Requirements and Objectives Summary Broker

Transcription

1 Requirements and Objectives Summary Broker Date of Conversation DD/MM/YYYY APPLICANT DETAILS Applicant 1 Date of Birth DD/MM/YYYY Applicant 2 Date of Birth DD/MM/YYYY PRODUCT and LOAN PURPOSE DETAILS Select Product Home Loan Portfolio Loan If Home Loan, select the reason why the applicant is applying for this loan? Buy Build Refinance Home renovations Personal use Invest If Portfolio Loan, select the reason why the applicant is applying for this loan? Buy Build Refinance Home renovations Personal Use Invest in non-residential asset Travel and Holidays RELOCATION LOAN Complete this section if Home Loan Relocation Loan? Interest on Relocation Loan to be capitalised? If Interest on Relocation Loan is to be capitalised, acknowledge the following has been completed I have discussed that when the interest payments are capitalised, the applicant will pay interest on the capitalised interest. Each applicant appears to understand and wants to proceed. WBC0245 BSA STG BOM 0917 Page 1 of 10

2 LINE OF CREDIT ENQUIRIES Complete this section if Portfolio Loan Why has the applicant chosen a line of credit with interest only repayments rather than a loan where they are required to pay off the principal over time? Flexibility of drawdown Flexibility of revolving line of credit Assists with investment purchases and tax planning Ongoing need for funds planning to make a few purchases over a period of time What is the applicant s plan for paying off the line of credit? Savings from income Sale of assets Recurring income from rental property Income from other investments If the applicant s line of credit is reduced or cancelled, how will they repay the amount owing? Sale of Assets Please provide details of asset/s to be sold: I have discussed the higher interest rates applicable to a line of credit as compared to a standard loan. Each applicant appears to understand and wants to proceed. I have discussed that not paying off principal will result in more interest being paid over the loan term. Each applicant appears to understand and wants to proceed. I have discussed with the applicant that line of credit loans require a high level of discipline on behalf of the applicant in order to pay off the loan principal. Each applicant understands and wants to proceed. WBC0245 BSA STG BOM 0917 Page 2 of 10

3 MIXED PURPOSE ENQUIRIES A mixed purpose loan is one partly for personal, domestic or household purposes (where interest paid will usually not be tax deductible) and partly for business or investment purposes (where interest paid will often be tax deductible). A loan can be a mixed purpose loan from the time of establishment, but will more typically occur where either: the initial loan was for personal, domestic or household purposes and the applicant requests a credit limit increase for business or investment purposes the initial loan was for business or investment purposes and the applicant requests a credit limit increase for personal, domestic or household purposes. Mixed Purpose Loan? If Mixed Purpose Loan, complete the following Would the applicant prefer separate loans (possibly secured over the same property), one for each purpose?, please answer the question below Given the possible complications in claiming tax deductions, what are the applicant s reasons for wanting a mixed purpose loan? Cost saving, please provide details: Easier to manage Advised by tax adviser I have discussed with the applicant that there may be complications in claiming a tax deduction in connection with a mixed purpose loan and whether the applicant has sought tax advice regarding the structure of their loan(s). Each applicant appears to understand and wants to proceed. INTEREST RATE TYPE ENQUIRIES Interest Rate Type? Fixed Interest Rate Variable Interest Rate Both (Fixed and Variable Rates) If Fixed Interest Rate or Both (Fixed and Variable Rates) is selected, complete the following What is important to the applicant about a fixed rate? Certainty of repayments Make budgeting easier Lock in the applicable interest rate I have discussed that restrictions to additional repayments apply when the interest rate is fixed. Each applicant appears to understand and wants to proceed. I have discussed the possibility of expensive break costs if the additional repayments exceed the threshold, the loan is repaid in full or switched to another product or loan type within the fixed rate period. Each applicant appears to understand and wants to proceed. WBC0245 BSA STG BOM 0917 Page 3 of 10

4 REPAYMENT TYPE ENQUIRIES Complete this section if Home Loan Repayment Type? Principal and Interest Interest Only Interest in Advance If Interest Only and/or Interest in Advance is selected, complete the following. Why has the applicant chosen interest only repayments? Smaller initial repayments to boost cash on hand Flexibility to manage cash flow Smaller initial repayments to maximise tax deductions (This loan is for investment purposes) Smaller initial repayments to free up cash flow for other personal purposes Priority is paying off non-deductible debts (This loan is for investment purposes) I have discussed the higher interest rates applicable to interest only loans (where applicable). Each applicant appears to understand and wants to proceed. I have discussed not paying off principal will result in more interest being paid over the loan term. Each applicant appears to understand and wants to proceed. I have discussed that after the end of the interest only repayments period principal and interest repayments will be required and that these will be higher than they would have been if the loan had principal and interest repayments throughout its term. Each applicant appears to understand and wants to proceed. I have discussed that the amount of equity that can be built-up in the home will be less with an interest only home loan than with a principal and interest home loan. Each applicant appears to understand and wants to proceed. If Interest in Advance is selected, complete the following Why has the applicant chosen to pay interest in advance? For tax advantages Discounts on interest rate Helps maximise cash flow and budgeting I have discussed that interest in advance is only available where the loan is on a fixed rate and the purpose is Investment. Each applicant appears to understand and wants to proceed. I have discussed that an upfront payment equivalent to the chosen interest in advance period s worth of interest only repayments, is required to participate in this option. Each applicant appears to understand and wants to proceed. WBC0245 BSA STG BOM 0917 Page 4 of 10

5 LMI ENQUIRIES Is LMI Required? If LMI is required, acknowledge the following has been completed I have discussed that lender s mortgage insurance protects the lender if the applicant is unable to meet their loan obligations but this does not relieve the applicant of their obligation to repay the loan. Each applicant appears to understand and wants to proceed. I have discussed the extent to which lender s mortgage insurance premiums are refundable where the loan is repaid early. Each applicant appears to understand and wants to proceed. LMI To Be Capitalised? If LMI is to be capitalised, acknowledge the following have been completed I have discussed that adding the lender s mortgage insurance premium to the loan will increase the size of the loan and repayments. Each applicant appears to understand and wants to proceed. I have discussed that adding the lender s mortgage insurance premium to the loan will mean that the applicant will pay interest on it for the term of the loan. Each applicant appears to understand and wants to proceed. PURCHASE OF NON REAL ESTATE ASSET ENQUIRIES Complete this section if Home Loan Is the applicant planning to use all or part of the loan proceeds to buy goods? If purchasing a non-real estate asset, acknowledge the following have been completed I have discussed that the goods may not hold their value for as long as the remaining term of the loan and so the applicant may be paying for it beyond the useful lifespan of the goods. Each applicant appears to understand and wants to proceed. I have discussed with the applicant the option of a separate loan with a shorter term for the part of the loan required for the purpose of the goods. Each applicant appears to understand and wants to proceed with the specified loan term. WBC0245 BSA STG BOM 0917 Page 5 of 10

6 REFINANCE If Refinance, is the applicant refinancing an existing loan that has a remaining term of > 6 months?, complete the following Loan 1 Loan 2 Loan 3 Loan 4 Name of Lender What is the interest rate on the applicant s existing loan? What are the fees and charges on the applicant s existing loan not included in the applicant s repayments and how often are they payable? How much are the applicant s repayments? How often does the applicant make the repayments? What exit fees/break costs does the applicant need to pay to close the loan? What is the remaining term (in years) of the applicant s current loan/facility? Why does the applicant want to refinance the existing loan (answer for each loan)? Loan 1 Loan 2 Loan 3 Loan 4 Reduced monthly repayments under the new loan Lower interest rate under new loan Increasing total amount of loan Greater flexibility under new loan Extra loan features under new loan Want to reduce number of lenders Dissatisfied with other financial institution Other details: WBC0245 BSA STG BOM 0917 Page 6 of 10

7 If Refinance, acknowledge the following has been completed I have discussed that any Lenders Mortgage Insurance (LMI) already paid may not be refundable. Each applicant appears to understand and wants to proceed. If Refinance, is the applicant refinancing an existing loan that has a remaining term of > 6 months and less than the new loan?, complete the following Why has the applicant requested a new loan term that is greater than the remaining term on their existing loan? Improved monthly cash flow due to lower repayments DEBT CONSOLIDATION Is the applicant consolidating unsecured debt (e.g. credit cards, personal loans or car loans) into a home loan? If consolidating unsecured debt into a home loan, acknowledge the following have been completed I have discussed that despite consolidating the debt into a lower interest rate loan, the term will be longer and the applicant may end up paying more interest, particularly if following the debt consolidation the applicant incurs further unsecured debt. Each applicant appears to understand and wants to proceed. I have discussed that if the applicant can t make the repayments, the property being used as security may be at risk. Each applicant appears to understand and wants to proceed. WBC0245 BSA STG BOM 0917 Page 7 of 10

8 FORESEEABLE CHANGES Examples of Foreseeable Changes which may adversely impact the applicant s ability to meet their loan repayments include: a change to employment which may result in reduced income; parental or other extended leave; an upcoming bullet or balloon repayment for an existing loan; an interest only, no repayment or honeymoon interest rate period for an existing loan ending. FORESEEABLE CHANGES APPLICANT 1 Does the applicant anticipate or plan any significant changes to their financial situation that would ADVERSELY impact their ability to meet their loan repayments? If yes, what is the timeframe for the change (select one)? Within 3 Years Beyond 3 Years If the change is Within 3 Years, what is going to change (select one)? Temporary decrease in disposable income Permanent decrease in disposable income Anticipated large expenditure Provide details of what is going to change within 3 years: FORESEEABLE CHANGES APPLICANT 2 Does the applicant anticipate or plan any significant changes to their financial situation that would ADVERSELY impact their ability to meet their loan repayments? If yes, what is the timeframe for the change (select one)? Within 3 Years Beyond 3 Years If the change is Within 3 Years, what is going to change (select one)? Temporary decrease in disposable income Permanent decrease in disposable income Anticipated large expenditure Provide details of what is going to change within 3 years: If the change is Beyond 3 Years, what is going to change (select one)? Extended unpaid leave (e.g. maternity) End of contract/loss of employment Reduced Income Retirement Leaving employment Medical treatment/illness Increased debt repayments Large expenditure If the change is Beyond 3 Years, what is going to change (select one)? Extended unpaid leave (e.g. maternity) End of contract/loss of employment Reduced Income Retirement Leaving employment Medical treatment/illness Increased debt repayments Large expenditure What is the applicant s plan for making repayments when this happens (select one)? Using Savings Securing Additional Income Application reflects change Reduced expenditure Sale of Asset Provide details of the applicant s plan for making their repayments when this happens: What is the applicant s plan for making repayments when this happens (select one)? Using Savings Securing Additional Income Application reflects change Reduced expenditure Sale of Asset Provide details of the applicant s plan for making their repayments when this happens: WBC0245 BSA STG BOM 0917 Page 8 of 10

9 SPECIAL CIRCUMSTANCES Special Circumstances refers to circumstances other than those covered by the questions in the application on marital/ spousal status, number of dependants under 18 years and post-settlement residential address. Examples of special circumstances which may impact on living expenses include: children in private schools; dependants (i.e. persons financially reliant on the applicant) who are 18 years or older, other than a spouse; dependants with health issues, disabilities or special needs. Living in a remote location or the number of dependents under the age of 18 is not relevant as to whether there are special circumstances. SPECIAL CIRCUMSTANCES APPLICANT 1 Does the applicant have any special circumstances which may impact on their living expenses? If yes, what are the special circumstances? SPECIAL CIRCUMSTANCES APPLICANT 2 Does the applicant have any special circumstances which may impact on their living expenses? If yes, what are the special circumstances? Are the financial impacts of the above stated special circumstances included in the figures for living and fixed expenses provided by the applicant? If no, provide details of the financial impacts of the applicant s special circumstances? Are the financial impacts of the above stated special circumstances included in the figures for living and fixed expenses provided by the applicant? If no, provide details of the financial impacts of the applicant s special circumstances? ARREARS APPLICANT 1 Is the applicant over the credit limit, in arrears or in hardship in relation to any existing credit or other fixed expenses? If yes, please provide details of the arrears? ARREARS APPLICANT 2 Is the applicant over the credit limit, in arrears or in hardship in relation to any existing credit or other fixed expenses? If yes, please provide details of the arrears? WBC0245 BSA STG BOM 0917 Page 9 of 10

10 RETIREMENT STRATEGY ENQUIRIES APPLICANT 1 If the applicant is >= 45 years, at what age is the applicant planning to retire? Already Retired RETIREMENT STRATEGY ENQUIRIES APPLICANT 2 If the applicant is >= 45 years, at what age is the applicant planning to retire? Already Retired Plans to retire at age of years Plans to retire at age of years Plans to keep working and not retire Complete the following if the applicant Is not retired AND their planned retirement age is >= 75 years OR will reach their planned retirement age above during the loan term How is the applicant planning to pay off this loan once they retire (voluntarily or due to circumstances which arise)? Repayment of loan prior to retirement Downsizing of home Sale of assets Recurring income from superannuation Superannuation lump sum following retirement Income from other investments Other, please provide details; Provide details of the applicant s repayment strategies once they retire. Plans to keep working and not retire Complete the following if the applicant Is not retired AND their planned retirement age is >= 75 years OR will reach their planned retirement age above during the loan term How is the applicant planning to pay off this loan once they retire (voluntarily or due to circumstances which arise)? Repayment of loan prior to retirement Downsizing of home Sale of assets Recurring income from superannuation Superannuation lump sum following retirement Income from other investments Other, please provide details; Provide details of the applicant s repayment strategies once they retire. OTHER REQUIREMENTS AND OBJECTIVES Does the applicant have any other requirements and objectives not already stated which may affect the suitability of this loan? WBC0245 BSA STG BOM 0917 Page 10 of 10