Task 19 — Presenting borrowing options and potential benefits 

Task 19: Question 1

Although Philip and Jennifer (Case Study 1) are looking to borrow at approximately 90% LVR, what other options may be available to them that would avoid the cost of LMI? Provide at least three (3) options. 

Task 19: Question 2

Describe the First Home Owner’s Grant or home buyer assistance scheme benefits and stamp duty concessions that are available in the state where Philip and Jennifer are purchasing their home. Are Philip and Jennifer eligible for any assistance? Explain why or why not? (100 words)

Task 19: Question 3

Philip and Jennifer have called to discuss an issue in relation to the product option you have proposed. They are wondering whether it would be better to fix the interest rate on their loan after having received several conflicting viewpoints from family and friends.

(a) Explain the process you would use to research and identify the various product options available to address the issue raised and still meet the needs of Philip and Jennifer.

(b) Explain to Philip and Jennifer two (2) advantages and two (2) disadvantages of fixing a loan over different fixed rate terms. 

Task 19: Question 4

What other option/s can you suggest if Philip and Jennifer remain uncertain about whether to fix the rate on their loan?

Task 19: Question 5

You want to ensure that Philip and Jennifer have all the critical insurance protections in case something unfortunate happened to one of them.

(a) What process would you follow during your discussion with the clients to ensure you have a good assessment of their needs?

(b) Explain who you should refer Philip and Jennifer to obtain advice on these types of products.