Task 22 ― Preparing a preliminary assessment

Preparing a preliminary assessment is required under the NCCP Act. In this task, you are required to prepare a preliminary assessment for Case study 2: Mary Azacca.

Task 22: Question 1

Before preparing the preliminary assessment, under best interest duty, you need to assess if there is a benefit to the customer by switching loans.

To determine if there is a benefit for the client you need to go to the MoneySmart website. Using the mortgage switching calculator, you need to:

(a) provide the result using the calculator

(b) explain if the customer will benefit from switching lenders.

The MoneySmart link can be located in the Toolbox.

Task 22: Question 2

Will Mary be required to pay LMI? Explain why or why not.

Task 22: Question 3

Using the information gathered from your customer, Mary Azacca, you are required to prepare the preliminary assessment.

Part of the preparation will require you to use a home loan comparison website and use that information to prepare the preliminary assessment below.

Preliminary Assessment

Task 22: Question 4

Of the three loans recommended in the preliminary assessment, which loan product would you recommend to Mary, and why?

Task 22: Question 5

Does Mary qualify for any government concessions or stamp duty reductions? 

Explain why or why not.

Task 22: Question 6

What other issues may impact, now or in the future, on the Mary’s ability to meet her obligations, including any possible risks? 

Task 22: Question 7

You are required to present your analysis and recommendations to your client. On this occasion you will make your presentation in an email. You will gather some of the information from your preliminary assessment and you will also need to include the following information.

• Provide a brief summary of your understanding of the clients’ needs (this could be an outline summary of their proposed loan structure).

• Provide a brief summary of the clients’ current financial position (use information from the case study).

• Give an explanation of the product options evaluated that meet their needs (you should have researched at least three (3) lenders as part of the preliminary assessment) and details of the loan features. Use the internet or, if working in the industry, internal software to do this.

• Explain the option you recommend and the reasons for the recommendation — including the loan amount, term and repayments. Explain how the recommended product meets the clients’ needs (refer to the case study)

• Invite questions from the client and respond in a follow-up email accordingly.

• Seek agreement from the client to proceed with the product recommendation.

Task 22: Question 8

Mary has responded to your email asking some questions. 

To: Broker 1

Broker1@CCF&MB.com.au

From: [email protected]

Re: Recommendation

Dear broker,

Thank you for providing your recommendation for the home loan product for my refinance application.

I have some questions I am hoping you can answer for me:

1. I want to open a bank account to make sure there is somewhere for any disbursement of surplus funds from the refinance settlement and also for my periodical payments to be debited from. What options do I have to apply to open a bank account?

2. What ID will I need to provide to open a new bank account?

I look forward to receiving your reply.

Thank you.

Mary Azacca

Send a reply email to Mary to answer her questions.

Hint/Tip:

You will need to conduct your own research to answer this question. Refer to the Toolbox for a suggested website.

Student response to Task 22: Question 8

FWD: To: Mary Azacca

[email protected]

From: broker1@CCF&MB.com.au

re: Recommendation

Task 22: Question 9

In the course of your interactions with Mary, you have gathered or completed a number of documents, which include, for example, the completed fact find with credit representative notes, the preliminary assessment and assorted communication with her. How and where would you file this information?