Finance and Mortgage Brokering Role Play: Client Meeting

This assignment presents a role-playing scenario in finance and mortgage brokering, where the student takes on the role of a mortgage broker interacting with a client, Mr. Brown, seeking a home loan. The scenario involves a discussion about a specific property the client wishes to purchase and the need for a loan to cover a significant portion of the purchase price. The assignment then delves into comparing two loan options: AMP's Professional Package home loans and Westpac's Flexi first option home loan. It outlines the pros and cons of each, including interest rates, LVR, and associated fees, and ultimately recommends Westpac's option due to its cost-effectiveness, higher LVR, and lack of annual fees, aligning with the client's needs. The assignment highlights the importance of understanding client requirements and providing tailored financial solutions. The document is a solution provided by a student on Desklib, a platform offering AI-based study tools and resources.

Finance and Mortgage
Brokering

Role Play- Introduction
 You: Hello, Mr. Brown how are you today? It is wonderful to have
you today in my office.
 Philip: Hello, I am fine. When I started from home, I thought I
would reach your office late but it seems I am just about at right
time.
 You: Nah, you made it in time. You could have come earlier as I
was free all morning. Why did not Mrs. Brown Come?
 Philip: She had to go on a visit to her brother who is sick and we
did not want to postpone this meeting as I have a lot of
discussion and also want to hear what you think of our situation.

Facts of the meeting
 Philip: I was also not expecting this meeting but the recent development made me to set up this
meeting. It has come to my notice that the house which we have selected is still up for sale. My
agent informed me that new clients are coming and it would not be long before there is a further
hike in the value of the property due to high demand. I set up this meeting with the hope that you
can suggest me loan options so that I can proceed with the same. I do not want to delay any
further so I set up this meeting.
 You: Oh I see, I wish she could be here as well, I would have like her to listen to my plans as well
before we can move into the signing the contract. The property which have caught your attention,
I looked into the same and I came across that the property is a bit overvalued but the same is
because of the location of the house and the demand for the property in the market.
 Philip: Yes, we realized that and we do not want to lose this house. My wife claims that this is her
dream house and she want to purchase the same. I had a talk with the agent earlier over phone
and I learned that many potential buyers are looking into the property. We need to move quickly
with this loan issue. As I have made it clear that we can contribute around $ 75000 from ourselves
but the rest we need to procure with the help of a loan.

Amp’s Professional Package home loans solutions
• One of the best options which is available in the market in terms
of home loan is professional package home loans solutions which
is offered by AMP ltd.
• The banking institution is a very reputed one therefore you can
expect details in documents regarding the term of loans and other
facilities which the product is associated with.
• The loan can be taken for medium term or long term as per your
choice. The interest rate which is charged by the bank is 4.07%.
• The LVR of the loan is set to be 90% and the repayment schedule
which is followed by the bank is also appropriate

Pros and Cons of AMP’s Loan
Pros
 The loan has 100% offset account and redraw and extra
payments facilities .
 The loan product is estimated to be most suitable for individuals
who are looking to purchase houses.
 The interest rate is low for refinancers and therefore this is a
option which can be utilized.
CONS
 The cons which I have identified is that the loan product has a bit
higher ongoing costs as annual fees is charged on the same.

Westpac’s Flexi first option home
loan
 The banking institutions which is providing the product is
Westpac which is regarded as one of the reputed businesses
which is operating in Australia.
 The loan is granted on the basis of eligibility criteria and the term
can be mid-term or long term depending on the needs of the
client.
 The loan amount can be taken in more, the loan structure is
variable and no additional ongoing costs needs to be incurred by
you

Flexi first option home loan
 The bank specializes in the kind
of products especially loans.
 The loan is granted on the basis
of eligibility criteria and the term
can be mid-term or long term
depending on the needs of the
client.

Pros and Cons of Westpac’s Loan
Pros
 This one has an LVR of 95% which means more can be withdrawn
which is added advantage.
 This loan facility has extra low rate of interest for new customers.
 The loan option has the extra payment and redraw option and
also there is no annual fee
Cons
There is not much cons in case of this loan and mostly are
advantages.

Recommendation
 Westpac’s Flexi first option home loan option should be chosen
not only because it is a bit cost effective and reduces the level of
interest burden but also due to the fact that the LVR is 95% and
also there is no annual fees for the product.
 The loan product is also provided by one of the most reputable
banks which is operating in the country. I would have
recommended you to select this option as the same meets all
your initial requirements.

Thank You