{"id":8374,"date":"2021-12-30T21:04:38","date_gmt":"2021-12-30T10:04:38","guid":{"rendered":"https:\/\/casestudyhelp.com\/sample-questions\/?p=8374"},"modified":"2022-10-13T18:04:59","modified_gmt":"2022-10-13T07:04:59","slug":"fns40815-certificate-iv-in-finance-and-mortgage-broking-assessment-answers","status":"publish","type":"post","link":"https:\/\/casestudyhelp.com\/sample-questions\/fns40815-certificate-iv-in-finance-and-mortgage-broking-assessment-answers\/","title":{"rendered":"FNS40815 Certificate IV in Finance and Mortgage Broking Assessment Answers"},"content":{"rendered":"

FNS40815 Case Study Solutions on Certificate IV in Finance and Mortgage Broking<\/strong><\/h2>\n
\n

Are you looking for FNS40815 Certificate IV in Finance and Mortgage Broking Assessment Answers<\/strong><\/a>? Casestudyhelp.com provides you with Case Study Assignment Help<\/strong><\/a>, Finance Assignment Help<\/strong><\/a>. We have Assignment Expert Writer<\/strong><\/a> who assists with quality content.<\/p>\n<\/blockquote>\n

\"Order<\/a><\/p>\n

 <\/p>\n

Assignment Detail:-<\/strong><\/p>\n

\n
    \n
  • Words: <\/b>4000<\/li>\n<\/ul>\n<\/div>\n
    <\/div>\n

    Case\u00a0Study (1) \u00a0– \u201cJohn\u00a0and\u00a0Mary\u00a0Smith\u201d<\/em><\/strong><\/h3>\n

    Situation:<\/strong><\/p>\n

    John and Mary are looking to refinance their existing loans with Westpac and<\/p>\n

    ANZ.<\/p>\n

    In addition, they would like to clear their Westpac Mastercard and Myer card and cancel both cards.<\/p>\n

     <\/p>\n

    N<\/strong>otes:<\/strong><\/p>\n

      \n
    1. John and Mary would like the a facility where they can make extra repayments and have redraw available<\/li>\n
    2. They don\u2019t care which Credit Provider is selected.<\/li>\n
    3. John and Mary are concerned with interest rate rises in the future.<\/li>\n
    4. They only want one deb<\/li>\n<\/ol>\n

       <\/p>\n

      Position:<\/strong><\/p>\n

      Westpac Home Loan \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $165,000 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Property Value \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $320,000<\/strong><\/p>\n

      ANZ Loan (Car) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $ \u00a025,000 (Repayment – $550.00 per month) Credit Cards:<\/p>\n

        \n
      1. 1. Westpac Mastercard $ 5,000 (Limit) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Balance \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $ \u00a02,400<\/li>\n
      2. 2. Myer card $ 3,000 (Limit) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Balance \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $ \u00a0\u00a0\u00a0\u00a0 500<\/li>\n<\/ol>\n

         <\/p>\n

        Income:<\/strong><\/p>\n

        John \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $55,000 (Gross PA)<\/p>\n

         <\/p>\n

        Mary \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $27,000 (Gross PA)<\/p>\n

         <\/p>\n

        Exercise:<\/strong><\/p>\n

        (a) What type of loan structure would you suggest?<\/strong><\/p>\n

        (b) Explain your suggestion<\/strong><\/p>\n

         <\/p>\n

        Case\u00a0Study (2) \u00a0– \u201cJack\u00a0and\u00a0Jill\u00a0Rogers\u201d<\/em><\/strong><\/h3>\n

        Situation:<\/strong><\/p>\n

        Jack & Jill want to use their existing home to help them into an investment property. They have found a house they are keen to make an offer on and the price is $300,000. (Agents in the area tell them they could expect between $300 and $350 per week in rental on the property)<\/p>\n

         <\/p>\n

        N<\/strong>otes:<\/strong><\/p>\n

          \n
        1. Jack and Jill want to be able to borrow for this venture.<\/li>\n
        2. Their existing home is valued at $450,000.<\/li>\n
        3. Their current debt on the home is $180,000<\/li>\n<\/ol>\n

           <\/p>\n

          O<\/strong>t<\/strong>h<\/strong>e<\/strong>r Debts:<\/strong><\/p>\n

          Credit Card: \u00a0\u00a0\u00a0\u00a0 $10,000 Limit \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Balance $8,400<\/p>\n

          Store Card: \u00a0\u00a0\u00a0\u00a0\u00a0 $5,000 Limit \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Balance $4,000<\/p>\n

          Personal Loan \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Balance $12,600<\/p>\n

           <\/p>\n

          Income:<\/strong><\/p>\n

          Jack \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $43,000 (Gross PA)<\/p>\n

          Jill \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $47,500 (Gross PA)<\/p>\n

           <\/p>\n

          Exercise:<\/strong><\/p>\n

           <\/p>\n

          (a) What options \/ type of loan might you suggest?<\/strong><\/p>\n

          (b) Explain your suggestion<\/strong><\/p>\n

           <\/p>\n

          Case\u00a0Study (3) – \u201cPeter\u00a0and\u00a0Sally\u00a0White\u201d<\/em><\/strong><\/h3>\n

          Peter and sally are first home buyers and they are looking to determine exactly how much they can borrow.<\/p>\n

           <\/p>\n

          N<\/strong>otes:<\/strong><\/p>\n

            \n
          1. 1. They are eligible for the FHOG.<\/li>\n
          2. 2. They want a loan which is simple and can allow extra paymen<\/li>\n
          3. 3. They have no dependan<\/li>\n<\/ol>\n

             <\/p>\n

            Position:<\/strong><\/p>\n

            Savings: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $26,000<\/p>\n

            Family (cash gift) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $15,000 (Non \u2013 Repayable)<\/p>\n

             <\/p>\n\n\n\n\n\n
            Car Loan (CBA @ $300 per month)<\/td>\nOwing $<\/td>\n10,500<\/td>\n<\/td>\n<\/tr>\n
            Credit Cards:<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
            1. Westpac Mastercard \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $10,000 (Limit)2. CBA Visa \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $ \u00a05,000 (Limit)<\/td>\nBalanceBalance<\/td>\n<\/td>\n$ 1,100$ Nil<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

             <\/p>\n\n\n\n\n\n
            Income:<\/strong><\/td>\n<\/td>\n<\/tr>\n
            PeterSally<\/td>\n$48,560 (Gross PA)$42,540 (Gross PA)<\/td>\nTax – $10,646Tax – $ \u00a09,260<\/td>\n<\/tr>\n
            Exercise:<\/strong><\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

             <\/p>\n

            (<\/strong>a<\/strong>) What type of loan structure would you suggest?<\/strong><\/p>\n

            (b) Explain your suggestion<\/strong><\/p>\n

             <\/p>\n

            Case\u00a0Study (4) \u00a0– \u201cAAA\u00a0Lawnmowing\u201d<\/em><\/strong><\/h3>\n

            Situation:<\/strong><\/p>\n

            N<\/strong>otes:<\/strong><\/p>\n

              \n
            1. The following figures have been taken from the P&L statements for the busine (years 2005 \/ 2006)<\/li>\n
            2. The downturn in year 2006 can\u2019t be explained by customers \u2013 \u201cBusiness was just slower this year\u201d was the comment from Bob the business proprietor.<\/li>\n
            3. They are looking to refinance and are making initial enquiries only at this stage.<\/li>\n<\/ol>\n

               <\/p>\n

              Position:<\/strong><\/p>\n

              2<\/strong>005 \u00a0Gross Sales $185,000<\/strong><\/p>\n

              2<\/strong>006 \u00a0Gross Sales $130,060<\/strong><\/p>\n

               <\/p>\n\n\n\n\n\n\n\n\n
              <\/td>\n2<\/strong>005<\/strong><\/td>\n2<\/strong>006<\/strong><\/td>\n<\/tr>\n
              NPBT<\/td>\n$36,450<\/td>\n$24,400<\/td>\n<\/tr>\n
              Salary<\/td>\n$25,000<\/td>\n$15,000<\/td>\n<\/tr>\n
              Interest<\/td>\n$22,000<\/td>\n$21,400<\/td>\n<\/tr>\n
              Depreciation<\/td>\n$ 4,500<\/td>\n$ 4,500<\/td>\n<\/tr>\n
              Superannuation<\/td>\n$ 3,000<\/td>\n$ 4,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

              (Above Super Guarantee)<\/p>\n

               <\/p>\n

              Exercise:<\/strong><\/p>\n

              (a) What income figures would you use for capacity?<\/strong><\/p>\n

              (b) Explain your reasoning<\/strong><\/p>\n

               <\/p>\n

              Exercise\u00a0(1) Legislation – Part A<\/em><\/strong><\/h3>\n
                \n
              1. Explain the requirement for professional indemnity insurance.<\/li>\n<\/ol>\n
                  \n
                1. There is a standard formula used to determine a comparison rate. What are the 5 items taken into consideration to undertake this rate calculation?<\/li>\n<\/ol>\n
                    \n
                  1. What are three of the \u201ckey aspects\u201d for consideration under the National<\/li>\n<\/ol>\n

                    Credit Code? (formerly the Uniform Consumer Credit Code)<\/p>\n

                      \n
                    1. What are the 2 main sections of the \u201cPrivacy Act\u201d?<\/li>\n<\/ol>\n
                        \n
                      1. The \u201cAustralian Transactions Reports and Analysis Centre was established for what purpose\u201d?<\/li>\n<\/ol>\n
                          \n
                        1. According to the NCCP. under what circumstances would a loan be \u201cunsuitable\u201d for a client?<\/li>\n<\/ol>\n
                            \n
                          1. Describe the objectives of the \u201cCode of Banking Practice\u201d<\/li>\n<\/ol>\n
                              \n
                            1. Why was the \u201cCredit and Investments Ombudsman\u201d established?<\/li>\n<\/ol>\n
                                \n
                              1. What is the role of the \u201cThe Financial Rights Legal Centre\u201d?<\/li>\n<\/ol>\n
                                  \n
                                1. Explain the role of the \u201cMFAA\u201d.<\/li>\n<\/ol>\n
                                    \n
                                  1. Broadly, what is the role of \u201cASIC\u201d in relation to financial services?<\/li>\n<\/ol>\n
                                      \n
                                    1. Under the \u201cMFAA Code of Practice\u201d, name 5 of a mortgage broker\u2019s responsibilities to their client?<\/li>\n<\/ol>\n
                                        \n
                                      1. Explain the need for \u201cFile Notes\u201d on a client\u2019s loan application.<\/li>\n<\/ol>\n
                                          \n
                                        1. What are 3 activities in the finance\/mortgage broking industry, that could be considered potential hazards under WH&S Legislation.<\/li>\n<\/ol>\n
                                            \n
                                          1. What is the purpose of a \u201cPreliminary Assessment\u201d for a client looking for financial assistance?<\/li>\n<\/ol>\n
                                              \n
                                            1. Are mortgage brokers required to hold an \u201cAFSL\u201d licence – why\/why not?<\/li>\n<\/ol>\n

                                               <\/p>\n

                                              Exercise\u00a0(2) Legislation \u2013 Part B<\/em><\/strong><\/h3>\n
                                                \n
                                              1. Your clients John and Mary Smith complain to you that when you wrote their loan 6 months earlier, you did not explain that they had the option to take a fixed interest rate on their facility. Your file notes however indicate that these options were discussed and that both applicants have signed a finance broker contract which confirms this.<\/li>\n<\/ol>\n

                                                What action would you now take?<\/p>\n

                                                  \n
                                                1. Explain how you would set up operational procedures to monitor and effect changes to legislation, regulations and policies which have an impact on the finance\/mortgage industry.<\/li>\n<\/ol>\n
                                                    \n
                                                  1. Your new clients Paul and Mary Brown ask you what qualifications you have as a mortgage broker and how you go about researching loan products that meet their need<\/li>\n<\/ol>\n

                                                    How would you respond?<\/p>\n

                                                      \n
                                                    1. What should you include when setting up an internal monitoring program ensuring up to date knowledge of compliance and regulations?<\/li>\n<\/ol>\n

                                                      How should any changes be communicated throughout your organisation?<\/p>\n

                                                       <\/p>\n

                                                      Exercise\u00a0(3) – \u201cGlossary\u201d<\/em><\/strong><\/h3>\n

                                                      Situation: What do these terms represent?<\/strong><\/p>\n

                                                        \n
                                                      1. Clear Title<\/li>\n<\/ol>\n
                                                          \n
                                                        1. R2M<\/li>\n<\/ol>\n
                                                            \n
                                                          1. Comparison rate<\/li>\n<\/ol>\n
                                                              \n
                                                            1. Negative Gearing<\/li>\n<\/ol>\n
                                                                \n
                                                              1. Creditor<\/li>\n<\/ol>\n
                                                                  \n
                                                                1. FOS<\/li>\n<\/ol>\n
                                                                    \n
                                                                  1. Amortisation<\/li>\n<\/ol>\n
                                                                      \n
                                                                    1. OSR or SRO<\/li>\n<\/ol>\n
                                                                        \n
                                                                      1. Predominant Purpose<\/li>\n<\/ol>\n
                                                                          \n
                                                                        1. Progress Payment<\/li>\n<\/ol>\n
                                                                            \n
                                                                          1. AAPR<\/li>\n<\/ol>\n
                                                                              \n
                                                                            1. Bridging Finance<\/li>\n<\/ol>\n
                                                                                \n
                                                                              1. Capacity<\/li>\n<\/ol>\n
                                                                                  \n
                                                                                1. Business Declaration Purpose<\/li>\n<\/ol>\n
                                                                                    \n
                                                                                  1. Serviceability or Capacity<\/li>\n<\/ol>\n
                                                                                      \n
                                                                                    1. Tenants in Common<\/li>\n<\/ol>\n
                                                                                        \n
                                                                                      1. LOC<\/li>\n<\/ol>\n
                                                                                          \n
                                                                                        1. RM<\/li>\n<\/ol>\n
                                                                                            \n
                                                                                          1. ASIC<\/li>\n<\/ol>\n
                                                                                              \n
                                                                                            1. Portability<\/li>\n<\/ol>\n
                                                                                                \n
                                                                                              1. Default<\/li>\n<\/ol>\n
                                                                                                  \n
                                                                                                1. Caveat<\/li>\n<\/ol>\n
                                                                                                    \n
                                                                                                  1. Base Rate<\/li>\n<\/ol>\n
                                                                                                      \n
                                                                                                    1. Break Cost<\/li>\n<\/ol>\n
                                                                                                        \n
                                                                                                      1. Securitisation<\/li>\n<\/ol>\n

                                                                                                         <\/p>\n

                                                                                                        Exercise\u00a0(4) \u2013 Loan Types<\/em><\/strong><\/h3>\n
                                                                                                          \n
                                                                                                        1. Explain the difference between a \u201cRegulated\u201d and \u201cUnregulated\u201d Loan<\/li>\n<\/ol>\n
                                                                                                            \n
                                                                                                          1. What is a \u201cNon-Conforming\u201d loan?<\/li>\n<\/ol>\n
                                                                                                              \n
                                                                                                            1. What are the advantages of a \u201cFixed Rate\u201d loan?<\/li>\n<\/ol>\n
                                                                                                                \n
                                                                                                              1. What are the advantages of a \u201cLine of Credit\u201d loan?<\/li>\n<\/ol>\n
                                                                                                                  \n
                                                                                                                1. What is an \u201cOffset\u201d loan?<\/li>\n<\/ol>\n
                                                                                                                    \n
                                                                                                                  1. What is a Deposit Bond?<\/li>\n<\/ol>\n
                                                                                                                      \n
                                                                                                                    1. What is the maximum borrowing on an \u201cOverseas Resident\u201d loan?<\/li>\n<\/ol>\n
                                                                                                                        \n
                                                                                                                      1. What are the disadvantages of a \u201cIntroductory Rate\u201d loan?<\/li>\n<\/ol>\n
                                                                                                                          \n
                                                                                                                        1. When do \u201cBreak Costs\u201d apply to a Fixed rate loan?<\/li>\n<\/ol>\n
                                                                                                                            \n
                                                                                                                          1. What is a \u201cRedraw\u201d facility?<\/li>\n<\/ol>\n

                                                                                                                             <\/p>\n

                                                                                                                            Exercise<\/em><\/strong>\u00a0(5) \u00a0– <\/em><\/strong>\u201cLVR\u2019s\u201d<\/em><\/strong>
                                                                                                                            \n<\/em><\/strong><\/h3>\n

                                                                                                                            Situation: Calculate LVR\u2019s for the following:<\/strong><\/p>\n

                                                                                                                              \n
                                                                                                                            1. Loan Proposed $235,000 \/ Property Value $356,000<\/li>\n<\/ol>\n
                                                                                                                                \n
                                                                                                                              1. Loan Proposed $459,000 \/ Property Value $655,000<\/li>\n<\/ol>\n
                                                                                                                                  \n
                                                                                                                                1. Loan Proposed $250,000 \/ Property Value $200,000<\/li>\n<\/ol>\n
                                                                                                                                    \n
                                                                                                                                  1. Loan Refinance – $10,000 Credit Cards, existing home loan $234,890 and personal loan $7,530 \/ Property Value $464,000<\/li>\n<\/ol>\n
                                                                                                                                      \n
                                                                                                                                    1. Loan Proposed $565,000 \/ Property Values $430,000 & $380,000<\/li>\n<\/ol>\n

                                                                                                                                       <\/p>\n

                                                                                                                                       <\/p>\n

                                                                                                                                      Exercise<\/em><\/strong>\u00a0(6) \u2013 Lending<\/em><\/strong><\/h3>\n
                                                                                                                                        \n
                                                                                                                                      1. Explain how lenders generally define \u201cstability\u201d for a PAYG employee<\/li>\n<\/ol>\n
                                                                                                                                          \n
                                                                                                                                        1. What is the minimum age for a borrower?<\/li>\n<\/ol>\n
                                                                                                                                            \n
                                                                                                                                          1. Explain the \u201cNSI or NSR\u201d model of serviceability<\/li>\n<\/ol>\n
                                                                                                                                              \n
                                                                                                                                            1. When can Overtime be considered in serviceability?<\/li>\n<\/ol>\n
                                                                                                                                                \n
                                                                                                                                              1. What does a Credit Provider consider when looking at \u201cacceptable security\u201d?<\/li>\n<\/ol>\n
                                                                                                                                                  \n
                                                                                                                                                1. What is an \u201cLVR\u201d and why is it considered?<\/li>\n<\/ol>\n
                                                                                                                                                    \n
                                                                                                                                                  1. What is \u2018LMI\u201d and under what circumstances is it required?<\/li>\n<\/ol>\n
                                                                                                                                                      \n
                                                                                                                                                    1. Describe an example of a \u201cRisk or Mitigant\u201d from a Credit Providers perspective<\/li>\n<\/ol>\n
                                                                                                                                                        \n
                                                                                                                                                      1. What are the \u201csteps\u201d in undertaking a client needs analysis?<\/li>\n<\/ol>\n
                                                                                                                                                          \n
                                                                                                                                                        1. What items are considered for a Client\u2019s \u201cFunds Position\u201d?<\/li>\n<\/ol>\n
                                                                                                                                                            \n
                                                                                                                                                          1. What are the two main types of companies?<\/li>\n<\/ol>\n
                                                                                                                                                              \n
                                                                                                                                                            1. Can the business \u201cJohn\u2019s Plumbing Services\u201d be a borrower to a loan? Why\/Why Not?<\/li>\n<\/ol>\n
                                                                                                                                                                \n
                                                                                                                                                              1. What is a \u201cFamily Trust\u201d?<\/li>\n<\/ol>\n
                                                                                                                                                                  \n
                                                                                                                                                                1. What \u201caddbacks\u201d are generally allowed for the self-employed borrower?<\/li>\n<\/ol>\n
                                                                                                                                                                    \n
                                                                                                                                                                  1. What are the \u201cbroad principles\u201d of the First Home Owners Grant?<\/li>\n<\/ol>\n

                                                                                                                                                                     <\/p>\n

                                                                                                                                                                    Exercise<\/em><\/strong>\u00a0(7) – <\/em><\/strong>\u201cLMI\u201d<\/em><\/strong>
                                                                                                                                                                    \n<\/em><\/strong><\/h3>\n

                                                                                                                                                                    Situation: Calculate LMI Premiums using the Westpac Rate Card (Located in the Appendix \u2013 Section 24)<\/strong><\/p>\n

                                                                                                                                                                      \n
                                                                                                                                                                    1. LVR 95% – P&I Loan \/ Loan Amount $240,000<\/li>\n<\/ol>\n
                                                                                                                                                                        \n
                                                                                                                                                                      1. LVR 82% – P&I Loan \/ Loan Amount $400,000<\/li>\n<\/ol>\n
                                                                                                                                                                          \n
                                                                                                                                                                        1. LVR 87% – Interest Only (10 Years) \/ Loan Amount $385,000<\/li>\n<\/ol>\n
                                                                                                                                                                            \n
                                                                                                                                                                          1. LVR 79% – Lo Doc \/ Loan Amount $540,000<\/li>\n<\/ol>\n

                                                                                                                                                                             <\/p>\n

                                                                                                                                                                            Exercise<\/em><\/strong>\u00a0(8) \u2013 Process Loan Application
                                                                                                                                                                            \n<\/em><\/strong><\/h3>\n

                                                                                                                                                                            \u201cJack and Jill Rogers\u201d<\/em><\/strong><\/p>\n

                                                                                                                                                                            Situation:<\/strong><\/p>\n

                                                                                                                                                                            Jack & Jill want to use their existing home to help them into an investment property. They have found a house they are keen to make an offer on and the price is $300,000. (Agents in the area tell them they could expect between $300 and $350 per week in rental on the property)<\/p>\n

                                                                                                                                                                             <\/p>\n

                                                                                                                                                                            N<\/strong>otes:<\/strong><\/p>\n

                                                                                                                                                                              \n
                                                                                                                                                                            1. 1. Jack and Jill want to be able to borrow for this venture.<\/li>\n
                                                                                                                                                                            2. 2. Their existing home is valued at $450,000.<\/li>\n
                                                                                                                                                                            3. 3. Their current debt on the home is $180,000<\/li>\n<\/ol>\n

                                                                                                                                                                               <\/p>\n

                                                                                                                                                                              O<\/strong>t<\/strong>h<\/strong>e<\/strong>r Debts:<\/strong><\/p>\n

                                                                                                                                                                              Credit Card: \u00a0\u00a0\u00a0\u00a0 $10,000 Limit \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Balance $8,400<\/p>\n

                                                                                                                                                                              Store Card: \u00a0\u00a0\u00a0\u00a0\u00a0 $5,000 Limit \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Balance $4,000<\/p>\n

                                                                                                                                                                              Personal Loan \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Balance $12,600<\/p>\n

                                                                                                                                                                               <\/p>\n

                                                                                                                                                                              Income:<\/strong><\/p>\n

                                                                                                                                                                              Jack \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $43,000 (Gross PA)<\/p>\n

                                                                                                                                                                              Jill \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $47,500 (Gross PA)<\/p>\n

                                                                                                                                                                               <\/p>\n

                                                                                                                                                                              Exercise – Complete loan documentation (Select Lender \u2013 Your Choice) Minimum Documents Required (Fully Completed)<\/strong><\/p>\n

                                                                                                                                                                                \n
                                                                                                                                                                              1. Loan Application Form<\/strong><\/li>\n
                                                                                                                                                                              2. Loan Serviceability Calculation<\/strong><\/li>\n<\/ol>\n

                                                                                                                                                                                 <\/p>\n

                                                                                                                                                                                B<\/strong>a<\/strong>lance Sheet \u2013 Jack & Jill Rogers<\/strong><\/p>\n

                                                                                                                                                                                A<\/strong>ssets \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Value \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Liabilities \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Value<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
                                                                                                                                                                                Existing Property<\/td>\n450,000<\/td>\nANZ<\/td>\n180,000<\/td>\n<\/tr>\n
                                                                                                                                                                                Motor Vehicle<\/td>\n35,000<\/td>\nANZ \u00a0\u00a0\u00a0 (550PM)<\/td>\n12,600<\/td>\n<\/tr>\n
                                                                                                                                                                                Motor Vehicle<\/td>\n28,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
                                                                                                                                                                                House Contents<\/td>\n60,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
                                                                                                                                                                                Bank Account<\/td>\n36,500<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
                                                                                                                                                                                Deposit (paid)<\/td>\n15,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
                                                                                                                                                                                Investments<\/td>\n25,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
                                                                                                                                                                                <\/td>\n<\/td>\nCredit Card (Limit $10k) Myer Card<\/td>\n8,4004,000<\/td>\n<\/tr>\n
                                                                                                                                                                                <\/td>\n<\/td>\n(Limit $5K)<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                                                                                                                                                                                 <\/p>\n

                                                                                                                                                                                T<\/strong>otal \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $649,500 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $205,000<\/strong><\/p>\n

                                                                                                                                                                                Surplus \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $444,500<\/strong><\/p>\n

                                                                                                                                                                                Fact Sheet \u2013 Jack & Jill Rogers<\/p>\n

                                                                                                                                                                                Full Names: (a) Jack Rogers<\/p>\n

                                                                                                                                                                                (b) Jill Rogers<\/p>\n

                                                                                                                                                                                (Married \u2013 No Dependents) DOB: 25\/8\/74 and 12\/7\/73<\/p>\n

                                                                                                                                                                                Drivers Licence: (a) BCS345465443 \/ (b) ASD5436778435<\/p>\n

                                                                                                                                                                                Address:\u00a0 23 Camden Place The Gap Qld 4061 (Time there – 5 years) Employment:\u00a0\u00a0\u00a0\u00a0\u00a0 (a) Painter \u2013 HBS Painting Services (Time there – 4 years)<\/p>\n

                                                                                                                                                                                (b) Insurance Advisor \u2013 AMP (Time there \u2013 3.5 Years) Income:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (a) $43,000 Gross PA<\/p>\n

                                                                                                                                                                                (b) $47,500 Gross PA<\/p>\n

                                                                                                                                                                                Contact: Home: 07 33oo9898 \/ Work: (b) 07 32459876 (a) \u00a0Mob 0419456432<\/p>\n

                                                                                                                                                                                Solicitor: Solicitors R Us<\/p>\n

                                                                                                                                                                                Jenny Cream \u2013 07 34567865<\/p>\n

                                                                                                                                                                                This Proposal: Purchasing Investment Property at 25 Blue Street, Bardon Qld 4064<\/p>\n

                                                                                                                                                                                Area \u2013 600 square metres<\/p>\n

                                                                                                                                                                                Timber house<\/p>\n

                                                                                                                                                                                Buying in In both Names \u2013 as Joint Tenants<\/p>\n

                                                                                                                                                                                Property will be Investment<\/p>\n

                                                                                                                                                                                Price: $300,000<\/p>\n

                                                                                                                                                                                Wish \u00a0to \u00a0Borrow: \u00a0100% \u00a0(Using \u00a0own \u00a0home \u00a0as \u00a0additional security)<\/p>\n

                                                                                                                                                                                Lender Choice: Select your own preference<\/strong><\/p>\n

                                                                                                                                                                                 <\/p>\n

                                                                                                                                                                                Exercise<\/em><\/strong>\u00a0(9) \u2013 Written Assignment <\/em><\/strong><\/h3>\n

                                                                                                                                                                                 <\/p>\n

                                                                                                                                                                                (<\/em><\/strong>M<\/em><\/strong>a<\/em><\/strong>n<\/em><\/strong>a<\/em><\/strong>g<\/em><\/strong>e Self in The Mortgage Broking Industry)<\/em><\/strong><\/p>\n

                                                                                                                                                                                Describe the processes you either have in place (or intend to put into practice) which demonstrates your ability to:<\/p>\n

                                                                                                                                                                                (1) \u00a0Develop and work a \u201cSales Plan\u201d<\/p>\n

                                                                                                                                                                                (2) Set and manage work goals and daily activities<\/p>\n

                                                                                                                                                                                (3) Effectively manage time including paperwork and reports<\/p>\n

                                                                                                                                                                                (4) Monitor work progress<\/p>\n

                                                                                                                                                                                (5) Manage stress and ethical behaviour (Best Practice Standards)<\/p>\n

                                                                                                                                                                                This assignment relates to how you manage the overall operation of your business and can include your own personal management and\/or management of a team under your supervision and control.<\/p>\n

                                                                                                                                                                                 <\/p>\n

                                                                                                                                                                                For REF… Use: #getanswers2001890<\/span><\/strong><\/p>\n

                                                                                                                                                                                <\/div>\n