NZ Level 5 Residential Property Lending study plan

Map each core conduct obligation under the Financial Markets Conduct Act 2013 lender responsibility principles to a concrete lending-process step, writing the mapping out in your own words.

Explain the difference between the lender responsibility principles, the Code of Professional Conduct for financial advice services, and fair dealing obligations under the Fair Trading Act, stating which applies at which customer touchpoint.

List the six lender responsibility principles and, for each, draft one example of conduct that would breach it and one that would satisfy it.

Identify which entities and individuals must be licensed or registered to provide residential mortgage advice, and note the role of the Financial Markets Authority versus the Commerce Commission in enforcement.

Apply the responsible lending process end to end to a hypothetical borrower, documenting each step from information gathering to the suitability decision.

Calculate surplus monthly income using a worked example with PAYE salary, rental income, and a boarder contribution, showing how each income type is verified and what haircuts you apply.

Compute debt serviceability under both a current interest rate and a stressed test rate, and explain why the buffer exists.

Distinguish allowable versus non-allowable expenses in an affordability assessment and justify three borderline expense categories.

Identify red flags in a borrower's declared expenses that suggest under-declaration and describe what further verification you would request.

Analyse self-employed income from financial statements and tax returns, explaining how to derive a sustainable income figure and what add-backs are defensible.

Evaluate non-standard income sources (commission, overtime, contract work, ACC payments, investment income) and state the evidence required for each.

Assess a borrower with existing debt including a credit card limit, a personal loan, and a guaranteed student loan, and calculate the servicing impact of each.

Explain how credit bureau data and account conduct history feed into the credit decision, and list three adverse credit events that would trigger decline or escalation.

Compare fixed-rate, floating-rate, and split-loan structures on cost, flexibility, and break-fee exposure, and match each to two borrower scenarios.

Explain offset, redraw, and revolving credit facilities and quantify the interest saving on a worked example.

Describe the purpose and mechanics of a registered valuation versus an automated valuation model versus a council rating valuation, and state when each is appropriate.

Calculate loan-to-value ratio for owner-occupier and investor scenarios using the applicable deposit rules, and explain how a low-equity (LVR-restricted) loan changes pricing and conditions.

Explain the role of a mortgage over the property, the priority of securities, and how a guarantee or caveat sits alongside the first mortgage.

Draft the disclosure sequence a lender or adviser must give a borrower, from initial disclosure through to pre-contract and ongoing disclosure, naming the document at each stage.

Explain borrower cancellation and cooling-off rights, hardship and unforeseen-hardship application rights, and how these differ from a complaint.

Outline the internal complaint-handling process and the escalation route to an external dispute resolution scheme, including typical timeframes.

Apply customer due diligence under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 to a new-to-bank applicant, listing identity, address, and source-of-funds evidence required.

Identify suspicious activity indicators in a residential lending file and describe when and to whom a suspicious activity report is made, including the prohibition on tipping off.

Explain the main residential property insurance requirements a lender imposes, why the lender's interest is noted on the policy, and what happens if cover lapses.

Distinguish a personal guarantee from a mortgage security, and evaluate when a guarantee is appropriate, what the guarantor must be told, and the risks of undue influence.

Describe risk-mitigation levers available on a marginal application (lower LVR, guarantor support, reduced limit, insurance, repayment structure) and rank them by borrower impact.

Conduct a structured needs analysis for two contrasting borrowers and identify where a product recommendation could create a conflict of interest or an ethical risk.

Explain how remuneration structures and sales incentives can compromise good conduct, and state the controls that mitigate this.

Sequence the collections process from first missed payment through to enforcement, naming the notice at each stage and the borrower's rights at each point.

Apply the hardship provisions to a borrower facing temporary income loss, drafting the information request, the assessment, and a realistic variation proposal.

Explain the lender's obligations before enforcing a mortgage, including the notice requirements and the borrower's right to remedy.

Describe how a property mortgagee sale proceeds and what obligations the lender owes to obtain a fair price.

Explain how a complaint about collections or hardship handling would be resolved, and identify the records you must keep.

Synthesise all ten domains into a single one-page concept map showing how conduct, responsible lending, credit assessment, security, and default interlock.

Complete a timed 60-question practice set across all domains and score it, logging which domain each error came from.

Re-teach your three weakest sub-topics from memory in writing, then verify each against your notes and correct the errors.

Recite the key thresholds, timeframes, and document names you must know cold, and flag any you cannot state with confidence for further review.