Operator

Manual

License Agreement

Features Getting Started Quick Start Entering Data New Client Client Details Income Entry Expenses Entry Budget Screen Changing Data Saving Client Data ReLoading Client Data Specific Month Income Reports Report Screen Interest Rate Limit Equity Available Printing Print Report Print Page Capital Adjustments Interest Only Loans

Agent Information Screen Calculating Line of Credit Transaction /month Consolidating Secondary Loans Total Old refinancing Total Old Repayment Hide Savings Capitalising Interest Add Tax Savings Split Loans Mortgage Insurance LVR Bank Detail Chart Errors and Warnings Bank Selector Fees & Charges Automatic Split loan calculator Mortgage Calculator Split loan Reducer Automatic Loan Split Calculator Manual Setup

Property Investment system Procedure Invest Screen _Saving Property Type Criteria Leverage Equity Additional Modules Client Register Module Client Monitor System Active Monitor File E-mailing of Reports Savings Scheme Calculations Deposit Savings Scheme Long Term savings scheme Updating Bank Details Program Assumptions System Requirements Network Setup Installing Program Upgrading Program Contacting Us Top of Screen

Legal Stuff Ver 4.08

DISCLAIMER : LIFE SYSTEMS INTERNATIONAL and its agents accept no responsibility whatsoever for the use or misuse of this software or any action taken by

any person as a result of the use of this software or any financial rearrangements which may be made as a result of the observation of any aspect of this software. The program deemed as for possibility and scenario demonstration purposes only and any resulting financial action by any individual, partnership, business or company must be taken after addressing competent financial advice. No responsibility is accepted by LIFE SYSTEMS INTERNATIONAL or any Bank mentioned within for the accuracy of Bank details mentioned, the accuracy of any calculations used based on this information or the loss or misuse of any data or files associated with the use of this software pertaining to the details of persons living or dead. Information is regarded as accurate at the time of encrypting of the original source software but this may change as no restriction is placed on users to modify certain details contained within nor to save a modified copy of the software for a third parties own purposes. This includes, but is not limited to, computer hardware, computer software, operating systems, and any computer or computing accessories. End user agrees to hold Life Systems International and/or any persons associated with the creation of this software harmless for any problems arising from proper or inappropriate use of the software. We regret having to place such a disclaimer in a piece of software. We have made every effort to make this software product as efficient and accurate as possible; however, in a world full of frivolous and ridiculous law suits, we have no alternative. This software was produced by Life Systems International Echuca Australia who hold all rights and this software is not to be distributed in any manner without written authorisation of the producer. This manual is an integral part of the software.

MORTGAGE INVESTMENT SYSTEM

Features

- Simulation of a Line of Credit debt reduction strategy compared with P & I amortisation.

- Equity loan or second debt loan may be consolidated, non-consolidated or Split loan.

- Complete Month Specific Budget with allocation for Quarterly, Half & Annual expenses.

- Monthly calculation for income and expense transactions based on full client budget data.

- Estimation of acceptance by up to 30 banks (according to updateable Line of Credit bank

product details available at the time of installation or update)

- Scanning of bank data for Estimation of possible Interest Saving and Time Saving.

- Manual or Automatic Selection of "best deal" proposal.

- Rental income allowance for equity loans using actual tax rate and estimated tax benefits.

- Allowance for Drawdowns of Temporary Adjustment Capital, paid into, or withdrawn, any month within

first 10 years of LOC active period.

- Multiple Graph reports showing complete timing and costing breakdown.

- Allowance for Broker Set up Fee - Initial and/or Annual plus Integrated Stamp Duty.

- Warning indicators for exceeding limits are given with Bank qualification override option.

- Interest Only Loans with automatically adjusted repayments for large drawdowns.

- Interest Capitalisation option on Investment property sub-accounts. Discrete graphs - (may not be valid to

taxation rules.)

- Split Loan - Turbo Reducer - Most Banks allow the use of a 2 in 1 loan system sometimes with

considerable extra savings. Calculate and Graph a system that allows many clients with existing loans to use

the best of P & I rates plus an Equity loan to reduce debt faster than a straight Line of Credit. This does not suit

all loans, but provides optimum reduction for many clients above a Line of Credit system. VERY CAREFUL

MONITORING REQUIRED

- Automatic calculation of Split Loan repayment values.

- Completely Macro button driven - No complicated commands or previous experience required

- WINDOWS and Network compatible for all data files.

Requires computer running MS Excel ver 8 or later.

Additional Modules - Client Register system tracks saved client files. - Tax/Amortisation Calculator - Quick, two way Tax Payable, Taxable Income, Amortisation and Original loan repayment check. - E-mail Report / Monitor Copy generation for quick Interim and Final reports for email transmission. - Monthly Budget Monitoring system Active Monitor software for remote agents and client self monitoring. Monitor system generated as report pages or as a disk / email file for accurate active monitoring by Client service staff. - Stamp Duty calculator module - all Australian States. - Deposit Savings calculator mode for budget/variable amount deposit or investment savings determination. Short term - 12 months and long term - 20 year graphs. - Property Investment Calculation – From client details, users can determine the maximum investment property value/s and loan based on given return rate, costs and non-cash tax deductions. Using built in ATO table 2 (1,5 & GST available), determines client taxation reduction for a calculated Line of Credit, a non-consolidated P&I or a 2 in 1 split Interest only loan giving the net gain (or drain). The earliest time for further property purchases on the LOC can also be estimated. For clients who are wary of rate rises you can also find the maximum Interest Rate rise tolerance before they have a net negative cash flow on the property. Partners Income split amount and tax loading ratio selectable. - Investment Property Projector for 10 years, single property values integrated to LOC. Estimation of timing and number of properties for given criteria and property value. Investment Property Assumption criteria is also saved with specific client data in client file. - Share Portfolio Leveraged Equity projector. This may be used for Share dividend (with or without Imputation credits) leveraged at 50%, 60% or 70 % over 5 years. - Debt Service Ratio calculator. Shows standard capacity test with flexible entry. Determines Debt service ratio. - Integrated Report Generator. Enables the inclusion of MIS program or modules into a comprehensive Report document in MS Word format. This enables company specific reports with the power of MIS calculations in a seamless transition.

Program Assumptions This program is used for comparative purposes only to demonstrate principles, give projections as accurate as possible but does not constitute a long term accurate proposal nor a comprehensive accounting tool for Investment scenarios as Interest rates, Bank Fees & Charges and Spending Habits may change without notice. The following assumptions have been made or excluded. (a) That all client data entered is disclosed, is accurate and the given Budget will be monitored & followed meticulously, by a third party (usually client support staff). (b) That Interest rates and fees will stay within reasonable range (2%) to enable the Credit facility to operate. (c) That income and taxation details are accurate and that competent taxation advice is taken. As taxation law changes periodically no responsibility can be assumed by anyone regarding the accuracy or otherwise of taxation detemination. (d) that Taxation is paid by “Pay-As-You-Go” Withholding and investment account interest tax reduction is calculated monthly.

(e) That Net income is above reasonable limits - Warning Indicators arise if not calculable. (f) That the user understands P & I and LOC loan arrangements. (g) that operators are scrupulous in performance of data collection, entry of data and any advice, suggestions or information passed onto clients.

(h) that the lastest version of MIS is used and all previous versions deleted.

(i) that any person using the software for profit or advise to a third party has adequate credentials pursuant to the level of advice being given and will adhere to all laws, regulations and required procedures pertaining to the jurisdiction of the area of advice being given.

QUICK START After hitting START button the DATA entry screen will be seen and for a single normal mortgage, the following details are required

1. Client name/s (usually Surname, First names Title), Date of entry, a Client register number.

2. In centre, enter Gross income per year, Net income per year for each borrower.

3. Enter the Rep/Agent name.

4. Enter Primary Mortgage amount, Rate of interest, No.payments/year and Repayment amount and any other loans on Loan Schedule at bottom of sheet.

5. Click on MENU then Budget and enter budget details with month entries (jan, feb, mar etc) for all Quarterly, Half Yearly and Annual amounts.

6. Click on MENU then AGENT

7. Click on SCAN BANKS, select a suitable bank. No longer supported

8. Save client file - At this point it is best to click on MENU then “DATA Entry” then SAVE button – just that particular clients data is saved.

9. Click on MENU then select report pages required then click on PRINT REPORT. This is all that is required for a standard entry and quick report. The following is a more detailed covering.

Getting Started For Installation see Installing Program (a) If a shortcut for Mortgage has been created then click on shortcut. OR (b) If a shortcut has not been created, right click from Desktop and New Shortcut then Browse for “All files” then select c:\mortmast\mismain.xls The Program will rearrange the window to suit but you may need to reZoom your screen. Zoom Up and Zoom Down change zoom resolution by 1.2x each click. When satisfactory click on START

NOTE :

1. If an interruption occurs and a calculation does not occur instantaneously then click on Calc-on button. 2. Most Screens do not move vertically but the BUDGET, AGENT, REPORT,ADJUSTMENT sheets lower panes may be moved using the PageUp (PgUp) and Page Down (PgDn) or the Up & Down cursor keys to see the bottom of the screen. The white areas on most editable screens may be changed, most others are usually locked.

The Modules available are indicated on the Intro screen

ENTER DATA - NEW CLIENT DETAILS Essential data for Line of Credit is marked ** , Essential data for P & I table is marked * Most Client details may be entered to the DATA ENTRY screen. CLIENT DETAILS

Client Name / s **

- Enter as Title, Lastname and First names. The Last & First names will be combined to give report header name. e.g Mr & Mrs | Smith | John | Betty will be seen as Smith, John & Betty on most report pages but are separated to any combination in Integrated Reports.

Occupation/s - may be entered for each borrower. Used in Integrated Reports. Address - For Integrated Reports the Address of the main borrower should be entered. Entry Date ** - for archive purposes. This is auto entered but may be changed.

Client File number ** - This is auto entered as consecutive numbers but may be set as any number between 0 and 10000 prior to saving client file.

Self Employed – T /F - if True this invokes higher setup charge for business operators or investment reports.

Married T/F ** - Used for bank qualification just click on box for True or False Number (#) Children ** - Used for bank qualification Address Details - required for integrated reports Income Details # of pay periods/yr - No Longer used as income assumed averaged over month. Gross Annual Income ** - Separate Gross plus business income for each borrower – excluding Rent. Net Annual Income ** - Separate Net plus business income for each borrower – excluding Rent

Other N/Tax Inc/month

- NON taxable income such as Family Allowance, special payments. Note : Income / year - Special income in a particular month (ie Tax return or dividend) is entered at the bottom of the Budget screen for particular month.

Initial Payment - any cash reserves, capital, or small debts (-) which may be consolidated on settlement. Useful for including credit card debt. Debt is enterered as – ve.

Zoning (RUR/RES/COM) ** - Loan to value ratio is different for rural property with some banks - and Commercial Stamp Duty rates are different.

If RURal - then acreage is required. Credit Card limit required ** - Used for bank qualification – Default ~ $3000

Rental Income Annual

- Net amount from Rent on Investment property or Dividend income. (Not business income - Net Business income is entered as Gross personal or as applicable.) Note : This amount should not be added to normal annual Income as well.

Depreciation - on business interests or Investment property. Superannuation - for main Business operator used for Bank Qualification.

New Primary Loan (T/F) - If the primary loan is a New Loan, clicking TRUE adds any Stamp Duty and other fees to the P & I calculations as well to give a true comparison.

Loans

Primary Property Value ** - conservative estimate of the primary property value. This is the 1st mortgaged property used as security. Usually the owner occupied home or investment loan where there is no primary mortgage.

Mortgage Amount ** - Amount of primary mortgage. This is usually the non-tax deductible debt associated with owner occupied home.

Interest Rate ** - Current or future interest rate. (1st Year interest rate later.) No. repayments / year ** - 12 for monthly, 26 for fortnightly (weekly 52 is not advised).

Note : for 2in1 deals this becomes the new LOC loan and the secondary loan is the P&I component

Repayment Amount ** - Current paid or future Repayment (use calculator if unknown).

Expiry Years (selection)

- This is only used where the primary loan is an Interest Only. The repayment adjusts over loan to the actual interest level on the Refinanced account. This would also be used for Endowment loans where there is significant drawdowns.

2nd Property Value * - Estimate of the investment property or equity security value. For loan consolidation purposes, this amount is added to primary value. - may be left blank if no secondary security.

Property Loan Amount

- Amount of secondary loan. This may be any other debt to be consolidated or an Investment loan. Distribute debt for investment property carefully, as it must be open to tax audit. With care, maximum tax relief may be made by maximising interest on investment account. Seek competent advice. Note : for 2 in 1 split deals this value becomes the new P & I loan and the Primary loan becomes the LOC component

Interest Rate - may be left blank if no payments are being made. No. repayments / year - may be left blank if no payments are being made. Repayment Amount - may be left blank if no payments are being made.

Note : If you do not know the (new) repayments then enter the Loan amount, the interest Rate and the number of Periods and let the calculator tell you the minimal repayment total amount.

Fixed Mortgage Rates

- if there is a ‘honeymoon’ rate and/or payment for new loans enter the (i) Fixed Rate, (ii) Number of years then (iii) Reduced Amount (if different) here otherwise the values are taken same as normal mortgage rate. If Years > 5 then no Total Old refinance graph.

Fixed Rate Other Loans - for secondary split loans you may enter separate (i) Fixed rate, (ii) Number of years and/ or (iii) Payment here for the secondary loan, otherwise the values are assumed same as normal loan rate.

Expenses – (See Budget sheet)

Weekly, Fortnight - Total period expenses EXCLUDING loan repayments Month ** - " (minimum requirement for LOC) Quarter, 1/2 year, Year - These expenses require next month of payment

WithDrawals in future - Any future drawdowns for special purposes should be entered on Adjustment screen – see below. The Purpose or explanation for future drawdowns is entered under the end of each year total.

Budget Screen

Select the Budget screen from MENU. Consolidated Loan Repayment amounts entered on budget must match the Data Entry values otherwise a "Budget Difference" warning is given.

Two sets of standard client expense category labels - Personal & Business These may be button selected but any category label may be edited to suit by clicking in the cell and changing. DO NOT ALTER “BANK FEES” label as it is used by monitoring system.

All Quarterly, Half yearly, and Annual expenses require Next Payment Month (ie jan, feb, mar etc) allocated alongside to enable proper registration.

If not correct, Month Error appears on the Budget Screen top and bottom.

One entry per line is normally required for budget but if an amount is paid Weekly, Fortnightly or Monthly (white section) as well as Quarterly,HalfYearly or Annually (yellow section) both may be entered and will register correctly.

Changing default Budget Labels

On the central computer there are two files in c:\MortMast\Setup named Personal.txt and Business.txt. These are text files and may be double clicked on from Windows Explorer and edited with Notepad. The order is Line number,(comma)Label eg.

1,Bank/manager Fees 2,Accountant Fees etc Add no more than 43 Lines, type nothing else then Save.

REGULAR SPECIFIC MONTH INCOME

Any income which is specific to a particular month each year such as dividends or annuities may be entered at the bottom of the budget sheet under the particular month.

CHANGING DATA

Any changes may be made to the DATA ENTRY Screen. Changes in Mortgage or loan repayment amounts will automatically be reflected in the Total Expenses. If a new or investment property is being considered for comparison, then various mortgage payments may need to be tried by using the built in calculator.

SAVING DATA

Click on SAVE button at Data Entry Screen - All client specific data is saved as well as Investment property rates and assumptions. The file name will be C*****-#.xls where ***** is the Client File Number entered as three (or 4) digits and # represents an extra code for multiple saved files for the same client. If more than one scenario is required then add a letter to the end on the code by clicking on the cell and hitting F2.

Eg C01234-A Client file details are entered to Register if available. Files cannot be saved unless there is a File Number and Rep/Agent name entered.

Reloading Client Data

The file name will be C*****-#.xls and is found in the C:\MortMast\Clients directory or <path>\MortMast\Clients for a Network. If more than one family have the same code or different scenarios are required then use C01234-A, C01234-B etc.

Reload sample or any previously used Data File

(a) A file may be loaded from the "REGISTER" by opening the register file (click on “Register” button at Data entry Screen) then click on the file name from the list then click on "LOAD File". (b) Alternatively - from Excel – (i) Select the File - Open menu and look for the C:\MortMast\Client\ folder area containing client files. (ii) When data file loads click on RESTORE button - wait - and the data is ready to use. SEE REGISTER for more details.

Capital Adjustments

Click on MONTHLY ADJUSTMENTS button from MENU. Adjustment - if a certain sum is available for use (or required by withdrawal) for a limited time then enter the amounts in the appropriate row on the Adjustments table. These amounts do not have to be the same. Withdrawal adjustments are entered as positive (+) values, cash Deposits use minus (-) value. If you do not wish the loan repayments to be adjusted then click Adjust Repayment - FALSE. eg if $12 000 was available between December 97 and July 99 then enter :- Year Month Adjustment 0 3 -12000 1 11 2000 This capital is entered to the calculation at the given month and used for LOC calculation until extracted.

Interest/Only Loan Termination

For an original Interest Only or Endowment loans which will expire between 5 and 35 years a termination time may be set on the Entry sheet as Expiry in years. The loan will now be seen on the Report as concluding at the maturity date. The approximate payout figure may be seen in report table at maturity years. The actual Maturity payout figure used may be observed at the bottom of the tables sheet (CTRL-PgDn from Monthly Adjustment sheet) Notes : (i) Saving calculations are based on maturity figure as above being fully paid at maturity date. (ii) No account is taken for offset interest from Endowment annuity and if Endowment payment is entered to Budget it is assumed that policy grows to maturity date. (iii) If parts of years (eg 18.5) are entered then Grey graph will appear to stop 1 year early but figures re saving are correct to the month -the Blue graph rounds to next year as a compromise. (iv) Pie chart figures have been adjusted to be correct for ordinary Interest Only (off) or Endowment termination situations. (v) The total amount paid to I/O loan may be seen beside "Old Total Loans" under logo on Report sheet. (vi) Saving accuracy exists for maturity within LOC repayment but if a time less than 5 years is entered the Blue graph becomes inaccurate and time and saving are fixed at 5 years.

Total Loans Calculation

The Report Graph will show Grey graph at the rear which is the sum of all Original loans PLUS any presumed drawdowns. Blue graph which represents the Original primary mortgage loan Red graph may appear if there are (a) Un-consolidated Other loans (b) Split Property loan Yellow graph represents the expected Line of Credit (Liquid) Loan. If there are significant drawdowns, then the Grey & Yellow graphs will have a rise at the point of drawdown. The Total Old Loan graph is determined with a repayment which changes to be a constant percentage of the overall loan at any drawdown point. This means that if a $12000 drawdown occurs, thereafter the repayment will be higher by the same ratio to keep the loan period similar to original.

Agent Information Screen

This sheet contains details related to bank qualification and may not appear to reflect the Client given details regarding income.

All_Income is Total Gross + 80% of Rent + Building depreciation + Interest on building (if selected). Net Income is Total Cash available from all sources including Investment Tax Rebate.

Calculating Line of Credit Select Agent Information screen from MENU

“Total Old Loan” amortisation occurs instantly the required loan data is entered but the Line of Credit system must have - a current licensed copy - balanced Budget and loan payment figures else no LOC calculation occurs - a bank code selected for a qualifying bank. NOTE : DEFAULT values for these items is at the middle right of Agent Screen

Select Bank Code Manual - Individual bank codes may be entered in the "Bank Code" box (all white boxes are editable) Type the Bank code and it will be calculated immediately.

The Top line of the bank details table reflects the current selected bank. You may change any details for selected bank there and it will not change the default values below. Eg if a special Application fee is available for that client, then it may be entered on the top line of the bank details and once CLEAR is hit the details will return to default values.

NOTE if you change the bank details on the top line (ie rate or Applic fee – Scan Banks will not change that value. You must click on RESTORE DEFAULT to return values to normal.

Automatic – Click on the SCAN BANKS button and all qualifying banks are calculated and entered in the table. The bank table is sorted by "Interest saved" and estimated best option is registered in the "Recommendation" box and details listed as Actual LVR (loan to value ratio) and Difference calculated.

The LOC Time is the actual Line of Credit Time not the saved time. The auto calculator looks for the maximum amount saved. Transactions per month may be estimated. The default is 10 (cheques + EFT) but may be changed according to the assumed client banking pattern. Some banks require fees above a certain number of transactions / month.

CONSOLIDATE 2nd , SPLIT and CAPITALISE are Macrobutton options and set the Agent screen configurations automatically. See below for further details on function.

Note Items marked * are entered automatically by Macro buttons on AGENT Screen.

*Consolidated 2nd Loan may be consolidated or left as a 2nd loan (F) - Default TRUE.

* SPLIT (2 in 1) - This may also be used for 2 in 1 loans where the Primary account is the LOC and the 2nd loan is the P&I loan at the required low rate entered on the Data Entry Screen. Consolidate must be FALSE. The box on the right hand side labelled * LOC LIMIT carries the minimal amount reached by the separate LOC account before a full transfer cheque is written to the P& I account - default is $3000. See Split Loan - Turbo Reducer Section

*Hide Savings – Changing to TRUE means no savings are shown on Report. – Default FALSE

*Capitalise Loan 2 Interest on investment accounts. If "TRUE" selected then the following must be provided.

(a) Consolidate must be TRUE to calculate it as a LOC and not P & I. (b) Tax rate & Investment Property value must be entered on Data Entry Screen. (c) The both Property value/s must be entered on the Data Entry Screen. This is the total registered 1st mortgage value/s as assessed by an independent valuer. The normal result is a 4th graph showing the (usual) rise and fall of the secondary capitalised loan.

Note : This system may not be allowable by ATO but if investment income is paid into Second separate account it should be allowable - see Taxation adviser. * ADD Tax Saving – This adds any tax changes from Property Investments sheet back into the LOC. If an existing account has already been included in Gross & Net incomes then this is set to FALSE. A message box appears when a new Investment account is set to trigger this option. The amount added to the LOC is the Tax change less Management expenses - Rent and Loan expenses are included via normal account expenses.

Mortgage Insurance Special values may be entered here. There are two boxes. The first ("0") contains the calculated value for mortgage Insurance, the second ("Y") contains the override value. If a change is required then replace the "Y" with the new value. If not required enter a "N" is this cell. Default "Y" applies table value.

LVR – this gives the Loan to Value Ratio for the loan including all costs. ACTUAL shows value including mortgage insurance. These may be different and if ACTUAL is over the top then MARGINAL LOAN is indicated.

Bank Detail Chart – No Longer Supported

Bank details are given as a guide and may change without notice. Allowance is made for user alteration of these details All initial Bank application fee are incorporated into loan or regarded as debited from initial cash payment. The first line is the Selected Bank details as above. The second line is the average of all others.

LOC Credit Limit is taken as the Max LVR or income level amount for the selected bank including allowance for Mortgage Insurance where allowed.

Max Loan per Income gives an estimate according to given bank criteria of the maximum loan available for the Gross income stated or Loan to Value ratio.

Saving difference gives an estimate of the comparison between the lowest quote and all others qualifying.

Minimum Income required gives an estimate of possible Income required to qualify for some banks.

Errors & warnings - most errors, if they occur, are registered in red in the centre of the Agent screen. These should be taken as a guide only but seriously considered. When a particular bank does not calculate, it is usually for LVR reasons. Check loan to value ratio against known bank information.

AUTO BANK SELECTOR At the left hand side of the Bank table each particular banks may be switched on or off by adding or deleting the * alongside the bank name.

Click on SHOW ALL then change *’s as required then click on SHOW ACTIVE.

All Banks – shows all banks in the table

No Banks – shows only the current selected bank in top of table.

Active Banks – shows only the active banks in the table

FEES & CHARGES

State Stamp duty must be added manually to the Residential Stamp duty cell. Click on the STAMP DUTY button that loads the SDC file. Enter the State, Loan amount and property value for new purchase. Write down values or ALT TAB back to MIS.

Commissions & fee system charges in the centre of the Agent Screen.

(a) If Self Employed was checked on Data Entry Screen then the Self Empl Setup fee is used otherwise the PAYE setup fee is charged (b) Annual Monitoring fee may be changed if required. (c) Exit penalty fee charged by a bank for early discharged of a fixed rate loan may be entered here and becomes part of the new Establishment fee for refinancing.

Credit Card Expense Deferment Rate

Monthly Expenses may be deferred by using a credit card. The rate or proportion of monthly expenses deferred may be changed here from 0 (50%) to 100 (100%) deferment. When zero deferment is entered in fact 50% of expenses are deferred as payments will actually be made month. Default is 50%

Automatic Split Loan Calculator

For a single Mortgage loan which has a good LOC saving, a split loan may be calculated by the press of a button. At the middle left of the Agent screen the recommended split values may be seen.

This represents the recommended values for the LOC account and the P & I component with their relative payment amounts. Only the LOC Amount need, (or can) be changed.

Steps On the Data Entry screen

1. Ensure a LOC actually works for the client then check the minimum LOC amount for the bank involved. (Default is the selected bank minimum, but this may be changed on the AGENT screen. - mid left).

2. Click on the SPLIT-IT button and the Interest rate for that Bank, the Minimum Loan split and new split amounts and repayment values will be entered. This also holds the original "Total Old Refinancing" loan cost for comparison.

3. RESET button on the Data Entry screen puts back the original Primary mortgage loan values so switching comparison may be made an observed at the bottom of the screen. See TURBO REDUCER section for more details.

NOTE : if the Consolidated, Non-consolidated or Capitalise buttons are pressed this "Total Old Refinancing" amount is lost.

RESET button on the Data Entry screen puts back the original Primary mortgage loan values so switching comparison may be made an observed at the bottom of the screen.

CHANGES - if any changes are made to the budget, expenses, income or drawdowns then the Autosplit becomes ineffective and must be reset and redone. Click on Reset Split then AutoSplit to reset the split loan system may cost a few hundred $ extra to set up (if a new loan facility and only with some banks) but can save the client many thousands in reduced interest. See SPLIT LOAN REDUCER

Tax-Loan Calculator

At the right of the Agent and Data Entry screens is a button to access a Mortgage calculator. This works a number of ways. Annual Tax Calculation - Enter the Gross Annual Salary and the Annual tax and annual net income are calculated according to Australian Tax table PAYG Withholding. The Default is table 2 - Tax free threshold and Medicare. Also given are the weekly tax and weekly net. Gross up calculations are available by entering the net Yearly or weekly income and pressing the appropriate button and the annual Gross will be calculated. Find Payment - Enter Mortgage, Interest Rate and Years and it will display the Fortnightly and Monthly required Payments. Fixed Interest period selectable. Find Years - Enter Mortgage, Interest Rate and Payment per Month or Payment per Fortnight and it will display the Years for repayment. For Fixed Interest periods (up to full time) Enter fixed interest and the corresponding interest rate. Find Future Value - if you enter the Mortgage amount, the Interest Rate, the Time for a partial amortisation and a Payment /Mth or /Fortn then the Future Value gives the value of the loan at that time. This is useful for determining the value of a mortgage after the end of a penalty period for instance.

Printing Reports Report screen The Report screen can be viewed by clicking on the Client Report button from Menu Making Changes There are no user editable values on the Report screen. It just reflects calculated data from Data Entry screen and options selected on Agent screen. The Data Entry, Budget & Agent screens should be used for all changes. Charts The top half of the screen is locked but the bottom may be scrolled by using Up & Down arrow keys or Page Up & Page Down. Default is having the column graph chart exposed but the tables may be viewed easily. Complete page prints out Tables The tables listed are Original Primary, Original Other, Total Old, New LOC Primary and Other Total. These tables extend to 30 years but detail shown to 20 years & calculations may extend to 35 years. Total net income The total net income comprises (i) Annual net income from Data Entry screen plus (ii) Additional monthly x 12 (This is assumed to be Non Taxable income from Family allowance, monthly bonus or later assessed income) plus (iii) Additional annual income (also assumed Non Taxable) (iv) Annual Rent or Dividend income added entered as conservative annual summary. This is calculated in the program as a monthly entry. If a 2nd property value is included, the total net Income includes tax rebate from investment property. Total non-loan expenses All expenses normally incurred and entered on Budget screen are summed, less the amounts shown as old loan repayments. Non-consolidated loan payments are included as non-loan expenses. This data must be accurate as possible for Line of Credit to Operate. THERE MUST BE SURPLUS. If the Total Non-Loan Expenses plus old repayments exceed Total Net Income then a Warning indicates. If the excess is too much then no LOC graph appears and warnings arise. Total gross income Gross is assumed to comprise (i) Normal combined family PAYE Gross (Ex tax) income plus (ii) Net business income as used for qualification by banks. Net business income becomes gross personal income. Line of Credit is very difficult to calculate where a business income varies dramatically. Available Equity may be switched off by clicking button on Agent sheet. This is the lesser of (i) Maximum serviceable loan per income (ii) Security for loan X Loan to value ratio. Interest Rate Limit This gives the limit before a clients account goes square - that is, it determines the interest rate at which they are not better off with a line of credit than their old payments. This assures most clients that they are much better off as they could not keep the old payments either as the loan period would be longer. Print Report Button - on MENU Screen 1. Print Report Button prints the selected pages as well as Leveraged Equity or Property if Loaded. DSR sheet may be printed by selecting from Menu seen on left. 2. Any individual screen may be printed by entering File Print then Enter or CTRL-P then Enter All screens are one A4 Page in size with the Agent screen being Landscape orientation. 3. Colour may be turned on by using - File menu - Page Setup click on Sheet tab then click on |X| in Black and White box. This turns on colour printing for that screen only. Repeating this turns colour off. The Chart always prints in colour if printer is setup for colour. Print Page – on the Report Page simply prints the Report page for a new report or any other page on which it is clicked.

Client Register Module

A Client Plan Register is available from the Data Entry screen by clicking the Register button. A register entry is created when a client file is saved. The details are automatically entered to the register by file number. Utilities SORT – will sort the client data by File No. then date. PACK – sorts the data then removes all entries where the file number is the same and there is a more recent dated entry. LOAD FILE - to load a client file to the main program, click on the client file number then click the LOAD FILE button. MERGE – if another register file is available in the default directory then the file name may be entered under the MERGE button then click on the MERGE button and the register will expand to include both. UPDATE - allows the updating of the register from a regist.xls file.

(i) Open the regist.xls file from Excel (in C:\MortMast\Setup folder), (ii) Click on UPDATE and the old register data will be read into the new format, (iii) Answer ‘Yes’ to "Replace old file ?"

Property Investment Projection Module Introduction - A Property Investment Calculator is an optional module to the extent that : - Using the client details, the user can determine the maximum investment property value/s and loan based on 7% or other preset return, including costs and non-cash tax deductions. - The ATO table 2 is built in, determining the clients taxation reduction for a straight Line of Credit, a non-consolidated P&I or a 2 in 1 split loan. - The net gain (or drain) to the weekly income is shown on the Data Entry Screen so a quick entry of property values may be made. - The earliest time for another property purchase on the LOC may be added as Drawdowns. - Longer term estimation of property growth or future purchase potential is made given a large number of assumptions - this is based on many unknown estimated quantities and each is changeable by the operator. Upon Clear all are set back to the default values. - It is assumed that the client qualifies for a Line of Credit loan for some equity loan. - The assumed interest rate for INVEST calculations is a changeable margin % higher than current LOC rate. - For Business and Non-taxable component Incomes - The Non-Taxed component is entered to adjust Gross and Net incomes so that a new tax rate is calculated. This rate is used throughout the property calculations as the new rates would otherwise be unknown. PROCEDURE

A. AUTO – ENTRY of New Investment Property. 1. Enter all client details for primary mortgage, Family, Income and Expenses as normal on the Data Entry Screen. Leave the Second Loan details until last. 2. Check that the Line of Credit calculation operates for the client. This may be seen at the bottom right corner of Data Entry screen. If there is no primary loan, then enter a $30 000 LOC minimal account and subtract this from the investment loan required later. This is a good start for a 2in1 loan. 3. Select property Module from Menu then by selecting Menu again data will be transferred to Loan schedule.

B. ADJUSTING ENTERED DETAILS

INVEST Screen Hit the PROPERTY INVESTMENT GUIDE button from the menu. The INVEST screens may be viewed and printed from the screen.

Data Entry Normally the data will be transferred from the data entry screen but there is allowance for change. Split Incomes Partners separate incomes may be entered in the "Assumptions" Section at the bottom of the PROPERTY INVESTMENT GUIDE. Note - If this is used then ensure correct Gross & Net Income figures are entered in Data Entry Screen - You cannot lump two incomes through Tax calculator - they must be determined separately, then added. Default is Person A (right) with Entered Gross income. Person B income is entered on the left and Person A automatically adjusts to assume remainder.

Ownership ratio may be entered for tax apportioning. Default is Person A (right) with 100% of ownership. Person B percentage is entered on the left and Person A adjusts to assume remainder. Non-Taxed Income may be accounted for by entering the amount of untaxed income under loan details. e.g. if a family has a full taxed income and one partially taxed income, enter the untaxed portion and the Gross and Net will be reduced accordingly so as to keep the calculate tax rate and Split tax adjustment from negative gearing correct. Note : If "Current Tax/week" (on right) is greater than "New Tax Primary" (lower right) then a "Check Non-taxed Income" Flag appears. This means that the income details entered are not consistent with the tax table and therefore there must be non-taxed income accounted. To override this flag enter a "0" (zero) or enter the actual amount of non-taxed income into the Non-Taxed Income cell.

Rate Rise Tolerance. To find the maximum interest rate rise before a client has a net negative cash flow, set up the investment account as detailed then click on the Rate Tolerance button. This may take a while, as it requires a goal seek calculation. The Maximum Interest rate for the net cash flow to be negative appears on the right hand side of the Investment screen. Investment Only Loans. The property guide is able to cover clients who have NO Home Loan but equity for an investment property loan. Method (a) Enter the property as a Primary loan and enter the Rent manually on the Input screen. (b) Select "Property Investment" from the menu. (c) On Property Guide, enter the Property Value (in box) as the Home Value (d) Enter the Property Loan (in box) as the value in Home Loan (e) Enter 0 or equity value for Home Value and 0 for Home loan.

Property Compound Projector has been set to (a) Take the maximum advantage of available Equity. (b) Include projection where there is no Home Equity to use. (c) The Actual Property Projection value may be changed on the top of the Projection sheet.

Saving Property Type Assumptions All the assumptions listed in the Property Guide and Compound Projection may be stored in separately named files for immediate recall. This includes the property value (where applicable - Notice this may require consistency check with details entered in Data Entry Screen.) 1. At the bottom of the Property Guide, the currently used scenario is listed under Property Type. 2. Saving a new scenario simply requires entering Assumptions in appropriate areas, entering a name under "Property Type" and click on "Save Type". This file is saved as a spreadsheet file in the "MortMast\Properties" folder and may be edited separately.

3. To reload a scenario click on the scenario name in the list at right then click on "Restore Type". 4. Up to 10 scenarios may be saved - any further must be loaded manually by opening file in "MortMast\Properties" folder and clicking on "Restore"

Leveraged Equities The Share Investment, Leveraged Equity Portfolio module is only usable by authorised Securities dealers and follows Leveraged Equity calculations for 0% (nil), 50%, 60% and 70% leveraging. Includes margin call projections and risk factors. All dividend ratios and imputation tax rates are required.

SPLIT LOAN REDUCER Auto - Split Loan - Turbo Reducer - Most Banks may allow the use of a 2 in 1 loan System showing extra savings. Calculate and Graph a system that allows many clients with existing loans to use the best of P&I or Interest Only rates plus an Equity loan to reduce debt faster than a straight Line of Credit. Again, this does not suit all loans but provides optimum reduction for many clients above a Line of Credit system. VERY CAREFUL MONITORING REQUIRED This concept involves setting up two loans, one P & I or ( I/O) loan and a lower, related Equity or Line of Credit Loan to use as a transaction account. The lower interest rate on the P & I ( I/O) reduces interest whilst the Equity loan is used to periodically drop the P & I level. The LOC loan is ideally set up for some amount greater than that required maybe $5000. The client uses the LOC account for transactions and when it reaches a predetermined level ie. down to $ 2-5000, a cheque is paid to the P & I account for the difference. Eg. this could be $15 000 - $20 000 on a $20 000 LOC account. The number of adjustments (cheques) required depends on the situation, but only 2-4 would be common. Careful checking with banks may allow this, but be careful of the charges for Transaction Equity loans. This should be set up in the one bank otherwise charges would reduce the savings considerably. To Use Manually 1. Important - for comparison - Set up the loan as normal using a normal consolidated loan arrangement then File Print (i) Report and (ii) Agent screen 2. Data Screen. On the Data screen delete all original loan details then re-enter the new loan as two separate loans. KEEP ALL FAMILY, INCOME AND EXPENDITURE DETAILS.

Eg. A $120 000 loan may be set up as follows (a) Original Mortgage as $20 000 (for LOC) @ 7.79% (or whatever) with $120 per fortnight (26). If they are currently paying monthly then use monthly repayments for this loan only -this will demonstrate greater savings. (b) 2nd Loan as $100 000 P & I @ 6.9% (or rates applicable) with repayments fortnightly as shown on the calculator (ie $400). If there is a lower rate available for the first year of a new secondary loan then this is entered under the 1st year Mortgage rate

3. Agent screen. On the Agent Screen, change Consolidated to "N" and watch the change occur. You should then have a graph for long Secondary loan. 4. Return to Agent screen and in the Box under label LC Limit (top right hand side) enter a lower LOC limit such as 5000. This is the value watched for, when the monthly balance reaches this level a cheque must be made to the P & I loan account up to near the limit on the LOC account. Recalculate and observe the changes. If they are not significant then return to Normal LOC account. NOTE : not all accounts will be reduced this way - some may be bigger with no saving at all. This a graph of the example. Actual interest saving is many thousands but the time saving is imprecise as a lower level LOC is being paid and may take slightly longer.

Client Active Monitor System Given a budget in that : (i) Regular client expenses are entered appropriately as Weekly, Fortnightly, Monthly, (ii) Quarterly, Half Yearly and Annual expenses must be entered with the next month that payment is due entered as a 3 letter month code in the Month Due column, (iii) All expenses of a non regular nature are entered on a separate line. A complete monthly monitoring system is available in three forms. 1. The bottom of the client budget (Printed with Report) is set out with month by month total expenditure. This gives a useful summary of each months expenditure. 2. A separate Monitoring budget is printed (Printed with Report) for a more accurate description of the actual payments expected for any given month. This budget summary includes any Drawdowns as well as LOC Interest payments and expected LOC levels (very bottom of screen) made in particular months for the first year.

Monthly monitoring budget Worksheets may be printed in order for each of the twelve months (Last month is tagged with * END at the top). Click Monitor Worksheets on the MENU screen. Each particular months’ values are carried in the "Expected" column.

Active Client Monitor System

Active Monitoring System - with Graph comparison. The report software can produce a disk file which may - (i) be given to the client or used by an agent with laptop computer to monitor progress (ii) graph the clients monthly progress against predicted results for the first 12 months as well as predict the term of the loan is the current average spending rate is continued. This based on average budget spending so far on the program against the original predicted values. (iii) show a “Possible” facility year payout graph for the account if they continue the current budget spending rate. The Active Monitor File may be produced two ways – (i) Directly from the Main MIS program menu (saved to a Directory or Floppy disk) or (ii) By an agent at his office or client home from an email report sent from main office. The file (“Mxxxxx.xls”) contains given Budget, Income, Expense and Drawdown figures which are compared each month with the actual weekly figures entered by the client or monitor person. Picture shows typical account after 6 months. Second graph is facility completion "Possible guesstimate" based on current budget activity.

Usage Guide 1. The Active Monitor File starts at the assumed commencement month. Select Month (Jan, Feb etc), Summary graphs (ACTMON) or Monitor Guide (MNTRGD) by clicking on tabs at bottom of screen. 2. Before completing monitor changes select File / Save from menu before closing or click on "Save & CLOSE" at the ACTMON sheet. 3. Any sheet may be printed by selecting File / Print from that sheet. 4. Four weekly columns are provided for spending entries each month.

5. A fifth column is the Credit card column. Any entry made in this column is assumed spent on a fully swept credit card account ( ie paid fully the next month). All entries for this column are added and accounted for that month from a budgeting view point but are not deducted from the LOC account. The total deferred amount in credit card column is automatically added to the required Credit card payment for the next month and is added to a Deferred Debt list on the Active monitor report. 6. Average estimate projection graph now also includes any Adjustments to the account. Minor Changes 1. Expense category labels may be changed on the Monitor Guide Sheet (MNTRGD) - left most column. 2. Expense value changes may be made in body of this (MNTRGD) sheet. 3. Start value may be adjusted by changing entry cell on ACTMON page (white square under word "ACTUAL") This value will be reflected on the month pages as an actual balance figure. NOTE : NO changes made to the values in the monitor file will be reflected in the "LOC Expected" Facility estimate value on any sheet. This can only be done from the main program report system as it represents the original quote to client.

Client Reports to Agents VIA e-mail Financial Questionnaires may be processed and reports sent back to the agent via e-mail as an Excel facsimile copy. The agent can then print the report quickly and present a complete, properly printed report to client, the same day.

No formulas are sent - only the numbers resulting from processing for the following pages –

Front Page Budget Screen Monthly Adjustment Sheet Report Screen Agent screen Property Investment Guide Leveraged Equity Guide Deposit Saver System Monitor Guide for Final Reports

After a report is processed, the reverse transfer could be performed in 15-20 mins enabling agents to receive and print a processed report within 1 Hr of faxing the Questionnaire.

Office Requirements Pentium Computer with E-mail account address and e-mail software MS-Excel ver 8 or better MIS Software, C:\MortMast\Report folder and C:\MortMast\REPORTPR file Time - 2 mins to send after processing

Agent Requirements Pentium Computer with Modem and E-mail account address and e-mail software MS-Excel ver 8 or better Time - 5 mins to receive

Office Steps 1. Process the plan for a satisfactory report, noting the client file number. 2. Click on "Interim" or "Final Email Report" button on Menu Screen - wait! 3. File may be zipped using Winzip where possible. 4. Use the Win95 button to open the Internet connection and e-mail reader. 5. Make a new (or Forward an old) message file for the receivers address. 6. Click "Include Attachments" or "Insert file". 7. Go to folder c:\MortMast\Report and find the "I????.XLS" or "F????.XLS" file for that client 8. Double click on file name or select then, click on Attach. 9. Send e-mail and close reader.

Agent Steps 1. Open E-mail connection. 2. Receive E-mail and note where the attached file is saved or if using a less clever reader like Microsoft then click on the file logo and enter where you want it to put the file. 3. Copy the file into a usable directory, double click. An EXE file or ZIP should auto-unwrap 4. If a ZIP file then double click and use WINZIP to Extract to the XLS file. Open the received file with Excel and print as required. 6. The investment sheets will print if not zero.

Client Monitor Disk may be produced from the Email Report File menu. For production of Client Monitor disk file see Active Monitor System Email reports may be sent Directly from the report file as a Zip file.

Find and open the report file ie F002345.xls Click on Email File at front page and it will ask for the email address and give current default. There is a delay to ensure the file is zipped correcly. (i) Original file (eg F002345.xls) is saved in current location. (ii) File F002345.xls is saved in ‘C:\MortMast\Send’ folder with Zip file for emailing. This may also be done for Client Active monitor files as well.

Savings Scheme Where a client cannot operate a Line of Credit, a savings projector may be useful. There are two forms. 1. Short term deposit guide and 2. Long term investment savings projector for young people or starters. Select Deposit Saver Guide from Menu Method DEPOSIT SAVINGS SCHEME Calculations 1. On the Budget Screen enter the client budget. 2. On the Data Entry Screen enter the client Income, a Mortgage amount of $1 and an interest rate. 3. Select Deposit Saver Guide from Menu - the projection of the client saving toward a property purchase deposit can be determined.

Long Term Savings Scheme Calculations Using the Mortgage program in reverse you can determine the amount accumulated by a fixed regular deposit, compound interest bearing savings scheme. Eg. How much will $25 /week amount to after 20 years @ 6.5% interest compounding? 1. On the Data Entry Screen Enter Mortgage loan as $1 2. Enter Repayment amount as (minus) -50, Periods as fortnightly (26) and interest as 6.5% (whatever rate you can get). 3. The Report screen will then show you the Mortgage system in reverse and give a $ accumulation graph. 4. The budget data may be entered to give more realistic values 5. Teach this to your children (or grandchildren).

Updating bank Details From time to time the bank data will change and an interest rate or an application fee must be changed. MIS is write protected and so a few steps are required to change the values. Win ’95 / 98 1. Start Windows Explorer and find the C:\MortMast directory and open by clicking. 2. Click (ONCE) on MISmain.XLS - it should go dark. 3. Menu File / Properties then click on Attributes ⌧ Read Only and change to OK 4. Hold ALT-Tab or minimise Windows Explorer (File Manager) and start Excel or MIS icon 5. Load MIS program and make changes to bank details. 6. File / Close MIS from Excel and Save Changes YES 7. Hold ALT-Tab or Start Windows Explorer (File Manager) click on MISMAIN.XLS. 8. Menu File / Properties then click on Attributes Read Only and change to ⌧OK 9. Exit Windows Explorer (File Manager) and reload MIS if required. NOTE : This same process is required to Change the Default Fees, or Default Options at the bottom of the Agent Screen.

Computer Requirements for program (mismain.xls)

Pentium 120 or better computer running MS Excel ’97 or later (Pref XP) Minimum 16MB RAM (recomm 32MB)

10 MB Hard drive space (2MB plus 70k per file saved) Super VGA Screen at 640x480, 800x600 or 1024x768 screen resolution

Quality Colour Inkjet (720 dpi or better) or Colour Laser Printer

Network Setup The data for each client, the e-mail report copies and all optional modules may be saved in a central network accessible storage area. This must be installed correctly in a MortMast directory. (a) Each computer must be set up and have software installed separately so that system registry and directory files are accessible. (b) Once the software is installed and running correctly on each system, each satellite computer may then refer to address data on a central system and the main program removed from each satellite MortMast directory. (c) The exact path name to the central system is required for each computer in the network. The default path is C:\ but may be changed to any Network address. (d) The Path-Name Set button may be used by clicking the PATHNAME button on the Opening screen to set a new pathname. This opens a directory file with notepad. Defaults are C:\ C:\program files\internet explorer\iexplore.exe Note: The first Path name must end with "\" (e) The Calculator may be used as a test as it is referred to in the same directory. ie Pressing the MORTGAGE CALCULATOR button will tell you whether the path is legitimate or not as it looks in the C:\MortMast\ of the main system or <path>\MortMast\ for a satellite computer Data is stored in <path>\MortMast\client\ for client data files and <path>\MortMast\report\ for e-mail reports. After installation, the program, all module files and client data may be updated and accessed from the central system by satellites using Shortcuts to central MortMast directory.

Installing Mortgage Investment System Win ’95, 98, XP 1. Place the disk in drive A:\ (where applicable) 2. Use START - RUN - Browse then select file name eg SETUP.EXE or MIS-Setup.EXE 3. Enter Password (where applicable) (i) Click OK (path default C:\ is correct) then (ii) UNZIP – all files will be unwrapped. (iii) Select Close 4. This creates a MORTMAST directory with associated folders and files. The program may then be loaded from Desktop icon or run Excel then look in the MORTMAST directory for MISMAIN.XLS. If not already created, it is a good idea to create a ShortCut to start the program more quickly - refer to your Windows Help system, Windows CD or (i) Click on My Computer \ then C:\ then MORTMAST and look for MISMAIN.XLS. (ii) Click once then click right button and Select Create Shortcut. (iii) Drag Shortcut to Desktop.

Upgrading Mortgage Investment System Win ’95, ’98, 2000, XP Now the same procedure as installing. Email updating This is very simple. As updates are received and double clicked they will automatically install and setup into the correct folders. A copy of all used files is stored in c:\MortMast\setup for transfer to disk.

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