What the law expects your notes to prove
No section of the National Consumer Credit Protection Act 2009 (NCCP Act) says 'keep a file note'. The Act sets the obligations, and the note is how you show you met them. If an aggregator audit, an AFCA complaint or an ASIC review lands two years after settlement, the file is all you have.
| Obligation | Source | What your notes need to show |
|---|---|---|
| Reasonable inquiries about requirements and objectives | NCCP Act s 117(1)(a), ASIC RG 209 | What the client wants the loan to do, in their words, and the follow-up questions you asked |
| Reasonable inquiries about financial situation | NCCP Act s 117(1)(b), RG 209 | Income, expenses, assets, liabilities, dependants, and any foreseeable change you asked about |
| Reasonable steps to verify financial situation | NCCP Act s 117(1)(c), RG 209 | Which documents you relied on and how you dealt with anything that did not line up |
| Preliminary assessment, not unsuitable | NCCP Act s 115, 116 and 118 | That the loan meets the requirements and objectives and can be repaid without substantial hardship |
| Act in the client's best interests | NCCP Act s 158LA (s 158LE for credit representatives), ASIC RG 273 | The options you considered and why the recommended loan is in this client's best interests |
| Conflict priority rule | NCCP Act s 158LB (s 158LF for credit representatives), RG 273 | That where your interests and the client's conflicted, the client's came first |
A note on section numbers, because they get mixed up. Sections 115 to 118 apply to credit assistance providers, which is what a broker is. Sections 128 to 131 are the matching rules for credit providers. Section 130 is the lender's version of your s 117 inquiries, and the lender makes its own 'not unsuitable' assessment under s 131. Your assessment under s 116 is separate from the lender's, so lender approval does not show that you met your own obligation.
Two timing points shape the template. Your preliminary assessment must be made within the 90 days before you provide the credit assistance (s 115), so every note needs a date. And a client can ask for a written copy of the preliminary assessment for up to seven years (s 120), so the reasoning has to make sense to someone reading it cold. We cover the statutory detail in how to write a compliant NCCP file note and RG 273 explained.
Template 1: initial fact-find call
Use this for the first substantive conversation. Its job is to evidence the s 117 inquiries. Copy the headings as they are and fill the prompts.
- FILE NOTE - INITIAL FACT-FIND
- Date / time / channel: (date, start and end time, phone, video or in person)
- Client(s) / broker: (all borrowers on the call, who was not on the call, broker name)
- Credit guide: (date given, how)
- Requirements and objectives: (purpose, amount, timing, what matters most to them and why, in their words)
- Features wanted: (offset, redraw, fixed, variable or split, principal and interest or interest only, loan term, extra repayments, and the reason for each)
- Priorities and trade-offs: (rate vs features vs speed vs lender preference, ranked by the client)
- Financial situation - income: (employer, role, basis, tenure, base, overtime, bonus, other income)
- Financial situation - expenses: (living expenses as stated by the client, how they arrived at the figure)
- Financial situation - assets and liabilities: (savings and where they came from, property, super, credit cards and limits, personal loans, HECS-HELP student debt, buy now pay later)
- Dependants and household: (number, ages, anyone else relying on the income)
- Foreseeable changes: (parental leave, job change, retirement, end of an interest-only or fixed period, large expenses, and what you asked)
- Verification requested: (documents asked for, due date)
- Inconsistencies or flags: (anything that did not add up and what you did about it)
- Conflicts: (any relationship, ownership or commission difference that could affect the recommendation)
- Client questions and understanding: (what they asked, what you explained)
- Next steps: (who, what, by when)
Filled example: fact-find
- Credit guide
Emailed on 31 July 2026. The clients confirmed they received it.
- What the clients want
First home buyers, buying a home to live in. Looking to spend up to $780,000 on Brisbane's northside. They want pre-approval before auctions start in September. Mei: "We want to be able to pay it down fast while we are both full time." They plan to start a family in 2 to 3 years.
- Loan features wanted
- An offset account, to hold a savings buffer and keep access to it during parental leave.
- Variable or split rate. Open to fixing part of the loan.
- Principal and interest over 30 years. No interest in an interest-only loan.
- Unlimited extra repayments are important.
- Priorities
1. Offset account and extra repayments. 2. Rate. 3. Avoid lenders mortgage insurance (LMI) if possible. No lender preference. Asked if they would give up the offset account for a lower rate. They said no, because access to their money during leave matters more.
- Their finances
- Income: Jarrah works full time as a site supervisor, 4 years with the same employer, base salary $112,000 plus regular overtime (about $9,000 last financial year). Mei works full time as a physiotherapist, 2.5 years in the job, $96,000, no bonus.
- Living costs: the clients estimate $4,100 a month, not counting rent. They based this on the spending categories in their banking app over the last 3 months. Rent is $620 a week and stops when they buy.
- Savings and debts: $171,000 in savings, built up over 5 years, no gift. They own their car. One credit card with an $8,000 limit, paid off every month. Mei has a HECS student debt of about $14,000. No buy now pay later accounts and no personal loans.
- Dependants: none at the moment.
- Changes ahead
Asked about parental leave. Mei expects to take 9 to 12 months off in 2 to 3 years, then go back part time. Asked whether they could manage repayments on one income plus their buffer. They want this tested. No other changes expected. Jarrah says his overtime is ongoing.
- Documents requested
The 2 latest payslips for each of them, their latest end-of-year income statements, 3 months of statements for the savings account and credit card, the HECS balance and ID. Due 7 August.
- Inconsistencies or flags
$4,100 a month looks low for the lifestyle they described, including 2 gym memberships and regular travel. We will check it against their bank statements before working out what they can afford.
- Conflicts of interest
None identified. No referrer.
- Client questions
- They asked how LMI works when the loan is 85% of the property value, compared with 80%. Explained the cost is either added to the loan or paid upfront, and varies by lender.
- They asked if pre-approval is a guarantee. Explained it is conditional and only lasts for a set time.
- Next steps
- Clients: send documents by 7 August.
- S. Okafor: check their living costs against the statements, test whether they can afford the repayments (including on one income), compare options, and book a recommendation call for the week starting 10 August.
Look at the 'Inconsistencies or flags' section. RG 209 expects you to follow up when what a client tells you does not match what you see elsewhere. A flag followed by what you did about it is the strongest evidence of reasonable inquiries on the file. A note where everything the client says is accepted without question reads as a form, and reviewers notice.
Template 2: product recommendation and best interests call
This is the note that carries the best interests duty. RG 273 asks for records that show the options you considered and the basis for your recommendation. A product name with a rate next to it does not do that. The reasoning has to connect back to the objectives in the fact-find.
- FILE NOTE - RECOMMENDATION AND BEST INTERESTS
- Date / time / channel:
- Client(s) / broker:
- Objectives confirmed: (restate, confirm nothing has changed since fact-find, note anything that has)
- Verification completed: (documents received, what they showed, how each flag from the fact-find was resolved)
- Verified position: (income used, expenses used and why, debts, deposit, loan-to-value ratio)
- Options considered: (each lender and product, rate, comparison rate, fees, features, lenders mortgage insurance, policy fit. Include doing nothing or staying put where relevant)
- Options ruled out and why:
- Recommendation: (lender, product, amount, term, repayment type, rate type, features)
- Why this is in the client's best interests: (link each reason to a stated objective. Include cost. If it is not the cheapest option, say so and say why)
- Servicing and hardship check: (repayment, surplus, any stress scenario tested, basis for no substantial hardship)
- Preliminary assessment: (not unsuitable: yes or no, date made)
- Risks and downsides explained: (lenders mortgage insurance, break costs on a fixed rate, rate rises, revert rates, conditions)
- Conflicts and commission: (commission disclosed, any difference between options, how client's interests were prioritised)
- Disclosure documents: (credit proposal disclosure document, date given)
- Client questions and understanding:
- Client decision / instructions: (in their words)
- Next steps:
Filled example: recommendation
- What the clients want (confirmed)
Unchanged since 3 August. First home buyers, buying a home to live in, up to $780,000, pre-approval before September. An offset account and extra repayments come first, then the rate, then avoiding lenders mortgage insurance (LMI).
- What we checked
- 2 payslips each, their end-of-year income statements, 3 months of bank statements, the HECS statement and ID all arrived on 6 August.
- Income matches what they told us. The overtime on Jarrah's payslips is consistent with his end-of-year income statement.
- Living costs flagged: the statements show an average of $4,950 a month, not counting rent, against the $4,100 they estimated. We raised this with the clients and they agree they left out travel.
- Figures we used
- Income: Jarrah $112,000 plus overtime, reduced in line with lender policy. Mei $96,000.
- Living costs: $4,950 a month, the higher of their estimate and the statements.
- Debts: credit card with an $8,000 limit, HECS debt of $14,200.
- Deposit: $171,000 less purchase costs.
- Result: maximum purchase price $780,000, loan of $663,000. That is a loan-to-value ratio (LVR) of 85%.
- Options considered
- A. Lender 1: variable rate with a 100% offset account and a package fee. LMI applies.
- B. Lender 2: basic variable loan with the lowest rate of the three. Redraw only, no offset account. LMI applies.
- C. Lender 3: variable rate with an offset account. Waives LMI up to 85% LVR for some professions, and Mei qualifies as a physiotherapist. Rate sits between A and B.
- D. Wait and save until the LVR is 80%.
- Rates, comparison rates and fees are on the comparison sheet saved to the file on 12 August.
- Options ruled out and why
- B: no offset account, so it fails the clients' first priority.
- D: the clients do not want to wait, and reaching 80% would take an estimated 12 months or more.
- A: has the features they want, but its LMI premium is a cost that C avoids.
- Recommendation
Lender 3, variable rate, principal and interest, $663,000 over 30 years, with a 100% offset account and unlimited extra repayments.
- Why this is in the clients' best interests
It meets priority 1 (offset account and extra repayments) and priority 3 (no LMI at 85% LVR). The rate is not the lowest. B is lower, but B has no offset account and comes with LMI. Over the period we modelled, the LMI saving plus the benefit of the offset account outweighs the rate difference. We told the clients plainly that B has the lower headline rate.
- Can they afford it
On both incomes they can meet the repayments with money left over each month, at the lender's test rate. We tested 12 months on Jarrah's income alone. There is a shortfall, covered by the planned offset buffer of about $40,000 if they keep saving at their current rate. The clients understand the buffer is what makes the leave period work. The loan will not cause them substantial hardship on their current position or on changes we can reasonably expect.
- Preliminary assessment
The loan is not unsuitable. Assessment made on 12 August 2026.
- Risks explained
- The variable rate can rise. Showed them the repayment if rates go up 1% and 2%.
- The LMI waiver is lender policy and still needs approval.
- Pre-approval depends on the valuation and expires.
- Conflicts and commission
Upfront and trail commission disclosed. The commission is about the same across A, B and C. No referrer and no ownership links.
- Disclosure documents
Credit proposal disclosure emailed on 12 August before the call, and walked through on the call.
- Client questions
- Mei asked if they could fix part of the loan later. Yes, the loan can be split, and break costs would apply to the fixed part.
- Jarrah asked what happens if the valuation comes in short. The LVR goes up, the LMI waiver may fall away, and we would re-run the options.
- Clients' decision
Both said: "Go with option C." They told us to lodge for pre-approval.
- Next steps
- S. Okafor: lodge pre-approval with Lender 3 by 14 August, and update the clients once conditional approval comes through.
- Clients: sign the application and privacy consent by e-signature.
Template 3: short follow-up call note
Most calls are short: a document chase, a valuation result, a rate question. They still belong on the file, because this is where circumstances change. Six lines is enough.
- FILE NOTE - FOLLOW-UP
- Date / time / channel / who:
- Reason for call:
- What was discussed:
- Any change to objectives or financial situation: (ask every time, record the answer even when it is no)
- Effect on assessment or recommendation: (none, or what needs redoing)
- Instructions and next steps:
Filled example: follow-up
- Reason for call
Mei called about a property they have found. It goes to auction on 19 September.
- What we discussed
The price guide is $740,000 to $770,000, which is within their pre-approval. Explained that pre-approval depends on the valuation, but an auction contract is unconditional with no cooling-off period. Suggested they have their solicitor review the contract before bidding.
- Any change to their situation
Asked. Jarrah's overtime drops from October because of a new site roster, an estimated $4,000 less a year. No other change.
- Effect on our assessment
We had already reduced his overtime in our numbers. We will re-check affordability with the lower overtime before the auction and confirm to the clients in writing. The recommendation is otherwise unchanged.
- Next steps
- S. Okafor: re-check affordability by 4 September and email the result. Ask for an updated payslip in October if the purchase goes ahead.
- Clients: send the contract to their solicitor.
That single line about overtime is why the follow-up template matters. The preliminary assessment has to reflect the position at the time you provide assistance. If a change comes up on a six-minute call and never reaches the file, the assessment you made in August no longer matches what you knew in September.
Common gaps we see in broker templates
- No 'why' behind a feature. 'Wants offset' is a preference. 'Wants offset to hold a buffer for parental leave' is an objective you can assess a product against.
- Declared expenses accepted as given. If statements show more, use the higher figure and say so.
- Only the winning product is recorded. Best interests reasoning needs the options you compared, including the ones you ruled out.
- No foreseeable changes question. RG 209 points to changes that are reasonably foreseeable, such as retirement or the end of an interest-only period. Ask, and record the answer.
- Undated reasoning. The 90-day window in s 115 means the assessment date matters.
- Notes written days later. A note made on the day carries more weight than one rebuilt from memory. See what happens if you do not keep file notes.
To check an existing note against these points, run it through our free NCCP file note compliance checklist. For more starting points, including refi and investment variations, see the file note template library.
Using these templates with CallNote
A template fixes the structure. Someone still has to fill it in after every call. CallNote takes a transcript that already exists and turns it into a file note under your headings in about two minutes. It never records calls, never joins a meeting as a bot and never stores call audio. You paste the transcript, upload a .vtt or .txt export from Teams, Zoom or Meet, forward it by email, or have it arrive automatically from Dialpad or Aircall.
If you already have a note format you like, paste one of your own past notes and CallNote builds a template from it that matches your headings and your shorthand. There is also a system NCCP template if you would rather start from ours. You review the draft, fix anything that is wrong, then publish it: the note is sealed with a SHA-256 checksum, later amendments are append-only and every action is in the audit log. Export to PDF or copy the text into your CRM. We do not have native integrations with broker CRMs such as Mercury or Salestrekker, so the route there is copy and paste, PDF, or Zapier where your system supports it. Data is hosted in Sydney and is not used to train AI.
Common questions
Is there a mandatory file note format for mortgage brokers in Australia?
No. Neither the NCCP Act nor ASIC prescribes a format. The Act requires reasonable inquiries, verification, a preliminary assessment and compliance with the best interests duty. ASIC's RG 209 and RG 273 expect you to keep records that show how you met those obligations. Your aggregator or licensee may set its own minimum standard, so check that first.
What must a mortgage broker file note include?
At a minimum: the date, who was on the call, the client's requirements and objectives in their words, their financial situation, what you verified and how, the options you compared, your recommendation and why it is in the client's best interests, any conflicts, the client's questions and their instructions. Follow-up notes should also record whether anything has changed since the last contact.
Which NCCP sections apply to brokers, s 117 or s 130?
Section 117 applies to brokers. It sits in the part of the NCCP Act covering credit assistance providers, along with s 115, 116 and 118. Section 130 is the equivalent inquiries and verification obligation for credit providers, meaning lenders. Both exist because the broker and the lender each make their own assessment.
How long should brokers keep file notes?
Seven years is the common working standard. Under s 120 of the NCCP Act a client can request a written copy of your preliminary assessment for up to seven years from the date of the credit quote, so the supporting notes need to last at least that long. Your licensee or aggregator agreement may require longer.
Do I need a file note for a five-minute follow-up call?
Yes, a short one. Follow-up calls are where a change in income, employment or plans tends to come out. A six-line note that records the reason for the call, what was discussed, whether anything has changed and the next step is enough. It also shows the file was actively managed.
Can I build a template from a note I have already written?
Yes. In CallNote you paste one of your own past notes and it builds a template that matches your headings and shorthand. After that, each new transcript is written up in that format, ready for you to review and lodge.