CORE KNOWLEDGE

CORE KNOWLEDGE

Buying Process
1. Exchange
  1. 66 W / 5 day cool off
  2. due dilligence
  3. Type of ownership
    1. joint tennants vs. tennnats in common in equal or unequal shares
2. Private treaty
3. Auction
4. Settlements
  1. can FTC come from an account or bank CHQ needed eg. Liberty / Suncorp
  2. Pre settlement inspection
    1. COllect keys
Loan application process
1. Exceptions
Client meeting
1. Building rapport
2. how to structure a meeting
3. meeting presentation skills
NCCP compliance
1. temporary changes in circumstances
How to look at creating options for clients
1. LVR < 80%
Loan Structuring
1. Cross collateralisation pros & cons
2. Taxation and other implications of owner occupied and investment loans / loans with mixed purposes
  1. Equity Extraction vs top up
  2. basic understanding of Negative Gearing/Tax Implications of property (allowable deductions, CGT and when it applies, negative gearing)
    1. capital expenses vs. maintenance expenses /
  3. Basic understanding of CGT and when it applies
  4. basic understanding of capitalisation of interest (cant claim a deduction for interest on interest)
  5. protecting tax deductability for future inv purposes eg. buying a home that will become an investment (no advice, basic understanding)
3. Taxation implications when 2 names on a loan but one name on title for inv purposes (structuring to support tax advice recieved by clients and guiding them to obtain this)
4. Debt recycling facilities eg. portfolio facilities - how this facility works and the benefits)?
Smartmove Organisational structure
Servicing
1. Understanding income
  1. Self Employed applicants
    1. Financials, P& L, Tax returns
    2. sole trader / partnership / company / trusts
  2. Salary Sacrifice / Pre tax deductions
  3. Trusts
    1. understanding flow of income / family tree
  4. Servicing calculators
  5. unacceptable income (undeclared income)
  6. non standard rental income - air BNB? short term letting? private letting? boarding? granny flats?
  7. Lo / alt doc loans
  8. Foreign income
    1. overseas tax residency status
2. How to determine lenders with stonger servicing / understanding lender policy around servicing within responsible lending
3. Common debt reducer
4. Property share
  1. effects on borrowing capacity of 'property share' style structure when property share policiy / common debt reducer policy isnt in place eg. couild structure same way at Westpac but could hinder future borrowing capacity
Specialty Lending
1. SMSF lending
2. LMI waivers
  1. Industry specialisation packages
    1. Medico
      1. o CBA – need to be carful as they only allow you to borrow x 4 the income for the total loan (however you can use both applicant’s income, not just the applicant who fits the criteria) WBC / STG – Minimum income required to fit policy, usually $150K + Super – be aware of this
    2. Sportpeople
    3. Entertainment
    4. Accountants
    5. Lawyers
    6. Geologists & others
  2. Outside standard policy for shorter term e.g. 80% 30 yrs & 5% 5 years / strong income
3. Gtor loans
  1. calculating gtee ammount (eg. ST G vs CBA)
  2. Structuring to limit g'tee - 2 loans or 1?
  3. when is further info req'd or not eg. ANZ if meet checklist no gtor A&L required)
  4. WHen is gtor income req'd eg o NAB – Guarantor must be able to service the Guarantor portion and financials are required if property being used as security. However, if Cash is being used (i.e. Term Deposit) as security guarantee then the guarantor doesn’t need to provide financials
  5. When is legal advice required? When does the client need to state this vs. getting the solicitor to sign?
4. Construction Loans
5. Bridging Loans
  1. Substitution of security with port and or simultaneous settlement for purchase / advantages and disadvantages - is as reassessment applicable
  2. assessed on end or peak debt?
  3. rates a& fees
  4. repayments based on peak debt or end debt
6. Foreign income
7. Construction loans
  1. owner builder, cost + & FPBC
  2. process from app to progress payments
8. Commercial Lending
  1. lending against a rent roll
  2. business asset finance
  3. commercial property
9. Buying through a trust
10. non confirming loans and when to look outside the box
  1. eg. lenders taking existing repayment with no additional buffer for servicing
11. what is a second mortgage and when would it be used eg. gtor loan or lending that cant be refinanced - what are the impacts and requirements
  1. when can an individual take a second mortgage or caveat behind a lender
Loan products
1. related products
  1. Offset
    1. Fully transactional or online
      1. MISA
      2. Suncorp
    2. Multiple offsets
      1. Joint names or individual names
    3. Inside or outside of a package
  2. Deposit bonds
  3. Insurance
    1. Property related insurances
      1. Title insurance
      2. Home / Building insurance
      3. Contents insurance
      4. Landlords Insurance
    2. Borrower Insurance
      1. Income / Life / TPD
  4. Packages
    1. Credit Cards
      1. Manditory limits and servicing
      2. rewrards
2. Fixed,
3. SVr
4. Basic
5. Package
6. LOC
7. Portfolio
8. differences between OO and INV loans
9. Understanding differences in loan features
  1. post settlement swicthing process
  2. post settlement loan limit rebalancing process
  3. offset vs redraw
  4. min redraw ammounts
  5. can interest capitalise if enough redraw available
  6. will the loan close if 100% offset?
  7. will the loan close if loan balance is nil?
  8. Fixed - is offset or redraw available? partial or full?
10. repayment types
  1. IOA
  2. P &I vs IO what are the differences
    1. is the rate loaded if IO during construction or bridging
Grants & Concessions
1. applying through an OSR agent vs directly
First Home Buyers
1. First Home Saver accounts
2. Fee waivers & discounts
Acceptable Security
1. max. LVRS
  1. small apartments
  2. larger than standard resi blocks
  3. high density apartments
  4. postcode restrictions
  5. non standard zonings
  6. security registers / max exposure in a development
2. Company title
3. when is cash acceptable security and at what LVR
Standard lending
1. LVR > 80%
  1. LMI loans
    1. DUA
    2. > $1M
    3. gen savings
      1. rental history
      2. repayment of debts
2. Refiancing
  1. Fast refis
3. New properties
  1. Land Loans
  2. House and Land packages
  3. Off the plan
    1. sunset clause
    2. conditional approval / risks
    3. low vals
    4. occupancy certificate
4. Standard purchase
  1. understanding turn around times
  2. how to structure the perfect deal - using good mitigation
5. Ordering valuations
  1. Kerbside
  2. AVM
  3. Full val
    1. Short form
    2. Long form
  4. purchase price limits
  5. When is full val required?
  6. When does the lender order the val? eg. SMSF / high val properties
6. Pricing requests
7. Top ups
  1. CBA - can only top up once then need to internally refi after that
Calculators
1. Servicing
2. Comparing P&I to Interest Only
3. Mortgage switching calculator
FLEX
1. Advanced modelling
2. Advanced product seraches
3. Matrices
4. Comparison reports
5. BFF
  1. Creating an Opportunity (see Ops manual)
6. mobile app
  1. phone
  2. Ipad
Processes
1. Formstack
2. Share point navigation
Paid / unpaid referral sources
1. Commercial agreements
2. Disclosure to client
3. Building relationships / spending time with referral partners to understand their business and how you can look after them / create mutually beneficial relationships
Responsible lending / compliance
1. when to record a client conversation
2. potential compliance risks with clients
Calculating buying and selling costs
1. understanding CGT (even if its OO now) if its a sell then buy
Prospecting, lead generation, taking an initial client call
1. what makes us stand out from the pack?

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	Created by Comet Bell about 6 years ago