We have previously mentioned that unless you are a licensed and accredited finance broker, you may not have a discussion about loans and lending with your client.  If you are qualified to do so, this appointment will be held with you.  If not, it will be held with either their own bank or finance broker or with your chosen broker or in-house finance professional.

If the consultation is to be held with a professional with whom you do not ordinarily conduct business, you may wish to ask for permission to liaise with this professional.  This way you can ensure that your goals for this client are clearly communicated, thus reducing the risk of the wrong finance structure being put in place.

Prior to your client attending the finance interview, the finance professional should confirm with the client the documentation required for seeking finance (taxation returns, bank statements, proof of current ownership of property, etc.) as well as providing them with forms to be completed for a financial assessment and an application for finance to support the property investment.

It is important to note that this interview will be held prior to the recommendation of a specific property, as the purpose of the finance interview is to assess an appropriate loan amount and structure, based on what the client can afford and their current investment/net worth position.

Such an assessment identifies the most appropriate finance solution, for example:

In addition to this, there may be options that are considered in relation to how the client will provide the deposit for the property to be purchased, for example:

Having completed the interview and analysis, a conditional approval (pre-approval) form would be completed by the mortgage broker and details forwarded to you to assist in the final decision as to which property will be recommended.  It will be at this point that you prepare the Property Investment Report for use in the next consultation.