01Begin with the objective
A mortgage, business loan and refinancing arrangement serve different purposes. Advice should begin with the client's plans and financial circumstances, rather than a product selected in advance.
A considered funding discussion looks at affordability, repayment capacity, the purpose of the borrowing and the time horizon involved. For a business, cash flow and the intended use of funds are central to the assessment; for a household, existing commitments and foreseeable changes in circumstances matter. We favour advice that makes the trade-offs explicit and leaves the lending decision with the relevant institution.
02Make the terms clear
Interest is one part of the overall cost. Fees, term, security and monthly commitments also matter. Presenting these clearly enables a meaningful comparison of suitable options.
Meaningful comparison considers the total amount repayable, the annual percentage rate of charge where applicable, the interest-rate basis and any conditions attached to the offer. Early repayment provisions, ancillary products and the consequences of changing rates may also affect suitability. The advisory process should explain these matters in accessible language, without implying that an indicative illustration is a binding offer or a guarantee of approval.
03See the process through
Applications involve documents, deadlines and liaison with lenders. Careful coordination and timely communication help clients remain informed from enquiry to decision.
Good case management establishes the information required, checks that the application is coherent and keeps track of requests from the lender. Clients benefit from a clear account of progress and the reasons for any outstanding requirements. Advice and introductions must remain within the scope of the intermediary's authorisation and contractual arrangements. The lender retains responsibility for credit assessment, approval and the final terms offered.
