Needs Analysis and Preliminary Assessment Template
v2.5
Purpose. Brokers and credit analysts use this template to record the client's requirements and objectives, verified financial position, serviceability and the reasons the recommended loan is not unsuitable and is in the client's best interests.
1.Purpose
This template is the core compliance record for every credit assistance file. It must be completed before options are presented to the client and dated on completion. It supports the credit proposal and must be kept on the file for seven years and provided to the client on request.
2.Requirements and objectives
Record what the client wants the loan for, how much, over what term, which features matter and why, in the client's own words. Record any preference the client has expressed about repayment type, offset, redraw, fixed or variable rate and the reasons.
3.Financial situation
Record verified income from each source, verified living expenses compared with declared expenses, all existing liabilities with limits and repayments, assets and any foreseeable change to circumstances within the loan term. Note the documents used for verification.
- Income by source with verification document
- Declared and verified living expenses
- Existing loans and cards with limits
- Assets and deposit source
- Foreseeable changes to circumstances
4.Serviceability and loan to value
Calculate serviceability at the lender's assessment rate with a buffer, the net surplus after the proposed repayment and the loan to value ratio. Record the calculation and the figures used.
5.Products considered and recommendation
List at least three products considered with rate, fees, features and suitability against the client's requirements. State the recommended product and explain why it is in the client's best interests and not unsuitable, including any trade-off the client has accepted.
6.Sign-off
The broker signs and dates the assessment. The second reviewer records their review before the application is submitted.