Topic 3-3

Supplementary material

Credit Proposal
© Reproduced with permission.

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 Credit Proposal
XYZ Pty Ltd

APPLICANT DETAILS
Applicant One Applicant Two
First Name/s
Surname
Date of Birth
Number & Age of Dependants
Relationship to other Applicant
Mobile
Email
Current Address
Employment status
Occupation
Basic Salary

If Purchase If Re-Finance

Max Price of Property Estimated Value of Property

$

How much do you wish to borrow Current Loan Amount

$

Address of Property (if known) Current Lender

First Home Buyer Address of Property

Deposit Available Proposed new loan amount

$ $

Estimated Settlement Date Estimated Settlement Date

REQUIREMENTS & OBJECTIVES

XYZ Pty Limited

ABN 12 345 678 000 l Australian Credit Licence: 123456
123 Jones Street, Jonestown, NSW 1234
CONFIDENTIAL Ph: 1300 111 111 1 of 8
 Credit Proposal
XYZ Pty Ltd

FINANCIAL POSITION
ASSETS
Income
Item Details Value Owner
Generated
Primary Residence
Household
Contents
Motor Vehicle
Cash/Savings
Portfolio
Super
Super
Super

LIABILITIES
Monthly Balance
Item Details Borrower
Payments Owing

XYZ Pty Limited

ABN 12 345 678 000 l Australian Credit Licence: 123456
123 Jones Street, Jonestown, NSW 1234
CONFIDENTIAL Ph: 1300 111 111 2 of 8
 Credit Proposal
XYZ Pty Ltd

HOUSEHOLD EXPENDITURE
FIXED EXPENSES
Item Weekly Monthly Quarterly Annually
Insurance – Car, house etc
Charitable Contributions
Childcare
Car – Registration, petrol etc
Groceries
Utilities
Medical
Entertainment
Other -
Total

PURCHASE NUMBERS delete if not applicable

Purchase price
Stamp duty
Legal costs
Lender establishment fees
Total required

Loan Amount
LMI
Total loan

Total required
Loan (before LMI)
Shortfall/Surplus

XYZ Pty Limited

ABN 12 345 678 000 l Australian Credit Licence: 123456
123 Jones Street, Jonestown, NSW 1234
CONFIDENTIAL Ph: 1300 111 111 3 of 8
 Credit Proposal
XYZ Pty Ltd

REFINANCE NUMBERS delete if not applicable

Estimated property value
LVR required

Loan being refinanced #1

Loan being refinanced #1
Other debt
Other funds required
Total required
Total loan from LVR
Shortfall/Surplus

ESTIMATED REPAYMENTS
Note split if required P & I MONTHLY INTEREST ONLY MONTHLY
$ FIXED
$ VARIABLE

SIGNIFICANT CHANGES IN THE FUTURE

Do you know of any foreseeable significant changes to your circumstances that will lead to changes in your
ability to make contracted repayments? Provide details.
Applicant One (yes/no) Applicant Two (yes/no)
Temporary change in income
Permanent change in income
Anticipated large expenditure
How will this change be overcome?

Is there anything else that may reasonably be expected to have a bearing on your application for credit,
knowing that if you leave such information out it may create problems in the future? Please specify:

Are you comfortable with your ability to make repayments under the proposed loan without difficulty?
Please specify:

Is there anything else that we should be aware of?

XYZ Pty Limited

ABN 12 345 678 000 l Australian Credit Licence: 123456
123 Jones Street, Jonestown, NSW 1234
CONFIDENTIAL Ph: 1300 111 111 4 of 8
 Credit Proposal
XYZ Pty Ltd
Broker’s details (“we/us”)
Licensee’s name and address:
Credit Licence Number
External Dispute Resolution Scheme
Credit representative’s name and address:
Credit representatives Phone Number
External Dispute Resolution Scheme
Nature and range of services
List of panel lenders
Fees payable by you
ABN 12 345 678 000 l Australian Credit Licence: 123456
123 Jones Street, Jonestown, NSW 1234
CONFIDENTIAL
XYZ Pty Ltd ACN 123 456 789
123 Jones Street, Jonestown NSW 1234
123456
CIO
Tim Jones
123 Jones Street, Jonestown NSW 1234
1300 111 111
If you have any complaints about our services, contact us. If we
are unable to resolve your problem, you may contact our
external dispute resolution scheme. External dispute resolution
is a free service established to provide you with an independent
mechanism to resolve specific complaints. Our external dispute
resolution provider is CIO (Credit and Insurance Ombudsman)
phone 1800 138 422, http://www.cio.org.au/.
We will help you choose a loan which is suitable or appropriate
for your specific requirements. We will provide you with
information on a range of lenders and loans. Once you have
chosen a loan that is suitable for you, we will help you obtain
an approval.
If you have already chosen a lender and a loan, and we will
assist you in obtaining an approval (where possible)
We distribute a range of loans marketed by Vow Financial,
and only offer you a limited choice of lenders.
We source loans from a panel of lenders. Our current panel
comprises the lenders listed in the Schedule
(attached document). Subject to meeting the lenders credit
criteria, we are able to obtain credit for you from these lenders.
These lenders do not necessarily represent all the lenders who
offer credit of the nature you seek.
We do not charge you for our services as we are paid
commission by the lender. However, you may need to pay the
lender's application fee, valuation fees, or other fees depending
on how your loan is structured.
(Delete if not applicable)
If we successfully obtain approval for the loan you require, you
must pay us $XXX/XXX% of the loan amount. [IF A PERCENTAGE
IS SHOWN IN THE LAST SENTENCE, YOU NEED TO ADD "This will
be approximately $XXX]
This is payable on the earlier of 30 days after we obtain approval
or when you draw down the loan (settlement).
XYZ Pty Limited
Ph: 1300 111 111 5 of 8
 Credit Proposal
XYZ Pty Ltd

Lenders/funders pay commissions for arranging loans. The range

of commissions is:
Upfront (payable one month after the settlement): Up to 1% of
the loan amount
How are we paid?
Trail (i.e. payable throughout the term of the loan): Up to 0.50%
per annum (paid monthly) of the loan balance.
The exact amount paid by each lender is included in the lender
schedule provided

When paid:
Shortly after the loan is made *
Up to $
Commissions payable for the loan you have
Monthly **
selected (this information may be
completed later) Up to $

* This is a percentage of the principal sum advanced on settlement

** This is a percentage of the amount outstanding each month.

We have paid or will pay a referral fee of $ to for referring you

External parties sharing in remuneration
to us.

Please note the following:

• Before you accept your loan offer, make sure you read the credit contract/loan agreement carefully to
find full details of the loan.
Warning: You should check the loan agreement/credit contract to ensure that the terms of the loan do
not vary from what you require. If they do, please inform us immediately so that we can assist you.
• We represent lenders and have obligations to them, in particular not to provide any information we
know is misleading or deceptive. We also have obligations under the law to report any fraud, forgery,
or other illegal activities. By signing this agreement you confirm that you understand that we have these
obligations to the lender and under the law. If you have any questions about our role, ask before you
sign.
• We are required to ensure that the finance we arrange for you is appropriate. Accordingly we will make
reasonable enquiries in relation to your needs, objectives, and financial circumstances.
Warning: The proposed loan arrangements will be based on the products available from our panel
lenders and the information provided by you. If the information you provide is incomplete or inaccurate,
before entering the loan you should consider its appropriateness having regard to your relevant personal
circumstances and if necessary seek independent financial advice.
• We do not provide legal or financial advice. Accordingly, it is important you ensure you understand your
legal obligations under the loan, and the financial consequences. If you have any doubts, you should
obtain independent legal and financial advice before you enter the loan contract.
• We do not determine or recommend the conditions of the credit contract (such as interest rates, fees,
or the term of the loan).
• We and nobody else will receive any financial or other benefit or have any other interest or relationship
which could reasonably be expected to influence our recommendation other than as disclosed in this
agreement.
XYZ Pty Limited
ABN 12 345 678 000 l Australian Credit Licence: 123456
123 Jones Street, Jonestown, NSW 1234
CONFIDENTIAL Ph: 1300 111 111 6 of 8
 Credit Proposal
XYZ Pty Ltd

• We undertake to inform you if (if not already stated in this document), after recommending a particular
product and prior to you entering into a contract for that product:
– The commission payments differ from those described in this agreement or lender schedule;
– If we determine or recommend conditions of the credit contract, the effect of any such condition on
the amount of commission we receive from our panel lenders/ funders;
– Any other person will receive any benefit if that person could reasonably be expected to influence
our recommendation; and
– Any interests or relationships we have that could reasonably be expected to influence our
recommendation.
Borrowers Please Note:
1. If you repay your loan early you may have to pay fees. Before you sign your loan contract, make sure
you understand what fees are payable on early repayment, as sometimes these fees are quite large.
2. This contract does not provide for a disclosure of any direct or indirect interest in the loan transaction,
any property or services being purchased using any part of the loan, any property offered as security,
or any other commercially relevant transaction — e.g. budget coaching services. If there are any such
interests, we recommend that it is in the borrower's best interests to obtain independent advice in
relation to the merits of the transaction.

For use by broker

We are required to make “reasonable inquiries in relation to the needs, objectives, and financial
circumstances of the borrower, including existing loans”, and to document that information in writing.
That information may be recorded below.
Item Response (Where appropriate, tick box)

Purchase property for $

Borrower(s)'
requirements and Refinance debts as shown above
objectives
Other (describe):

Enquiries about the Broker has retained a copy of the client data/fact find form setting out this information
borrower(s)' financial
situation Other (describe)

XYZ Pty Limited

ABN 12 345 678 000 l Australian Credit Licence: 123456
123 Jones Street, Jonestown, NSW 1234
CONFIDENTIAL Ph: 1300 111 111 7 of 8
 Credit Proposal
XYZ Pty Ltd

ASSESSMENT
This assessment is valid for 90 days from the date below. Having regard to the information above, I make a
(preliminary) assessment that the following product is suitable/not unsuitable/acceptable for the
borrower(s) and is appropriate finance for the borrower(s).
Option 1 Option 2

Lender: Lender:

Product: Product:

DATE

Signature of broker Name of broker (print)

INSURANCE
I confirm that I have been offered the opportunity to have my insurance reviewed, however have declined
this.
I understand that I may not have the appropriate cover should I/We suffer from an unexpected/adverse
event.
**Delete if client is proceeding with Insurance Review**

Borrower 1 Borrower 2

Signature Signature

Print full name Print full name

XYZ Pty Limited

ABN 12 345 678 000 l Australian Credit Licence: 123456
123 Jones Street, Jonestown, NSW 1234
CONFIDENTIAL Ph: 1300 111 111 8 of 8