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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Educate clients and build rapport
   • Explain the finance and mortgage broking process to clients in a clear and unambiguous way, and clarify the background, credentials and role of the broker to build rapport
   • Present the services, values and capacity of the organisation to clients and confirm client understanding of fees and charges
   • Identify and confirm procedures for complaints handling and resolution with clients
2. Determine clients’ existing financial situation
   • Ask clients to disclose relevant facts to begin determining their personal and financial situation and establish clients’ current income, expenditure and liabilities
   • Determine current investment and assets position of clients and conduct initial analysis of clients’ financial position based on extent of client disclosure
3. Determine client goals and priorities with respect to broking services
   • Ask clients to clarify their product expectations
   • Comprehensively explore differences in what products provide and what clients expect, and respond to client concerns, if any, promptly and appropriately
   • Establish and confirm client priorities
   • Seek specialist advice where necessary or refer clients to appropriate sources where required advice or services cannot be provided
4. Prepare necessary documentation follow up
   • Document and check all relevant client facts, information, financial and personal histories and manage confidentially in accordance with organisational policy and guidelines, and relevant legislation and industry codes of practice
   • Create or update client records where necessary in a clear and concise format, and file securely in a format and location readily accessible to other appropriate advisers
5. Determine clients’ existing financial situation
   • Ask clients to disclose relevant facts to begin determining their personal and financial situation and establish clients’ current income, expenditure and liabilities
   • Determine current investment and assets position of clients and conduct initial analysis of clients’ financial position based on extent of client disclosure

Performance Evidence

Evidence of the ability to:

use effective communication skills to build rapport with clients and clearly explain information relating to finance and broking processes and products

document and analyse clients’ financial position according to organisational and industry requirements

comply with company policy and relevant legislation in regards to disclosure so clients can make informed decisions.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

explain basic financial and accounting terms and concepts relating directly to mortgage or finance broking including:

variable and fixed rate interest rates

types of mortgage accounts

procedures and principles of deposit bonds

financial records relating to different ownership models

describe key features of complaint handling and resolution processes, and roles of the various alternative disputes resolution schemes and services

explain credit and credit reporting services

describe key features of the economic environment and business cycle, financial markets and the roles of industry participants, interest rates, exchange rates and inflation

identify and describe key features of the legal environment and relevant legislation affecting finance and mortgage broking services in regards to:

disclosure

privacy

industry codes of practice

National Credit Code

describe the key features of lender’s mortgage insurance

explain loan transaction terminology and definitions of the parties involved including:

lender and borrower

lessor and lessee

mortgagee and mortgagor

explain real estate terms and concepts including:

land titles and searches

strata title versus company title

multiple securities

securing second mortgages

subdivisions of title

partial discharge of mortgage where multiple securities are held by lender

categorise and explain types of fees and charges.

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