Mr and Mrs Monash have hired your team of financial planners to consult on their intention to buy their next home. In 5 years time, they intend buy a 3 bedroom house in Caulfield to live in. They intend to spend $ 1,090,000.00 to buy their house. Task 1: Find and present in a business report, the cheapest (lowest interest rate) home loan in the market. Mr and Mrs Monash have the following conditions and needs of the loan you present to them: (if you breach the conditions above or below, -2 marks will be deducted for breaching each condition breached) The loan has to be from a Credit Union or Mutual Bank. The loan needs to have a Offset facility Mr & Mrs Monash wish to make monthly repyaments They wish to borrow money for 25 years They wish to take a fully amortizing loan. They are interested in a Variale rate loan Mr & Mrs Monash want an LVRo 90% (use comparison rates only) Assume any loan you research allows the LVR desired and ignore mortgage insurance) a) Applying their desired LVR, Calculate the amount Mr and Mrs Monash has to borrow. b) Calculate the deposit Mr and Mrs Monash must contribute in the future. c) Apply financial math to calculate the periodic loan repayment Mr and Mrs Monash must pay (show your formula, substitution and working, missing financial math will result in a 0 mark for this task.) of disposable income to pay for the loan repayment each period. d) Today, Mr and Mrs Monash have $3,300.00 Assuming they maintain this level of income into the future, is this enough to cover the periodic loan repayment needed for the loan? f not, by what percentage will they have to grow their disposable income available to service the loan in the future when they buy their house? Task 2: Given the deposit Mr and Mrs Monash must pay in the future, they also task you with finding a good investment to help them save. Find and present in your business report, the best (highest interest rate) term deposit availlable in the market Mr and Mrs Monash have the following conditions and needs for the term deposit you present to them: (if you breach the conditions below, -2 marks will be deducted for breaching each condition breached) The term deposit is to be from a The term of the deposit matures when they purchase the house in the future. They require interest to be calculated and paid quarterly Credit Union or Mutual Bank. . Mr and Mrs Monash have $260,000 to investment today Given what Mr and Mrs Monash have to invest today, apply financial math and calculate the future value of investing in your recommended term deposit today, for when Mr and Mrs Monash need to buy their house, (show your formula, substitution and working, missing financial math will result in a 0 mark for this task) a) Will Mr and Mrs have saved enough to pay for their deposit in the future? If yes, by what percentage have they exceeded their deposit? If no, by what percentage are they under their deposit. b) Teams need to present the results of both tasks in a Business Report format to Mr and Mrs Monash. Mr and Mrs Monash have hired your team of financial planners to consult on their intention to buy their next home. In 5 years time, they intend buy a 3 bedroom house in Caulfield to live in. They intend to spend $ 1,090,000.00 to buy their house. Task 1: Find and present in a business report, the cheapest (lowest interest rate) home loan in the market. Mr and Mrs Monash have the following conditions and needs of the loan you present to them: (if you breach the conditions above or below, -2 marks will be deducted for breaching each condition breached) The loan has to be from a Credit Union or Mutual Bank. The loan needs to have a Offset facility Mr & Mrs Monash wish to make monthly repyaments They wish to borrow money for 25 years They wish to take a fully amortizing loan. They are interested in a Variale rate loan Mr & Mrs Monash want an LVRo 90% (use comparison rates only) Assume any loan you research allows the LVR desired and ignore mortgage insurance) a) Applying their desired LVR, Calculate the amount Mr and Mrs Monash has to borrow. b) Calculate the deposit Mr and Mrs Monash must contribute in the future. c) Apply financial math to calculate the periodic loan repayment Mr and Mrs Monash must pay (show your formula, substitution and working, missing financial math will result in a 0 mark for this task.) of disposable income to pay for the loan repayment each period. d) Today, Mr and Mrs Monash have $3,300.00 Assuming they maintain this level of income into the future, is this enough to cover the periodic loan repayment needed for the loan? f not, by what percentage will they have to grow their disposable income available to service the loan in the future when they buy their house? Task 2: Given the deposit Mr and Mrs Monash must pay in the future, they also task you with finding a good investment to help them save. Find and present in your business report, the best (highest interest rate) term deposit availlable in the market Mr and Mrs Monash have the following conditions and needs for the term deposit you present to them: (if you breach the conditions below, -2 marks will be deducted for breaching each condition breached) The term deposit is to be from a The term of the deposit matures when they purchase the house in the future. They require interest to be calculated and paid quarterly Credit Union or Mutual Bank. . Mr and Mrs Monash have $260,000 to investment today Given what Mr and Mrs Monash have to invest today, apply financial math and calculate the future value of investing in your recommended term deposit today, for when Mr and Mrs Monash need to buy their house, (show your formula, substitution and working, missing financial math will result in a 0 mark for this task) a) Will Mr and Mrs have saved enough to pay for their deposit in the future? If yes, by what percentage have they exceeded their deposit? If no, by what percentage are they under their deposit. b) Teams need to present the results of both tasks in a Business Report format to Mr and Mrs Monash
