FNSFMB403: Comprehensive Report on Broking Options for Clients

This report, designed for the FNSFMB403 module, comprehensively analyzes broking options within the financial industry, focusing on presenting these options to clients. It explores various lending products, including personal loans, mortgages, and lines of credit, and examines the roles of different lenders like banks and credit unions. The report delves into loan application procedures, interest rate calculations, and loan terms. It identifies government assistance programs for first-time homebuyers and low-income earners, while also describing the risk factors associated with borrowing. Additionally, the report details different presentation techniques used in the industry, explains features of codes regarding disclosure and fees, and outlines the negotiation process with clients, including presenting suitable industry products based on client requirements. The report also includes research tasks that cover a wide array of topics related to finance and broking.

FNSFMB403 PRESENT
BROKING OPTIONS TO
CLIENT

Table of Contents
WRITTEN ACTIVITY...................................................................................................................4
TASK 1............................................................................................................................................4
TASK 2............................................................................................................................................4
Presentation of formulae..............................................................................................................4
TASK 3............................................................................................................................................5
Identifying government assistance in following..........................................................................5
TASK 4............................................................................................................................................6
Describing Risk factor associated with borrowings....................................................................6
TASK 5............................................................................................................................................7
Describing features of different presentational techniques.........................................................7
TASK 6............................................................................................................................................7
Explaining features of codes in regards to disclosure & application of relevant fees, charges
and commission...........................................................................................................................7
TASK 7............................................................................................................................................8
Describing the process of negotiation with clients......................................................................8
THIRD PART REPORT..................................................................................................................9
1. Presenting suitable industry & products to client according to their requirements and
understanding...............................................................................................................................9
2. Negotiating loan applications for getting consent from the client.........................................10
3. Discussing the implementation actions for loan applications................................................10
Question 4..................................................................................................................................11
RESEARCH TASK.......................................................................................................................14
Question 1..................................................................................................................................14
Question 2..................................................................................................................................14
Question 3..................................................................................................................................15
Question 4..................................................................................................................................15
Question 5..................................................................................................................................15
Question 6..................................................................................................................................15
Question 7..................................................................................................................................16

Question 8..................................................................................................................................16
Question 9..................................................................................................................................16
Question 10................................................................................................................................16
Question 11................................................................................................................................16
Question 12................................................................................................................................17
Question 13................................................................................................................................17
REFERENCES................................................................................................................................1

WRITTEN ACTIVITY
TASK 1
 Finance and mortgage industry offers variety of lending products. Financial industry of
Australia is provides several lending products like personal loans, line of credit accounts
& card, home equity and mortgage, investing, invoice financing, overdraft service,
employment income, etc. Portfolio is formed of varying products having different rates of
interest so that mitigating becomes possible.
 Banks, building societies & credit unions, retail lenders, specialist non banking
institutions, etc are types of lenders in the specified sector (Ouma, Odongo and Were,
2017). This institutions assists individual and organization to obtain unsecured & secured
personal, title, payday, pawn shop, home equity, credit card cash advance loans, etc.
These institutions provide debt on different rate which includes fixed, floating, etc to
derive portfolio services.
 Mortgage sector usually offers the portfolio of jumbo, conventional, government insured,
adjustable as well fixed rate, FHA, VA,MILITARY, HELOCs services. Australian
mortgage industry is very wide which enable borrowers to have distinct types of option to
fulfill their requirements in effective manner. companies in Australia serves different
types of products to meet their objective of distinctiveness characteristics of services
from other participants of industry.
 The procedure of loan application is step by step activity which begins from visiting
financial lender’s branch or website, filling all necessary and require and submitting to
lender, eligibility of applicant will be verified through evaluation of essential income &
other statements, if applicant is found eligible according to lending criteria then loan
amount will be disburse to particular applicant.
TASK 2
Presentation of formulae
a) Interest Rate (IR)
= Amount of interest*100 /Principle value *time or (I*100/P*t)
= Interest expenses / Principle balance *100

Interest rate is step by step procedure which is computed through giving emphasis on
principle, interest amount and the time. It aids individual, company, etc to know cost of capital
they need to pay fro utilizing the fund of lenders which majorly helps in decision making.
b) Mortgage Repayments
This is systematic process for calculating repayment of specified factor. It can be
determined through below mentioned formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
N= number of years require to repay the loan
P= principle amount
I= Monthly interest rate
c) Term of loans
This is referred to the terms and condition included while borrowing money. It basically
comprises loan repayment duration, fees associated, interest rate, penalty, etc. it’s a regular
payment that is made on the short or long term basis.
= (Monthly payments /12)*balance of loan
TASK 3
Identifying government assistance in following
a) First home buyers
Current government in Australia largely support the first buyers of home to encourage the
property business as well safeguard the interest of concerned party. State and territory
government offers the cash grants so that assistance can be provided in cost of purchasing
the same (He and et.al., 2017). First Home Owners Grants ( FHOG) is offered $10000 for
specified home value. There is also exception provided from the transfer duty for less
than home worth of $800000. This stamp duty conception is one of the biggest
advantages. There is extensive monetary support from current government so that it can
motivate the residents of Australia to be burden free in order to achieve their home
dreams. FHLDS (First Home Loan deposit Scheme) which permits the specified party to

buy property with minimum 5% deposits by keeping the concerned party free from
burden in order to accomplish their objective of dream home (Bilan and et.al., 2019). The
Federal government of Australia has added to 10000 new places for this mentioned
scheme. Common wealth Home Builders Grants allows the first of buyers to be eligible
for deriving $25000. There are non government initiatives has as well taken in order to be
making buyers capable
b) Disadvantaged or low income earners
Every professional in Australia is valued and provided various concession in
order to provide standard living style. Low income provision concessions are based on
three categories single, individual with children and partnered. The limits of annual
income specified by the authorizes mentioned is 20040.80, 21255 and $33300.80 which
decides the eligibility criteria fro state government concession. Jobseeker’s allowances,
pension credit, housing, council tax reduction, support for mortgage interest are some of
the benefits which government supports to provide to Australian citizens. The country
serves varying allowances such as utilities, pharmaceutical, telephone, remote area,
energy supplements, essential medical equipment payment, etc are some the schemes
enacted by official authorities to lead the effective functioning of economy by rising the
income and saving sources.
TASK 4
Describing Risk factor associated with borrowings
Obtaining funds for attaining the objectives of borrowings are affected from various
elements. The one of the most crucial factor risking the borrowing capacity is credit history as
lender highly give emphasis on it (Warren-Myers and McRae, 2017). These decide the paying
capacity of borrowers in turn stability and financial health are judged. The affordability is one of
the riskiest factors which need to be taken into consideration. Getting too deeply into debt due to
lack of efficiency of paying back liability can impact the income & commitments which can
hamper the living expenses. Credibility is usually crucial and essential component which is
decision making criteria of trustworthiness and potential borrowings limits. In addition to this,
it becomes essential to assess all factors that contribute in failure of deriving required funds in
both current & future time. In all forms of loans it is important to check the creditworthiness to

avoid and mitigating risk so that current debts & living expenditures with maintaining stable
credit history can be derived. Interest, cash flow, tax, emotional , etc are some of elements that
highly influence the smooth borrowing capacity and repaying structure adopted by concerned
individual & enterprise.
TASK 5
Describing features of different presentational techniques
There are varying types of technical supported presentation techniques each has its own unique
characteristics. This is important to consider to how its features will impact the progress and
objectivity completion so that appropriate selection regarding suitable tool can be exerted. In
addition to this, there should be slightly unique approach to convey specific topic in order to
deliver exact meaning (Moldogaziev, Kioko and Hildreth, 2017). In financial industry
companies utilizes to show their details of cash in flow through marinating features of relevancy,
comparability, timeliness, reliability with aligning features of technical presentation such as
engagement, application, diversity, creativity, etc. with respect to this, effective concerned
technique which aids in making evaluation of proper communicating channel as it highly
contribute in obtaining desirable results. Timing of delivery of information through adopting
technical supports like reset strategy, red lights, visual aids, etc.
Crucial characteristic is to provide space for imagination in respect to make it creative so
that technical graphical presentation such as charts, bars, % review system in finance industry to
make sure that relevant, etc type of information for taking economical decisions can be taken.
Having good posture, avoiding distractive elements and many are found to be nature of effective
presentation techniques (Raimo and et.al., 2021). In verbal as well written type of conveying
message should comply with features for making available data reliable. Permitting the listener
and reader to clear their queries through making interactive communicational channel
establishment aids in removing barriers. It comprises information analysis and evaluating it for
achieving particular selected area so that its risk, benefits can be identified.
TASK 6
Explaining features of codes in regards to disclosure & application of relevant fees, charges and
commission
The features decides the ethics and inappropriate practices of specified party. It becomes
important for the brokers or other specified authorities to make significant analysis and

evaluation of activities while disclosing and applying particular fees, commission and charges on
clients. These characteristics are deciding elements for the progress of mentioned firms. In
addition to this, practices followed and executed by service providers should be comply with
standards set by official authorizes (Warren-Myers, 2017). The required features for avoidance
of lying, miss presenting, hard sell tactics, etc. While making disclosure and applying particular
fees and charges on the services the specified individual should maintain the integrality, non
personal benefits decisions making, suitable and accurate guidance regarding risk and benefits
associated with it. There is a Australian Consumer Law has been enacted by the government in
order to safeguard the interest of clients. While making computation of any fees or commission
there should be reliable and relevant evidence to it. There should not be biasness in charging
specific amount from different clients on same service. It is one of the significant nature of an
ethical disclosure and application. Disclosing must be away from misleading financial decision
making procedure. In addition to this, fees, charges, commission may not be change frequently to
maintain the trustworthiness among stakeholders. Code of Practices are monitored and control by
various significant official authorizes in order to safeguard and protect the clients.
TASK 7
Describing the process of negotiation with clients
Negotiation is systematic procedure which is most crucial component of financial
industry due to its ability to influence smooth functioning of firm. It is basically five step process
that helps the executor to obtain deep knowledge regarding road map to move ahead in structural
pattern. It outcome decides the efficiency of service & product provider. It begins with gathering
ground information about the client contribute significantly in continuing the whole procedure in
efficient manner. Evaluation of tactics & strategies for responding timely and appropriate to grab
the attention of clients can help in moving ahead in planned manner. Formulating negotiation
plan by considering selected strategies to take the consideration of red herring for removing
negative impact so that pressure of points can be identified (Kang and et.al., 2020). Engage into
the procedure with appropriate body language and mannerisms helps in clarifying and justifying
terms & conditions associated with continual of providing services. Problem solving becomes
easy after focusing on obtaining transparent agreement for the same. The last step is concerned
with the closure and implementation for formulizing and developing agreement through
attaining required level of monitoring.

THIRD PART REPORT
1. Presenting suitable industry & products to client according to their requirements and
understanding
From the assessment it has been identified that requirement of client is related with long
term investing. There are various sources of funds option which can fulfill the need of specified
client. The suitable industry can be assessed by concentrating on its benefits and limitations. The
purpose behind obtaining knowledge for same is to expand the business practices. Client can
derive the required products from variety of industries like banks, investment houses, private
lenders, finance organizations, insurance companies, real estate brokers, securitization &
structured finance SME funding institutions, equity & debt financing, government grants,
mortgage products, venture capital, crowd funding, business loans, etc. Client need to
understand its advantages and disadvantages for making strategic decisions (Niinimäki, 2021).
The equity financing will help concerned clients to free from debt, reducing coat of capital, etc.
securitization and structured financing will benefit them to create liquidity from market,
maintaining assets with quality, etc. Debt financing in Australia provides wide range of products
such as acquisition, leveraged, securitization, corporate, financing, etc Lowest interest rate,
building credibility, positive effect on credit score, high amount availability, etc becomes
possible while adopting secured loans. It can also be taken into consideration that capitals
structuring through marinating appropriate proposition between equity & debt can benefit the
organization. There are other options as well available like FDI, public companies, government
schemes for promoting the expansion activities in business.
These products of mentioned industry in order to achieve the objective of client to expand
its operational practices. Australia as well provides various concession and other benefits to
encourage which also need to be taken into consideration before taking suitable decisions. By
making evaluation on all the available options which are suitable for the long term investing
through focusing on investment banking, asset based & leasing, private equity, etc sectors In
addition to this, identifying all benefits that can boost the performance of client is required to be
understood by mentioned part.

2. Negotiating loan applications for getting consent from the client
There are several options that can be undertaken by client in order to fulfill its mentioned
requirement. These all sources have its own benefits which can help to derive efficiency in its
accomplishing its purpose in significant pattern. In addition to this, the most suitable industry for
the particular party is debt financing as it helps in gaining variety of benefits. The consent for
client require for preceding this procedure. Obtaining bank loan will be most applicable
alternative for the concerned party in order to derive predetermined objective of expanding
operational scale. Debt financing assist in attaining different advantages like ownership stays
with the client which will enable it to maximize profitability (Lin, Chen and Tsai, 2019).
Business growth is highly dependable of its controlling criteria so by adopting debt financing
option monitoring of whole management will lie with specified group or individual. Lenders
does not interfere in its way of continuing business activities.
It is crucial for business operator to understand and identify opportunities for reducing
cost related with company’s practices. In addition to the main motive for enlarging scale of
business operating is to maximize its market share and profitability. Taxation is one of the
determinants of profit margin so grabbing opportunity to decline its expenses become essential.
With help of debt financing client would be able to derive this particular benefit. Planning for
business policies, pricing, marketing and other related strategies through selecting debt
financing. Fixed rate of interest aids in allocating and optimizing the budgetary control technique
in effectual manner. Consent through specifying all these mentioned benefits has obtained for
moving towards net step for fluffing the requirement of client.
3. Discussing the implementation actions for loan applications
Executing the practices for moving towards loan application in order to meet the need of
client. This is step by step procedure in which client can obtain application from both off as well
online bank branch for filling the required details (Loan application process, 2021). This
procedure starts with checking the eligibility criteria of client, interest rates which need to pay in
order to utilizes particular amount of lender, Calculating EMI for checking paying capacity,
checking documents, then filling application., waiting from approval. It can be bitterly
understood by following letter. It is step by step process in which application sending to bank is
initial step. Waiting for lender respond inorder to get information about eligibility and

verification of submitted details. Third step is related with fulfilling conditions. Client need to
wait to get file complete notification in order to move towards closing the process.
Client Name
XYZ Bank group
Australia
01/05/2021
Subject: Application for bank loan
Respected sir,
From many years our business maintain credit account with your bank. I would
like to submit my request for business loan for expanding its scale of operating. Kindly approve
our loan application for meeting expansion objective of ABC firm. Please inform use what
documents are required to submit in order to proceed further.
Owner
ABC company.
Question 4
(a)
i) The lenders products involve the various commercial and industrial loans including the loan
for the family, personal and household purpose. The loans include home loan, personal loan, car
loan, gold loan, deposit free loan, home-equity loan, hard money loan etc. The lender products
also involve shares, debts, equity, derivatives, commodities etc.
ii) The lenders service includes prequalification and lead generation solutions to attract most
customers towards the loan products. The property inspection service is also provided to the

clients so that to purchase property the loan products is being used by the clients for themselves
only. This service includes Verisite collateral data report, residential and commercial appraisal,
property condition reports etc (Porter, 2020).
iii)
 The feature of home loan is to provide fund for purchasing home.
 The feature of personal loan is to provide fund for client’s personal use.
 The feature of shares is to provide shares and funds by purchasing and selling shares.
Client became shareholder of the company with this product.
 The commodities feature is a way in which clients need to sell or purchase commodities
or stocks as per their needs and requirements.
 The feature of property inspection service is that the client will invest their funds in the
high quality and growing property.
 The data report service helps the clients in analysing each option properly and selecting
the best option and product for investment purpose and also for lending money via loans.
iv) The additional information includes the information related to the term and conditions and all
legal compliance related to the products (Clarke, 2019).
(b)
In first situation, client require funds and loans for purchasing the property and as the client also
have deposit of 5% so hard money loan is best option and product for this client. This product is
best for the investors that want to invest their money property and real estate sector. Not only
that it is also more convenient than taking a mortgage loan because in mortgage loan at 15%
deposit is required. In the second situation, the client wants to purchase home and they do not
have any deposit so the lending product best suitable to this client is no deposit home loan. In
this, the loan is permitted to the client without having any deposit at the initial stage (Niles,
Vuorinen and Siwiec, 2019).
(c)
The Hard money loan and Deposit free home loan is best suitable for the clients if they want to
purchase investment property and home respectively. This option helps them to get their property