How to write a lender diary note

Top Tips

  • Do not start writing the diary notes until you’re relatively sure we have all the documents we need. This stops going back and forth and forgetting to change details.

  • Do not start completing the loan calculator until you have fully completed the diary notes. This will ensure that we are putting accurate, calculated figures in.

  • Ask a colleague if there is anything you’re not 100% sure on.

  1. Add in the client(s) full names from their passports in the ‘Customer Name(s) section.
    Take note if there are any married/maiden names and ask the client which name they would prefer the lending to be done under.

  2. Complete the security box. include all properties that the currently owns, or simply note ‘Preapproval’.

  3. Complete the loan purpose.
    - Any top ups are to have a full explanation of what ever dollar is for.
    - If a preapproval, note the general area the clients are looking to purchase in.
    - Note if the client owns other properties that aren’t included in this application.
    - Note if any fees have been included in the calculator (EG: ANZ LEP Fee or Kainga Ora LMI Fee)
    - Give a good overview of what the client’s wish to achieve. Some are simple and need little explanation, like ‘buy their first home’, others can be more complex.

  4. Complete the ‘Client and Information’ section. Delete and add info as appropriate. If there are dependents, just note how many and their ages, no expenses.

  5. Note the clients employment situation, and ensure that a full 3 years of work history is noted in there.
    Calculate the income as per each banks requirements.

  6. Note any boarder income the client is looking to have. Note any rental income here too.

    For boarder income (see chart here), this is quite simple. It will look something like

    ’ The clients are looking to have 2 boarders at $200 per week in line with bank policy’

    For rental income, further proof will need to be provided.

  7. Add in all external debts. Note the

    - Interest Rate of each loan (not necessary for credit cards)
    - Remaining Balance on each loan
    - Limit (if different from balance)
    - Regular Repayment

    Check the client’s statements for any potential loans and also check the fact find for anything the client has declared.

    Note any closures that are included.

  8. Calculate Expenses as per this guide.

  9. Check the client’s age vs loan term as per the chart. EG: ASB go up to 70 years old. Therefore, for a 55 year old client, we can get a max term of 15 years (55+15 = 70). Note this int he maturity risk section.

  10. Write a loan recommendation. Here we are selling the clients positive features. It doesn’t need to be long. Try not to make it too generic.

    ’The clients have strong incomes and their careers are just taking off. They show great financial management having saved $10,000 for this purchase in just the last 3 months from their incomes.

    Approval Recommended.’