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.

Metropolitan, regional and country areas of Australia.

• 90% LVR for loans up to $300,000
• 85% LVR for loans from $300,001 to $500,000
• 80% LVR for loans from $500,001 to $1,000,000

Metropolitan areas of Australia.

• 80% LVR for loans from $1,000,001 to $1,500,000

Regional areas of Australia.

• 70% LVR for loans $1,000,001 to $1,500,000

Metropolitan and regional areas of Australia.

• 70% LVR for loans from $1,500,001 to $2,000,000

Metropolitan areas of New South Wales, Australian Capital Territory, Victoria, Queensland, South Australia and Western Australia only.

• 65% LVR for loans from $2,000,001 to $3,000,000

Metropolitan areas of New South Wales and Victoria only.

• 60% LVR for loans from $3,000,001 to $4,000,000

• Any loan will be considered for any worthwhile purpose, subject to the exclusions listed.

• 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 not arm’s length transactions.
• Loans where the security property is vacant land.
• Loans for construction of the security property.
• Loans that are to fund the takeout of multiple properties within recently completed residential developments, where the borrower has been responsible for, or associated with, the development.

The trustee will charge the borrower a non-refundable Credit Risk Fee (CRF) for loan facilities that fall into the following categories:

• The CRF is calculated by multiplying the relevant fee % by the approved loan facility amount. For example, the CRF on a $250,000 loan @ 85.5% LVR = $250,000 x 1.2% = $3,000.
• The CRF is payable at settlement and can be drawn directly from the loan proceeds.
• No CRF is payable where the loan facility is greater than $500,000.

Where a borrower applies for an increase to the amount of an existing Uninsured loan facility, the CRF will apply to the total loan facility, less a credit for any CRF previously paid.

Example 1

A borrower applies to increase a loan facility by $20,000 to $400,000. The security value is $473,000, giving a new LVR of 84.6%. (Original loan facility was $380,000 with a security value of $473,000 and an LVR of 80.3%. CRF previously paid = $3,230.00).
$400,000 x 1.55% = $6,200.00
less previously paid $3,230.00
= additional CRF payable $2,970.00

Example 2

A borrower applies to increase a loan facility by $50,000 to $400,000. The security value is $473,000, giving a new LVR of 84.6%. (Original loan facility was $350,000 with a security value of $473,000 and an LVR of 74.0%. No CRF was payable when the loan was originally initiated).
$400,000 x 1.55% = $6,200.00
less previously paid $0.00
= CRF payable $6,200.00

• Where a borrower paid an LMI premium and applies for an increase to the amount of an existing Insured loan facility, and is unable to obtain LMI for the increase, and where the trustee has approved the total facility amount under the Uninsured program, if applicable, the CRF will be calculated on the total loan facility, less a credit for any LMI premium previously paid by the borrower.
• Where the trustee paid an LMI premium and the borrower applies for an increase to the amount of an existing Insured loan facility, and is unable to obtain LMI for the increase, and where the trustee has approved the total facility amount under the Uninsured program, if applicable, the CRF will be calculated on the total loan facility, without any credit for the LMI premium paid by the trustee.

• A title insurance policy must be obtained for each security property.

General provisions

• Properties must be of a residential nature and zoned accordingly (including rural-residential).
• Properties must be located in Australian cities, regional areas or country areas as defined by the trustee’s Uninsured Security Location Guide.
• Properties must have no more than one residence on title.
  All standard services must be connected or readily available to the property.
• All properties must have legal and unrestricted road access.
  Properties (with a completed dwelling) that are less than 4.04 hectares (10 acres).
• The trustee reserves the right to exclude any security property for any reason, including limiting its exposure against properties in a similar location or with similar characteristics.

Rural residential properties

• Must have mains power.
• 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 and car space).
• Each must have a separate Certificate of Title.
• High density apartments (within a block of five or more stories and/or 30 or more apartments) where the LVR is less than or equal to 80%.

• Rural or similar zoned properties (including broad acre land holdings).
• Commercial zoned properties.
• Properties that have not been provided with town services.
• Properties (with a completed dwelling) that are in excess of 4.04 hectares (10 acres).
• Vacant land.
• Properties under construction or to be constructed.
• 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 which 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.
• High density apartments (within a block of five or more stories and/or 30 or more apartments), where the LVR is greater than 80%.
• Off-the-plan properties.
• Display homes.
• Multiple residential security properties located within any given recently completed development, where the borrower has been responsible for, or associated with, the development.

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.

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.
• If current employment is less than six months, applicant must not be on probation and must have held previous employment (in same field) for at least 12 months.

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.

• Where the loan facility exceeds $1,000,000, the borrower must not be reliant on more than 75% rental income for serviceability purposes. That is, after excluding rental income, the borrower must have the capacity to service at least 25% of the loan repayments.

• Where loan facility exceeds $500,000, borrowed funds are not an acceptable source of equity.

• 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, property 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.

• Consumer and commercial credit reports are required for all parties to any transaction.
• Credit reports and ASIC on-line 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 for amounts greater than $500, 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.

• 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).

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;