Task 2 Prepare complex broking options

You are required to prepare a proposal for Rahn and Deepa outlining the loan approval process and the transaction risks they should be aware of.

Prepare the proposal document, in a suitable format, and explain the consumer loan options available to Rahn and Deepa. Outline the process that will need to take place for them to complete the purchase of the property and construction of the three units.

In developing your report, you should cover the following:

1. Who the parties to the loans are.

2. Provide Rahn and Deepa with two initial loan products that would meet their requirements.

Option 1: Residential home loan secured by the family home to provide the required equity

Option 2: Property development loan to assist with purchase of land and construction.

3. Your recommendation for the best loan structure option for each loan, including:

amounts

security/collateral for each loan

terms

repayment types

LVRs for each loan

explanation why each of the loans are suitable for the clients.

4. Provide Rahn and Deepa with a preliminary assessment, as required under your regulatory responsible lending obligations, outlining the three (3) lenders that provide the product required to facilitate this transaction, and advise the client of the product type, loan term, interest rate, ongoing fees and monthly repayment for each of the products.

5. Describe the procedure, from initial interview to unconditional loan approval, including documentation required from Rahn and Deepa .Ensure you mention the compliance documents you need to complete.

6. Describe the client responsibilities, so Rahn and Deepa understand the facilities being proposed.

7. Outline the risks (potential and real) of which Rahn and Deepa should be made awareof, including using their own home as security.

8. Prepare a full funding description including a summary of fees and charges for the initial purchase of the land through to completion of project. Ensure you include the costs for setup and those of the lender.

9. Prepare a time line for the project detailing payments and where funds will be obtained from.

10. A request for the client to inform you of any questions about the transaction and/or provide an instruction for you to proceed.

11. Advise which relevant disclosures need to be made regarding broker remuneration.

(800 words)

Notes: Any assumptions you make should be listed, and not be in conflict with the case study information already provided.

You are to write a report to clients demonstrating your professional writing skill, not simply commenting on each of the points detailed above.

The use of tables in the report, to set out some of the numeric information, may be of benefit.

Student response to Task 2

Answer here

Customer(s) full name(s)
Address
Phone and e-mail
Proposed finance Interest rates and repayments may change if the lender changes its interest rate.	Lender:
Split 1	Purpose: Finance amount: Interest structure: Interest rate: Term: Repayments: Other features:
Split 2	Purpose: Finance amount: Interest structure: Interest rate: Term: Repayments: Other features:
Total loan amount	$
Fees payable by you to us. These fees are payable by you.	$
Commission is payable for:
Commission payable by:
Commission payable to:
Reasonable estimate of commission:	% of the amount of credit limit shortly after the finance is provided. We estimate this to be $ % per annum of your amount owing from time to time payable monthly. We estimate the largest monthly payment to be $