Document classification: Confidential CFMB_AS_CS1_v3 Page 1 of 4 Case study 1 Philip and Jennifer Brown Background Philip and Jennifer Brown are a young couple about to buy their first home. They have been married for five years and during that time have rented an apartment while saving for their own home. Prior to moving in with Philip, Jennifer lived in a property she purchased with her sisters. They sold the property once they all finished university, albeit they did not make much profit from the sale. Following a personal referral from Glenn Brown (Philip's brother) you have already had a brief initial phone call with Jennifer to arrange a meeting. Jennifer advised they have little time to do much research of lenders, have limited knowledge of the loan products available and have approached you to guide them through the process as they are confused about the whole process. They have been looking at properties for the past three months and have found a 10-year-old established apartment that has really caught their eye, although they have some concern over the kitchen which requires some minor renovations. It is important to get the proposal moving quickly, as the agent has indicated other parties are interested in the property. They have not paid a deposit at this stage, but the real estate agent has provided some guidance on additional fees and charges. Following is a summary of the details of the property they wish to purchase, the couple's financial and employment details, and the loan features they require. The property Address Unit 1, 92 Golf Links Way, Bundoora VIC 3083 Certificate of Title, Volume 10120, Folio 456, Folio Identifier 5 Purchase price $490,000 Description 2-bedroom, 2-bathroom strata title apartment, kitchen/family, lounge, 2 car garage, golf course views Agent details Stephanie Jones Phone (03) 9123 1113 Mobile 0412 880 088 The couple Current address Unit 12, 22 Wentworth Lane, Thomastown VIC 3074 Philip and Jennifer have both lived there for five years Home phone 0419 123 456 Document classification: Confidential CFMB_AS_CS1_v3 Page 2 of 4 Funds position Purchase price $490,000 Clients' estimate of costs $25,000 Total required for the purchase $515,000 Loan amount $440,000 + LMI Clients' maximum contribution (including deposit of $50,000) Deposit to be paid and Final borrower contribution $77,000 Use fees and charges applicable to the state of Victoria. If a servicing calculator you are using requires a postcode, input 3083. Assets Capital Bank savings account (joint) $82,000 Capital Bank transaction account (joint) $1,600 Holden Colorado 2012 (Philip) $25,000 Kia Cerato Sport 2015 (Jennifer) $9,000 Superannuation Capital Bank (Philip) $28,000 Superannuation Capital Bank (Jennifer) $62,000 Household effects (insured value) $40,000 Liabilities Capital Bank personal loan (Philip) $5,600 (repayments $180 p.m.) Capital Bank Visa card (Philip) $200 (limit $4,000) Capital Bank Visa card (Jennifer) $1,600 (limit $5,000) Payments have always been met on time and any prior loans repaid in terms of contracts. The minimum monthly commitment on each of the credit cards should be calculated at 3% of the credit limit. Living expenses Annual expenditure for living expenses $35,000. Document classification: Confidential CFMB_AS_CS1_v3 Page 3 of 4 Employment and income Philip (age 32) Position Team Leader (full time) Employer ACE Limited, 101 City Road Westside, Melbourne VIC 3000 Phone 0419 123 456 Income (gross) $58,000 p.a., monthly gross income: $4,833 Employer contact Priya Kumar, HR Manager Length of service 12 years Driver's licence 8855KL Email [emailprotected] Jennifer (age 31) Position Compliance Manager (Full time) Employer Tech City, 804 High Street, Docklands VIC 3008 Phone 0412 987 654 Income (gross) $95,000 p.a., monthly gross income: $7,917 Employer contact Dominic Mancini, HR Manager Length of service 11 years Driver's licence 17016C Email [emailprotected] Solicitor's details Jones and Co 22 High Street, City East Melbourne VIC 3002 Phone: (03) 8281 1382 Email: jonesandco.net.au The solicitor has quoted a fee of $1,500 for the conveyance. Document classification: Confidential CFMB_AS_CS1_v3 Page 4 of 4 The loan requirements 30-year term premium option home loan features variable interest rate (for this case use 4.0% p.a.) LMI premium to be capitalised onto the loan proposed settlement date six weeks from exchange of contracts ability to make additional payments from time to time without penalty redraw and offset facility certainty of repayments in case interest rates rise fortnightly repayment option funds access via card. Note: Loan application fee is waived under Special Offer. Other information They have advised that the real estate agent has indicated they need to make a formal offer within the next 10 days, however they are reluctant to do so until they obtain an approval. Family plans are five years away. They are planning to go overseas before they start a family. Philip is hoping for a promotion within the next 12 months upon possible retirement of a long-term employee where he works. They have also expressed a concern about the possibility of interest rates increasing.

Please help completing Needs analysis based on above case study

1	Name of your current lender?
2	What type of loans do you have?
3	Why did you choose this particular loan and lender?
4	What is the interest rate on your current loan?
5	What are your payments?	Amount
6	Frequency
7	Do you know the fees and charges?
8	What is your proposed purpose for the new loan you are applying for?
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
13	Type of loan sought
14	Preferred Interest rate range
15	Payment frequency
16	Redraw
17	Offset
18	Salary crediting
19	Low fees and charges