Assessment 2: Client information

Appointment date:
Appointment time:
Applicant 1 Applicant 2

Surname
Chee Chee

Other names
Tim Tina

Contact details Address

Unit 12, 22 Singapore Lane, Unit 12, 22 Singapore Lane,
Baldhills, VIC Baldhills, VIC

Phone (W)
9123 2121 9123 2121
Phone (H)

Mobile
9800 1111 9910 2033

Email
[email protected] [email protected]

Employment
ACE Limited 101 City Rd, VIC Tech city 804 High Street, City
(VIC)

How long?
Since October 2005 Since March 2006

Previous employer (if less than two years)

- -

How long?

Employment type
Team Leader (full-time) Accountant (full-time)
(FT/PT/Casual/Self-employed)

Gross income (p.a.)

$58,000 p.a. monthly gross $95,000 p.a. monthly gross
income: $4,833 income: $7,917

Number of dependants
0 0

Motor vehicles
Holden Commodore SS 2007 Kia Cerato Sport 2015

Loan purpose Owner-occupied

Purchase price/Valuation $490,000

Deposit on property $0

Loan amount $440,000

Borrowing capacity (using Genworth $932,500

serviceability calculation)
Assets and liabilities
Assets Liabilities

Details Market value Details Monthly payments Amount owing

Owner Occupied Property at: Mortgage with:

$490,000 $2,276 $440,000

Investment Property at: Mortgage with:

- - -

Cash at bank Car leasing

$77,600 - -
(includes fixed deposits)

Other cash Personal loans

$180 p.m $5,600
(includes offset accounts)
1.Capital bank
personal loan - Tim
2.

Deposit paid on property Overdraft

0.00 - -

Motor vehicles: Other loans:

- -
1. Holden Commodore 1.
2. Suzuki Sport 2015
2.

Personal effects Credit card limit:

$40,000 200
$4,000; Capital bank
visa card (Tim)

Business value (if self-employed) Credit card limit:

1600
$5,000; Capital bank
visa card (Tina)

Shares and investments Other:

- - -

Superannuation - Capital bank Other:

$90,000 - -
(Tim)
Superannuation - Capital bank
(Tina)

Other assets (give details) Other:

Household effects (Insured value)

Total assets Total liabilities

Surplus/deficiency: 15,960

Page 2 of 9
CURRENT MONTHLY LIVING EXPENSES (Provide a breakdown of the total amount listed in the case study — use your discretion)

Food/housekeeping
$850

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

$1000
protection)

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

$250

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

$500

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

$0

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

$0

Entertainment
$150

Other (detail below:

MONTHLY LIVING EXPENSES

$2750

Page 3 of 9
Needs analysis
1 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?

Yes

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

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

ANZ

13 Type of loan sought

Variable

14 Preferred Interest rate range

4.3%-4.5%

15 Payment frequency
In every two weeks

16 Redraw
Yes

17 Offset
-

18 Salary crediting
Yes

19 Low fees and charges

Yes

Page 4 of 9
Notes
NB: Providing substantive notes here is a compulsory part of your assessment.

The loan amount requested by the client is $440000 plus LMI, which takes the loan amount to $449177,
for a tenure of 30 years. The savings and deposits of the applicants are enough to meet the deposits,
except cash contribution of the loan, except the LMI. The clients have total own funds of $79600, enough
to fulfill the cash and deposit requirements of $75000, but not enough to fulfill the cash requirements.
Each of the partners of applicants is earning $58000 and $95000 per annum respectively. These figures are
the earnings before tax. The annual expenses of the couple are $33000, which are the living expenses,
including expenses like food, rent, transport, and more. Except for these, the annual credit card limit of
the couple is $9000, combined the limit of both. One of the partners has a personal loan, for which he
pays $180 per month.

Page 5 of 9
Anticipated fees and charges
Anticipated purchase price
$490,000

Deposit on property
$75,000

Loan amount
$449,177

LVR
$387,537

Purchase costs

Stamp duty on transfer (include transfer fee)

$22,607

Solicitor/conveyancer (estimate)
$1,500

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

Page 6 of 9
Funds to complete
PURCHASE AND LOAN COSTS: AVAILABLE FUNDS:

Purchase price: Deposit if paid

$490,000

Lender application / valuation fees: Cash savings:

- $77,600

Transfer stamp duty Sale proceeds:

-

Solicitor fees: Gift:

-

Other fees and charges FHOG:

$25,000 -

Other:
-

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

TOTAL COSTS (A): $515,000 TOTAL OWN FUNDS (D): $77,600

LOAN AMOUNT REQUESTED (B): $449,177 OWN FUNDS REQUIRED (A-B) = C: $65,823

OWN FUNDS REQUIRED (A-B) = C $65,823 SURPLUS/SHORTFALL (D-C) $11,777

Page 7 of 9
Loan interview diary
Name(s) of client(s) present at interview

Tim Chee

Tina Chee

Date of interview

14th July 2021

Location of interview

Client’s residence: Unit 12, 22 Singapore Lane, Bald Hills, NSW 2549

Indicate all clients who were interviewed in person

Tim Chee

Tina Chee

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?

Page 8 of 9
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 seek
the 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.

N/A

Page 9 of 9