Assignment - 1
Task
Using the information contained in the Scenario below, please complete the following 6 tasks. You must complete each task in order for your submission to be assessed. Omission of any of these 6 tasks will be regarded as Not Yet Competent and you will then be required to resubmit this assessment in full.
1. Complete the Fact Find document on these clients - using the form in Appendix 14.
We have not included all supplementary information on these clients so you will need to create your own "improvised" answers for inclusion in the Fact Find document.
Trainees who already have access to their own version of a Fact Find template may use their own form as an alternative to that provided in Appendix 14.
2. Recommend a product for the clients and explain your reasons for recommendation
3. List the supporting documents that would be needed to support the loan
4. Complete loan costing sheet *
5. Complete a loan servicing calculation (NSR) *
6. Complete a loan application form (an ANZ loan application form has been provided for you which you must use) and complete all of the accompanying documents as provided for you. Your answer to this Activity should be prepared as if you were submitting a real full loan application to the lender.
The fees and charges required in order to complete this assignment correctly (ie. Estimate of Costs worksheet) can be found in Unit 7 (use your own state-specific section at the back of Unit 7) and the instructions for how to complete the NSR form are in Unit 8. A Lenders Mortgage Insurance Chart (LMI) can be found Unit 7. Trainees should ensure they source their fees and charges from these units.
The fees and charges required in order to complete this assignment correctly (ie. Estimate of Costs worksheet) can be found in Unit 7 (use your own state-specific section at the back of Unit 7) and the instructions for how to complete the NSR form are in Unit 8. A Lenders Mortgage Insurance Chart (LMI) can be found Unit 7. Trainees should ensure they source their fees and charges from these units.
Scenario
Clients: Mary Jane Dowell DL No.: 4167384
DOB: 06/06/65 Australian Passport No.: L93214773
John James Dowell DL No.: 4378691
DOB: 03/05/67 Australian Passport No.: L8078972
Current Address: 46 Collins Street, North Ryde NSW 2113
Time there, 2.6 years Phone 0411 123 456
Previous Address: 37 Maple Street, Gladesville NSW 2111
Time there, 4 years.
Children: 2 children aged 7 and 9
Existing Property: Own Home valued at $995,000
Current outstanding loan balance $180,000 (with CBA) Loan Repayments $1,080 per month
Cash: The clients have $12,000 cash in the bank. Credit Cards: CBA Visa - $5,000 limit (balance $2,000)
Westpac MasterCard - $5,000 limit (balance $1,500)
Mr Dowell works at the Parramatta Council as the tourism manager and earns $115,000 p.a. He has worked there for 8 years.
Mrs Dowell is a primary school teacher at Ryde Primary School and earns $64,000 p.a. She has worked there for the past 3 years after having several years of home duties.
The Dowells own two cars - a 2011 Ford Falcon worth $18,000 unencumbered and a 2011 Pajero worth
$30,000 subject to finance of $20,000 ($450 per month).
The Dowells have a 36 month Interest Free loan from GE for a sound/movie system for $3,000. The minimum monthly payment is 5%.
You interviewed Mr and Mrs Dowell at your office after some initial telephone conversations previously. They both spoke good English as they are permanent Australians for 20 years and they expressed their excitement at buying their second property. They are aware they will need to visit the new lender branch to complete a Customer Identification Procedure prior to finance approval from the lender. They have not yet enquired into an exact payout figure from CBA.
The clients wish to refinance their current loan and purchase an investment property.
The investment property is an established 2 bedroom unit in a residential block of 4 at 45 (Lot 4) Jones Rd, North Ryde and is valued at $685,000.
Rental Income of $650 per week is expected and the body corporate expense will be just $35 per week. They have made an offer on the unit at the asking price, have put down a $1000 cash deposit, and the offer has been accepted with settlement in 60 days.
Title particulars: Lot 4, Folio 3871, Vol. 1821.
The solicitors they will be using are Henderson & Partners, ph 1234 567 890
Assumptions:
Assume this is a cross collateralised loan
Assume this structure will be a Line of Credit or a Split facility
Your clients have told you: that they would prefer to keep the repayments on their home separate from their investment property. They would like to keep the repayments on their home as principal and interest but want to pay interest only on their investment property. They also wish to pay out their personal loan on the car to rationalise their loan repayments. They have agreed that ANZ will be a suitable lender for their circumstances
Although addresses show NSW, for the purpose of duty and other cost calculations, assume that the clients live in the same state as you (the broker).
You can assume a Standard Variable Rate of 5.5% and a Qualifying rate of 2% above the Standard Variable Rate.
Assume the current car loan will be paid out by the refinance of the home. Assume the clients will be "full-doc".
1. Complete the Fact Find provided in Appendix 14 or your own company's Fact Find document (and improvise any information that has not been provided in the scenario).
2. Recommend a product for the clients and explain your reasons for the recommendation
3. List the supporting documents that would be needed to support this loan application. Even though there is a checklist in the lender's application form, you must list the documents separately below.
4. Complete the loan costing sheet below
Estimate of Costs Worksheet - Purchase/Refinance
Client/s Name:
Owner Occupier: Yes No Lender (if chosen):
Estimated Costs:
Lender's Loan Establishment/Application Costs $
Valuation cost (if not included above) $
Property Transfer Stamp Duty $
Solicitor/Settlement Agent/Conveyancing Charge $
Registration of new Mortgage $
Register of Transfer of Title $
Title Search $
Discharge of old Mortgage $
Old Lender's Settlement fee $
Miscellaneous Costs (if applicable):
- Other ...................................................... $
- Other ......................................................... $
- Other ......................................................... $
===================
SUB TOTAL $
Lenders Mortgage Insurance (if applicable) $
===================
TOTAL COSTS $
Summary
Purchase price (if applicable) $
Current Loan Amount/s $
Plus 2 months interest on Current Loan $
Plus Total Costs (from above) $
Plus Total Other Debt Consolidations (if applicable) $
===================
Equals Total Funds Required $
LVR: Total Funds Required $ ÷ Client's Total Security Value $
Equals LVR %
Client Signature: ......................................................................... Date: ......................................
5. Complete a loan servicing calculation (NSR) by completing the form overleaf. Remember this NSR calculation is based on 2 security properties.
6. Complete the lender's application form (a blank ANZ loan application form has been provided for you) and the other documents as provided for you. Your answer to this Activity should be prepared as if you were submitting a real full loan application to the lender. Remember you must treat this as a cross-collateralised loan structure.
For this question you must include the following 5 completed forms (all have been provided for you):
- Lending Checklist
- Summary of product choice
- Privacy Act, Disclosure and Consent
- Loan Application Cover Sheet
- ANZ Application form
Assignment -2 :
Task
Using the information contained in the Scenario below, please complete the following 6 tasks. You must complete each task in order for your submission to be assessed. Omission of any one of these 6 tasks will be regarded as Not Yet Competent and you will then be required to resubmit this assessment in full.
1. Recommend a product for the clients and explain your reasons for recommendation
2. List the supporting documents that would be needed to support the loan
3. Complete a loan costing sheet
4. Complete a loan servicing calculation (NSR)
5. Download and complete the FHOG application form that is relevant to your state/territory, from the internet
6. Complete a loan application form (a blank Westpac loan application form has been provided for you which you should use) and complete all of the accompanying documents as provided for you.
Your answer to this Task should be prepared as if you were submitting a real loan application to the lender.
Please note: If there is information required on the application that is not supplied please improvise. The application should be completed as neatly as possible to ensure ease of review. It is to be submitted to NFI as if NFI is the lender and you were an accredited broker. If you do not submit in a professional manner, your assessment will not be marked.
1. Recommend a product for the clients and explain your reasons for the recommendation
2. List the supporting documents that would be needed to support the loan application. Even though there may be a checklist in the lender's application form, you must list the documents separately below.
3. Complete the loan costing sheet below
4. Complete a loan servicing calculation (NSR) by completing the form overleaf.
5. FHOG - Log into the website of the Office of State Revenue in your own state and download the application for a First Home Owner Grant. Complete this application form and include with your Assignment submission. Any information within the FHOG form that you are unsure of can be improvised.
6. Complete a loan application form [a blank Westpac loan application form has been provided for you which you should use] and complete all of the accompanying documents as provided for you in. Your answer to this Activity should be prepared as if you were submitting a real loan application to the lender.
Please note: If there is information required on the application that is not supplied then please improvise. The application should be completed as neatly as possible to ensure ease of review. Tax charts, LMI tables and sundry forms can be found in your course content. You do not need to create any "dummy" supporting documents (eg. documents that your client would typically provide to you in a real submission, eg. rates notices), just ensure you list them where required.
For this question you must include the following 5 completed forms (all have been provided for you:
- Lending Checklist
- Summary of product choice
- Privacy Act, Disclosure and Consent
- Loan Application Cover Sheet
- Westpac Application form
Attachment:- Assignment_Questions.rar