Mortgage brokers assist their clients to complete their preferred lender's credit application form, as well as applications for the First Home Buyer's Grant and (where applicable) stamp duty exemption Examples of these forms are set out over the following pages and you are required to complete them on behalf of Ross and Melissa In this case, please fill in our sample of ANZ application form Treat these buyers as firsthome buyers and treat this property as a new property, for the purpose to get use to filling FHOG and Exemptionforms Remember that each form must be signed by the client, so facsimile signatures must be attached Case Study Evaluating and processing a loan application Read the following case study then answer the questions that follow Ross and Melissa Cooper are a young couple who have been married for five years, during which they have been renting an apartment while saving to buy an apartment of their own They do not have any children at this stage After some months searching, they have found a small two bedroom apartment that suits their needs The purchase cost of the property is $480,000, and they have provided a deposit of $60,000 You are recommending a standard variable loan Ross has been working at Gaines Consulting Pty Ltd for 12 years and has a salary of $80,000 Melissa has been working at Jackson Equipment Hire Pty Ltd for 8 years and has a salary of $70,000 Neither has had previous employment, apart from casual work when they were younger The full details of Ross and Melissa that you have collected are as follows Applicant 1 Applicant 2 Loan purpose Purchase home (owner occupied) Security value $480,000 Deposit $60,000 Address Unit 2, 27 High St , Mackville, NSW 2080 Unit 2, 27 High St , Mackville, NSW 2080 Status Renting Renting Years there 5 years 5 years Contact details Phone (W) Phone (H) 02 9200 1111 (w) 02 9400 9900 (h) 02 9310 2000(w) 02 9400 9900 (h) Mobile 0400 100 156 0418 960 000 Email emailprotected emailprotected Number of dependants Nil Nil Employment Gaines Consulting Pty Ltd Jackson Equipment Hire Pty Ltd How long 12 years 8 years Gross income (p a ) $80,000 p a $70,000 p a Credit history Personal loan to purchase a car since repaid Personal credit card with Central Bank with a limit of $3,000 Current balance $300 Note All credit cards are repaid in full when due Personal credit card with Northern with a limit of $2,000 Current balance $300 Store card with Wilson's Department Store Current balance S250 Note All credit cards are repaid in full when due ASSETS AND LIABILITIES Assets Liabilities Details Market value Details Monthly payments Amount owing Cash at bank $15,000 Credit card limit $2,000 $2,000 $300 Deposit paid on property $60,000 Credit card limit $3,000 $3,000 $300 Motor vehicles 1 2 $15,000 $7,000 Other Personal effects $30,000 Business value Nil Total assets $127,000 Total liabilities $600 Surplus deficiency $126,400 OTHER DETAILS They are seeking a loan term of 25 years Other requirements are proposed settlement date 6 weeks time ability to make additional payments from time to time without penalty monthly repayments redraw facility The applicants will have no other financial commitments other than their monthly mortgage commitments, rates and utility costs and strata fees The current variable home loan rate is 6 pa Note For the purposes of this assignment, any first home purchase assistance should be ignored OTHER INFORMATION APRA is concerned that interest rates may rise and because of this it is requiring all lenders to stress test all housing loans at a borrowing rate of 7 p a

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Mortgage brokers assist their clients to complete their preferred lender's credit application form, as well as applications for the First Home Buyer's Grant and (where

Mortgage brokers assist their clients to complete their preferred lender's credit application form, as well as applications for the First Home Buyer's Grant and (where applicable) stamp duty exemption. Examples of these forms are set out over the following pages and you are required to complete them on behalf of Ross and Melissa. In this case, please fill in our sample of ANZ application form.Treat these buyers as firsthome buyers and treat this property as a new property, for the purpose to get use to filling FHOG and Exemptionforms.Remember that each form must be signed by the client, so facsimile signatures must be attached

Case Study Evaluating and processing a loan application

Read the following case study then answer the questions that follow.

Ross and Melissa Cooper are a young couple who have been married for five years, during which they have been renting an apartment while saving to buy an apartment of their own. They do not have any children at this stage.

After some months searching, they have found a small two-bedroom apartment that suits their needs. The purchase cost of the property is $480,000, and they have provided a deposit of $60,000. You are recommending a standard variable loan.

Ross has been working at Gaines Consulting Pty Ltd. for 12 years and has a salary of $80,000. Melissa has been working at Jackson Equipment Hire Pty Ltd for 8 years and has a salary of $70,000. Neither has had previous employment, apart from casual work when they were younger.

The full details of Ross and Melissa that you have collected are as follows:

Applicant 1

Applicant 2

Loan purpose

Purchase home (owner occupied)

Security value

$480,000

Deposit

$60,000

Address

Unit 2, 27 High St.,

Mackville, NSW. 2080

Unit 2, 27 High St.,

Mackville, NSW. 2080

Status

Renting

Years there

5 years

Contact details

Phone (W) Phone (H)

02 9200 1111 (w)

02 9400 9900 (h)

02 9310 2000(w)

02 9400 9900 (h)

Mobile

0400 100 156

0418 960 000

Email

[emailprotected]

Number of dependants

Nil

Employment

Gaines Consulting Pty. Ltd

Jackson Equipment Hire Pty Ltd

How long?

12 years

8 years

Gross income (p.a.)

$80,000 p.a.

$70,000 p.a.

Credit history

Personal loan to purchase a car since repaid.

Personal credit card with Central Bank with a limit of $3,000. Current balance: $300

Note: All credit cards are repaid in full when due.

Personal credit card with Northern with a limit of $2,000. Current balance: $300

Store card with Wilson's Department Store. Current balance: S250

Note: All credit cards are repaid in full when due.

ASSETS AND LIABILITIES

Assets

Liabilities

Details

Market value

Details

Monthly payments

Amount owing

Cash at bank

$15,000

Credit card limit: $2,000

$2,000

$300

Deposit paid on property

$60,000

Credit card limit: $3,000

$3,000

$300

Motor vehicles:

$15,000

$7,000

Other:

Personal effects

$30,000

Business value

Nil

Total assets

$127,000

Total liabilities

$600

Surplus/deficiency: $126,400

OTHER DETAILS:

They are seeking a loan term of 25 years. Other requirements are:

-proposed settlement date 6 weeks time

-ability to make additional payments from time to time without penalty

-monthly repayments

-redraw facility.

The applicants will have no other financial commitments other than their monthly mortgage commitments, rates and utility costs and strata fees.

The current variable home loan rate is 6% pa.

Note:For the purposes of this assignment, any first home purchase assistance should be ignored.

OTHER INFORMATION

APRA is concerned that interest rates may rise and because of this it is requiring all lenders to "stress test" all housing loans at a borrowing rate of 7% p.a.