FNSFMB512 - Client Project #1 (Suzie and Martin Connor) - Case Study Questions v1.0
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FNSFMB512 – Identify and develop credit options for clients with special financial circumstances (Release 1)
Client Project (Suzie and Martin Connor)
Client Project #1
S
UZIE
AND
M
ARTIN
C
ONNOR
Case Study Questions
What you need to do:
Page | 1 of 6
© Real Estate Academy Australia
Version 1.0 – May 2022
RTO 32426
FNSFMB512 – Identify and develop credit options for clients with special financial circumstances (Release 1)
Client Project (Suzie and Martin Connor)
Answer the questions below by writing in the space provided.
You are required to answer all questions correctly. If correct, you will see
‘Satisfactory’ or if incorrect you will see ‘Not Satisfactory’ in your grades section of
your learner portal next to the assessment name. The assessor will provide feedback
and a Record of Results in the assessment task once graded. You will be required to
resubmit your work for any ‘Not Satisfactory’ assessment tasks.
What you will need:
Use the learner material provided in your online student portal as well as research
materials such as books, internet, magazines, workplace documentation etc. to
assist you in gaining the knowledge required to answer the questions. Remember
that the assessment task is self-paced and open book. You can use whichever
resources you have to answer the questions.
What you need to submit:
Your answers to these questions.
How to Submit your Assessment:
Upload your completed document into your learner portal following the
instructions provided within the assessment task. You can drag and drop the file into the window or use the add file icon in the
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Page | 2 of 6
© Real Estate Academy Australia
Version 1.0 – May 2022
RTO 32426
FNSFMB512 – Identify and develop credit options for clients with special financial circumstances (Release 1)
Client Project (Suzie and Martin Connor)
Scenario 1 – Suzie and Martin Connor
Suzie and Martin Connor are a married couple without dependent, owning their
owner-occupied home in the suburb of Ipswich, 4305 QLD.
The property has been valued by a local real estate agent for $320,000 a couple of
weeks ago as they want to sell their property to upsize as they plan on having a baby
soon.
The balance of their current mortgage loan is $102,000 and they would like all fees
and costs associated with the purchase of a new property included in the new
mortgage. They want to keep their savings for their child to come.
It’s been agreed between them that Suzie would terminate her current casual
employment to be a stay-at-home mother and look after their first child for at least
the next two years or so.
They visited a home a few days ago only two blocks from their current home and fell
in love with the place. They made an offer at $510,000 that was accepted this
morning. The couple is adamant that this is THE home they want, and they are ready
to take appropriate moves to make it happen as soon as possible. They are a
‘connected’ and very busy couple so prefer a lender with great online services and if
possible, allows for a fully digital application.
While they are very excited about this fantastic news, they are also a little nervous as
they have no idea yet on how to make their wish come true. Both Suzie and Martin’
risk profiles were assessed, and their risk capacity was evaluated as being
‘Moderate to Aggressive’.
Whilst their current property has been on the market for two weeks and has received
lots of interest, they have not secured a contract yet on their place and they hope
this will not stop them from purchasing their newly found dream home.
The following information and supporting documentation have been provided by
Suzie.
●
IDs
●
Assets & Liabilities
●
Needs Analysis Questionnaire
●
Suzie’s latest 2 payslips
●
Martin’s latest 2 payslips
●
Latest Home Loan Statement
●
Latest Credit Card Statement
●
Latest Car Loan statement
●
3 months bank statements
●
3 months saving bank statements
Based on the supporting documentation and the information you hold, complete the
activities below.
This activity will assess your ability to determine special financial needs and risk
profile for clients.
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FNSFMB512 – Identify and develop credit options for clients with special financial circumstances (Release 1)
Client Project (Suzie and Martin Connor)
Question 1
Identify from the supporting documentation and information you hold what are the
goals & objectives, requirements, and situation of the Connor’s couple.
Suzie and Martin Connor
Goals
and
Objectives
1- Upsize their current home as they plan to have a baby
soon.
2- Secure a new property that they fell in love with, located
two blocks away from their current home
3-
.stay at home and look after their first child at least next
2yr
Requirements
1- Include all fees and costs associated with the purchase
of the new property in the new mortgage.
2- Prefer a lender with great online services and a fully
digital application process.
3- don’t want to use their savings Situations
1- ●Married couple without dependents. ●Currently own an
owner-occupied home in Ipswich, QLD. 2- Property value of their current home is $320,000.
●Remaining mortgage loan balance is $102,000.
3- ●Suzie plans to terminate her casual employment and be
a stay-at-home mother for at least the next two years. ●Risk
profile assessed as "Moderate to Aggressive." ●Their
current property has been on the market for two weeks, but
they have not secured a contract yet.
Page | 4 of 6
© Real Estate Academy Australia
Version 1.0 – May 2022
RTO 32426
FNSFMB512 – Identify and develop credit options for clients with special financial circumstances (Release 1)
Client Project (Suzie and Martin Connor)
Question 2
From your findings from the previous question, assess and analyse the clients’
special financial needs and describe the most obvious type of loan that might be best
suited to the clients’ situation. Justify why this type of finance opportunity would be
appropriate according to their circumstances.
Based on their goals, requirements, and situation, the most obvious type of loan
that might be best suited to the Connor couple's situation is a "Home Loan for
Upsizing." This type of loan would allow them to finance the purchase of their new
home while considering their current financial circumstances. It could include the
funds required to settle the new property and potentially incorporate the fees and
costs associated with the purchase. Justification: A home loan for upsizing would be appropriate for the Connor couple
because it provides the necessary financing to purchase their desired property
without depleting their savings earmarked for their future child. This loan type
would enable them to transition to a larger property suitable for their growing family
and accommodate Suzie's plan to be a stay-at-home mother. Additionally, it aligns
with their risk profile of being "Moderate to Aggressive" as it allows them to pursue
their goals while managing financial commitments.
Question 3
Identify and define the risks and constraints associated with this type of loan.
Risks and constraints associated with a home loan for upsizing in the Connor
couple's situation may include: Financing Risk:The risk of not being able to secure the required financing amount
due to factors such as creditworthiness, loan-to-value ratio, or changes in lending
criteria. This could impact their ability to purchase the desired property. Market Risk:The risk of changes in property values or market conditions that could
affect the resale value of their current home or the value of the new property they
wish to purchase. Fluctuations in the property market could impact their overall
financial position. Repayment Risk:The risk associated with the ability to meet mortgage repayments
on the new loan, considering potential changes in income (Suzie terminating
employment) and other financial commitments.
Question 4
According to the legislative requirements, assess the impact of the risks identified in
question 3 against the risk tolerance of Suzie and Martin and clarify if this type of
finance aligns with their risk profiles.
Page | 5 of 6
© Real Estate Academy Australia
Version 1.0 – May 2022
RTO 32426
FNSFMB512 – Identify and develop credit options for clients with special financial circumstances (Release 1)
Client Project (Suzie and Martin Connor)
As per the information provided, the risk tolerance of Suzie and Martin has been
evaluated as "Moderate to Aggressive." This suggests that they may be willing to
take on some level of risk in pursuit of their financial goals. However, it is important
to assess the impact of the identified risks against their risk tolerance. Considering the risks associated with financing, market fluctuations, and repayment, it is
crucial to conduct a thorough risk assessment and affordability analysis to ensure that the
loan aligns with their risk profiles and financial capabilities. The risks should be adequately
disclosed to Suzie and Martin, allowing them to make an informed decision based on their
risk tolerance and financial circumstances. Justification: As the provided information
states that Suzie and Martin's risk tolerance is "Moderate to Aggressive," it suggests they
may be open to taking on certain risks. However, the impact of specific risks associated
with the home loan for upsizing should be assessed and communicated to them to ensure
their understanding and informed decision-making.
Question 5
You are accredited with the following lenders and are to assess your ability to meet
your clients’ goals and objectives: are you comfortable you can meet these and act
in the best interests of Suzie and Martin? Justify your response.
●
Westpac ●
ANZ ●
Heritage Bank ●
BOQ ●
CBA ●
Bankwest
To assess my ability to meet the goals and objectives of Suzie and Martin, as well
as act in their best interests, I should consider factors such as interest rates, loan
features, repayment terms, digital capabilities, and overall suitability of products
offered by these lenders. It is important to compare their offerings, terms, and
conditions against the specific requirements and preferences of Suzie and Martin
to determine which lender(s) can best meet their needs and align with their goals
and risk profile. I will follow their best interests.
Page | 6 of 6
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