SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Present options to a borrower concerning affordability of mortgage finance 
SAQA US ID UNIT STANDARD TITLE
13304  Present options to a borrower concerning affordability of mortgage finance 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for all learners in mortgage finance, particularly those with direct contact with the borrower in the initial stages of the lending process

Persons credited with this unit standard will be able to determine finance costs and bond registration costs, demonstrate the financial implications of alternative repayment options and present the factual options to a borrower. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
It is assumed that the learner understand basic concepts related to property, ownership, security and mortgage bonds as a specific type of security. This includes an understanding of the bond registration process. Learners should be competent in Communication and Mathematical Literacy at level 4. 

UNIT STANDARD RANGE 
N/A 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Determine finance costs 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Given a clients income a maximum monthly instalment is calculated according to the repayment to income percentage guidelines in the banking lending policy. 

ASSESSMENT CRITERION 2 
2. Given a loan amount the qualifying gross salary is calculated according to the repayment to income percentage guidelines in the banking lending policy. 

ASSESSMENT CRITERION 3 
3. Given a request loan and the tem and interest rate the monthly instalment figure is calculated according to the banks calculation. 

ASSESSMENT CRITERION 4 
4. Given the amount of the loan, the term and the interest rate the interest amount is calculated according to the banks calculation. 

ASSESSMENT CRITERION 5 
5. The basic principle's upon which the interest calculation is based are explained according to general banking policy and procedure. 

ASSESSMENT CRITERION 6 
6. The capital risk weighting is established according to the requirements of the Banks Act and the Usury Act. 

SPECIFIC OUTCOME 2 
Determine bond registration costs 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The banking fees arising from a mortgage finance transaction are identified, defined and explained according to general banking practice and pricing policy. 
ASSESSMENT CRITERION RANGE 
Initiation fee, administration and assessment fees. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 2 
2. The transfer costs associated with a bond registration transaction are identified, defined and explained according to the general policy and practice of conveyancing attorneys and government duties. 
ASSESSMENT CRITERION RANGE 
Conveyancing fees, admin fees, deeds office fees and transfer duty. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 3 
3. The bond registration costs are identified, defined and explained according to the legislative requirements. 
ASSESSMENT CRITERION RANGE 
Bond registration fees, VAT and stamp duty. Evidence across the full range is required.
 

ASSESSMENT CRITERION 4 
4. Potential extra costs are highlighted and estimated according to the kind of costs that can be incurred in the mortgage finance transaction and the circumstances that would require these costs. 
ASSESSMENT CRITERION RANGE 
Insurance, assurance, and professional fees.
 

SPECIFIC OUTCOME 3 
Demonstrate the financial implications of alternative repayment options 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The impact on the term of the loan and the interest saved through increased monthly repayments is calculated with the use of a working example. 

ASSESSMENT CRITERION 2 
2. The impact on the term of the loan and the interest saved through early monthly repayments is calculated with the use of a working example. 

ASSESSMENT CRITERION 3 
3. The impact on the term of the loan and the interest saved through deposits or lump sum payments is calculated with the use of a working example. 

ASSESSMENT CRITERION 4 
4. The impact on the term of the loan and the interest saved through multiple repayments during the month is calculated with the use of a working example. 

ASSESSMENT CRITERION 5 
5. The financial implications of the capital risk weighting in relation to the amount of the bond are established with the use of a working example. 

SPECIFIC OUTCOME 4 
Discuss affordability 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The cost of the finance requested is calculated according to the amount of the loan, the term and the interest rate in line with general banking policy and pricing. 

ASSESSMENT CRITERION 2 
2. The bond and bond registration costs of a typical mortgage finance transaction are estimated according to the projected costs of a realistic working example. 

ASSESSMENT CRITERION 3 
3. The one off costs are estimated according to a realistic working example. 
ASSESSMENT CRITERION RANGE 
Moving cost connection of lights and water telephone connection and transfer new furniture and fittings alterations and repairs. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 4 
4. The concept and cost associated with occupational rent is explained according to the sales agreement. 

ASSESSMENT CRITERION 5 
5. The concept and cost associated with rates and levies are explained according to the requirements of local authorities. 

ASSESSMENT CRITERION 6 
6. The concept of a borrowers affordability is thoroughly explored based on an analysis of costs, the borrowers income and expenditure and the budget for purchase of the property using a working example/ case study. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1 Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
2 Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
3 Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore, anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
The knowledge acquired in this standard relates to an understanding of the financial implications of mortgage finance from the borrowers perspective. This is a key component of the risk associated with the transaction. The criteria against which this knowledge is evaluated are expressed in the standard. 

UNIT STANDARD DEVELOPMENTAL OUTCOME 
N/A 

UNIT STANDARD LINKAGES 
N/A 


Critical Cross-field Outcomes (CCFO): 

UNIT STANDARD CCFO ORGANISING 
In this standard the learner demonstrates the ability to organise and manage oneself and one`s activities responsibly when potential extra costs are highlighted and estimated according to the kind of costs that can be incurred in the mortgage finance transaction and the circumstances that would require these costs. 

UNIT STANDARD CCFO COLLECTING 
In this standard the learner demonstrates the ability to collect, organise and critically evaluate information when the concept of a borrowers affordability is thoroughly explored based on an analysis of costs, the borrowers income and expenditure and the budget for purchase of the property using a working example/ case study. 

UNIT STANDARD CCFO CONTRIBUTING 
In this standard the learner demonstrates the ability to understand the relationship between the impact on the term of the loan and the interest saved through increased monthly repayments is calculated with the use of a working example. 

UNIT STANDARD ASSESSOR CRITERIA 
N/A 

REREGISTRATION HISTORY 
As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

UNIT STANDARD NOTES 
Additional information:

Legal requirements:

All procedures must meet recognised codes of practice as well as obligations required by current legislation within South Africa and within the normal parameters of the defined job/task. 

QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
  ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 


PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
 
1. Absa Learning & Development 
2. Bidvest Bank 
3. Chartall Business College 
4. Cornerstone Performance Solutions (Pty) Ltd 
5. Felix Risk Training Consultants 
6. Firstrand Bank - Benmore 
7. Nedbank Ltd 
8. The Facilitation Workshop 



All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.