is moving upward and
expectation in future is similar to the current trends. Further, Your yearly and monthly gross
income has been taken into account while calculating monthly repayments that is required to
be made for this loan.
 During preliminary assessment, three products have been identified by taking into account
your needs and financial situation, where the first one named as home loan refinancing will
provide for 25 year term loan with a combination of fixed + variable interest rate of 4.25%
per annum, the second option known as Premium option home loan features will provide for
variable interest rate of 4.5% per annum for the period of 23 years and the last lender is
providing for 20 years term loan with a package of numerous features by charging variable
interest rate of 4% per annum. The first option will have lowest monthly obligation while
the third one has the highest monthly obligations due to differing time element.
We request and are ready to answer your queries. If you are agreed with the terms, conditions and
features of the loan option recommeded here, then please allow us for further proceedings.
Thank You
CCF&MB
Document classification: Confidential Page 106 of 128

Task 22: Question 8
Mary has responded to your email asking some questions.
To: Broker 1
Broker1@CCF&MB.com.au
From: [e-mail]
Re: Recommendation
Dear broker,
Thank you for providing your recommendation for the home loan product for my refinance application.
I have some questions I am hoping you can answer for me:
1. I want to open a bank account to make sure there is somewhere for any disbursement of surplus funds from the
refinance settlement and also for my periodical payments to be debited from. What options do I have to apply to
open a bank account?
2. What ID will I need to provide to open a new bank account?
I look forward to receiving your reply.
Thank you.
Mary Azacca
Send a reply email to Mary to answer her questions.
(100 words)
Hint/Tip:
You will need to conduct your own research to answer this question. Refer to the Toolbox for a
suggested website.
Student response to Task 22: Question 8
FWD: To: Mary Azacca
[e-mail]
From: broker1@CCF&MB.com.au
re: Recommendation
With regards to your concern regarding opening a bank account in order to endure periodical
payments and parking of surplus funds towards refinance settlement, there are following two
options available with you:
 firstly you could open a saving account from which your monthly repayment amount will
be debited in the beginning of each period and also further debiting could be done on
your request to facilitate additional repayments.
 Secondly, you could have a saving account from where your monthly obligations could
be debited along with a recurring deposit account option that you could opt for in order to
park your surplus funds on which interest @ 4.7% per annum will be provided by the
lender for each month on a proportionate basis. Through this RD account, you will be
able to make additional repayments as and when you desire.
A photographic ID will be required that is, Australian Driving License or any equivalent ID to
open your bank account.
Looking forward for your positive response in future.
Thank You
Document classification: Confidential Page 107 of 128

CCF&MB
Document classification: Confidential Page 108 of 128

Task 22: Question 9
In the course of your interactions with Mary, you have gathered or completed a number of
documents, which include, for example, the completed fact find with credit representative notes, the
preliminary assessment and assorted communication with her. How and where would you file this
information?
(30 words)
Student response to Task 22: Question 9
All the information associated with Mary will be kept in safe and secure manner by keeping in
mind the requirements of Privacy Act. All this information will be both in physical form in the
locker of the lender and a copy of these documents and information will be retained and stored in
the broker's locker. Also, all these documents and information will be available in a password
protected software of the lending and broking firm.
Assessor feedback for Task 22 ― Preparing a preliminary assessment
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 109 of 128

Case study 3: Ravi & Alice Patel
Case study 3 for Ravi & Alice Patel is located in the subject room.
Document classification: Confidential Page 110 of 128

Task 23 ― Case study: Purchasing an investment property
Ravi and Alice Patel have approached you to arrange finance to purchase an investment property.
The clients have already paid the 10% deposit, so you will need to act fast as they need to settle in
60 days.
Following the initial meeting, the clients have provided all of the essential documents to prepare a
loan submission.
Task 23: Question 1
To commence the process, you need to enter the information collected into your aggregator’s CRM
system. This will include:
(a) client information collection tool/fact finder
(b) assets and liabilities
(c) needs analysis
(d) credit representative notes
(e) anticipated fees and charges
(f) funds to complete.
Student response to Task 23: Question 1
Document classification: Confidential Page 111 of 128

Client information collection tool/fact finder
Appointment date: Student to insert date
Appointment time: Student to insert time
Applicant 1 Applicant 2
Surname Patel Patel
Other names Ravi Alice
Contact details Address 12 Mascot Street, Lidcombe NSW 2141 12 Mascot Street, Lidcombe NSW 2141
Phone (W)
Phone (H)
[phone] (02) 9784 0454
Mobile [phone] (02) 9741 1254
Email [e-mail] [e-mail]
Employment Self employed Part time
How long? 15 Years 25 Years
Previous employer
(if less than two years) No No
How long? 0 0
Employment type
(FT/PT/casual/self-employed)
Gross income (p.a.) $50,000 $45,000
Number of dependants 2 2
Motor vehicles:
make/model/year/value $
$65,000 $65,000
Loan purpose Buying home
Purchase price/valuation $660,000
Deposit on property 0
Loan amount $715,000
Document classification: Confidential Page 112 of 128

Assets and liabilities
Assets L
i
a
b
i
l
i
t
i
e
s
Details Market value Details Monthly payments Amount owing
Owner occupied property at: $1,300,000 Mortgage with:
Answer here
Investment property at: Answer here Mortgage with: $1800 $450,000
Cash at bank
(includes fixed deposits) 37500 Car leasing 0 0
Other cash
(includes offset accounts) 0 Personal loans
1.
2.
0 0
Deposit paid on property
(only if paid) 0 Overdraft 0 0
Motor vehicles:
1.
2.
$65,000 Other loans:
1.
2.
0 0
Personal effects
household effects
$140,000 Credit card limit:
Answer here
$5,000 $800
Business value
(if self-employed) 143000 Credit card limit:
Answer here
0 0
Shares and investments 0 Other: 0 0
Superannuation
Applicant 1:
Applicant 2:
$300,000
$120,000
Other: 0 0
Other assets (give details):
Answer here
$48,000 Other: 0 0
Total assets 2010500 Total liabilities 6800 450800
Surplus/deficiency: (Total assets less Total liabilities) $1559700
Document classification: Confidential Page 113 of 128

CURRENT MONTHLY LIVING EXPENSES (Provide a
breakdown of the total amount listed in the case study —
use your discretion)
Food/housekeeping 25000
Insurance
(e.g. motor vehicles, home contents/ building, medical, life/income protection) 2000
Utilities (e.g. rates, gas, electricity, transport) 5000
Transport (e.g. public transport, petrol, registration, repairs) 7000
Education (e.g. school, college, university) 5000
Dependants support (e.g. childcare, child maintenance) 6000
Entertainment (include online subscriptions, e.g. Netflix/Stan) 2000
Other (detail below): 5000
MONTHLY LIVING EXPENSES 55000
Document classification: Confidential Page 114 of 128

Needs analysis
1 Name of your current lender? Penrith Mutual Home
Loan
2 What type of loans do you have? Home loan
3 Why did you choose this particular loan and lender? This loan will be eligible
to sum the entire loan
amount and also the
repayment is in easy
affordable intallments.
4 What is the interest rate on your current loan? 4.7%
5 What are your payments? Amount 4056
6 Frequency Monthly
7 Do you know the fees and charges? Yes
8 What is your proposed purpose for the new loan you
are applying for? Buy home
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 5%
15 Payment frequency Monthly
16 Redraw Nil
17 Offset No
18 Salary crediting No
19 Low fees and charges 1500
Document classification: Confidential Page 115 of 128

Credit representative notes
Note: Providing substantive notes here is a compulsory part of your assessment.
The house property need to be provided in order to secure the loan. This is like a guarantee against
the loan is taken from the bank. In case of the home loan guarantee is always require in against to
approach the home loan.
Document classification: Confidential Page 116 of 128

Anticipated fees and charges
Anticipated purchase price $685,000
Deposit on property 0
Total Loan amount $715,000
LVR % 10
Purchase costs
$660,000Stamp duty – Transfer of Land
Registration fee – Transfer of Land
Solicitor/conveyancer fee 25000
Rates and land taxes (estimate) 0
Pest inspection (estimate) 0
Building inspection (estimate) 5000
Borrowing costs 1500
Application/establishment fee
Valuation fee 2500
Security admin fee 500
LMI 75000
Registration of mortgage 5000
Discharge/release of mortgage fee 7500
Search fees 5000
Other 3000
Total purchase and borrowing costs 715000
Document classification: Confidential Page 117 of 128

Funds to complete
PURCHASE AND LOAN COSTS: A
V
A
I
L
A
B
L
E
F
U
N
D
S
:
25000
Purchase price: $660,000 Deposit if already paid to
agent: 0
Lender application/valuation fees: 2500 Cash savings: 37500
Stamp duty payable ― Transfer of
Land 1787 Sale proceeds: 0
Registration fee ― Transfer of Land 1800
Registration of Mortgage ― Land
Titles Office 3200 Gift: 0
Solicitors fees: 25000 FHOG: 0
Other 3000 Other: 420000
Lenders mortgage insurance
Added to loan
2000 Other: 0
TOTAL COSTS (A): 699287 TOTAL OWN FUNDS (D): 457500
LOAN AMOUNT REQUESTED (B): 715000 OWN FUNDS REQUIRED (A–B) = C: 257500
OWN FUNDS REQUIRED (A–B) = C 0 SURPLUS/SHORTFALL (D–C) 457500
Assessor feedback for Task 23 — Case study 3: Purchasing an investment property
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 118 of 128

Task 24 ― Preparing a loan proposal
After completing your investigation into what loan options are available, you are ready to proceed
and prepare a loan proposal for the clients Ravi and Alice.
During discussions with the clients, they have confirmed their willingness to cross-collateralise
their
owner-occupied property as equity to purchase the investment property. So, you have agreed to send
them an email and propose two options to finance the investment property.
Firstly, you are required to complete the credit proposal disclosure to attach to your email
presentation.
Credit proposal disclosure
This document provides information on commissions and certain fees and charges the broker or
other parties may receive in relation to the proposed loan or lease.
Task 24: Question 1
You now need to complete a credit proposal. For this task you will need to use an online loan
comparison website and to complete the template below.
Lender information: The lender is paying an upfront commission of 0.65% of the loan amount and
a monthly trail based on 0.15% of the loan balance.
Student response to Task 24: Question 1
Customer(s) full name(s) Ravi Patel and Alice Patel
Address 12 Mascot Street, Lidcombe NSW 2141
Phone and email [phone]
Proposed finance
Interest rates and repayments may
change if the lender changes its
interest rate.
Lender: Penrith Mutual home loan
Split 1 Purpose: buying home
Finance amount:715000
Interest structure: Fixed
Interest rate: 4.7%
Term: 25 years
Repayments: Monthly
Other features Part payment and full settlement
Split 2 Purpose:
Finance amount:
Interest structure:
Interest rate:
Term:
Repayments:
Other features:
Total loan amount $ 715000
Fees payable by you to us.
These fees are payable by you.
$ 2500
Document classification: Confidential Page 119 of 128

Commission is payable for: 2000
Commission payable by: 1500
Commission payable to: Penrith Mutual home loan
Reasonable estimate of commission: X% of the amount of credit limit shortly after the finance is provided. We
estimate this to be $ .
X% per annum of your amount owing from time to time payable monthly.
We estimate the largest monthly payment to be $ .
Estimate of total fees and charges
payable to the financier in relation
to applying for the finance.
These fees are payable by you.
Note: These figures are estimates only
and the final figures will be shown in
your credit contract or lease.
Some (or all) of these fees may be
paid from the finance proceeds.
We are not aware of any other fees or
charges payable to anyone else in
relation to the application for finance,
but the financier may impose some
additional requirements.
Application fee:
Establishment fee:
Lenders mortgage insurance:
Valuation fee:
Transfer duty fees
Refinancing fees:
Discharge fee:
Other known costs
Total
$ 2500
$ 1500
$ 2500
$ 5000
$ 7500
$ 500
$ 1500
$ 2500
$ 23500
Document classification: Confidential Page 120 of 128

Task 24: Question 2
Now that you’ve completed the credit proposal disclosure, you will need to write your email to the
client. You must cover the following points, namely:
• a summary of your understanding of the clients’ needs (this could be an outline summary of their
proposed loan structure)
• a brief summary of their current financial position (use information from the case study)
• your explanation of the minimum of two (2) product options evaluated that meet their needs and
details of the loan features (use the internet or, if working in the industry, internal software)
• the option you recommend and the reasons for the recommendation — including the loan
amount, term and repayments; explain how the recommended product meets the clients’ needs
(refer to the case study); and explain why you recommend this lender.
• invite questions from the client and respond in a follow-up email accordingly
• provide a section for the client to provide you with permission to proceed.
(200 words)
Student response to Task 24: Question 2
The client require a home loan to buy the new house property. The client own the stable financial
position that will support the respective person to easily repay the entire loan amount. The fixed
interest rate and the easy repayment practice will support the client. The loan own the affordable
interest rate that will allow the borrower to conveniently pay the entire loan amount.
Task 24: Question 3
Ravi has responded to your email asking some questions.
To: Broker 1
Broker1@CCF&MB.com.au
From: [e-mail]
Re: Recommendation
Dear broker,
Thank you for providing your recommendation for the home loan product for our refinance application. I have some
questions I am hoping you can answer for us:
1. Can you please explain our rights for obtaining a written assessment.
2. Do you have to provide us with a comparison rate with your home loan product recommendations, and can you
please explain the difference between the interest rate and the comparison rate?
3. We would like to negotiate the application fee or the interest rate for the product you’ve recommended.
Can you please advise how much you can negotiate for either the interest rate or the application fee on our behalf?
Thank you and regards,
Ravi Patel
Send a reply email to Ravi to respond to those questions.
(100 words)
Student response to Task 24: Question 3
Document classification: Confidential Page 121 of 128

FWD: To: Ravi Patel
[e-mail]
From: broker1@CCF&MB.com.au
Re: Recommendation
The right is to know all the information. The comparison rate is provided clearly. Negotiation is
applicable over the application fees of the loan. The interest rate is fixed in nature which is not
negotiable.
Assessor feedback for Task 24 — Preparing a loan proposal
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 122 of 128

Task 25 ― Loan contracts and security documentation
Task 25: Question 1
When checking the loan offer contracts received from the lenders, what key points should you
check to ensure the documents are accurate?
List a minimum of six (6) points. (20 words)
Student response to Task 25: Question 1
All requirements of the form need to be submitted with proper doscuments.
Task 25: Question 2
If there is a guarantor involved, what type of professional should you recommend the client refer
their loan contracts to prior to signing and why is this so important? Include which code you would
be adhering to in doing so. (20 words)
Student response to Task 25: Question 2
The professional from the bank is admissible for this purpose. This is important to authorize the
entire loan.
Task 25: Question 3
The clients have chosen to sign their contracts with you, in your capacity as a broker. Describe how
you would explain the loan offer and security documentation to the client, as well as gain
confirmation of their understanding of approval conditions of their finance.
Hint/Tip:
Include the sections of the loan offer that you would cover in your explanation to the client.
Refer to the topic notes and the sample Letter of Offer in the subject room.
(100 words)
Student response to Task 25: Question 3
The loan term and condition will disclose all the conditon related to the loan. The confirmatory via
email will provide.
Document classification: Confidential Page 123 of 128

Task 25: Question 4
(a) Now that the client has signed the documents, explain how you will submit the documents to
the lender.
(b) Include a comprehensive list of the documents that the lender will require in order to
proceed with settlement. This may also include lender-specific documents for the new loan
account etc.
(50 words)
Student response to Task 25: Question 4
(a) The document will be submitted to the lender. The relationship officer hold the responsibility to
collect the document and submit it further.
(b) The document like check list, processing document and such other are need to submit.
Task 25: Question 5
Explain to your client how you will communicate with them throughout the settlement process;
include the method of communication and the timeframes. (This should be in line with the
organisation service standards as outlined in the Toolbox.)
(20 words)
Student response to Task 25: Question 5
The email will be used to communicate about the loan.
Task 25: Question 6
You have just received a call from the lender to advise the documents have been executed correctly.
Describe how you will notify the client. (15 words)
Student response to Task 25: Question 6
This is to inform that the documents are executed correctly.
Assessor feedback for Task 25 — Loan contracts and security documentation
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 124 of 128

Task 26 ― Preparing the loan for settlement
Although a broker does not participate in the settlement process, they still need to remain in touch
with all the stakeholders until the loan settles. Before the loan can settle the borrower needs to
adhere to
pre-settlement conditions.
Task 26: Question 1
In the pre-settlement phase, there are items that need to be checked and satisfied. For each one,
explain why it is required (i.e. what is the importance of each of item):
(a) building insurance
(b) independent legal advice.
(40 words)
Student response to Task 26: Question 1
(a) Building insurance need to verify and check. It is important and essential to hold.
(b) This is done by the individual to provide the legal advice. Independent legal advice allow to
support the authentic legal advice.
Task 26: Question 2
Explain the settlement process to the client, include the personnel who are involved at each step.
(100 words)
Student response to Task 26: Question 2
The settlement process involve the complete settlement of the loan. The settlement involve the
different individuals such as loan officer, collection agent, person taken the loan and such other
individuals. The recovery of loan is very essential part and require all the stakeholders to involve in
the process. The recovery agent will be involve in each individual stage part of the recovery
process. The role of the various stakeholders is to support the proper recovery of the loan value. IN
each step all these stakeholders will be a part of the process so that recovery can be done
appropriately.
Task 26: Question 3
Explain a minimum of four (4) examples of issues that can occur which may delay or prevent a
settlement.
(80 words)
Student response to Task 26: Question 3
– Bank issue is a major challenge that causes to delay in settlement.
– Property concern is also a major issue causes to delay in settlement.
– The three day grace period.
– Penalty interest being charged.
Task 26: Question 4
Explain the steps in the process of registering security documentation. (50 words)
Document classification: Confidential Page 125 of 128

Hint/Tip:
In addition to the topic notes, you may also be required to undertake your own research.
Student response to Task 26: Question 4
Security documentation can be registered with the proper legal process. The ownership need to be
claimed whole registering the security document. This is top be done with the proper use of the
process that involve claiming the ownership, depositing fees that is required and carrying out all
other process involve with the security document registration.
Document classification: Confidential Page 126 of 128

Task 26: Question 5
When the lender is ready for settlement, they will contact the borrower’s solicitor and inform them
of the expected settlement date, and request details of funds to be distributed at settlement.
The lender will then prepare a pre-settlement costing sheet and forward to the borrower’s solicitor
in preparation for settlement. With the broker working closely with the borrower’s solicitor, when
they receive a copy of the costing sheet, the broker can then make sure that all the particulars are
correct.
For this task you are required to prepare the following pre-settlement statement for the purchase of
the investment property for Ravi and Alice Patel.
Student response to Task 26: Question 5
Purchaser/s: RAVI AND ALICE PATEL
Property: HOUSE
Purchase
Purchase price: $660,000
Less:
Deposit paid 0($)
Subtotal $660,000 $
Adjustments $25,000
Plus $30,000 Council rates $
Less
Amount due on settlement to vendor
Disbursements 0
Eastern Conveyancing 0
Land transfer duty & fees 0
Amount due on settlement from purchaser $715,000
Document classification: Confidential Page 127 of 128

Task 26: Question 6
You are now at the closing stages of the loan process with this client.
(a) How and where do you file the information you have communicated with them?
(b) Once the settlement concludes, what else would you do to ensure you communicate with this
client effectively?
(30 words)
Student response to Task 26: Question 6
(a)
The information can be found with the proper verification of the legal records and
documents. The proper analysis will be done with the proper support of document verification and
such other practices.
(b)
The communication be done effectively with the email and other mode of communication
that involve phone call and such other techniques.
Assessor feedback for Task 26 — Preparing the loan for settlement
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Document classification: Confidential Page 128 of 128