Application
This unit applies to job roles in the finance and mortgage broking industries. |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Gather relevant information | 1.1. Lender products, services and features are reviewed and additional industry information researched, where necessary, for lender products and services that are relevant, could impact or provide additional benefits to clients 1.2. Clients needs are acknowledged and compared to most appropriate lender product and service |
2. Prepare appropriate options | 2.1. Relevant lender information, product information, and support material are gathered and developedin a clear and concise format for the client 2.2. All information is organised clearly and concisely in a manner appropriate to the client's needs and level of understanding |
3. Present options to client | 3.1. Recommended product and its features is explained to client in a clear and unambiguous way with the impact of recommendations clearly and comprehensively discussed with the client including strengths, weaknesses, benefits and risks 3.2. Fees, charges and commissions are clearly explained to client 3.3. Strategic and commercial relationship of the representative and their organisation to recommended products is communicated to the client |
4. Negotiate effectively | 4.1. Client concerns, if any, are identified and responded to appropriately and alternatives to recommendations presented when requested 4.2. Client is encouraged to make informed choices using the relevant information and documentation presented |
5. Obtain agreement to proceed | 5.1. Agreement to proceed is obtained from client once concerns and issues are worked through and implementation actions discussed, clarified and agreed between client and broker 5.2. Client records are created or updated appropriately and in a clear and concise format in anticipation for preparation of the loan application |
Required Skills
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Required skills |
well-developed communication skills to: determine and confirm client requirements, using questioning and active listening as required build rapport with the client and clearly explain recommended product features, advantages and disadvantages liaise with others, share information, listen and understand use language and concepts appropriate to cultural differences customer service skills such as: providing appropriate contact with client throughout the broking procedure presenting information in a variety of formats to ensure understanding appropriate timing of events in the broking process research and analysis for accessing, interpreting and managing complex information and analysing client needs and product features numeracy and IT skills to: access and use appropriate software to determine loan terms, interest rates, payments and other relevant information plus spreadsheets and databases calculate client debt and risk quickly and accurately access internet information literacy skills to: read and interpret organisational and industry information prepare client records and related documentation organisational skills, including the ability to plan and sequence work |
Required knowledge |
basic accounting and mathematical techniques to calculate: interest rates mortgage payments other relevant terms of a loan government grants such as: First Home Buyer assistance packages special assistance for disadvantaged or low income earners others that are current and relevant at the time of client interest negotiation techniques presentation techniques including technology supported products and services provided by the organisation's appropriate lenders relevant fees, charges and commissions |
Evidence Required
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. | |
Overview of assessment | |
Critical aspects for assessment and evidence required to demonstrate competency in this unit | Evidence of the ability to: identify relevant information based on industry and product knowledge and match it to client needs present information to clients effectively negotiate effectively and gain commitment from a client. |
Context of and specific resources for assessment | Assessment must ensure: competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment access to and the use of a range of common office equipment, technology, software and consumables access to lending product information access to relevant software system and data. |
Method of assessment | A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit: evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency observing processes and procedures in workplaces or role plays verbal or written questioning on underpinning knowledge and skills setting and reviewing workplace projects and business simulations or scenarios evaluating samples of work accessing and validating third party reports. |
Guidance information for assessment |
Range Statement
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. | |
Additional industry information may include: | financial reports and brochures internet research new company information about products, services and special features statistics from respected magazines and consumer reports. |
A format for presenting information may include: | a presentation prepared in advance: in document format presentation software overheads other presentation methods a written report or proposal verbal information presented directly to the client. |
Products and product features may include: | additional payment features fixed or variable rates features investment property products partial interest offset features rate lock features redraw features residential mortgage products for finance brokers specifically: chattel products commercial mortgage products. |
Fees, charges and commissions may include: | commissions from lenders commissions paid to franchisees down payments interest payments loan establishment fees loan value fees taxes and payments to secure a property stamp duty trailing commissions. |
Strategic and commercial relationships may include: | exclusivity of relationships with certain banks or lenders if products are those of the organisation. |
Client concerns may include: | possible accrued debt price/interest resistance resistance to company or broker risk timing issues uncertainty about the product. |
Implementation actions may include: | collecting relevant information for loan processing collecting support documentation for loan processing obtaining signatures from relevant persons and officials. producing accounting information updating bank and finance information. |
Sectors
Unit sector | Finance/mortgage broking |
Employability Skills
This unit contains employability skills. |
Licensing Information
Not applicable.