Client Loan Application and Financial Assignment

Assignment Task

Using the information contained in the Scenario below, please complete the following 6 tasks. You must complete each task for your submission to be assessed. Omission of any of these 6 tasks will be regarded as ‘Working Towards Competency’ and you will then be required to resubmit in full.

1. Complete the Fact Find document on these clients – using the form in Appendix B14.

• We have not included all supplementary information on these clients in which case you will need to create your own “improvised” answers for inclusion in the Fact Find document. Students 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 B14.

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 task should be prepared as if you were submitting a real loan application to the lender.

Scenario

Mr Young works at OfficeWorks as a Marketing Manager and earns $155,000 p.a. He has worked there for 8 years.

Mrs Young is a Project Officer with SMEC Australia and earns $106,000 p.a. She has worked there for the past 3 years after having several years of home duties.

The Youngs own two cars – a 2016 Honda Civic worth $18,000 unencumbered and a 2018 Mazda SUV $30,000 subject to Mazda Finance of $20,000 ($450 per month).

A few days ago, the Youngs signed up for a 20 month Interest Free loan from Latitude for a sound/movie system for $3,000. They paid a $50 establishment fee to avoid the monthly admin fee and their minimum monthly payment is 5%.

You interviewed Mr and Mrs Young at your office after some initial telephone conversations previously. They both spoke good English, they are Australian citizens of more than 20 years and they expressed their excitement at buying their second property. Following your evaluation, you suggested 3 different loan products to the Youngs and their decision was to choose the ANZ product. You will now proceed to assist them with their loan application. They are aware that, they will need to complete a Customer Identification Procedure prior to finance approval from the lender

The clients wish to refinance their current home loan and purchase an investment property.

The investment property is an established 2 bedroom unit in a residential tower block of 48 at 56 (Lot 6) Victoria Ave, Rhodes and is valued at $900,000.

Gross rental Income of $700 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 with the real estate agent, and the offer has been accepted with settlement in 60 days.

Question

1. Complete the Fact Find provided in Appendix B14 or your own company’s Fact Find document (and improvise any information that has not been provided in the scenario).

2. Detail the features of the ANZ product chosen for your clients and explain your reasons for your initial suggestion.

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

5. Complete a loan servicing calculation (NSR) by completing the form overleaf.

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 going to submit a real loan application to the lender. Remember you must treat this as a cross-collateralised split loan structure.

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. Tax charts, an LMI table (if required) 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
• Credit Guide / Disclosures
• Privacy Statement and Consent
• Loan Application Cover Sheet
• ANZ Application form

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