FNS40815 Certificate IV Finance & Mortgage Broking Assessment 2

This document presents a comprehensive analysis of a loan application scenario, addressing key aspects of the FNS40815 Certificate IV in Finance & Mortgage Broking Assessment 2. It evaluates a couple's borrowing capacity, considering their income, expenses, and existing debts to determine their maximum loan amount and ability to meet financial obligations. The assessment delves into the implications of Lenders Mortgage Insurance (LMI), exploring its costs, payment options, and the potential for avoiding it through alternative strategies. The document further examines the impact of interest rate fluctuations on loan repayments, stress-testing the couple's ability to cope with increased costs. It also outlines the importance of 'reasonable' inquiries under the National Consumer Credit Protection Act 2009 (NCCP) to ensure responsible lending practices. Finally, the assessment concludes by detailing the First Home Owner's Grant and stamp duty concessions available in New South Wales, Australia, and determining the couple's eligibility for these benefits.