Written AssignmentIndustry Knowledge and the Lending Process

(DIPMB1_AS_v2)

Student identification (student to complete)Please complete the fields shaded grey.

Student number

Written ssignment result (assessor to complete)Result — first submission (Details for each activity are shown in the table below)

Parts that must be resubmitted:

Result — resubmission (if applicable)

DIPMB1_AS_v2

Result summary (assessor to complete)First submission Resubmission (if required)

Secti

on 1

: Cas

e st

udy

1 —

Ph

ilip

and

Jenn

ifer B

row

n

Task 1 — Gathering and documenting client information Not yet demonstrated Not yet demonstrated

Task 2 — Assessing the clients’ situation Not yet demonstrated Not yet demonstrated

Task 3 — Reasonable enquiries Not yet demonstrated Not yet demonstrated

Task 4 — First Home Owners Grant Not yet demonstrated Not yet demonstrated

Task 5 — Philip and Jennifer’s professional network Not yet demonstrated Not yet demonstrated

Task 6 — Interest rates Not yet demonstrated Not yet demonstrated

Secti

on 2

: Cas

e st

udy

2 —

Ri

char

d an

d Pa

ulin

ee Ja

ckso

n Task 7 — Establishing level of financial knowledge Not yet demonstrated Not yet demonstrated

Task 8 — Responsible lending obligations Not yet demonstrated Not yet demonstrated

Task 9 — Self Employed special considerations Not yet demonstrated Not yet demonstrated

Task 10 — Advising on strategies Not yet demonstrated Not yet demonstrated

Task 11 — Impact of credit history Not yet demonstrated Not yet demonstrated

Task 12 — External dispute resolution Not yet demonstrated Not yet demonstrated

Feedback (assessor to complete)[insert assessor feedback]

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Before you beginRead everything in this document before you start your written assignment for the Industry Knowledge and the Lending Process (DIPMB1v2) subject.

About this documentThis document is the written assignment — half of the overall Written and Oral Assignment.

This document includes the following:• Part 1: Instructions for completing and submitting this assignment• Section 1: Case study 1 — Philip and Jennifer Brown

– Task 1 — Gathering and documenting client information– Task 2 — Assessing the clients’ situation– Task 3 — Reasonable enquiries– Task 4 — First Home Owners Grant– Task 5 —Philip and Jennifer’s professional network– Task 6 — Interest rates

• Section 2: Case study 2 — Richard and Pauline Jackson– Task 7 — Establishing level of financial knowledge– Task 8 — Responsible lending obligations– Task 9 — Self Employed special considerations– Task 10 — Advising on strategies– Task 11 — Impact of credit history– Task 12 — External dispute resolution

• Appendix 1: Client information collection tool/Fact Finder.

How to use the study planWe recommend that you use the study plan for this subject to help you manage your time to complete the assignment within your enrolment period. Your study plan is in the KapLearn Industry Knowledge and the Lending Process (DIPMB1v2) subject room.

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Part 1: Instructions for completing and submitting this written assignment

Saving your workDownload 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 assignments. • Name your file as follows: Studentnumber_SubjectCode_Assignment_versionnumber_Submissionnumber

(e.g. 12345678_DIPMB1_AS_v2_Submission1).• Include your student ID on the first page of the assignment.

Before you submit your work, please do a spell check and proofread your work to ensure that everything is clear and unambiguous.

Word countThe 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 researchWhen completing the Client Information Collection Tool in Appendix 1, assumptions are permitted, although they must not be in conflict with the information provided in the Case Study.

You may also be required to source additional information from other organisations in the finance industry to find the right products or services to meet your client’s requirements or to calculate any service fees that may be applicable.

Submitting the written assignmentOnly Microsoft Office compatible written assignments 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 assignment as a PDF.

The written assignment must be completed before submitting it to Kaplan Professional Education. Incomplete written assignments will be returned to you unmarked.

The maximum file size is 20MB for the Written and Oral Assignment. Once you submit your written assignment for marking you will be unable to make any further changes to it.

You are able to submit your written assignment earlier than the deadline if you are confident you have completed all parts and have prepared a quality submission.

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Please refer to the Assignment submission/resubmission instructions (pdf) in the Assessment section of KapLearn for details on how to submit your written assignment.

Your written assignment and oral assignment must be submitted together on or before your due date. Please check KapLearn for the due date.

The written assignment marking processYou have 12 weeks from the date of your enrolment in this subject to submit your completed assignment.

If you reach the end of your initial enrolment period and have been deemed Not Yet Competent in one or more assessment items, then an additional 4 weeks will be granted, provided you attempted all assessment tasks during the initial enrolment period.

Your assessor will mark your written and oral assignment and return it to you in the Industry Knowledge and the Lending Process (DIPMB1v2) subject room in KapLearn under the ‘Assessment’ tab.

Make a reasonable attemptYou must demonstrate that you have made a reasonable attempt to answer all of the questions in your written assignment. Failure to do so will mean that your assignment 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 assignment.

How your written assignment is gradedAssignment 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 competent or not yet competent.

Your assessor will follow the below process when marking your written assignment:• 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 competent in all assessment items in order to be awarded your qualification, including demonstrating competency in:• all of the exam questions• the written and oral assignment.

‘Not yet competent’ and resubmissionsShould sections of your assignment be marked as ‘not yet competent’ 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 competent’.

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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 assignment, 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 competencyThis written assignment is your opportunity to demonstrate your competency against these units:

FNSFMB401 Prepare loan application on behalf of finance or mortgage broking clientsFNSFMB402 Identify client needs for broking servicesFNSFMB403 Present broking options to clientFNSFMK505 Comply with financial services regulation and industry codes of practiceFNSINC401 Apply principles of professional practice to work in the financial services industry

Note that the Written and Oral Assignment is one of two assessments required to meet the requirements of the units of competency.

We are here to helpIf you have any questions about this written assignment 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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Section 1: Case study 1 — Philip and Jennifer Brown

BackgroundPhilip and Jennifer Brown are a young couple about to buy their first home. They have been married for five years and during that time have rented an apartment while saving for their own home.

Following a personal referral from Glenn Brown, Philip’s brother you have already had a first meeting with Philip and Jennifer to discuss their objectives and needs. They admitted they have little time to do much research of lenders, have limited knowledge of the loan products available and have approached you to guide them through the process as they are confused.

During and subsequent to your first meeting clients have provided the basic information documents, including pay slips, tax returns, bank statements, property details for review/verification. You have now undertaken your preliminary assessment and need to discuss and present to clients the proposal covering the options and your recommendations to get the proposal moving as the Agent has indicated other parties are interested in the property.

They have been looking at properties for the past three months and have found a 10 year old established apartment that has really caught their eye, although they have some concern over the kitchen which requires some minor renovations.

They have not paid a deposit at this stage, but the Real Estate Agent has provided some guidance on additional fees and charges.

Following is a summary of the details of the property they wish to purchase, the couple’s financial and employment details, and the loan features they require.

The propertyAddress Unit 1, 92 Seaside Lane Edgartown (Your state)

Purchase price $490,000

Description 2 bedroom, 2 bathroom Strata Title apartment

Agent details Stephanie Jones

Phone 8123 1113

Mobile 0412 880 088

The coupleCurrent address Unit 12, 22 Wentworth Lane, Highville, (Your state)

Philip and Jennifer have lived there since March 2012

Home phone 9123 2121

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Funds positionPurchase price $490,000

Clients’ estimate of costs $25,000

Total required $515,000

Loan $440,000 + LMI

Clients’ total contribution $75,000

Use fees and charges applicable to your state. If a servicing calculator you are using requires a Postcode, select one that would represent a reasonable suburb/location in your city or state.

AssetsCapital Bank savings account (joint) $78,000

Capital Bank cheque account (joint) $1600

Holden Commodore SS 2007 (Philip) $25,000

Kia Cerato Sport 2015 (Jennifer) $9000

Superannuation — Capital Bank (Philip) $28,000

Superannuation — Capital Bank (Jennifer) $62,000

Household effects (insured value) $40,000

LiabilitiesCapital Bank personal loan (Philip) $5,600 (repayments $180 p.m.)

Capital Bank Visa card (Philip) $200 (limit $4,000)

Capital Bank Visa card (Jennifer) $1,600 (limit $5,000)

Payments have always been met on time and any prior loans repaid in terms of contracts. The minimum monthly commitment on each of the credit cards should be calculated at 3% of the credit limit.

Living ExpensesAnnual expenditure for living expenses — $33,000.

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Employment and income

Philip (date of birth 21/2/87)Position Team Leader (full time)

Employer ACE Limited 101 City Rd, Westside (Your state)

Phone 9800 1111

Income (gross) $58,000 p.a. net monthly income: $2900

Employer contact Dwayne Johnson, HR Manager

Length of service Since October 2005

Driver’s licence 8855KL

Email philipb@ace.com.au

Jennifer (date of birth 8/10/88)Position Accountant (full time)

Employer Tech city 804 High Street, City East (Your state)

Phone 9910 2033

Income (gross) $95,000 p.a. net monthly income: $4900

Employer contact Bruce Wayne, HR Manager

Length of service Since March 2006

Driver’s licence 17016C

Email jbrown@techcity.com.au

Solicitor’s detailsJones and Co

22 High Street, City East (Your state)

Phone: 82811382

Email: jonesandco.net.au

The solicitor has quoted a fee of $1,500 for the conveyance.

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The loan requirements• 30 year term• Premium option home loan features• variable interest rate (for this case use 4.5%pa)• LMI to be capitalised• proposed settlement date — 6 weeks from exchange of contracts• ability to make additional payments from time to time without penalty• fortnightly repayment option• redraw facility• funds access via card

Other information• Jennifer has asked if there are any professional package benefits available because she is an Accountant• Jennifer previously owned and lived in an apartment with her two older sisters when they attended

university but they sold this before she married – they did not make a lot from sale• Family plans are 5 years away• They do have plans to take a major overseas trip before family comes along• Philip is hoping for a promotion within the next 12 months upon possible retirement of a long term

employee where he works

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Assignment tasks (student to complete)

Task 1 — Gathering and documenting client informationComplete the Client Information Collection Tool (located at the end of the assignment in Appendix 1 ) using the information provided in Case Study 1.

Note: Any assumptions you make should be listed and should not be in conflict with the case study information already provided.

Assessor feedback for Task 1: Resubmission required?

No

Task 2 — Assessing the clients’ situation1. Based on the information provided in the case study and using the tools available to you

(e.g. loan calculators, including those available on lenders’ websites or Genworth.com.au), provide your assessment of the clients’ loan application. This assessment of the clients’ needs is a critical prelude to you completing Part 4 of the Oral Assessment requirement for this course.Consider and comment on issues such as:• maximum borrowing capacity of client• capacity to meet deposit and total cash contribution for the loan required• repayment requirements based on the loan required• do they require Lenders Mortgage Insurance (LMI), and if so, how much will it cost and what are the

options to pay fee• what loan amount would you recommend • likelihood that the clients will be able to meet all their financial obligations• any other issues that may impact, now or in the future, on the clients’ ability to meet their

obligations, including any possible risks.Provide data to support your comments and conclusions. (750 words)

Student response to Task 2: Question 1Response

2. (a) Most lenders stress test loan repayments by adding an additional 2–3% on to the loan repayments to make sure a borrower can afford the repayments. If interest rates moved 3% higher, what would Philip and Jennifer’s loan repayments be and do you think they would be able to cope with the extra repayments?

Student response to Task 2: Question 2(a)

Response

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(b) What could you recommend that may remove this consideration as a risk factor?

Student response to Task 2: Question 2(b)

Response

Assessor feedback for Task 2: Resubmission required?

No

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Task 3 — Reasonable enquiriesIn the course of gathering information about the couple, you are required under the National Consumer Credit Protection Act 2009 to make all ‘reasonable’ enquiries to determine a borrower’s objectives, requirements and financial situation.

Identify at least six (6) ‘reasonable’ enquiries that you would make with the clients in the case study and explain why these enquiries are important in terms of NCCP compliance. (200 words)

Student response to Task 3

Response

Assessor feedback for Task 3: Resubmission required?

No

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Task 4 — First Home Owners GrantDescribe the first home owner grant or home buyer assistance scheme benefits and stamp duty concessions that are available in your State or Territory, who would be eligible and what would be their benefit? Are Philip and Jennifer eligible for any assistance? Note: Please identify which State or Territory you are from in your answer. (150 words)

Student response to Task 4:

Response

Assessor feedback for Task 4: Resubmission required?

No

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Task 5 — Philip and Jennifer’s professional network1. Name three (3) parties, who are not directly involved in the loan processing, Philip and Jennifer may

wish you, as their broker, to keep informed of the progress of their finance application? (25 words)

Student response to Task 5: Question 1

Response

2. Briefly explain why is it 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 5: Question 2

Response

Assessor feedback for Task 5: Resubmission required?

No

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Task 6 — Interest ratesClinton and Jennifer have reconsidered the loan proposed and have called in to discuss whether they should consider fixing the interest rate on their proposed loan — they have conflicting opinions and are seeking your guidance. 1. Firstly, they need to understand the role of the RBA with respect to interest rates and why it is necessary

to have these controls. Conduct some research and answer the following;(a) What is the role of the RBA with respect to the movements of interest rates? (b) Why is it important to have these controls and how do they impact mortgage loans in Australia?(c) Are banks obliged to follow the RBA cash rate? Explain the reason for your answer.

(200 words)

Student response to Task 6: Question 1 (a)-(c)

Response

2. Philip and Jennifer have called to discuss whether they should fix the interest rate on their loan after having received several conflicting viewpoints from family and friends.Explain to Philip and Jennifer some of the advantages and disadvantages of fixing a loan. (150 words)

Student response to Task 6: Question 2

Response

3. What other option/s can you suggest if they remain uncertain about whether to fix the rate on their loan? (100 words)

Student response to Task 6: Question 3

Response

Assessor feedback for Task 6: Resubmission required?

No

Assessor feedback: Section 1: Tasks 1–6

Date assessed: Click here to enter a date

Does the student need to resubmit? No

Questions that need to be resubmitted

First submission Not yet demonstrated

Resubmission Not applicable

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To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission in Section 1 and Section 2 of your written assignment.

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Section 2: Case study 2 — Richard and Pauline Jackson

BackgroundRichard and Pauline Jackson have a small mowing and gardening business in which they have been working for the last eight years. As it is only the two of them in the business they operate as a partnership.

They have approached you to help restructure their finance, as they are finding the management of their debts a struggle following the loss of one of their major commercial property contracts.

After further questioning, you realise that the situation is more serious than they originally explained; they had missed payments on their mortgage, only pay the minimum on their credit card of 3% each month and the work ute they have on lease is expiring. They have a $15,000 residual payment due and do not have the funds available.

They lost the major contract 12 months ago and fell behind on the mortgage payments soon after. They spoke to their lender (First and Last Bank) and a ‘hardship application’ was approved. The missed payments were corrected by extending the term of their loan. Nothing adverse was recorded on their credit file but they are still struggling with all the monthly commitments.

After reading the case study above and reviewing their funding position below, answer the questions that follow:

Assets46 Walters Road, Ritchfield $490,000

First and Last Bank savings account (joint) $1,200

Little Saving Building Society cheque account (joint) $2,300

Business debtors (unpaid invoices for work) $6,200

Ford Utility, 3 years old (work vehicle) $25,000

Holden Commodore, 7 years old (family car) $15,000

Superannuation — AMB Insurance (Richard) $46,000

Superannuation — AMB Insurance (Pauline) $29,000

Household effects (insured value) $66,000

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LiabilitiesLender Situation Interest rate Monthly repayment Debt

First and Last Bank (home loan — joint)

Currently up to date though had 3-month extension to contract after hardship application 12 months ago

5.7% $1,567.00 $270,000

Big Bank Visa card (Richard)

Only able to repay 3% per month for last 6 months

18.95% (pays 3% per month)$240.00

$7,800(limit $8,000)

Little Bank Visa card (Pauline)

Only able to repay 3% per month for last 6 monthsIs over limit by $800

21.5% (pays 3% per month)$90.00

$3,800(limit $3,000)

My Domain Furniture Store

Did not keep to interest free contract and paying debt by instalments

28.50% $370.00 $3,400

Super Car Loan lease 4-year contract expiring next month and need $15,000 to pay residual

n/a $850.00 $15,000(residual)

Landscape supplies monthly account

Purchase approx. $1,000 per month in supplies, they are behind 1 month

n/a $1,000.00 $1,500

Total $4,117.00 $301,500

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Assignment tasks (student to complete)

Task 7 — Establishing level of financial knowledgeWhat communication skills might you use to confirm Richard and Pauline’s understanding and knowledge about credit and finance, as well as their current position, including establishing their requirements and objectives with the refinance?

(150 words)

Student response to Task 7

Response

Assessor feedback for Task 7: Resubmission required?

No

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Task 8 — Responsible lending obligationsThe National Consumer Credit Protection Act 2009 imposes ‘responsible lending’ obligations on brokers that must be satisfied by all people arranging loan applications. The primary objective under responsible lending guidelines is that the credit facility offered to the borrower is ‘not unsuitable’ for the borrower, meets their requirements and objectives and will not create substantial hardship.1. In your own words how would you define ‘substantial hardship’ (detailed information on this subject is

found at RG 209 issued by ASIC)? (150 words)

Student response to Task 8: Question 1

Response

2. What are the benefits of debt consolidation for Richard and Pauline? (100 words)

Student response to Task 8: Question 2

Response

3. Richard and Pauline have decided to consolidate their debts into their home loan with two splits, one for the existing home loan and a second split for the all other debts. They will not be including the landscaping supplies account as they pay this in full each month and will clear the outstanding $500 from business account. In the template below provide a new liabilities summary once Richard and Pauline have completed the debt consolidation including their new monthly repayments.Note: They have chosen to refinance with ‘One State Bank’ who are offering a 4.5% interest rate on a variable, principal and interest loan over 30 years.

Student response to Task 8: Question 3

Response

LenderInterest rate Monthly repayment Debt

Total

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4. What savings will Richard and Pauline obtain in monthly repayments?(Include calculation of how you determined the savings.)

Student response to Task 8: Question 4

Response

Assessor feedback for Task 8: Resubmission required?

No

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Task 9 — Self Employed special considerations1. As Richard and Pauline are self-employed, what documents will you need to obtain and assess their

income? (150 words)

Student response to Task 9: Question 1

Response

2. If a Low Doc application is an option for the customer, name three (3) extra documents you will need to obtain and assess. Explain how each these documents will establish their income? (150 words)

Student response to Task 9: Question 2

Response

3. Explain how applying for a ‘Low Doc Loan’ could lead the mortgage broker to be accused under NCCP of recommending an ‘unsuitable’ product. (250 words)

Student response to Task 9: Question 3

Response

Assessor feedback for Task 9: Resubmission required?

No

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Task 10 — Advising on strategiesFollowing the presentation of your proposal, Richard and Pauline say that they would like your advice regarding loan and debt management strategies that could help them to repay their home loan as quickly as possible.• List at least three strategies or methods that will help them achieve their aim. • Provide the advantages and disadvantages of each.

Note to students: You may refer to the MoneySmart website for information on this subject and your answer may also include, but not be restricted to, available mobile phone apps used for debt management. (300 words)

Student response to Task 10

Response

Assessor feedback for Task 10: Resubmission required?

No

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Task 11 — Impact of credit historyRichard tells you that his former wife failed to properly meet their unsecured personal loan debt obligations before they separated. Although he eventually repaid the debt he is afraid that this incident may count against him when he applies for a loan. There are a few things Richard can do as he is concerned about his credit rating. What information would you provide in the following situations?1. Provide Richard with the details of two (2) major credit reporting agencies and explain what information

may be recorded on his credit file. (Information can be sourced from the websites of credit reporting agencies and <http://www.oaic.gov.au>.) (200 words)

Student response to Task 11: Question 1

Response

2. Richard has decided he would like to obtain a copy of his credit report from either Equifax or Dun & Bradstreet. Explain what options are available for the chosen provider, how long it takes to obtain a copy, and the associated costs. (100 words)

Student response to Task 11: Question 2

Response

3. If there are errors on file, what are the options for Richard to follow in order to have these errors rectified? Hint: Refer to the Equifax website. (150 words)

Student response to Task 11: Question 3

Response

4. What is the Lender legally obliged to advise the client if they decline an application due to the content of the credit agency file? (100 words)

Student response to Task 11: Question 4

Response

5. What alternate options can you suggest to Richard and Pauline in the event that the loan was rejected by the lender you initially proposed due to a credit report (150 words)

Student response to Task 11: Question 5

Response

Assessor feedback for Task 11: Resubmission required?

No

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Task 12 — External dispute resolutionDuring the loan process, Richard is starting to become upset with the time it’s taking to get him an approval. Although you’ve explained that this is because of delays with the lenders processing system due to staff being away, you’re concerned the matter may escalate beyond your control. 1. As a broker it is important to understand the role of the Credit Ombudsman. Explain the function and

role of the Credit and Investment Ombudsman (CIO) in the EDR process and the options available to the claimant once a determination is made. (200 words)

Student response to Task 12

Response

Assessor feedback for Task 12: Resubmission required?

No

Assessor feedback: Section 2: Tasks 7–12

Date assessed: Click here to enter a date

Does the student need to resubmit? No

Questions that need to be resubmitted

First submission Not yet demonstrated

Resubmission Not applicable

To pass this subject, you will need to be assessed as DEMONSTRATED for either your first submission or your resubmission in Section 1 and Section 2 of your written assignment.

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Appendix 1: Client information collection tool/ Fact Finder

Appointment date:

Appointment time:

Applicant 1 Applicant 2

Surname

Other names

Contact details Address

Phone (W)Phone (H)

Mobile

Email

Employment

How long?

Previous employer (if less than 2 years)

How long?

Employment type (FT/PT/Casual/Self Employed)

Gross income (p.a.)

Number of dependants

Motor vehicles

Loan purpose

Purchase price/Valuation

Deposit on property

Loan amount

Borrowing capacity (using Genworth serviceability calculation)

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Assets and liabilitiesAssets Liabilities

Details Market value Details Monthly payments Amount owing

Owner Occupied Property at:

Mortgage with:

Investment Property at: Mortgage with:

Cash at bank(includes fixed deposits)

Car leasing

Other cash(includes offset accounts)

Personal loans1.2.

Deposit paid on property Overdraft

Motor vehicles:1. 2007 Commodore SS2. Kia Cerato Sport 2015

Other loans:1.2.

Personal effects Credit card limit:$

Business value (if self employed)

Credit card limit:$

Shares and investments Other:

Superannuation Other:

Other assets (give details) Other:

Total assets Total liabilities

Surplus/deficiency: (Total Assets less Total Liabilities) $

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CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study – use your discretion)

Food/housekeeping

Insurance (e.g. motor vehicles, home contents/ building, medical, life/income protection)

Utilities (e.g. rates, gas, electricity, transport)

Transport (e.g. public transport, petrol, registration, repairs)

Education (e.g. school, college, university)

Dependents support (e.g. childcare, child maintenance)

Entertainment

Other (detail below:

MONTHLY LIVING EXPENSES

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Needs analysis1 Name of your current lender?

2 What type of mortgage loan do you have?

3 Why did you choose this particular loan and lender?

4 What is the interest rate?

5 What are your payments? Amount

6 Frequency

7 Do you know the fees and charges?

8 What is your proposed purpose for the loan you are applying for?

9 Branch access available with current lender

10 Internet banking available with current lender

11 Phone banking available with current lender

12 Lenders not to be considered

13 Type of loan sought

14 Preferred Interest rate range

15 Payment frequency

16 Redraw

17 Offset

18 Salary crediting

19 Low fees and charges

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NotesNB: providing substantive notes here is a compulsory part of your assessment

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Anticipated fees and charges Anticipated purchase price

Deposit on property

Loan amount

LVR

Purchase costs

Stamp duty on transfer (include transfer fee)

Solicitor/conveyancer (estimate)

Rates and land taxes (estimate)

Pest inspection (estimate)

Building Inspection (estimate)

Borrowing costs

Application/establishment fee

Valuation fee

Security admin fee

Mortgage stamp duty

LMI

Registration of mortgage

Release of mortgage

Search fees

Other

Total of purchase costs $

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Funds to completePURCHASE AND LOAN COSTS: AVAILABLE FUNDS:

Purchase price: Deposit if paid

Lender application / valuation fees: Cash savings:

Transfer stamp duty Sale proceeds:

Solicitor fees: Gift:

Other fees and charges FHOG:

Other:

LMI: 1. $9,372 2. Add to Loan? Yes/No

TOTAL COSTS (A): TOTAL OWN FUNDS (D):

LOAN AMOUNT REQUESTED (B): OWN FUNDS REQUIRED (A-B) = C:

OWN FUNDS REQUIRED (A-B) = C SURPLUS/SHORTFALL (D-C)

Loan interview diaryName(s) of client(s) present at interview

Date of interview:

Location of interview

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Indicate all clients who were interviewed in person

Do all of the clients appear to clearly understand English? Y/N

If not, have the services of an interpreter been recommended? Y/N

Do all of the clients clearly benefit from taking out this loan? Y/N

If not, what inquiries have been made to ascertain the level of benefit to each party of the loan?

Are any clients acting as though they are under duress or other disability? Y/N

Are any clients acting as though they are unsure of anything about the loan? Y/N

Are any of the clients acting as though they are unable to comprehend their obligations? Y/N

Are there any guarantors? Y/N

If yes is answered to any of the above questions, have the clients been advised to seekthe services of a lawyer or financial adviser? Y/N

Provide details of other pertinent information obtained during the loan interview which may be of interest or of any unusual circumstances you may wish to record.

Select repayment type Interest-only period

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