Role play case study — Tim and Tina Chee Note: Tim and Tina Chee case study is also used in the written assignment as part of this course. It is recommended that you complete the Written Assignment...

Role play case study — Tim and Tina Chee

Note:
Tim and Tina Chee case study is also used in the written assignment as part of this course. It is recommended that you complete the Written Assignment
prior
to undertaking the role play, as this will assist you in assessing the clients’ needs and potential loan structure that you can use for this role play activity. Alternatively, in preparation for the role play, use the tools available to you (e.g.loan calculators) to prepare your presentation to the clients.

Background

Tim and Tina Chee are a young couple about to buy their first home. They have beenmarried for fiveyears and during that time have rented an apartment while saving for their own home.

Following a personal referral from Thomas (Tim’s brother), you have already had a first meeting with Tim and Tina to discuss their objectives and needs. They admitted they have little time to do much research on lenders; have limited knowledge of the loan products available and basically are not sure what is right for them.

During (and subsequent) to your first meeting, Tim and Tina have provided the basic information documents — pay slips, tax returns, bank statements, property details for review/verification. You have now undertaken your preliminary assessment and need to discuss and present to them the proposal covering the options and your recommendations. It is important to get the proposal moving quickly, as the agent has indicated other parties are interested in the property.

They have been looking at properties for the past three months and have found a 10-year-old established apartment that has really caught their eye; although they have some concern over the kitchen, whichrequires a little work.

They have not paid a deposit at this stage, but the real estate agent has provided some guidance on additional fees and charges.

Following is a summary of the details of the property they wish to purchase, the couple’s financial and employment details, and the loan features they require.

The property

The couple

Funds position

Use fees and charges applicable to your state. If the servicing calculator you are using requires a postcode, select one (1) that would represent a reasonable suburb/location in your city or state.

Assets

Liabilities

Payments have always been met on time and any prior loans repaid in terms of contracts. The minimum monthly commitment on each of the credit cards should be calculated at 3% of the credit limit.

Living expenses

Annual expenditure for living expenses — $33,000.

Employment and income

Tim (date of birth 21/2/87)

Tina (date of birth 8/10/88)

Solicitor’s details

Jones and Co

22 High Street, City East (Your state)

Phone: 82811382

Email: jonesandco.net.au

The solicitor has quoted a fee of $1,500 for the conveyance.

The loan requirements

• 30-year term

• Premium option home loan features

• variable interest rate (for this case use 4.5% p.a.)

• LMI to be capitalised

• proposed settlement date — six weeks from exchange of contracts

• ability to make additional payments from time to time without penalty

• fortnightly repayment option

• redraw facility

• funds access via card.

Other information

• Tina has asked if there are any professional package benefits available because she is an accountant.

• Tina previously owned and lived in an apartment with her two older sisters when they attended university but they sold this before she married — they did not make a lot from the sale.

• The couple do not plan to have children within the next 5 years.

• However, they do have plans to take a major overseas trip within 5 years.

• Tim is hoping for a promotion within the next 12 months upon possible retirement of a long-term employee where he works.

Task — Role play

You are required to complete the ‘role play oral assessment’ which should take a maximum of 10 minutes.

To set the scene for this role play:

• You are required to present your analysis and recommendations to your client (friend or colleague).

• Due to the need to get an approval so contracts can be signed, an appointment has been made but unfortunately one of them (this will depend on which role your volunteer plays — Tim or Tina) cannot be present as he/she has had to go interstate urgently to visit a sick relative.

• Your clients do not wish to delay this meeting as they are keen to hear what you have to present — information can be passed to the other over the phone, when needed.

• This oral presentation should focus on presenting your analysis of the couple’s current position, loanprospects as well as your recommendation, covering the following essential points:

– a summary of your understanding of the clients’ needs (this could be an outline summary of their proposed loan structure)

– a summary of their current financial position (use information from the case study)

– the product options you have considered that meet their needs (you should have researched at least two lenders) and details of the loan features; use the internet or if working in industry, internalsoftware to do this

– the option you recommend and the reasons for the recommendation — explain how the recommended product meets the clients’ needs (refer to the case study and explain why you are recommending this lender)

– confirm the key disclosures that have already been supplied to clients in the Credit Guide

– invite questions from the client and respond accordingly.

There are no rules regarding the format of your presentation, however it must be presented so that it is succinct and easily understood by clients. Please use the format that best suits you — this could include covering the detail you have prepared in a written proposal document.

The role play requires your friend or colleague to ask at least three (3) questions — with suggested questions the volunteer can ask other ‘unrehearsed’ questions if they wish. Remember, you are not being judged on your acting ability. Your assessment is about how you communicate and interact with the customer. You may need to adjust your presentation of the proposal, depending on the time that the questions are asked. However; to manage time, you may ask your friend or colleague to keep their questions until you have finished presenting your recommendations.

The assessment criteria you will be assessed on includes the following:

• appropriate introduction and building rapport

• explore solutions that meet clients’ goals and objectives

• present broker solution to clients’ request

• explain relative fees and charges

• collaborate on risk identification

• response to questions, record customer feedback and actions taken.

This is how you will be assessed— Role play