This program is primarily for borrowers that:

Individuals

• are currently employed and are subject to PAYG taxation;
• have been self-employed or have been full-time investors for at least the past two years;
• are permanent residents or Australian citizens.

Corporate Entities

• are currently trading as a registered Australian company and subject to company taxation;
• are a trustee company acting on behalf of a family trust;
• are a partnership entity.

The requirements of all these products apply except as noted otherwise in this fact sheet.

Genworth Financial

Refer to Genworth Financial ‘Security Location Guide’ for acceptable locations.

Metropolitan areas of New South Wales (category 1 locations) only.

• 95% LVR for loans up to $650,000*
• 90% LVR for loans from $650,001 to $750,000
• 85% LVR for loans from $750,001 to $850,000
• 80% LVR for loans from $850,001 to $1,000,000

Metropolitan areas of Australian Capital Territory, Victoria and Queensland (category 1 locations) only.

• 95% LVR for loans up to $500,000*
• 90% LVR for loans from $500,001 to $750,000
• 85% LVR for loans from $750,001 to $850,000
• 80% LVR for loans from $850,001 to $1,000,000

Metropolitan areas of South Australia, Western Australia, Northern Territory and Tasmania (category 1 locations) only.

• 95% LVR for loans up to $400,000*
• 90% LVR for loans from $400,001 to $500,000
• 85% LVR for loans from $500,001 to $600,000
• 80% LVR for loans from $600,001 to $750,000

Australia wide (category 2 locations) only.

• 95% LVR for loans up to $350,000*
• 90% LVR for loans from $350,001 to $500,000
• 85% LVR for loans from $500,001 to $600,000
• 80% LVR for loans from $600,001 to $750,000

All other locations (including category 3 locations)

• 95% LVR for loans up to $300,000*
• 90% LVR for loans from $300,001 to $400,000
• 85% LVR for loans from $400,001 to $450,000
• 80% LVR for loans from $450,001 to $500,000

* Where LVR exceeds 90% acceptable loan purposes includes owner-occupied or investment residential purchase or construction, home improvements, Interest-Only or single debt refinance only.

Vacant land

Metropolitan areas of New South Wales (category 1 locations) only.

• 90% LVR for loans up to $550,000

Metropolitan areas Australian Capital Territory, Victoria, Queensland, South Australia, Western Australia, Northern Territory and Tasmania (category 1 locations) and Australia wide (category 2 locations) only.

• 90% LVR for loans up to $350,000

Australia wide (category 3 locations) only.

• 90% LVR for loans up to $200,000

All other locations.

• 90% LVR for loans up to $150,000
• Where security property is vacant land, equity release loans are limited to category 1 locations only

PMI

Refer to PMI ‘Location Guide’ for acceptable locations or use online Location Wizard from the PMI Website.

Metropolitan areas of Australia only.

• 95% LVR for loans up to $750,000
• 90% LVR for loans from $750,001 to $1,000,000
• 80% LVR for loans from $1,000,001 to $1,500,000
• 75% LVR for loans from $1,500,001 to $2,000,000

Regional areas of Australia only.

• 95% LVR for loans up to $500,000
• 90% LVR for loans from $500,001 to $750,000

National areas (outside metropolitan and regional) of Australia.

• 90% LVR for loans up to $500,000

Vacant land

Metropolitan areas of Australia only.

• 90% LVR for loans up to $600,000

Regional areas of Australia only.

• 90% LVR for loans up to $500,000

Refer to individual LMI guidelines for maximum loan sizes and LVR’s.

General provisions

• No set exposure limit per applicant or associated entity.
• Exposure limits are subject to conditions set by applicable Lenders mortgage insurers.

Genworth Financial

• Maximum exposure per applicant $2,500,000.

PMI

• Maximum aggregate exposure for any one applicant across all products is $3,000,000. This is subject to a maximum loan with one security of $2,000,000.

• Any loan will be considered for any worthwhile purpose.

General provisions

• Loans for the repayment of any tax related debt.
• Loans to repay Directors loans.
• Loans for the purchase of a new business that will employ the applicant.
• Loans that are for the refinance of any loan that is currently in arrears.
• Loans that are for working capital or payment of personal or business tax liabilities.
• Loans that are not arm’s length transactions.

Genworth Financial

• Loans above 90% LVR where loan purpose is multiple debt refinance or equity release.
• Loans for development finance.
• Vendor finance (WRAP finance).

PMI

• Loans above 90% LVR where loan purpose is limited business purpose or equity release.
• Where LVR exceeds 90% and loan purpose is investment, any cash out component is limited to 5% of the total loan facility.

General provisions

• Required on all loans.
• LMI premium is only payable by the borrowers when the LVR is greater than 80% and/or loan amount is greater than $1,000,000.
• LMI premium can be capitalised to the loan facility.
• Lenders mortgage insurers are Genworth Financial and PMI.
• Some conditions apply.

General provisions

• Properties must be of a residential nature and zoned accordingly.
• Properties must be located in Australian cities or major regional centres.
• Properties with no more than one residence on title.
• Vacant land comprising an area less than 2.2 hectares (5 acres).
• All standard services must be connected or readily available to the property.
• All properties must have legal and unrestricted road access.

Rural residential (or similar zoned) properties

• Must have mains power.
• Properties (with a completed dwelling) must not comprise an area exceeding 10 hectares (25 acres).
• The property must not be of an income producing nature (properties producing rental income from tenants are accepted).

Units/flats/apartments

• Each must comprise an area of at least 50 square metres (excluding balconies).
• Each must have a separate Certificate of Title.

Genworth Financial

• Rural residential properties must be located in category 1, 2 or 3 postcode area as per Genworth Financial ‘Security Location Guide’.
• 40 square metres (excluding balconies and car space) may be considered for good quality properties located in a desirable and high demand capital city metropolitan location.
• High density apartments (including inner city) may be considered up to 80% LVR as per Genworth Financial ‘Security Location Guide – High Density Postcodes’. High density apartments are located in developments comprising more than 35 apartments. A maximum of 50% gross rental income may be considered for serviceability purposes.

PMI

• Refer to PMI Location Guide for acceptable property locations and applicable loan size and LVR limits.
• High density securities may be considered up to 80% LVR where the loan facility is up to $1,000,000. High density securities are ≥ 4 floors and > 30 units and must be a minimum of 50
  square metres (including balconies and car space). Further conditions apply – refer to PMI.
• Vacant land (zoned residential with all services connected) is acceptable for one block of land up to 1,500 square metres.

General provisions

• Rural or similar zoned properties (including broad acre land holdings).
  Commercial zoned properties.
• Vacant land that is in excess of 2.2 hectares (5 acres) and/or loan facility is greater than $600,000.
• Properties (with a completed dwelling) that are in excess of 10 hectares (25 acres).
• Properties that have not been provided with town services.
• Owner-builder construction projects.
• Mobile and kit homes (i.e. transportable properties).
• Properties with more than one residence on title.
• Properties adversely affected by heritage, environmental or planning issues.
• Properties evidenced by stratum/company share titles.
• Properties that are unique or unusual in character or construction or with over-capitalised improvements.
• Properties affected by high-tension power lines, frequent flooding (or flood zoning), traffic abnormalities and industrial sites.
• Properties in poor condition.
• Combination shop/residence.
• Inner city high rise conversions.
• Display homes.

Genworth Financial

• Serviced apartments.
• Leasehold properties, other than Crown land in Australian Capital Territory.
• Properties with Purple Title (Western Australia).
• Properties with Moitey Title (South Australia).
• Properties under a ‘time share’ arrangement.
• Land subject to a licence to occupy.
• Limited Title (any defects).
• Properties with ‘Lease for Life’ covenants on title.
• Crown land (excluding Australian Capital Territory).
• Properties under the Western Lands Act.

PMI

• Vacant land that is in excess of 1,500 square metres.
• High density securities where the LVR is greater than 80%, where the loan facility is greater than $1,000,000 and/or where the security size is less than 50 square metres (including balconies and car space).
• Properties with less than two bedrooms where the loan facility is greater than $1,000,000.
• Serviced apartments where the loan facility is greater than $1,000,000.
• Unit in strata hotel/motel.
• Unit in a retirement complex.
• Motel/hotel conversions.

General provisions

• A valuation report, prepared by a trustee approved panel valuer, must accompany each application.
• The valuation report must include comparable sales evidence within the last 90 days. This sales evidence must not be within the same complex.
• The valuation report must confirm that the property is readily saleable with no adverse features.
• The valuation report must be no more than 90 days old at settlement.
• Where the valuation is older than the required number of days, an updated report is required prior to settlement.
• The trustee requires the original copy of the valuation report, including colour photograph, prior to settlement.

Genworth Financial

• High density apartment (including inner city) valuations must include comparable sales outside of the development and details of any re-sales within the development.

PMI

• High density security valuations must contain two recent comparable sales outside of the development and one recent comparable sale within the development.

Individuals

• PAYG employed in their current position for at least three months.
• Are not currently employed under a probationary period.
• Have been self-employed for at least the past two years.

Corporate entities

• Are currently trading as a registered Australian company and subject to company taxation.
• Are a trustee company acting on behalf of a family trust.
• Are a partnership entity.
• Guarantees from company directors or proprietors are required.

General provisions

• Third party mortgages are specifically excluded. Exceptions apply in the instance of married couples or current defacto relationships.

Genworth Financial

• Applicant must have a minimum of 12 months employment with current employer, or a minimum of two years continuous employment within the same industry.

PMI

• Borrowers must be six months in current position or occupation, provided any probationary period in current position has been met.

PMI

• The borrower must not be reliant on more than 50% rental income where the loan facility exceeds $1,000,000.

• Evidence of applicants’ equity contribution is required.
• A copy of the Contract of Sale (executed by all parties) must be provided.

• Satisfactory loan repayment history is required. There must be no evidence of arrears, default interest, dishonoured repayments or exceeded credit limits.
• Loan statements (on all loans being refinanced) must be provided for the last six months.

• Where director(s) is/are borrowing funds for private use a company guarantee is not required.
• Where funds are being raised on behalf of the company then a supporting company guarantee is required.
• Where borrower is trustee for a family trust, the guarantee in its own capacity and in its capacity as trustee for the family trust is required.
• Where borrower is a unit trust each unit holder will be required to provide a guarantee.
• The trustee reserves its right to request a guarantee at any time.

General provisions

• Consumer and commercial credit reports are required for all parties to any transaction.
• Credit reports and ASIC online reports must also be provided for all corporate entities or proprietorships as listed on any consumer or commercial credit report.
• Credit reports must be clear and reveal an unblemished credit history, however any report with paid defaults etc must be supported with a written explanation outlining the circumstances of the default.
• Unpaid defaults or judgements, companies under external administration, petitions or winding up action will automatically disqualify the application.
• Credit reports must be current at the time of application and be no older than 21 days at submission.

Genworth Financial

• Where loan purpose is investment and LVR is greater than 90% applicants must not have any defaults on their credit history.

• An early repayment fee is payable where the loan facility (or split) is repaid in full and closed in the first 5 years.
• Any early repayment penalty payable is calculated per loan split (not total facility).
  

• A deferred LMI fee is payable where the approved loan facility (or loan split) is repaid in full and closed in the first five years where the trustee has paid the LMI premium for a loan amount exceeding
  $500,000.
• The fee is equivalent to one times the notional repayment.
• The notional repayment is defined as the calculation of a monthly repayment assuming that the loan is fully drawn.

Documents to be completed by the applicant(s)

• Application form containing:
  • Loan Purpose Checklist – which advises the intended use of the funds;
  • Declaration of Purpose (non-UCCC regulated only);
  • 100 Point Identification form;
  • Privacy Act Consent form (in the trustee’s approved format)

Documents to be provided with all applications

• Completed Application form;
• Declaration of Purpose (non-UCCC regulated only);
• Income evidence for all applicants;
• Refinances – Satisfactory conduct of any loan being refinanced;
• Refinances – Executed Discharge Authority;
• Purchases – Copy of executed Contract of Sale or Certificate of Title;
• Purchases – Evidence of equity to complete the purchase;