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FNSFMB403A Assessment 1
Version 1
Last updated Feb 12
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Diploma of Finance and Mortgage
Broking Management
Course 10732
Present broking options to clients
All elements of this unit are covered by this assessment
This unit is UNGRADED and will be recorded as competent/not yet competent on your official transcript
To be assessed as competent in this section of the unit you must achieve 80% overall competency
To complete this assessment reference to previous units may be needed.
ALL questions to be attempted
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Note: Copying information directly from the course notes is plagiarism unless it is properly referenced. In addition it is not a competent answer unless an explanation in your own words is also provided to demonstrate your understanding.


You have just completed your first interview with George and Mary Williams who are looking to buy a house. You have gathered all of the required information from the interview, which included:
• They wish to upgrade and purchase a house that is located in Fedtown. It is a 4 bedroom house so that the 3 children each have their own room.
• The house is on the market for $755,000 and they have just accepted an offer on their existing house for $440,000. They have enough savings to pay for all required fees.
• They have credit cards with combined limits of $15,000 which they pay off each month.
• George is an Accountant with a large accounting firm located in the CBD and earns $130,000 p.a. Mary works part time in the local primary school’s office and earns $25,000 p.a.
• George receives a small bonus each year that they like to put towards paying off the loan.
• They want certainty in their repayments to fit in with their budget.
• It is difficult for them to find time to see you face to face.
Additional information
Assume all relevant documentation is given to the Williams’ when required eg. Brokers agreement.
Question 1
Explain how you would research lenders products to be able to recommend the one/s that best suit the Williams’ needs?
Question 2
George wants to find out more about how monetary policy/interest rates have changed over recent times.
a) Identify which participant in the financial system could help George.
b) Provide one reason why you have chosen this participant.

Question 3
Complete the following table for two loan products you would recommend:
Client profile:
Client needs:
Loan product 1
3. Reasons for selection
3. Fees and charges applicable
Loan product 2
_________________ Features
Reasons for selection
3. Fees and charges applicable
Question 4
Explain three drawbacks/risks that the Williams’ should be made aware of for each of the loan products you have recommended in Question 3.
Loan Product 1
______________________ Loan Product 2 _______________________
1. 1.
2. 2.
3. 3.
Question 5
a) As the Williams’ are unable to see you face to face, list and describe two formats that you could use to present these options to them.
b) List four items of information you will need to include in the presentation.
Question 6
The Williams’ are concerned with the monthly fee that is payable on the loan product you have recommended. Describe in your own words two negotiation skills you could use to address this objection.
Question 7
All of the Williams’ concerns have now been addressed and they seem very happy. Using closing question techniques and the examples provided in the course, create two questions you would use to obtain agreement to proceed.
Question 8
Having obtained verbal agreement what is the next step you will need to take (before completing the loan application)?