Refinance clinic · Pre-work scenario sheet

Scenario A · Mark & Sarah

Enter into MyCRM before the session
Applicant 1
NameMark Thompson
Age36
OccupationElectrician
Employment typePAYG, full-time
Time in role4 years
Gross income$105,000
Applicant 2
NameSarah Thompson
Age34
OccupationTeacher aide
Employment typePAYG, part-time
Time in role3 years
Gross income$48,000
Existing loan
Current lender[Major bank]
Loan balance$468,000 total across two splits
Split 1$310,000, variable, 6.59%
Split 2$158,000, variable, 6.64%
Offset accountNone
Repayment typeP&I, minimum on both splits
Time with lender5 years
Property
Property typeOwner-occupied, house
Purchase price (2021)$540,000
Estimated current value$720,000 (comparable sale at $720,000 three doors down)
Estimated LVR65%
Other debts
Debt Balance Rate Remaining term
Personal loan 1$18,00011.9%3 years
Personal loan 2$14,00012.5%2.5 years
Credit card$6,800 (limit $9,000)21.9%Revolving
What the client wants

A better rate. They have not asked about consolidation, cash-out, or restructuring. They do not know what an offset account is. Their bank has indicated it may match the rate but has not made a formal offer.

Pre-work
Enter this scenario into MyCRM as a new fact find before the session. Complete the applicant details, existing loan, property, and liabilities. Come ready to discuss what you would do with this file.
Given Finance Pty Ltd trading as Lendology · Credit Representative via LMG Broker Services · Australian Credit Licence 517192A
Refinance clinic · Pre-work scenario sheet

Scenario B · Leanne

Enter into MyCRM before the session
Applicant
NameLeanne Mitchell
Age52 (turns 53 in two months)
DependantsNone
OccupationSenior Constable, South Australia Police
Employment typePAYG, full-time
Time in role11 years
Income breakdown
Component Annual Notes
Base salary$96,000Fixed, per enterprise agreement
Shift allowances$14,000Regular, consistent each year
Overtime$8,000 avg2 year average. Last 12 months was $12,000 due to an operation
Operation loading$4,000One-off, not recurring
Group certificate total$118,000Assess what a lender will actually use
Existing loans (cross-collateralised, single facility)
Property 1 · Home (owner-occupied)
Estimated value$840,000
Loan balance$285,000
Property 2 · Investment
Estimated value$510,000
Loan balance$375,000
Interest claimedYes, tax deduction
What the client wants

Release $110,000 equity from the home for a kitchen and bathroom renovation. Her current bank said no. She wants to refinance to a lender who will say yes. She has not mentioned the investment loan deductibility or her age in relation to loan term.

Other debts

None disclosed.

Pre-work
Enter this scenario into MyCRM as a new fact find before the session. Pay close attention to how you enter the income components. Think about what usable income figure you would use and why. Come ready to present your assessment to the room.
Given Finance Pty Ltd trading as Lendology · Credit Representative via LMG Broker Services · Australian Credit Licence 517192B