Mortgage Broking: Options & Applications

This mortgage broking assignment covers various aspects of the field. It involves analyzing three different land purchase options, understanding the process of applying for mortgage loans, completing customer files, and creating a customer/referrer database. Tasks include report writing, short answer responses, and a practical database exercise.

MORTGAGE BROKING
TASK – 1: OPTIONS FOR LAND PURCHASE
Refer to the files available in Appendix.
OPTION - 01
Property's description
Half acre (2300 sq.m.) block in Wingello, NSW 2579, with exclusive driveway in the
Southern Highlands, half-way between Sydney and Canberra. Only five minute walk to
the primary school, shopping area, bus and train station to Bowral and Goulburn.
Unusual perspective as the block is surrounded with lots of land having substantial
dwellings.
Asking Price
$230,000.00
OPTION - 02
Property's description
Gunning, 481 Lade Vale Road
Situated at approx. 8 km from Gunning and just 45 minute comfortable drive to
Canberra and less than 2 hours from Liverpool.
1 lot meets current council requirements for dwelling permissibility.
The properties in the area consist of a mix of native, unimproved country with
eucalyptus trees scattered all around with some rocky outcrops on ridges. Offers a
majestic view from elevated high points.
Land Area Ha: 11.34
Land Area Acres: 28.03
Property Type: Lifestyle / Rural
Asking Price
$208,000.00

OPTION - 03
Property's description
Glencoe, 109 Warra Forest Road
The area covers approx. 40 hectares (101acres) with developed forest and is just under
40 km southeast of Glen Innes in northern NSW. The property has power and phone
connection, an all-weather access.
There is approx. 32,000 litres of rainwater storage with pressure pump and a 5hp water
pump on the nearby spring for fresh water.
Asking Price
$199,500.00
Task 2: Report/Written Test
Process Applications for Credit (Mortgage Loans Only)
Please refer to Document-4 of the Appendix.
Task 3: Report/Written Test
Completing Customer File
Please refer to Document-2 of the Appendix.
Task 4: A (Activity) and B (Short Answers)
Create a customer/referrer database
A. The relationships built in Task 1 Case Study were the clients, referrer, settlement
agent and real estate agent.
Prepare a database on contacts made from this task by using your internal customer
record system or suitable program, i.e. Microsoft Excel spreadsheet. You are required to
submit the Excel file (or PDF/screenshot if other software is used), showing your
database layout.
Answer – A
Please refer to the Appended Excel Worksheet

B. Please answer the following questions in relation to your database and
building/managing your business contacts:
1. Why is important to build a database of clients/referral sources?
ANSWER – 1
Working as a referral agency in the service industry, it is essential to keep track of the
clients as most of them go satisfied from our services and hence refer us to their friends.
Since we have the system of rewarding each referral, the database helps in knowing the
credential of the referral.
2. Why is it important to develop professional relationships?
ANSWER – 2
More often, a service provider comes across customers who are hard to satisfy. We also
come across borrowers who come with a notion that agents are only interested in their
commissions and will try to put them in a difficult position. Hence, a professional
approach is always helpful, as it shows the customer that we are not here to cheat them.
3. When is it not appropriate to contact a person and why?
ANSWER – 3
As explained above, if we try to chase a customer or try to call him often to enquire
whether he has arrived at some decision, we are considered to be pestering them. Hence,
we maintain a respectful distance and after every meeting, we leave it up to the client to
suggest the next meeting date and time.
4. Why is it important to have effective interpersonal styles and methods when dealing
with clients/referrers? Why is it important to consider special needs, culture, race,
religion, origin, demographics?
ANSWER – 4
In my fifteen years of experience in this service profession, it has been my
understanding that demographics do leave their impact on the person. Religion makes
the person a believer and race is essentially just the colour of skin and does not matter
much. I personally look at the education of the client, his lifestyle and then at his needs.
This way, it is easy to present the explanations which are most often listened patiently.

5. Explain why you think it would be important to follow up any business referrers as
quickly as possible.
ANSWER – 5
If, professionally it is not ethical to follow-up a client without the client’s consent, it is
definitely within professional ethics to keep in touch with the referrers. In fact, the
referrers are the lifeline of our business. There are professional people in the allied
service industries, such as accountants, who are in a position to get business our way.
6. What methods could you use in developing new business i.e.; advertising and
promotion of your services?
ANSWER – 6
I am personally not in favour of advertisement, as the services which we offer are based
on moral ethics and this cannot be explained through advertisements. An ethical
approach can be adopted only when person-to-person interaction is made. This is the
void methodology and should be pursued in the service industry.