Certificate IV in Finance and Mortgage Broking (CFMB_AS_v1) Project

This document represents a completed written project for the Certificate IV in Finance and Mortgage Broking (CFMB_AS_v1). It includes tasks covering industry knowledge, business skills, and the lending process. Specific sections address key terms, the Australian financial market, financial services legislation, products and services, effective communication, professional development, customer service, complaint handling, client prospecting, professional networking, and information management. Furthermore, the project explores understanding client needs, developing solutions, packaging loan applications, monitoring the lending process, and several case studies involving purchasing owner-occupied homes, refinancing, and investment properties. The project culminates in preparing preliminary assessments, loan proposals, and managing loan contracts and security documentation in preparation for settlement. Desklib provides this resource and many more to aid students in their studies.

Written Project
Certificate IV in Finance and Mortgage Broking
(CFMB_AS_v1)
Student identification (student to complete)
Please complete the fields shaded grey.
Written project overall result (assessor to complete)
First submission Not yet demonstrated
Resubmission (if applicable) Not applicable
CFMB_AS_v1

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
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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.
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Before you begin
Read everything in this document before you start your written project for Certificate IV in Finance and
Mortgage Broking (CFMB_v1).
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
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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 Certificate IV in Finance and
Mortgage Broking (CFMBv1) subject room.
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Instructions for completing and submitting the
written project
Completing the written project
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_v1_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.
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.
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.
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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 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.
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.
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.
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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.
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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.
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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.
Section 1: Industry knowledge
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
A lender can be an individual, a public or private group, or a financial institution that
makes funds available to a person or business known as the borrower with the
expectation that the funds will be repaid.
A borrower is the person or organization that takes out a loan from a lender or financial
institution under an agreement to pay it back later, typically with interest.
The relationship between borrower and lender is solely that of debtor and creditor.
Lessor and lessee Lessor is the owner of an asset that is leased under an agreement to a lessee. The lessee
makes a one-time payment or a series of periodic payments to the lessor in return for
the use of the asset.
Mortgagee and
mortgagor
A mortgagee is a lender: specifically, an entity or the bank that lends money to a
borrower for the purpose of purchasing real estate. In a mortgage transaction, the
lender serves as the mortgagee and the borrower is known as the mortgagor.
2. In your own words, complete the table below; define and explain the documentation used by lenders:
Credit checks
signed authority
Upon signing the credit check authority form the borrower is legally giving their consent
or allowing the lender to access their credit report. This consent generally lets the lender
to use borrowers’ credit report when applied for credit for the first time. The lenders can
also access borrowers’ credit at any time afterward while their account is still open.
Guarantee A guarantee on the mortgage loan meaning that the party is willing to take over full
responsibility for paying back the entire loan on behalf of the borrower if they fail to
repay their debt or go bankrupt.
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Loan contract A loan agreement is a contractual agreement between two parties whereby one party
(lender) agrees to provide a loan to the other party (borrower). There are two types of
loans i.e., secured loans and unsecured loans. Each type of loan has different obligations
and protections for borrowers and lenders.
Periodical
payment
authority
Periodical payment allows to authorise the Bank to make payments, for a fixed amount
at regular intervals, on borrowers’ behalf. In each transaction that takes place, the
borrower’s account is debited for the amount of the payment, together with any fee
that may apply.
Signed
application form
A signed mortgage application form is a document submitted to a lender by the
borrower when they apply for a mortgage to purchase real estate. The application is
extensive and contains information about the property being considered for purchase,
the borrower’s financial situation and employment history etc. The document signed by
the borrower meaning all information provided on the form hereby are true and correct.
Lenders use the information in a mortgage application to decide whether or not to
approve the loan.
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3. In your own words, complete the table below; describe:
The negotiation
process
Loan negotiation process takes place when dealing with a new or existing customers by
offering them the current market or best possible interest rates according to their
tailored needs and based on their loyalty or to match the lowest rate currently in the
market.
Customer
Relationship
Management
(CRM) tool
A CRM tool allows to store customer and prospect contact information, identify sales
opportunities, record service issues, and manage marketing campaigns, all in one central
location. In addition, to make information about every customer interaction available to
anyone at any given company who might need it.
Certificate of
Currency
A Certificate of Currency (COC) is a document that confirms a current policy is in place as
of the date of issue, and lists the details of the insurance policy. It is often required by
third parties such as banks or other financial institutions to provide evidence that the
borrower have the appropriate cover for the asset or business.
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
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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)
1. The stability of the currency of Australia
2. The maintenance of full employment in Australia
3. The economic prosperity and welfare of the people of Australia.
(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)
1. Mortgage interest rate
2. Consumer’s serviceability
3. Asset price.
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
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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. NCCP Act Federal Register of Legislation
<https://www.legislation.gov.au/Details/C2020C00215>
The information on the
website would be helpful
by providing to
implement the concept of
changes or up to date
responsible lending with
an emphasis on lenders
viewing lending decisions
from the borrower’s point
of view. Hence, gaining an
extensive understanding
of the borrower’s
objective as well as their
capacity to repay the
loan.
2. Privacy Act Federal Register of Legislation
<https://www.legislation.gov.au/Details/C2021C00139>
The information on the
website would be helpful
by providing changes or
up to date credit
reporting provisions that
apply to the handling of
credit-related personal
information that credit
providers are permitted
to disclose to credit
reporting bodies for
inclusion on individuals’
credit reports.
Code Name Website URL Address Explain how this website is
helpful to keep up to date
with changes
3. The Banking Australian Banking Association The information on the
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Code of Practice <https://www.ausbanking.org.au/banking-code-of-
practice-2021-release/>
website of The Banking
Code of Practice would be
helpful by providing
changes or up to date
setting out of the
standards of practice and
service in the Australian
banking industry for
individual and other
parties’, and their
guarantors as well as
specific requirements for
banking services such as
home loan.
4. Financial
Planning
Association of
Australia Code of
Professional
Practice (FPA)
Financial Planning Association of Australia (FPA)
<https://fpa.com.au/professionalism/fpa-code-of-
professional-practice/>
The information on the
website would be helpful
by providing changes or
up to date professional
standards set out to
dedicatedly help the FPA
members to understand
and follow the code and,
also, taking action in
serious circumstances
where the code has been
breached and failing to
meet the consumer
protection interest.
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
1. Criminal charges including fines and jail terms of up to 2 years.
2. May led to suspension or cancellation of broker licence.
Task 3: Question 3
In your own words, describe the key features of the Privacy Act 1988.
(30 words)
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Student response to Task 3: Question 3
1. To promote the protection of the privacy of individuals.
2. To recognise that the protection of the privacy of individuals is balanced with the interests of
entities in carrying out their functions or activities.
3. To facilitate an efficient credit reporting system while ensuring that the privacy of individuals is
respected.
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) The Code of Practice aims to ensure mortgage brokers/MFAA members provide the highest levels of
service to consumers in Australia.
The key features of the code of practice are as follows:
1. To promote and establish professional standards between customers and mortgage brokers within
the mortgage and finance industry.
2. To promote commitment by mortgage brokers to follow compliance with laws and regulations and
the spirit of those laws and regulations.
3. To promote education and professional programs for mortgage brokers/MFAA members.
4. To promote ethical and fair business practice.
(b) Mortgage brokers when performing their ordinary duties trying to understand a consumer’s financial
situation first, then helping them find the most competitive and appropriate financing option to meet their
property goals are acting in the best interest for their consumers and, thus, adhering to compliance with
laws and regulations as per the code of practice.
Task 3: Question 5
(a) In your own words describe best interest 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) The best interest duty for mortgage brokers is a statutory obligation for them to act in the best interests
of consumers, and to prioritise consumers’ interest when providing credit assistance.
(b) Mortgage brokers when performing their ordinary duties trying to understand a consumer’s financial
situation first, then helping them find the most competitive and appropriate financing option to meet their
property goals are acting in the best interest for their consumers.
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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) Communicating changes in regulation, legislation, or codes of practice in the workplace should be
clear, concise and easy to understand. Moreover, it should be straightforward about why the change is
necessary, exactly what is changing, what is staying the same, and what steps need to be taken by all
employees to make sure they comply with the new requirements.
I would be communicating changes in regulation, legislation, or codes of practice to my colleagues through
organising staff meetings to discuss about new policy updates, providing staff training and development,
collect feedback for improvements etc.
(b) Policies and procedures are an essential part of any organization. Together, policies and procedures
provide a roadmap for every day operations. They ensure compliance with laws and regulations, give
guidance for decision-making, and streamline internal processes.
I would be executing changes to my organization’s policy, procedures and practices such as the introduction
of best interests’ duty to my colleagues through regular discussion of this topic in the staff meetings,
organising training and development where helping my colleagues to understand its importance, make
changes in new policies easily assessable for all staffs by posting it in the company’s intranet, closely
monitor all staffs if they are adhering to the new policy and reward those staffs who are complying with the
new policy and setting an example for others.
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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 the event if I am unsure of how to apply any regulation, legislation or codes of practice to my role or
interaction with a client then I would be immediately raising this matter with my mentor or direct reporting
manager to provide me with additional training and development on this particular topic until I feel
confident enough that I may now interpret and apply it correctly.
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
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
The monitoring/audit process that I would have implemented to ensure compliance are:
 How you will monitor/audit compliance - My compliance monitoring system may involve interaction
of myself with a colleague to ascertain how the staff has been performing against certain compliance
obligations. Depending on their response to my questions, I will then provide with an assessment of
our business's compliance performance, complete with actions to take to get the staff back into a
state of full compliance.
 Who will undertake the monitoring/audit process - The monitoring/audit process will be undertaken
by myself as per following instruction from my manager and with the presence of an expert
consultant.
 What tools you will use - The monitoring/audit process can be performed by organising face-to-face,
over the phone or zoom meeting with each staff to discuss their performance against certain
compliance obligations.
 How or where you will record the outcomes - After individually going through the performance
against certain compliance obligations with each staff, records for those compliance and non-
compliance matters can be kept in a written plan or the soft copy safely and securely stored in the
organization’s database or system.
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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
Personal information provided by the client such as name, date of birth, address, phone no etc are the
most common information which needs to be retained by a financial services organization.
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)
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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 Variable Rate with offset
bundled with a NAB
Choice Package - NAB
Fixed Rate bundled with
a NAB Choice Package -
NAB
Interest Only loan - NAB
Product characteristics
(features)
(Minimum of three (3))
1. Access to offset
account.
2. Make unlimited
additional payments.
3. Additional discounts
and benefits with a
NAB Choice Package.
1. Repayment certainty
during fixed term.
2. Pay ahead up to $20K
during fixed term.
3. Additional discounts
and benefits with the
NAB Choice Package.
1. Repayments only
cover the interest
portion of the loan.
2. Offers tax advantages
for people with
investment
properties.
3. At the end of the
interest-only period
i.e., usually 5 years
max term, the
borrower needs to
start paying off both
principal and interest
portion of the loan.
Product purpose
(What would a client use
this for?)
Clients can take
advantage of any
interest rate decreases
over their loan's term. If
interest rate decreases,
it means that they can
enjoy paying less interest
on the entire home loan
balance.
Clients are protected
from sudden and
potentially significant
increases in monthly
mortgage payments if
interest rates rise.
The borrower may
consider an interest only
mortgage if they desire
to afford more home
now. Know that the
home will need to be
sold within a short time
period. Want the initial
payment to be lower by
making loan repayments
only to cover the
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1. Variable rate home
loan — package
2. Fixed rate home loan 3. Interest only home
loan
interest of the loan and
they have the
confidence that they can
deal with a large
payment increase in the
future.
Applicable fees and
charges
$395 $395 $395
Terms and conditions
of this product
(Minimum of three (3))
1. Comparison rates are
based on a secured
loan of $150,000 over
a term of 25 years.
For example, this
comparison rate
applies only to the
example or examples
given. Different
amounts and terms
will result in different
comparison rates.
Costs such as redraw
fees or early
repayment fees, and
cost savings such as
fee waivers, are not
included in the
comparison rate but
may influence the
cost of the loan.
2. Application Fee
Waiver Offer Terms
and Conditions
The Application Fee
Waiver Offer ("The
Offer") is a waiver of
the Application Fee of
$600 on a new Base
Variable Rate Home
Loan. The Offer is
available from 1
November 2019 until
withdrawn by NAB.
NAB may vary or end
this offer at any time
without notice. To be
eligible for the Offer,
an application must
be submitted during
the period that the
1. Comparison rates are
based on a secured
loan of $150,000
over a term of 25
years. For example,
this comparison rate
applies only to the
example or examples
given. Different
amounts and terms
will result in different
comparison rates.
Costs such as redraw
fees or early
repayment fees, and
cost savings such as
fee waivers, are not
included in the
comparison rate but
may influence the
cost of the loan.
2. Application Fee
Waiver Offer Terms
and Conditions
The Application Fee
Waiver Offer ("The
Offer") is a waiver of
the Application Fee
of $600 on a new
Base Variable Rate
Home Loan. The
Offer is available
from 1 November
2019 until withdrawn
by NAB. NAB may
vary or end this offer
at any time without
notice. To be eligible
for the Offer, an
application must be
submitted during the
1. Comparison rates are
based on a secured
loan of $150,000 over
a term of 25 years.
For example, this
comparison rate
applies only to the
example or examples
given. Different
amounts and terms
will result in different
comparison rates.
Costs such as redraw
fees or early
repayment fees, and
cost savings such as
fee waivers, are not
included in the
comparison rate but
may influence the
cost of the loan.
2. Application Fee
Waiver Offer Terms
and Conditions
The Application Fee
Waiver Offer ("The
Offer") is a waiver of
the Application Fee
of $600 on a new
Base Variable Rate
Home Loan. The
Offer is available
from 1 November
2019 until withdrawn
by NAB. NAB may
vary or end this offer
at any time without
notice. To be eligible
for the Offer, an
application must be
submitted during the
Page 21 of 121

1. Variable rate home
loan — package
2. Fixed rate home loan 3. Interest only home
loan
offer is available and
then approved, and
drawn down within
the time period set
out in the applicant's
loan offer.
3. Any other product
offers from NAB
(including the Base
Variable Rate
Application Fee
Waiver or Credit Card
offers that are made
by NAB from time to
time) are
independent from
this NAB Home Loan
Refinance Cash Bonus
offer and customers
can benefit from
multiple NAB offers
(subject to the
eligibility criteria and
terms and conditions
of those other offers).
period that the offer
is available and then
approved, and drawn
down within the time
period set out in the
applicant's loan offer.
3. Any other product
offers from NAB
(including the Base
Variable Rate
Application Fee
Waiver or Credit Card
offers that are made
by NAB from time to
time) are
independent from
this NAB Home Loan
Refinance Cash
Bonus offer and
customers can
benefit from multiple
NAB offers (subject
to the eligibility
criteria and terms
and conditions of
those other offers).
period that the offer
is available and then
approved, and drawn
down within the time
period set out in the
applicant's loan offer.
3. Any other product
offers from NAB
(including the Base
Variable Rate
Application Fee
Waiver or Credit Card
offers that are made
by NAB from time to
time) are
independent from
this NAB Home Loan
Refinance Cash
Bonus offer and
customers can
benefit from multiple
NAB offers (subject to
the eligibility criteria
and terms and
conditions of those
other offers).
List one (1) strength
and one (1) weakness
Strength: Make
unlimited additional
payments and pay off
the loan sooner.
Weakness: Payments
fluctuate after the
introductory period.
Homeowners may have
to adjust their monthly
household budget as
their mortgage payment
increases and decreases.
Strength: Clients are
protected from sudden
and potentially
significant increases in
monthly mortgage
payments if interest
rates rise.
Weakness: The main
disadvantage is that in a
fixed rate loan clients
won’t enjoy benefit from
falling interest rates and
miss out on a lower
interest rate.
Strength: The significant
benefit of using an
interest-only loan is the
lower monthly payment
on the borrowed loan
amount.
Weakness: Principal
amount during the
interest-only period is
not paid, so the amount
borrowed doesn't
reduce in the long run.
4. Home equity loan
(line of credit)
5. Credit card 6. Personal overdraft
Financial institution
and name of product NAB Home Equity Loan NAB Low-Rate VISA Card NAB Classic Banking
Account
Product characteristics
(features) 1. Home renovations –
essential home upgrades
1. 0 % p.a. for 32 months
promotional balance
1. Secure and
convenient banking –
Page 22 of 121

1. Variable rate home
loan — package
2. Fixed rate home loan 3. Interest only home
loan
(Minimum of three (3)) and renovations can be
undertaken by taking out
or efficiently utilising the
available equity from the
customers current home
loan where it is
calculated by market
value minus the total
amount owing on the
loan.
2. Invest the money - if
the current property has
increased in value, the
amount of equity could
be diverted into
investments such as
purchasing a new
investment property or
investing in the share
market and, hence, could
create wealth
opportunities for the
customer.
3. Smooth out life’s
bumps – by using the
home equity loan a
customer can pay off
their other life events
like buying a buying a
new car, taking a holiday,
or paying for education
expenses
Moreover, borrowing
against your equity can
help you pay off the loan
over a longer period of
time, reducing the
impact of large one-off
payments.
transfer (BT) rate. No BT
fee applies. Unpaid BT
reverts to cash advance
rate.
2. 12.99 % p.a. standard
purchase rate.
3. $59 annual card fee
(reduced to $0 for the
first year).
customers can be digital-
ready with NAB Internet
Banking, the NAB app
and digital wallets.
2. Easy access to your
money – customers are
able to pay instore or
online, make fast
payments and transfers
and withdraw your
money from ATMs.
3. Receive and deposit
funds – customers can
accept direct transfers
from others. Make cash
deposits. Receive salary
into this account.
Page 23 of 121

1. Variable rate home
loan — package
2. Fixed rate home loan 3. Interest only home
loan
Product purpose
(What would a client use
this for?)
If the current property
has increased in value,
the amount of equity
could be diverted into
investments such as
purchasing a new
investment property or
investing in the share
market and, hence, could
create wealth
opportunities for the
customer.
New and eligible
customers only will now
enjoy 0% p.a. on their
balance transfers (BT)
for 32 months with no
BT fee on a new NAB
Low-Rate Card.
However, unpaid BT
reverts to cash advance
rate.
A personal overdraft is
linked to customers
transaction account. It
allows them to access
additional funds should
they run out of their
own. Like most loans, by
accessing to this
overdraft customers will
be charged interest on
the money they borrow.
Applicable fees and
charges
Product attached to the
existing fixed or variable
or interest only home
loan account and
interest offered at the
same rates.
$59 annual card fee
(reduced to $0 for the
first year).
$0 monthly account
fees. However,
customers by accessing
to this overdraft account
will be charged interest
on the money they
borrow.
Terms and conditions
of this product
(Minimum of three (3))
1. Interest rates and
information current
as at 9 June 2021 and
subject to change.
Terms, conditions,
fees, charges and
lending criteria apply.
2. Comparison rate
calculated on an
unsecured loan
amount of $30,000
over a term of five
years based on
monthly repayments.
3. Any other product
offers from NAB
(including the Base
Variable Rate
Application Fee
Waiver or Credit Card
offers that are made
by NAB from time to
time) are
independent from
this NAB Home Loan
Refinance Cash Bonus
offer and customers
can benefit from
multiple NAB offers
(subject to the
1. You will be able to
receive interest free
days on purchases, if
you pay your account
in full, or if your
statement displays
an interest free days
payment, that
amount in full, by the
due date each
month. For more
information visit
nab.com.au/btchang
e.
2. The following Visa
categories are not
acceptable: Visitor
Visa (exception, a
Special Category Visa
- NZ Citizen is
acceptable), Working
Holiday, Student,
Exchange/gap year,
Transit/short
stay/seasonal and
Bridging.
3. Consider the NAB
Internet Banking
terms and conditions
which apply when
1. Debit interest may
apply to overdrawn
amounts. Learn more
about Personal
account default rate.
2. Select your choice
between a NAB Visa
Debit card (no
monthly fee) or NAB
Platinum Visa Debit
card ($10 fee per
month).
3. The quickest and
easiest way to close
your account is
through Live Chat in
Internet Banking or
the NAB app.
Page 24 of 121

1. Variable rate home
loan — package
2. Fixed rate home loan 3. Interest only home
loan
eligibility criteria and
terms and conditions
of those other offers).
using NAB Internet
Banking and the NAB
app, before making
any decisions
regarding these
services. The NAB
app is compatible
with Android™ and
iOS, minimum
platform
requirements apply.
Android is a
trademark of Google
LLC. IOS is a
trademark or
registered trademark
of Cisco in the U.S.
and other countries
and is used under
license. Products
issued by NAB.
List one (1) strength
and one (1) weakness
Strength: Essential home
upgrades and
renovations can be
undertaken by taking out
or efficiently utilising the
available equity from the
customers current home
loan where it is
calculated by market
value minus the total
amount owing on the
loan.
Weakness: Above all,
customers who are using
home equity loan must
remember to play it safe
as unlocking all equity to
improve their lifestyle or
wealth will increase their
level of risk. That’s why
it’s always a good idea to
consider how much
lending to be taken out
according to their
current financial
situation or affordability
by consulting with an
home lending expert or
Strength: New and
eligible customers only
will now enjoy 0% p.a.
on their balance
transfers (BT) for 32
months with no BT fee
on a new NAB Low-Rate
Card.
Weakness: Annual card
fee of $59 will be
charged from 2nd year
onwards.
Strength: It allows the
customers to access
additional funds should
they run out of their
own.
Weakness: Like most
loans, by accessing to
this overdraft customers
will be charged interest
on the money they
borrow.
Page 25 of 121

1. Variable rate home
loan — package
2. Fixed rate home loan 3. Interest only home
loan
financial adviser if
possible.
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
1. Refinancing - Refinancing a home loan means availing a new loan from another lender to pay off an
existing one.
2. First home buyer grant - The First Home Owner Grant (New Home) is worth $10,000 for first home
buyers who: buy or build their first new home, which no-one has lived in before and has a value less
than $750,000 in NSW.
3. Lenders mortgage insurance (LMI) - LMI stands for Lenders Mortgage Insurance and is a one-off
insurance payment which protects the mortgage provider (banks and lenders) with an extra level of
protection against mortgage default. LMI is generally paid when the LVR is over 80%.
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)
Page 26 of 121

Student response to Task 4: Question 3
(a) Financial services marketing is the practice of using diverse digital tools to advertise and bring customer
attention to financial service companies such as banks. This can consist of electronic broadcast media such
as television, newspapers or magazines, word of mouth, referrals and public relations.
(b) Lending organisation’s current promotions and specials can be located in their company website.
(c) Recognizing customer needs includes deep research across the financial services industry through
asking existing and prospective customers lots of specific questions about current promotional strategy and
regularly contacting them either via phone, face-to-face or zoom appointments and, thus, finding the most
suitable product based on each individual situation.
(d) It is important for all mortgage brokers including myself to remain aware of happenings within the
financial services industry so that I can serve my customers well. Keeping up to date involves:
 Being aware of current economic trends and events that impact customers
 Watching the market and the industry
 Keeping up with technologies that impact financial services
 Networking with colleagues and industry professionals
 Being aware of new products and services that are being introduced
 Being aware of customer needs and any changes
 Being aware of competitor movements and changes
 Understanding the legislative and regulatory environment.
Page 27 of 121

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) The 2 items of information that must be provided to a client when providing financial products and
services are:
• Privacy and confidentiality
• Provision of credit.
(b) As per the Banking Code of Practice (BCOP) the following 2 items clearly sets out the meaning as per
below:
• Privacy and confidentiality – In addition to financial services providers duties under the Privacy Act
1988, they also have a general duty of confidentiality towards their customers.
• Provision of credit – before any financial products and services are offered to the customers such as
new or increase an existing, credit facility etc. financial services providers will carefully exercise the
care and skill of diligent in selecting and applying credit assessment methods and in forming opinion
about their ability to repay the credit facility.
(c) The Banking Code of Practice (BCOP) is based on the following guiding principles:
• Trust and confidence - being committed to earning and retaining the trust of our customers and
the community.
• Integrity - act honestly and with integrity and to be fair and responsible in dealing with customers.
• Service - deliver high customer service and take a responsible approach to lending.
• Transparency and accountability - to communicate in a clear and timely manner, and to be
accountable in dealing with customers.
(d) According to the Banking Code of Practice (BCOP), identifying a potentially vulnerable client and a client
on a low-income can be done only if the customer tells me about it and which are as follows:
• Age related impairment
• Family or domestic violence
• Mental abuse
• Any other personal, or financial, circumstance causing significant detriment.
Page 28 of 121

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
A deposit bond, also known as deposit guarantee, are needed when buying a home or when bidding at
auctions. It is a guarantee that is used to pay towards the deposit when exchange of contracts on a
property purchase may take place. The bond acts as an insurance that the buyer will come up with the
deposit at the time of settlement. To be more precise, usually the deposit bond is the 10% value of the total
purchase price of the property.
Assessor feedback for Task 4 — Products and services
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Page 29 of 121

Section 2: Business skills
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
1. Verbal - Verbal communication is the use of language to transfer information through speaking. It helps
in increasing productivity, decreasing errors, and making operations smoother and more effective.
2. Non-verbal - Non-verbal communication is the use of body language, gestures and facial expressions to
convey information to others. It can increase the opportunity to interact with colleagues, competitors,
clients and potential clients through avenues outside of explicit word choice.
3. Written - Written communication is the act of writing, typing or printing symbols like letters and numbers
to convey information. Emails and chats are a common form of written communication for effective
business communication.
4. Visual - Visual communication is the conveyance of messages through visual aids such as graphs, charts,
pictures, signs, signals, and symbols. Visual communication through the form of giving business
presentation can offer a convenient mode of decision making for businesses.
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 is the ability to accurately receive and interpret messages in the communication process.
Listening is key to all effective communication. Without the ability to listen effectively, messages are easily
misunderstood.
(b) The 3 barriers to effective listening are as follows:
 Personal bias
 Making assumptions and drawing false conclusions
 Being closed-minded to alternatives and other opinions.
Page 30 of 121

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
1. Speak slowly
2. Keep the conversation simple
3. Practice active listening
4. Be careful with humour
5. Be supportive.
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
Page 31 of 121

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.
Page 32 of 121

Student response to Task 6: Question 1
(a) Connecting the strategic goals of an organization to each of the employee’s performance goals is critical
to the success of an organization. In an effectively aligned organization, everyone is working towards the
same goal. Each individual knows exactly how their job tasks contribute to the success of the overall
organization.
(b) The 5 types of organisational framework that I can refer to when planning my own and my team’s work
goals to ensure that they align to the organisation’s goals are:
 Set clear organizational goals i.e., mission and vision
 Communicate goals on every level
 Set deadlines
 Help employees achieve their goals
 Monitor progress on goals.
(c) The colleagues that I would consult with if required clarification of my own roles and responsibilities
are:
 Experienced Mortgage Broker (the mentor)
 Senior Mortgage Broker
 Industry regulating bodies.
An experienced and/or senior mortgage brokers partners with, and assists, a new-to-industry broker (the
mentee) to develop and grow their broking, business and personal knowledge, skills and abilities. Thus, in
this way they set or align with common organizational goals and objectives, set clear deadlines, monitor
progress on goals and help new brokers to achieve their targets.
Page 33 of 121

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) Seeking technological assistance for record keeping can not only become a very convenient tool but it
also serves as a secure digital cloud storage for all document and data retention for any businesses.
Therefore, I would be documenting the new team member’s roles and responsibilities into our centralised
business database.
(b) I will be outlining and documenting the new team member’s role specific targets into a KPI scorecard. A
KPI scorecard is a statistical record that measures progress or achievement towards a set performance
indicator i.e., actual results achieved against set targets for each set goals in every quarter such as
application accuracy and client satisfaction rating. Moreover, it will also help to monitor an overview of a
completed performance scorecard for the new team member.
(c) Having clearly defined and measurable goals is the key to success. Goals will help to prioritise all the
competing issues that the new team member need to deal with in their everyday work life as a mortgage
broker and to concentrate in making the right choices on the important tasks can make a significant
difference in their career. First, I would support the new team member by making them understand and
explain the duties, roles and responsibilities expected from every mortgage broker. Second, I would be
helping the new team member in setting or creating SMART goals i.e., Specific, Measurable, Action
Oriented, Realistic and Timely related goals. Lastly, I would also be emphasizing the high importance and at
the same time advise on not to forget about complying/adhering with the organization’s policies and
procedures, Industry Legislation and Code of Practice while performing their day-to-day ordinary task
requirements as a newly joined team member in the mortgage industry.
(d) Nowadays, there are many businesses technology tools that can help improve efficiency in specific
business area such as managing team’s work priorities. To be more precise, staffs in any business can utilise
calendar in Microsoft Outlook in order to save their day-to-day tasks according to their priority 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)
Page 34 of 121

Student response to Task 6: Question 3
1. Joining a professional association appropriate to specific area of work.
2. Subscribing to industry and related business journals, newsletters and product updates.
3. Enrolling in a further education program or undertaking further formal training.
4. Attending relevant seminars and conferences.
5. Networking with colleagues and other industry participants.
Page 35 of 121

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
Page 36 of 121

(a) The critical steps on how I can encourage and facilitate personal and professional development for
myself and my team are: In-house training, PD programs - These trainings can be a blend of online and face to face learning
(induction). Topics covered may include learning the sales process, business and loan structures, best
practice on handling loan applications and basic level programs for new mortgage brokers. Thus,
simply organising these valuable programs in place for new brokers could help guide them through
step-by-step process in their first set of applications to lenders. In addition, there will be a variety of
learning solutions to be offered as well to help meet their development needs, including soft skills,
time management and presentation skills. Mentors for brokers - Having mentoring programs in place for new mortgage brokers can be
extremely important as mentorship allows senior brokers like myself to share our experiences to
improve my mentees’ development and motivate and help inspire candidates to reach their full
potential. These programs can offer advice around how to generate new leads, or what’s the best way
to manage staff and business priorities. Evaluation of training - Organising one on one coaching and feedback for new brokers on a regular
basis i.e., once in every month, could help identify knowledge and skills gaps and, also, may include a
measurement mechanism to gauge effectiveness and ensure continuous improvement for them.
Moreover, feedbacks are also provided to the learning and development team so that they are able to
facilitate further learning and development programs for the team.
(b) To record and document my own and team’s personal and professional development goals could be
created as a form of SMART goal method (Specific, Measurable, Achievable, Relevant and Timely). Using
SMART goals will make them trackable, thus, it makes easier to update my own and teams’ professional
development plan. Hence, helps us to complete important milestones in the mortgage broking industry.
Professional development plan by using SMART goal method may contain information in the template such
as:
 Based on the skills and development needs, prioritize the areas that need attention.
 List all the points on the accompanying form and generally, 3 points is enough.
 Decide what actions are planned. There may be a number of actions for each priority area.
 Decide when this action will be implemented.
 If any assistance is required or the cooperation of another person or group, note who they are.
 Choose a time when to review on the progress.
 Describe what success looks like.
 What are the performance measures that may provide evidence that progress have taken place?
 Add To-Do list or diary those actions that begin tomorrow or this week.
 Add to the diary those actions that begin on a specific date later in the month or year. Mark important dates on diary that have been chosen for 'By when' and 'Review date'.
(c) The human resources policy and procedure at CCF & MB regarding the attendance of professional
development seminars, webinars and offsite development workshops are detailed as follows:
 Any professional development activity that requires in excess of one hour per session must be
approved by a Senior Manager or the Managing Directors.
 Professional development activity that falls outside of the MFAA membership where payment is
required must be approved by a Senior Manager or the Managing Directors.
 All Professional development must be recorded in the CPD register within 48 hours of completion or
attendance.
Page 37 of 121

 All brokers and consultants are required to attend in house fortnightly credit and compliance training.
If absent it is the responsibility of the broker and/or consultant to review the training content.
 All brokers and consultants are required to complete 30 hours of CPD per annum.
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) Identifying team health and wellbeing in the workplace can be done in 4 different ways and which are
as follows:
1. Feedback from staffs - This can be a valuable way of gaining insights into staff and organisational needs
for identifying team health and wellbeing in the workplace.
2. Staff meetings - Promoting workplace health and wellbeing through health and safety committee
meetings with the staff in the workplace.
3. Human resources information - Requesting the human resources team to share previous collected
information such as Employee Assistance Program (EAP) data, workers’ compensation claims, disability
statistics, bullying/harassment claims, staff satisfaction survey results and then using those valuable data to
identify team health and wellbeing in the workplace.
4. Policies and procedures - By reviewing an organization’s existing policies, procedures and training
programs already in place is also another way of identifying team health and wellbeing in the workplace.
(b) The strategies that I might put into place to manage team health and wellbeing in your workplace are:
1. Encourage healthy eating for workplace wellbeing - A workplace that supports healthy eating can
significantly contribute to employee’s overall health. I would be educating workers about eating well, stay
hydrated, exercise regularly, get enough sleep, maintain a good social life, and avoid drugs and booze in
weekly staff meetings.
2. Encourage stretching breaks - I would be encouraging all staff in the workplace for taking at least 5 to 10
minutes of small breaks every 1 hour to help improve their focus, concentration and to have a mental reset.
3. Use more plants in the workplace - I would encourage all staff to have more indoor plants beside the
window and if there is enough room to have on their desks as well. Humans want to connect with nature
and office plants can help reduce employee’s levels of stress, anxiety and hostility.
4. Invest in ergonomic equipment - I would be replacing the old stuffs by introducing new and ergonomic
office equipment and furniture such as mice, office desk/height adjustable standing desk, chairs and
monitors in order to provide employees with a safer and more comfortable working environment.
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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
KPI scorecard
Goal Q1
Target
Actual Result
% Of
Target
Q2
Target
Actual Result
% Of Target
Q3
Target
Actual Result
% Of
Target
Q4
Target
Actual End of year
result
% Of Target
Prospecting calls 60 64 107% 120 121 101% 180 175 97% 240 230 96%
Specialist Referrals 8 5 62.5% 16 12 75% 24 18 75% 32 32 69%
Continuous
Professional
Development
7.5 hrs 6 hrs 80% 15 hrs 13 hrs 87% 22.5
hrs
21 hrs 93% 30 hrs 32 hrs 106%
CFMB_AS_v1

Task 6: Question 7
Describe how you will monitor your own performance against your scorecard.
(50 words)
Student response to Task 6: Question 7
The simple process that I can monitor my own performance against the scorecard is by finding the
difference between the targeted score and actual score. So, once the final score or % has been obtained, I
can, now, interpret and identify my shortcomings and, then, focus on the key areas which I must overcome
or address in order to achieve my given target in the next quarter.
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 goals to achieve the.
• 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) Answers are outlined as per below:
 the two (2) KPIs from your scorecard for which you are behind as at Q3
- Prospecting Calls
- Specialist Referrals
 a goal for each of those KPIs to ensure you will achieve them by Q4
- Record or diarise of each and every call being made out to the customers to get more accurate
figures
- Keep in touch with existing customers through sending emails to update them about my new
handling projects for future clients
 the steps/actions you will take goals to achieve the.
 two (2) professional development areas that you would like to improve
- Focusing on the key areas to find the right client prospects
- How to maximise the number of referrals from the current or existing customers
 two (2) formal training or continuous professional development activities that relate to the industry
(refer to industry associations for ideas).
CFMB_AS_v1

- Skills for influencing and negotiating
- Developing customer loyalty 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).
- 30 CPD points or hours each year
(b) Once I have completed my own personal development plan, I will seek feedback from my mentor on
the plan who provided me training since I started my career as a new mortgage broker as he/she would be
the best point of contact for collecting accurate evaluation about myself based on my strengths and
weaknesses. Also, I could always seek further feedback from my work colleagues and customers as well.
Page 41 of 121

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)
Student response to Task 6: Question 9
(a) Risk assessment - A loan administrative officer can enrol in a further education program or undertake
further formal training on the topic risk assessment. One of the most important duties for a loan
administrator is analysing the qualifications of a potential borrower and the demands of a loan then
assessing the risk levels of pairing them together in order to make sure that the borrower does not take on
a loan they cannot maintain payments for.
(b) Network your way to mortgage success - For any new entrant mortgage brokers, they might be in
desperation in searching for an answer i.e., ‘what are the key areas in becoming a successful mortgage
broker’? Undoubtedly, one key area would be ‘networking’. Networking is a low cost, high impact strategy
that not only has the potential to generate new leads, but impact positively on all areas of a business. An
established network allows a new mortgage broker to enjoy relationships, which will provide access to
invaluable resources, such as new ideas, relevant information, quality advice, business opportunities,
referrals and support.
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) List of 12 tasks and activities a mortgage broker (or mortgage consultant) would need to complete in
their role are:
• Meet with prospective clients face to face
• Consistently searching for prospective clients through various channels such as email or phone
• Answer telephone calls on behalf of work colleagues if they are busy
Page 42 of 121

• Respond to lender emails
• Key in lending applications into lender portal for new clients
• Follow up lending applications
• Follow up clients for missing or additional information
• Liaise with other professionals e.g., solicitors, conveyancers and accountants
• Liaise with clients to keep them informed of the application progress
• Develop and maintain professional development plan (PDP)
• Complete and maintain CPD record
• Manage and maintain own scorecard i.e., KPI.
Page 43 of 121

(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
Follow up clients for missing or additional
information.
Important/Not Urgent
Searching for prospective clients through various
channels such as email or phone.
Not Important/Urgent
Key in lending applications into lender portal for new
clients.
Not Important/Not Urgent
Manage and maintain own scorecard i.e., KPI.
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 required) Not applicable
Page 44 of 121

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
1. Social media channels - One of the most popular channels for finding out about customer feedback is
social media. Customers can post on social media channels and share their experiences about the company,
product or service. The most common and used social media channels in present day are Facebook, Twitter,
LinkedIn and Instagram.
2. Polls and surveys - Creating polls and surveys is one of the easiest ways to receive customer feedback.
Surveys usually take just a few minutes and aren’t time-consuming. It is usually used to gather information
and feedback from the customers, which may be crucial to company’s product development.
3. Live chat feedback - Live chat is one of the most popular ways of getting feedback from the customers. It
is simple and easily accessible. Feedback is usually collected from customers via Live chat at the end of each
chat where the customers have to participate in a short poll or survey to leave their comments.
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
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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.
Page 46 of 121

Part 1
The feedback is required to be recorded in 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) Action to be taken against 3 responses are detailed in the table down below:
Client Name Feedback source Feedback comments Action
required
Action
completed
Y/N
Mario Taranto Phone call survey ‘No one responded my calls in a
timely manner, it was always 2
to 3 days later’.
Going
forward
ensuring all
customer
enquiries
are
responded
within the
same
business
day
Yes
Yarran
Danggetti
Email survey ‘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’.
Ensuring to
ask
customer
plenty of
questions
in order to
understand
their
situation
and deliver
service
according
to their
individual
needs
Yes
Dan Wong Online survey ‘I am really happy with the
products recommended to
meet my needs for a home
loan’.
Reply to
the
customers
feedback
and ask the
customer
to contact
me for any
future
enquiries
Yes
(b) I would be responding to each of the client’s enquiry i.e., phone, email and online feedback by
reaching out to them individually and asking them in the end that if they are happy with my customer
Page 47 of 121

service experience and let them know to feel free to contact me for any future enquiry.
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) Customer service improvement report
Area for Improvement Steps/Actions to implement
improvement the improvement
(min of two (2) actions)
Communication to Stakeholders
(name the stakeholder by role)
Timeframe to
complete
1. Active listening 1. Training and development
particularly on upskilling
active listening.
2. Attend professional
development - PD i.e., online
webinars on effective
listening skills for mortgage
brokers.
Manager 2 weeks
2. Know your
products and services
1. Subscribe to professional
and industry journals related
to home loan and mortgage
broking.
2. Complete short online
courses about products and
services related to current
home loan choices.
Mentor 8 weeks
3. Communicate
clearly
1. Company introductory
training covering extensive
training on oral and written
communication.
2. To have extensive training
on company’s products and
services i.e., home loan
products so that a clear and
Senior Manager 2 weeks
Page 48 of 121

detail explanation can be
provided to every customer.
(b)
To: Senior Manager
From: Khandaker Shakib
CC: Mentor; Manager
Date/time: Monday 08 November 2021 05:15 pm
Subject: Recommendation on how to improve the area of customer service in our organization
Attachments: Customer service improvement report
Dear Management,
I am writing this email to share some of my personal recommendation on how to improve the area of
customer service in our organization after completing my own research on this topic.
The table below highlights some key areas and the actions to be implemented in order to effectively resolve
those issues:
Area for Improvement Steps/Actions to implement improvement the improvement
(min of two (2) actions)
1. Active listening 1. Training and development particularly on upskilling active listening.
2. Attend professional development - PD i.e., online webinars on effective
listening skills for mortgage brokers.
2. Know your
products and services
1. Subscribe to professional and industry journals related to home loan and
mortgage broking.
2. Complete short online courses about products and services related to current
home loan choices.
3. Communicate
clearly
1. Company introductory training covering extensive training on oral and
written communication.
2. To have extensive training on company’s products and services i.e., home
loan products so that a clear and detail explanation can be provided to every
customer.
Please feel free to reply back to this email if you have any questions or would like to add any suggestion to
my list of recommendation outlined above.
Kind regards,
Khandaker Shakib
Page 49 of 121

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) The key for both myself and my team members for effective quality monitoring the level of customer
satisfaction in the workplace in line with the service standards set are:
1. Listen to customers by monitoring interactions such as by retrieving previously recorded phone
conversations between customers and myself or other team members in order to find out areas for
improvement.
2. Use of quality monitoring during staff training or induction sessions to help improve our skills. Thus,
helping us to evaluate interactions to identify skills gaps, and provide individual learning opportunities
where there are deficiencies.
3. Measure our results as per company’s individual performance scorecard and keep track of our
continuous feedback and evaluation to monitor and measure progress.
(b) The 2 suggestions for ensuring that team members are accountable for the customer service standards
in the workplace are:
1. Make clear expectations - All new team members at the time of onboarding in their roles will be
provided with full guidelines and clear expectations on the outcomes about their roles and responsibilities.
2. Provide staff feedback - During monthly 1:1 with staff members, their monthly individual performance
(KPI) will be openly discussed such as covering the areas where they did very well and other areas where
there are still room for improvements.
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
Page 50 of 121

Task 8 – Respond and report on complaints
Task 8: Question 1
Refer to the Toolbox in your subject room for Policies and Procedures 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) If a provider of financial products and services is unable to provide a resolution within 30 days, what
are the four (5) steps they must take?
(50 words)
Student response to Task 8: Question 1
(a) A client can refer to their complaint by complaining directly to the mortgage broker or financial institute
first, using their internal dispute resolution process. Many complaints can be resolved efficiently by
mortgage broker or financial institute when they are at their earlier stage.
(b) The 5 steps that a provider must take in case they fail to come to a resolution within 30 days are:
i. Tell you the reasons for the delay
ii. Tell you the date by which you can reasonably expect to hear the outcome of our investigation
iii. Give you monthly updates on the progress
iv. Tell you about your right to complain to AFCA if you are dissatisfied
v. Provide you with contact details for AFCA.
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 2 days to the
assessment timeframe.
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)
Page 51 of 121

Student response to Task 8: Question 2
(a) The step-by-step resolution process that I will be undertaking in resolving this complaint are as follows:
 Respond to and acknowledge within 24 hours of receipt of the complaint
 Discuss the issue with the lender Joseph
 Listen and ask clarifying questions to ensure I fully understand the issue
 Show empathy and be genuine
 Understand the resolution that Joseph is seeking
 If I am unable to resolve the complaint on the spot, resolve within five working days
 Record the dispute in the Customer Relationship Management (CRM) system
 Escalate to my immediate manager if the appropriate resolution is outside of my approval authority
 If the resolution cannot be reached with Joseph within five working days, I will escalate the matter
to my manager
 Ensuring that I advise Joseph of the external dispute resolution scheme (AFCA) of their role and
contact details
 Record the outcome of the dispute in the CRM system.
(b) The resolution which I could communicate with the client Joseph is that I would be following up with
the lender to escalate this loan application for quick outcome and, at the same time, I would advise Joseph
to communicate with his conveyancer in order to place an extension request for another 7 days.
Page 52 of 121

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 Joseph Harper
Service being provided to client:
Home Loan Application.
Nature of complaint:
The client complained about the time it is taking to receive a decision on his loan application, which
was submitted 10 days ago.
Outcome:
The outcome was that the lender has promptly taken action addressing to my escalation request and
they have approved the loan application on the last day i.e., day 14.
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
Page 53 of 121

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
The communication methods can be used to prospect for new clients are:
 Face-to-face contact
 Printed material such as distributing brochures
 Telephone contact
 Websites
 Marketing emails
 Online advertising Social media.
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) The four steps that must be included in my introduction when making a prospective call are:
• Greeting
• My name
• The name and location of our organisation
• The purpose of the call.
(b) Following my introduction, I must seek permission from the prospect to continue with the call.
(c) If the prospect advises me that they do not wish to continue the call and they do not wish to be
contacted again then I would be politely thanking the prospect and conclude the call. Enter client details
into the Prospecting Register and add a tick into the ‘Do not call’ column, to advise that the client does not
wish to be contacted in the future.
Page 54 of 121

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 11/11/2021 Phone Rosie Abdul a prospective client is
considering refinancing her home loan
and seeking an increase to her loan so as
she can renovate her kitchen. However,
she also mentioned that she is not quite
ready to begin the process, but she is
interested in how our brokerage could
assist her. Therefore, she has requested
me to call her back in three months’ time
from now.
Yes 11/02/2022 No
(b) Bruce O’Connor 11/11/2021 Phone Upon calling Bruce O’Connor and
introducing myself and provided the
purpose of the call, Bruce advised that he
was not interested and did not want to
receive calls from our firm in the future.
No N/A Yes
CFMB_AS_v1

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)
CFMB_AS_v1

Student response to Task 9: Question 4
(a) The information that I will be requiring from Rosie in my next call are:
 Use of open and probing questions to identify possible opportunities.
 Clarify Rosie’s needs and record these in the ‘Outcome or comments’ column of the Prospecting
Register.
 Offer Rosie an interview with a credit representative.
 If accepted, notify Rosie of the name of the credit representative who will contact her and advise
her that the credit representative will be in contact within 24 hours.
 Obtain Rosie’s email address and advise her that I will send them a copy of the credit guide.
 Thank Rosie and conclude the call.
(b) Some of the information that I will be providing to Rosie about how our brokerage firm can assist her
are:
 We have access to better interest rates and discounts.
 We offer a wider choice of lending products.
 We are industry experts who can match with the best-fit loans for individual situation.
 We can speed up the financing process by preparing and lodging home loan application promptly.
 And, last but not the least, all our brokerage services provided to her are free at charge.
A brief outline of the application process is:
 Loan appointment - At the start of loan appointment, I will be helping out to select a suitable loan,
explain all the details and work out the repayments. I will also help to complete the loan
application form together.
 Loan application - I will professionally package the loan application with the supporting evidence
and then lodge it with the chosen lender. This will most likely be done electronically. The lender
will assess the application, will advise me if more information is required, perform credit checks
and arrange a valuation of the current property and organise mortgage insurance if necessary.
 Approval - The lender should then be in a position to advise me that the loan has been
unconditionally approved and I will be updating about the status immediately.
 Loan offer - Lender will now send a loan offer to sign and return. The loan offer is the loan contract
and outlines the terms and conditions of the loan, including the interest rate, term of the loan and
any applicable fees and charges. However, I am here for help if there are any questions about any
of the documents.
 Mortgage documents - The lender will send the applicant or the conveyancer all the mortgage
documents to be signed and returned. These documents include the lender’s standard terms and
conditions as well as the legal document giving the lender security over the property.
 Settlement - The lender will liaise with the conveyancer to arrange for settlement to take place.
Ownership of the property will then be transferred into the applicant’s name.
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)
Page 57 of 121

Student response to Task 9: Question 5
The 6 phases of the buying process are:
 Phase 1 for Buyers: Dissatisfaction - In all purchases consumers always look for solutions to a problem
i.e., problem solving or seek possibilities to drive stronger results i.e., future seeking.
 Phase 2 for buyers: Analysis - Consumers begin to analyse their situation and causes of their
dissatisfaction. They will consider alternative options, looking for choices and evaluate for feasibility.
 Phase 3 for buyers: Intervention - After consumers reach this phase, they become determined and
look for solutions. They begin identifying options from various providers and comparing the choices.
 Phase 4 for buyers: Selection - In this phase, consumers decide if they will go ahead with a solution or
not from all the available options.
 Phase 5 for buyers: Commitment - In this phase, consumers negotiate and execute the agreement or
contract.
 Phase 6 for buyers: Implementation - When the problem being resolved, consumers now evaluate the
success of the purchase and determine to continue with the contract or whether to go for alternative
option.
The 6 phases of the selling process are:
 Phase 1 for sellers: Prospecting - As consumers seek solutions to their problems to meet challenges,
sellers must connect with them.
 Phase 2 for sellers: Needs discovery and driving - Sellers in this phase, needs to discover the
consumers through asking them insightful questions and inspiring them with new ideas.
 Phase 3 for sellers: Solution Crafting - In this sales process, sellers begin crafting a customised solution
for the consumers and which can include preparing a presentation for the benefits of the solution and
writing a proposal.
 Phase 4 for sellers: Solution presentation - This is where the sellers present their new ideas or
solutions to consumers to help them in making informed decisions.
 Phase 5 for sellers: Win - In this phase, the seller will need to deliver executable agreement,
negotiating, gaining verbal, written, public agreement and handing off to another party for
implementation.
 Phase 6 for seller: Account development - The sixth and the last phase of the process ensures that the
consumer achieves maximum value from their purchase. For example, Strategic account development
will help drive new opportunities and grow the account while preventing competition by blocking
entrance for the external parties. It is inevitable for all sellers to always look for process
improvements in order to add highest value to their service offered for their customers.
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
Page 58 of 121

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) Internal networks for a mortgage broker are:
 Existing clients
 Word of mouth/referral by old clients
 Internal employee referral/trainee mortgage broker
 Mentor
 Business owner who I am currently working under.
External networks for a mortgage broker are:
 Social media advertisement such as Facebook and Twitter
 TV, Newspaper and magazine advertisement
 Professional associations such as FBAA or MFAA
 Local council/community
 Local business owners and accountants.
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(b)
Network Benefit You
1. Existing clients Helps me to build more client data base
2. Word of mouth/referral by old clients Helps me to add new clients into my profile
3. Internal employee referral/trainee mortgage
broker
Helps me to add new clients into my profile
Network Benefit to the business
4. Social media advertisement such as
Facebook and Twitter
Helps business to develop good brand image by
reaching out to more and more people in the
market
5.TV, Newspaper and magazine advertisement Helps business to develop good brand image by
reaching out to more and more people in the
market
6. Professional associations such as FBAA or
MFAA
Helps business to build reputation and to
generate more revenue
(c)
Network/connection —
Name
Type of
network/connections
Actions you take to develop and
maintain the relationship
1. Existing clients Internal Regular contact with them by providing
them up to date information about the
market
2. Word of mouth/referral
by old clients
Internal Contact them immediately and provide an
overview of the current market
3. Local council/community External Contact immediately and provide them
with up-to-date information about the
market to help them to make informed
decision
(d)
Communication method What are the positive features of this method (why might you use it)?
1. Face to face Face to face communication can be powerful and highly effective
communication channel among all which helps to build trust and
credibility, promote collaboration, increase productivity and easily
helps to understand non-verbal communication and interaction with
the clients.
2. Telephone Telephone communication channel can be one of the most common
and faster channels which helps to streamline excellent
communication between the organization and its customers.
3. Online Online communication system has emerged as real-time
communication tools for individuals and business professionals. By
Page 60 of 121

adding the important features in the technology such as high-quality
audio and video allows people to connect in real time irrespective of
their geographical locations and time zones.
Page 61 of 121

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
To begin with, as part of risk management process under NCCP Act and my duties as a mortgage broker, it
is important to follow and maintain our company’s policies, procedures and processes and codes of
practice when I am trying to network to promote my business and enhance its reputation to the target
audience. Thus, it ensures that how policies and procedures are essential for the efficient management of
employees including myself in the workplace. In addition, by adhering to company’s policies and
procedures can help me to correct my ways of working style, set standards of behaviour and helps
articulate the organisation's mission and values to our clients. Second, when complying to codes of
practice, it can help me to promote and establish professional standards between myself and my customers
and other members in the mortgage and finance industry (MFAA). Moreover, I have to ensure that I
promote ethical and fair business practice to our valued customers. Lastly, I would be presenting myself to
the customers in a very formal and professional manner by wearing business attire dress codes when
meeting with them face to face and for online appointments and maintain professional phone etiquettes
when communicating over the phone all the time. Also, I would maintain each of my client’s personal
information with privacy and high degree of confidentiality in accordance to the Privacy Act.
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) The 2 practices that could be implemented to improve business practices when it comes to developing
and maintaining networks are:
 Meeting face to face
 Sending regular emails or reaching out on social media.
(b) As a mortgage broker specialising in obtaining finance for accountants would make a great referral
partner for me as they would know their customer’s business intimately and can also see a genuine
opportunity where my skills and expertise can assist them.
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
Page 62 of 121

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
In the induction program which I will be running for the newly hired sales team member, I will ensure that
the new staff feels welcome and become acquainted with our business by sharing insight information
required to become a valuable team member. Moreover, the list of topic areas which will be covering in my
induction program are business background, mission and vision, staffs and their roles description and
duties, KPI scorecard, professional development plan and policy and who are our panelled lenders. Most
importantly, I will be explaining on how CCF & MB access information regarding updates to products and
services in their system and which are as follows:
It provides its services through its association with the following partners:
 Australian Aggregators: a growing company within the aggregation business, with an extensive panel
of residential and commercial lenders, and asset finance.
 ABC General Insurance: a boutique insurance company specialising in a full range of general
insurances.
 XYZ Life: a small family-owned insurance brokerage specialising in the full range of life insurance
products.
Page 63 of 121

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
List of 5 items that are required to be confirmed on the Annual Compliance Certificate are:
 Updated details about my business activities, credit or credit intermediary activities and
representatives for the previous 12 months
 To provide information about my dispute resolution and compensation activity – the number of
accounts I hold, the number of complaints I received and the number of voluntary, proactive
compensation programs I ran
 To certify that I am complying with the credit licence obligations
 To certify matters and notify changes about all my fit and proper people i.e., complete a statement of
personal information, both current and those that have left that role in the past 12 months – or
provide details of any exceptions
 To notify changes about my responsible managers.
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
Page 64 of 121

Section 3: The lending process
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 timeframe.
(20 words)
Student response to Task 12: Question 1
The four types of ‘specific customer requirements’ which my client may have:
• Care more about product features and benefits
• Are more concerned with the process of obtaining the financial product, preferring, for example, a
low-doc loan over a full-documentation loan process
• Are more interested in finding a financial representative who they can trust
• Want prompt service with a minimum of fuss.
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
The common financial records that the lender will ask for from a self-employed person/business are:
• Last two years of company tax returns
• Last two years of other financial statements (e.g., profit and loss statements)
• Last two years of personal tax returns
• Date of ABN and GST registration.
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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) A consumer credit report includes information to identify an individual such as their name, date of
birth, address and employer. It also includes certain information about how the individual handled any past
or current consumer loans or debts, and their repayment history.
A consumer credit report may also contain information about any instances in which the individual has
failed to meet their repayment obligations, such as defaults, court judgments or bankruptcies.
(b) The reason behind the importance that the client should provide all the details about their credit report
to their broker at the beginning of the loan process is because of with both positive and negative details of
the client’s credit history available, lenders are better placed to assess the client’s ability to manage a loan.
This can help to fast track the loan approval process and may even result in that client being eligible for a
lower interest rate as well.
(c) If a lender or credit provider rejects a client’s application, it is required under the Equal Credit
Opportunity Act (ECOA) to provide the client with specific reasons as to why their application was rejected
or advise the client that they have the right to learn the reasons if they request within 60 days from the
date that they have received the rejection letter.
If a lender rejects a client’s application based on their credit report, the lender is also required to:
 Provide you the numerical credit score it used in taking the adverse action and the key factors that
affected your score
 Give you the name, address, and telephone number of the credit reporting company that provided
the report
 Tell you about your right to get a free copy of your credit report from the credit reporting company
that provided it within 60 days of your adverse action notice
 Explain the process for fixing mistakes on your report or adding information to make your report
more complete.
(d) I would advise my client to do if their loan was declined due to their credit report how to get the free
comprehensive credit report from Equifax and how interpret the report and increase your credit score.
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
Page 66 of 121

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) The three types of assets that lenders may take as collateral to secure a loan are:
 Property
 Land
 Motor vehicle.
(b) The three security documents that are required in order for the lender to have control over the asset
while the loan is in place are:
 Bank Guarantee
 Deed of Trust
 Collateral Agreement.
(c) Director guarantee document is provided if a director offers their home (in their personal name) as
security for lending in their company name to link the asset to the loan.
(d) Collateral or cross collateralization is the act of using an asset that's collateral for an initial loan act as
collateral for the next loan to establish an adequate LVR.
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
Page 67 of 121

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) The documents that I would gather to in order to verify are:
(i) A PAYG employee’s income - To gather and verify PAYG employee’s income, I would request the client
to provide their 2 to 4 most recent pay slips as proof of their ongoing income.
(ii) A self-employed person’s income - To gather and verify self-employed person’s income, I would request
the client to provide their most recent tax return or notice of assessment and/or for the previous tax
financial year.
(iii) Rental income for an existing investment property - To gather and verify rental income for an existing
investment property, I would request the client a lease ledger or a tenant ledger, which is an official record
of all the rent and other payments a tenant has made to the property owner (i.e., the client), through a
property manager if there is one, in relation to a property that the tenant is renting.
(b) The three verification documents are:
Document One (1) question to confirm information with your client
1. Pay slip How often do you work overtime?
2. Tax return Do you have any HECS Debt?
3. Lease ledger What is the frequency of your rental income, fortnightly or monthly?
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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) If the loan application for my client is for an investment property, I would be requesting the client to
submit its ‘Contract of Sale’ which will suffice as the correct supporting documents for my client’s loan
requirements in accordance with the lender’s requirements.
(b) As a mortgage broker I will most likely work with a checklist or similar tool to ensure that they have all
the accurate information required and the documents are closely aligned in the right format and legible for
the lender. Moreover, as part of my role duties and responsibilities as a mortgage broker, I would be
assessing the completeness of information supplied by a customer which also need to follow our
organisation’s guidelines and checklists accompanying the loan application. However, at the same time, I
am also aware that the lender receiving the loan application will probably have their own set of checklists.
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
Page 69 of 121

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
If the client has declared interest or dividend income as their additional income in the loan application, the
lender may return to the client and request for further information e.g., confirmation of evidence for both
the current balance of that asset and the income earned (generally income earned in the last 12 months)
which was declared in the client’s last tax financial year.
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
Page 70 of 121

Section 4: Case studies
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) The documents that I would be attaching in my introductory email for the client are:
• Personal consent form
• Privacy statement form.
(b) The information that will be included in my email are:
(i) It provides its services through its association with the following partners:
• Australian Aggregators: a rising company within the aggregation business, with an extensive panel
of
• residential and commercial lenders, and asset finance.
• ABC General Insurance: a boutique insurance company specialising in a full range of general
insurances.
• XYZ Life: a small family-owned insurance brokerage specialising in the full range of life insurance
• products.
Page 71 of 121

CCF & MB’s values are as follows:
• to act with honesty and integrity at all times
• to provide unbiased advice and conduct business, free from any conflict of interest
• to maintain confidentiality in all dealings
• to meet all NCCP regulatory requirements
• to comply with all mortgage industry laws and regulations
• to ensure quality and efficiency in its loan processes.
Based in the city, CCF & MB has the capacity to service clients from their office or anywhere at their clients’
convenience through its team of mobile brokers.
(ii) CCF & MB is owned by husband and wife, George (myself) and Mildred Spencer. With over 35 years’
experience in finance and business ownership, I established and built a successful business dedicated to
assisting clients with managing their finances effectively. Starting the business with my wife Mildred 13
years ago, I gained immense satisfaction in seeing it expand, to service more and more clients across the
city and greater metropolitan area. Although in recent years I have stepped back from dealing directly with
clients, I still maintain a small select clientele. I also take great pride in training and mentoring his team to
enhance their performance.
The role description and duties that I have as a mortgage consultant are as follows:
• Build strong relationships with clients
• Help in determining client’s current financial position and their future potential opportunities.
• Recommend lending solutions which meet client needs and goals
• Adhere to regulation, legislation and codes of practice
• Comply with all internal policies, procedures and code of conduct
• Conduct and Review Fact Finds, client needs analysis and financial documentation.
• Imbed the organisation’s values and team culture participating in team work with the team members
• Across the organisation
• Attend industry and networking events
• Undertake training and development
• Complete 30 hours of Continuous Professional Development (CPD) per annum.
(iii) CCF & MB does not hold a credit license but operates as a credit representative of Australian
Aggregators. Since its inception 13 years ago, CCF & MB has created a commercial relationship with its
product providers (i.e., the lenders on our panel) by building a loan book of almost $1.2 billion and
averages over $120 million in new loans annually.
Page 72 of 121

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
Page 73 of 121

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.
Using the client information collection tool/fact finder below, complete:
(a) assets and liabilities
(b) needs analysis
(c) credit representative notes
(d) anticipated fees and charges
(e) funds to complete.
Student response to Task 17: Question 1
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 Tocx to help you calculate the applicable fees and charges.
Appointment date: 08 December 2021
Appointment time: 05:45 pm
Applicant 1 Applicant 2
Surname Brown Brown
Other names Philip Jennifer
Contact details Address Unit 12, 22 Wentworth Lane,
Thomastown VIC 3074
Unit 12, 22 Wentworth Lane,
Thomastown VIC 3074
Phone (W)
Phone (H) 0419 123 456 0412 987 654
Mobile [phone] 987 654
Email [e-mail] [e-mail]
Employment Team Leader Compliance Manager
How long? 12 years 11 years
Previous employer (if less than two years) N/A N/A
How long? N/A N/A
Employment type
(FT/PT/casual/self-employed) Full time Full time
Gross income (p.a.) $58,000 $95,000
Page 74 of 121

Number of dependants Nil Nil
Motor vehicles:
make/model/year/value $ Holden Colorado 2012 $25,000 Kia Cerato Sport 2015 $9,000
Loan purpose First home
Purchase price/valuation $490,000
Deposit on property $77,000
Loan amount $440,000 + LMI
Borrowing capacity (using Genworth
serviceability calculation) Genworth Calculator PDF also attached
LMI Calculator
Serviceability Calculator
Page 75 of 121

Assets and liabilities
Assets Liabilities
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) $82,000.00 Car leasing N/A N/A
Other cash
(includes offset accounts) $1,600.00 Personal loans
1. Capital Bank personal
loan (Philip)
2.
$180 p.m. $5,600.00
Deposit paid on property (only if
paid) Nil Overdraft N/A N/A
Motor vehicles:
1. Holden Colorado 2012
2. Kia Cerato Sport 2015
$34,000.00 Other loans:
1.
2.
N/A N/A
Personal effects $40,000.00 Credit card limit:
Philip
N/A $3,800.00
Business value (if self-employed) N/A Credit card limit:
Jennifer
N/A $3,400.00
Shares and investments N/A Other: N/A N/A
Superannuation $90,000.00 Other: N/A N/A
Other assets (give details) N/A Other: N/A N/A
Total assets $247,600.00 Total liabilities N/A $12,800.00
Surplus/deficiency: (Total assets less Total liabilities) $234,800.00 (surplus)
Page 76 of 121

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)
Food/housekeeping $11,800.00
Insurance (e.g., motor vehicles, home contents/ building, medical, life/income protection) $3,400.00
Utilities (e.g., rates, gas, electricity, transport) $1,800.00
Transport (e.g., public transport, petrol, registration, repairs) $5,040.00
Education (e.g., school, college, university) Nil
Dependant’s support (e.g., childcare, child maintenance) Nil
Entertainment (include online subscriptions, e.g., Netflix/Stan) $7,400.00
Other (detail below): Nil
Pets, medicine, dentist, home decoration, clothing, beauty, gardening etc. $5,560.00
MONTHLY LIVING EXPENSES $35,000 (annually)
Page 77 of 121

Needs analysis
1 Name of your current lender? The capital bank personal loan.
2 What type of loans do you have? Personal Loans
3 Why did you choose this particular loan and lender? The interest rate is lower as compare to
other market lender.
4 What is the interest rate on your current loan? The interest rate on current loan is 8.
25%
5 What are your payments? Amount The amount of Loan is $5600
6 Frequency The frequency of payment is monthly.
7 Do you know the fees and charges? No I don’t know about the fees and
charges
8 What is your proposed purpose for the new loan you are applying
for? Need residential home to settle down.
9 Branch access available with current lender Yes the branch access is available with the
current lender
10 Internet banking available with current lender Yes the internet banking available with the
current lender
11 Phone banking available with current lender Yes the phone banking is available with
the current lender.
12 Lenders not to be considered Big financial institution not to be
considered as they charge higher interest
rate.
13 Type of loan sought Home loan having less interest rate.
14 Preferred Interest rate range The interest rate must be 8 to 12%.
15 Payment frequency Monthly payments
16 Redraw N/A
17 Offset N/A
18 Salary crediting First week of each month
19 Low fees and charges Must be below 2%
Page 78 of 121

Credit representative notes
Note: Providing substantive notes here is a compulsory part of your assessment.
On the basis on above analysis of assets and liabilities the loan cab be easily sanctioned as assets are 10
times more of the liabilities.
Page 79 of 121

Anticipated fees and charges
Anticipated purchase price $490,000
Deposit on property $77000
Total Loan amount $440000 + LMI
LVR % 89.80%
Purchase costs $4200
Stamp duty – Transfer of Land
Registration fee – Transfer of Land $1200
Solicitor/conveyancer fee $850
Rates and land taxes (estimate) $280
Pest inspection (estimate) $250
Building inspection (estimate) $1200
Borrowing costs $100
Application/establishment fee
Valuation fee $950
Security admin fee $1200
LMI 35%
Registration of mortgage $1700
Discharge/Release of mortgage fee $250
Search fees $280
Other N/A
Total purchase and borrowing costs $12460
Page 80 of 121

Funds to complete
PURCHASE AND LOAN COSTS: AVAILABLE FUNDS:
Purchase price: $490000 Deposit if already paid to agent: Nothing
Lender application/valuation fees: $1000 Cash savings: $83600
Stamp duty payable – Transfer of
Land $4200 Sale proceeds: Nil
Registration fee - Transfer of Land $1200
Registration of mortgage – Land
Titles Office $1700 Gift: Nil
Solicitors’ fees: $850 FHOG: Nil
Other NIL Other: Nil
Lenders mortgage insurance –
added to loan $450 Other: Nil
TOTAL COSTS (A): 499400 TOTAL OWN FUNDS (D): $83600
LOAN AMOUNT REQUESTED (B): $490000 OWN FUNDS REQUIRED (A–B) = C: $9400
OWN FUNDS REQUIRED (A–B) = C $9400 SURPLUS/SHORTFALL (D–C) $74200
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
Page 81 of 121

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
The first one is the capacity to repay the loan which fulfils as they more assets then liabilities.
Further they do not possess major loan other than personal loan of $5600 therefore their credit history is
sound.
The employment history is sound as both are working for 10 years plus therefore capable enough to repay
loan monthly easily.
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
(a) They have to require to pay LMI as their assets are not sufficient to cover the entire loan amount
(b) The premium pain on home loan of $440000 would be $9680 as calculated using the calculator.
(c) The two options can be: -
Pay the insurance premium separately through cash or account payee cheque.
The other option is to include the same in the loan amount itself .
Page 82 of 121

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) The maximum loan they can get can be $465000
(b) Their combined gross income is $153000 and the net income is $118000 after deducting all the
expenses.
(c) the monthly repayment of loan will be $ 9348.70
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
Yes, the client has the capacity to meet the deposit and total cash contribution as they hold $82000 cash
deposit in the bank. Further they have other cash also amounting to $1600.
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
There is no security has been offered for the loan. The reason for that is there is no need as they sufficient
assets and income to repay the home loan easily throughout the home loan tenure.
Page 83 of 121

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)
Property Valuation Request
Broker Details Name Contact details
ZYZ financial services John wood 041562985
Client Name Loan Type Loan Amount
Philip and Jennifer Brown Home Loan $440000
Loan Purpose
Purchase Refinance  Consolidation  Equity release 
Property Type
Residential Commercial  Vacant Land  Land and construction 
Property Address:
Title Details Unit 12, 22 Wentworth Lane, Thomastown VIC 3074
Volume: 450 squire feed
Folio: KARER45262
Folio Identifier: KXMNPR2500
Description
Year of construction 2017
Number of Bedrooms 4
Number of Bathrooms 3
Car accommodation 2
Other rooms 1
Other features
Page 84 of 121

Property value
Purchase price $ 490000 Date of contract -20- /03 -- / 2020----
or
Land purchase price $
Building contract $
Refinance – estimated value range
From $ 600000
To $ 720000
Property use
Owner occupied 
Investment 
Holiday rental 
Rental income
Rent per month $ .00 Actual/Proposed
Valuation type:
Full valuation: 
Kerbside: 
Desktop: 
The property in user is owners occupied and rent paid per month is $3000
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
After analysing the client condition I would recommend to grant him the loan of $400000 as they do not
possess any other home so that it can be mortgage against that. Further they are not providing any
security against the loan and the current valuation of asset they possess is less than the loan amount.
Page 85 of 121

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
The chances are almost high that they can meet the financial obligation on due course as they have
sufficient monthly income and working for the long time so that they cab beer their EMIS as and when they
becomes due.
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
The one issue that must be taken into consideration is that they are in jobs with only the single organisation
and if their job is not more continue or they resign from their then they does not have sufficient fund in
cash form to repay the complete obligation.
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
In the lender increase the rate of interest by 3% then it will be difficult for then in the long run to repay the
debts. There must be no buffer added so that they cab smoothly pay their loan. Further the loan must have
fixed interest rate so that they can pay the same. In the tenure of the loan is higher say 20 years then they
can afford but if the tenure is short then interest burden will affect their finances therefore it is suggested
that no buffer should be added.
Page 86 of 121

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) the product options in home loan can be the fixed rate of interest loan or floating rate of interest loan
options. Further in home loans different product can be based on tenure of repayment say 10 years, 15
years or 20 years. As long as the tenure is the more interest needs to be paid on the home loan.
(b) The suggestion could be fixed rate of interest home loan with tenure of 10 years as the amount of loan
is bigger. Fixed rate of interest would be suggested as the rate of interest is fixed and does not fluctuate
with the market rate of interest.
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
Page 87 of 121

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
The three option available to them are as under: -
1. In order to avoid loan mortgage insurance Philip and Jennifer must pay more than 20% of their loan
amount as down payment. Lower down payment will generate risk for the financial institution as it
indicates that capacity to repay the loan is poor.
2. The other option they can consider that use their cash funds second mortgage in order to avoid
loan mortgage insurance.
3. There loan to value ratio is higher than why there are high chances that they won’t get the loan
equivalent to the value of the property. Therefore, the third alternate cab be to utilise the cash
fund in the form of down payment so that loan cab be sanctioned easily.
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
The benefits they can get in the form of subsidy from the government on the stamp duty if the property is
registered in the name of Jennifer. They go not get any assistance as they are already working as team
leader and compliance manger in their respective employment. Assistance is provided by the government
to those who are below poverty line and does not have any shelter to recede. They can get benefit for the
builder if they purchasing the same from the builder group. From the Australian government they can get
the benefit in the form of stamp duty only.
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.
Page 88 of 121

(150 words)
Student response to Task 19: Question 3
(a) The various product option available in the home loan segment are fixed and floating rate of interest.
The tenure of the home loan differs depending upon the source of income and the assets possessed by
Philip and Jennifer brown.
(b) the fixed rate interest loan is generally higher as compare to floating rate as interest. The reason for
that can be that the interest rate may differ over the period of time that’s why the bank will charge higher
rate of interest if the individual opt for fixed rate of interest. However, the individual may opt floating rate
if tenure is lower as it gets the benefit of lower interest rate and he has to pay less to the financial
institution.
Page 89 of 121

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
The option I will suggest them is go for fixed rate of interest loan as they are the working professionals and
if the interest rate increases in the future then they will not be affected by that rate as their EMIs are fixed
and over the period of time they will easily pay them as over the course of time their salary will increase
accordingly.
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 precaution we have followed that they must get the home loan amount and tenure according to their
capability so that they can easily handle the EMI. Furthermore, focus in given on their repayment. The
major focus has been given on their liquidity position which is sound to repay the home loan EMIs.
(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)
They must directly consent to bank officials from whom they have to obtain bank loans.
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
Page 90 of 121

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
Yes, it is important for the broker to remain informed about the development process in the process of
lending because they know the information of the client they are addressing. Further if they remain
updated then they can guide the customers accordingly. They are not actively involved because they are
the brokers and only deal with customer. The lending process is managed by the financial institution as
they carry out the whole process.
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) The service delivery standard cab be guiding the clients about the structure of loan and types of home
loan available to them. Further informing them regarding the tenure of loan and breakup of principle and
interest they have to pay during the period of loan.
(b) The documents will be submitted to the higher authority who are working in the finance department. It
is important to documents the loan related papers as they are useful in getting the loan sanctioned and
referred as future purpose. These documents are submitted to management level personnel who deal with
financial institution.
Assessor feedback for Task 20 – The loan approval and settlement process
(Insert Feedback)
Question(s) that need to be resubmitted (if required) (List question numbers)
First submission Not yet demonstrated
Resubmission (if required) Not applicable
Page 91 of 121

Case study 2: Mary Azacca
Case Study 2 for Mary Azacca is located in your subject room in KapLearn.
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.
Using the client information collection tool/fact finder, complete:
• assets and liabilities
• needs analysis
• anticipated fees and charges
• funds to complete.
Page 92 of 121

Student response to Task 21: Question 1
Client information collection tool/Fact finder
Appointment date: 24/02/2022
Appointment time: 11:30
Applicant 1
Surname Azacca
Other names Mary
Contact details Address 10, Downing Street, London
Phone (W)
Phone (H) N/A
Mobile N/A
Email N/A
Employment Service Manager
How long? 2 years
Previous employer (if less than two years) N/A
How long? N/A
Employment type
(FT/PT/casual/self-employed) Full - time
Gross income (p.a.) $ 50000
Net income (monthly) $ 4167
Number of dependants 2
Motor vehicles:
make/model/year/value $ $ 500
Model 2019
Loan purpose Financing for home loan
Purchase price/Valuation $ 30000
Deposit on property N/A
Loan amount $ 25000
Borrowing capacity (using Genworth
serviceability calculation) N/A
Page 93 of 121

Assets and liabilities
Assets Liabilities
Details Market value Details Monthly payments Amount owing
Owner occupied property at:
8 North Road Rockingham Perth
Western Australia
N/A Mortgage with:
Simply Home Loans N/A N/A
Investment property at: $ 5000 Mortgage with: N/A N/A
Cash at bank
(includes fixed deposits) $ 3500 Car leasing N/A N/A
Other cash
(includes offset accounts) N/A Personal loans
1.
2.
$ 2500 $ 2000
Deposit paid on property (only if
paid) $ 2500 Overdraft N/A N/A
Motor vehicles:
1. Holden Commodore SS 2007
2. Nissan Qashqai 2019
3. Indian Scout Motorcycle 2018
$ 5000 Other loans:
1.
2.
N/A N/A
Personal effects N/A Credit card limit:
Answer here
$ 10000 N/A
Business value (if self-employed) N/A Credit card limit:
Answer here
N/A N/A
Shares and investments N/A Other: N/A N/A
Superannuation N/A Other: N/A N/A
Other assets (give details) N/A Other: N/A N/A
Total assets $ 16000 Total liabilities $ 12500 2000
Surplus/deficiency: (Total assets less Total liabilities) $3500
Page 94 of 121

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)
Food/housekeeping $ 100
Insurance (e.g., motor vehicles, home contents/ building, medical, life/income protection) $ 1500
Utilities (e.g., rates, gas, electricity, transport) $ 200
Transport (e.g., public transport, petrol, registration, repairs) $ 500
Education (e.g., school, college, university) N/A
Dependant’s support (e.g., childcare, child maintenance) N/A
Entertainment (include online subscriptions, e.g., Netflix/Stan) $ 100
Other (detail below): N/A
MONTHLY LIVING EXPENSES $ 2400
Page 95 of 121

Needs analysis
1 Name of your current lender? David Markinson
2 What type of loans do you have? Personal Home Loan
3 Why did you choose this particular loan and lender? Referral from colleague
4 What is the interest rate on your current loan? 7 %
5 What are your payments? Amount $ 2000
6 Frequency 3 months
7 Do you know the fees and charges? No
8 What is your proposed purpose for the new loan you are applying
for? Home
9 Branch access available with current lender Yes
10 Internet banking available with current lender No
11 Phone banking available with current lender No
12 Lenders not to be considered No
13 Type of loan sought Home Loan
14 Preferred interest rate range 7 – 10%
15 Payment frequency 3 months
16 Redraw N/A
17 Offset N/A
18 Salary crediting At the beginning of the next month
19 Low fees and charges N/A
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
Page 96 of 121

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 Money Smart 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 Money Smart link can be located in the Toolbox.
(50 words)
Student response to Task 22: Question 1
(a) A mortgage switch, or a transfer mortgage, involves moving your current mortgage from one lender to
another. This is ideal for when you want to take advantage of lower interest rates in the market (or are just
not happy with your current lender) but are not interested in changing any other terms of your mortgage.
(b) Many existing borrowers would explore switching over their home loan to another lender in order to
take advantage of the new rates and lower their EMI. This means a large portion of his principal is
outstanding, as his EMI is mostly made up of the interest component.
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
Yes, Mary will be paying Lenders mortgage insurance (LMI). This is due to the fact that environment is
uncertain. LMI protects your lender in the event that you default on your home loan and there is a
'shortfall'. A shortfall happens when the proceeds from the sale of your home are not enough to cover the
outstanding amount you owe to your lender.
Page 97 of 121

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.
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 Home loan
Specific features requested, and any risks or costs NA
MONTHLY FINANCIAL POSITION
Current Proposed
Total monthly after-tax income: (A) 5000$ 5000$
Total monthly repayments: (B) 1500$ 1500$
Total monthly living expenses: (C) 700$ 700$
TOTAL MONTHLY NET SURPLUS (A-B-C) 2800$ 2800$
Foreseeable material financial changes, and resulting plan to meet the ongoing obligations
RECOMMENDED PRODUCT PARTICULARS
PRODUCT 1: PRODUCT 2: PRODUCT 3:
Lender’s name x y z
Loan product: Home loan Home loan Home loan
Loan Amount: 68500 70000 60000
Term in years 7 7 9
Monthly repayments 815 833 555
Other loan details:
Page 98 of 121

CONFLICT OF INTEREST DISCLOSURE:
Has any conflict of interest which may disadvantage the client been identified in relation to the recommended product?
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
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
Based on the information of the income and expenditure of Mary, Loan from the lender 'z' would be
recommended to her.
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
NO
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)
Student response to Task 22: Question 6
If there is any decrease in the income of Mary or any increase in the living expenses, the impact of these
factors would be high on her ability to pay back its obligations.
Page 99 of 121

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
Answer here
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
Page 100 of 121

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
Answer here
Page 101 of 121

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 finds 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 2: Question 9
These different information is filed to the lender which the loan taker is going for.
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
Page 102 of 121

Case study 3: Ravi & Alice Patel
Case Study 3 for Ravi & Alice Patel is located in the subject room.
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.
Page 103 of 121

Student response to Task 23: Question 1
Client information collection tool/fact finder
Appointment date: 15/07/2020
Appointment time: 9 30 A:M
Applicant 1 Applicant 2
Surname Patel Patel
Other names Ravi Alice
Contact details Address 45 W Woodland Street Lane 3 Cross 2 46 W Woodland Street lane 3 Cross2
Phone (W)
Phone (H) 01256856236
0125689522
0125685452
012562574
Mobile [phone] 485623252
Email [e-mail] [e-mail]
Employment Consultant Technical Legal consultant
How long? 8 10
Previous employer (if less than two
years) NA NA
How long? NA NA
Employment type
(FT/PT/casual/self-employed) FT FT
Gross income (p.a.) $82000` $49200
Number of dependants 1 2
Motor vehicles:
make/model/year/value $
Toyota Prado 2015
NA NA
Loan purpose Residential Home Loan
Purchase price/valuation $370000
Deposit on property $50000
Loan amount $300000
Page 104 of 121

Assets and liabilities
Assets Liabilities
Details Market value Details Monthly payments Amount owing
Owner occupied property at: NA Mortgage with:
Penrith Mutual Home
Loan
NA NA
Investment property at: NA Mortgage with: NA NA
Cash at bank
(includes fixed deposits) $6820 Car leasing NA NA
Other cash
(includes offset accounts) $2356 Personal loans
1.
2.
$1500 $370
Deposit paid on property (only if
paid) $5000 Overdraft NA NA
Motor vehicles:
1. Toyota Prado 2015
2.
$26000 Other loans:
1.
2.
NA NA
Personal effects
household effects $12000 Credit card limit: $1000 $1200
Business value (if self-employed) NA Credit card limit: NA NA
Shares and investments $2500 Other: NA NA
Superannuation
Ravi
Alice
NA Other: NA NA
Other assets (give details)
Boat: Bar crusher 2017 NA Other: NA Na
Total assets $54676 Total liabilities $2500 $1570
Surplus/deficiency: (Total assets less Total liabilities) $
Page 105 of 121

CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)
Food/housekeeping $230
Insurance (e.g., motor vehicles, home contents/ building, medical, life/income protection) $300
Utilities (e.g., rates, gas, electricity, transport) $200
Transport (e.g., public transport, petrol, registration, repairs) $230
Education (e.g., school, college, university) $113
Dependant’s support (e.g., childcare, child maintenance) $ 213
Entertainment (include online subscriptions, e.g., Netflix/Stan) $236
Other (detail below): $240
MONTHLY LIVING EXPENSES $1762
Page 106 of 121

Needs analysis
1 Name of your current lender? BE financial
2 What type of loans do you have? Personal Loan
3 Why did you choose this particular loan and lender? Interest rate is lower compare to other lender
4 What is the interest rate on your current loan? 8%
5 What are your payments? Amount $ 1500
6 Frequency Monthly
7 Do you know the fees and charges? No
8 What is your proposed purpose for the new loan you are
applying for? Home loan for residential property
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 NA
13 Type of loan sought Home
14 Preferred Interest rate range 8 to 10%
15 Payment frequency Monthly
16 Redraw NA
17 Offset NA
18 Salary crediting NA
19 Low fees and charges NA
Credit representative notes
Note: Providing substantive notes here is a compulsory part of your assessment.
The person has the credit worthiness for the home loan he has been applying according to the assets and
liabilities valuation.
Page 107 of 121

Anticipated fees and charges
Anticipated purchase price $370000
Deposit on property $50000
Total Loan amount $300000
LVR % 81.08%
Purchase costs $2000
Stamp duty – Transfer of Land
Registration fee – Transfer of Land
Solicitor/conveyancer fee $3200
Rates and land taxes (estimate) $236
Pest inspection (estimate) $256
Building inspection (estimate) $253
Borrowing costs $ 256
Application/establishment fee
Valuation fee $125
Security admin fee $126
LMI $253
Registration of mortgage $236
Discharge/release of mortgage fee $241
Search fees $125
Other $142
Total purchase and borrowing costs $8733
Page 108 of 121

Funds to complete
PURCHASE AND LOAN COSTS: AVAILABLE FUNDS:
Purchase price: $370000 Deposit if already paid to agent: $50000
Lender application/valuation fees: NA Cash savings: $6820
Stamp duty payable – Transfer of Land $2300 Sale proceeds: NA
Registration fee – Transfer of Land NA
Registration of Mortgage – Land Titles
Office
Gift: NA
Solicitors’ fees: $236 FHOG: NA
Other $243 Other: NA
Lenders mortgage insurance
Added to loan $231 Other: NA
TOTAL COSTS (A): $373010 TOTAL OWN FUNDS (D): $56820
LOAN AMOUNT REQUESTED (B): $300000 OWN FUNDS REQUIRED (A–B) = C: $73010
OWN FUNDS REQUIRED (A–B) = C $73010 SURPLUS/SHORTFALL (D–C) $16190
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
Page 109 of 121

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) Alice Reddy and Ravi Kaushik
Address N/A
Phone and email N/A
Proposed finance
Interest rates and repayments may
change if the lender changes its
interest rate.
Lender: 0.65 %
Split 1 Purpose: N/A
Finance amount: $ 20000
Interest structure: quarterly payments
Interest rate: 7 %
Term: 4 years
Repayments: 3 years
Other features
Split 2 Purpose: N/A
Finance amount: $ 25000
Interest structure: Monthly payment
Interest rate: 7 %
Term: 3 years
Repayments: 2.5 years
Other features:
Total loan amount $ 25000
Fees payable by you to us.
These fees are payable by you.
$ 1750
Page 110 of 121

Commission is payable for:
Commission payable by:
Commission payable to:
Reasonable estimate of
commission:
% Of the amount of credit limit shortly after the finance is
provided. We estimate this to be $ 500.
% Per annum of your amount owing from time to time payable
monthly. We estimate the largest monthly payment to be $ 1000.
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
$ 200
$ 100
$ 50
$50
$50
$ 25
$25
$ 50
$ 550
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)
Page 111 of 121

Student response to Task 24: Question 2
The need of the client is home loan as he wants to purchase residential property and for that he does not
have sufficient funds, therefore he wants to obtain bank loan at those interest rate which is beneficial for
him. The current financial position is normal of the client as he has only personal loan outstanding and no
other loan he owed. The home loan I would suggest will the fixed rate of interest loan as it does not
fluctuate over the period of time. The loan amount I would recommend would be $ 25000 with rate of
interest will be 8% and the tenure must be 10 years so that they do not get any interest burden on their
pocket. If the tenure of the loan is lower than the EMI are high which makes them difficult to repay them. I
would recommend them the above lender as their rate of interest is lower as compare to other financial
institution.
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)
Page 112 of 121

Student response to Task 24: Question 3
FWD: To: Ravi Patel
[e-mail]
from: broker1@CCF&MB.com.au
Re: Recommendati on
The rights are that you cab approach the lender and ask them the details I have submitted to you
regarding your loan application.
The comparison it’s that we are providing you the best home loan interest across the city and also giving
you the concession at you are in employment. The rate of interest we offer you is 2% less as compare to
other lenders.
We can negotiate on the application fee for around $500 and it is not possible for me to go beyond that
limit. Further the interest charges are already at reduced prices and it cannot be reduced further.
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
Page 113 of 121

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
The following document are below: -
 Personal Details
 Existing Loan outstanding balance
 Existing Working Experience
 Identity Proof and address proof
 Consent letter
 Signature and verification letter
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
When the guarantor is involve in the home loan then legal consultant must be hired who give the proper
advise.
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)
Page 114 of 121

Student response to Task 25: Question 3
I will provide full information to the client regarding the types of loan and the interest rate on different
types of loan according to the need of the customer. Further I also explain him regarding the consequences
in the loan is not repaid on time. Further offer them the benefits when we get the loan sanctioned such as
tax rebate as the time of filling of income tax returns. Further if the rate of interest is lower as compared to
others then offer that facility too so that they can take the home loan.
Page 115 of 121

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 documents are send to the lender through mail one copy and also the hard copy will be
submitted in bank who proposed to sanction the loan amount.
(b) the basic documents need to be submitted are address proof, income proof, tax return documents,
identity proof etc.
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 commumincaion will on phone, meeting physically also at the client place.
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
I will notify the client by meeting with him in person and inform them that their documents has been
approved by the lender for loan sanctioning.
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
Page 116 of 121

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) It is only to protect you and your house from such unforeseen circumstances that a house insurance
becomes crucial, for house owners and tenants alike. In case your house gets damaged, the emotional and
financial pain of rebuilding a house or reinstalling its contents is painful, difficult and tedious.
(b) The purpose of independent legal advice is to: Provide an objective review of a legal document. Confirm
a client understands the document properly. Verify a client has not been pressured into signing their
document (i.e. duress or undue influence)
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
Following is the process which is taken up for the final settlement of the funds
 The batch administrator sends a reservation request to the RITS.
 In the second step the RITS will send a response about the reservation to the batch administrator.
 If the response from the RITS is positive, the batch administrator will further lodge the property for
title change to the land title offices.
 An acknowledgement of the receipt of the lodgement will be forwarded to the batch administrator.
The further settlement request will be sent to the RITS and they will further send the settlement response
to the batch administrator.
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)
Page 117 of 121

Student response to Task 26: Question 3
Following are the examples of issues which may occur and delay or prevent a settlement:
1. Bank Complications: Usually buyers need to take out a mortgage to buy a property, and often
sellers need to discharge their previous mortgage –so settlement can’t occur until the bank is
ready. As such, complications with banks are the most common cause of a delayed settlement.
2. Final inspection problems: the buyer discovered a faulty gate that the seller insisted was working,
and in other cases fixtures have been removed. Such discoveries are often the cause of settlement
delays, particularly when buyers consider the issue to be highly important to their purchase of the
house.
3. Late documentation: sellers or buyers do not return signed documentation in time for us to a) have
the other party sign and b) submit it to the appropriate government body, potentially causing
settlement to be pushed back.
Subject sales: Sales that are subject to the sale or purchase of another property can lead to settlement
delays if one of the property transactions hits a road-bump.
Page 118 of 121

Task 26: Question 4
Explain the steps in the process of registering security documentation.
Hint/Tip:
(In addition to the topic notes, you may also be required to undertake your own research)
(50 words)
Student response to Task 26: Question 4
Following are the steps in the process of registering security documentation:
 Start application
 Collateral
 Grantor details (if applicable)
 Application review
 Payment (if applicable)
 Confirmation
 The confirmation screen does not appear- how to check the registration
 Notify Grantors
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:
Property:
Purchase
Purchase price: $
Less:
Deposit paid ( )
Subtotal $
Adjustments
Plus Council rates $
Less
Amount due on settlement to vendor $
Disbursements
Eastern Conveyancing $
Page 119 of 121

Land transfer duty & fees $
Amount due on settlement from purchaser $
Page 120 of 121

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) Materials produced by a broker may include ASIC extracts consisting of directorship & shareholder
information, historical company records, certified documents, and more as relevant to specific companies
or individuals to assist in things such as corporate decision-making or Know Your Customer (KYC) processes.
(b) ) Details about the total costs incurred and how they can acquire the house and in what time the loan
will be paid of completely.
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
Page 121 of 121