Credit Provider - Bank 80% Home Loan

DOES YOUR LENDER/BROKER PROVIDE YOU WITH THIS INFORMATION?

Our Fact Sheets provide in-depth information that is generally not available from any other source (INCLUDING the Lender). They have been designed so that prospective borrowers have access to ALL of the information they need to make an informed decision regarding the suitability of the loan to meet their requirements. To properly evaluate a loan, we believe that full disclosure of the following information is critical to the decision making process:
   - What are the loan features?
   - How much will it cost to set up the loan?
   - What are the interest rate options and ongoing fees?
   - How much will it cost to discharge the loan?
   - What documents will I need to supply to apply for this loan?

DOES YOUR LENDER/BROKER PROVIDE YOU WITH THIS INFORMATION?

Product Highlights

FREE SERVICE - Rates, Costs and Fees are EXACTLY the same as if you had dealt with the bank direct.

NO INCOME proof required (BAS Statements, Tax Returns etc).

AFTER 2 YEARS can transfer to any of the Banks standard products if a good repayment history is evident
(a $350 fee applies).

Lender is NOT age sensitive with respect to Borrowers.

Suitable for any residential loan (purchase [max 80% LVR

The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s). For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total. The LVR is 70% in this case ($350,000 divided by $500,000 times 100).

] or refinance [max 60% LVR

]).

Commercial property loans excluded.

ABN for 2 years required if LVR

> 60%:
GST registered for at least 2 years if income exceeds $75,000 pa.
GST registration NOT REQUIRED if income is less than $75,000 pa.

ABN for at least 12 months required (12 months GST registration if income > $75,000 pa) if LVR

< 60%.

Primary borrower must be self employed.

Co-borrowers can be PAYG but must provide full income proof.

Loan Term of 30 years.

Maximum loan amount of $1,000,000 to 80% LVR

(selected Postcodes).

Maximum loan amount of $2,500,000 to 60% LVR

(selected Postcodes).

NO MORTGAGE INSURANCE ( LMI

Lenders Mortgage Insurance (or LMI) does not protect the borrower in any shape or form. It is an insurance policy taken out by the Lender in case you are late with your payments or default on the loan. If this occurs, then the Mortgage Insurer will pay the lender the shortfall and will then recover this amount from you. Mortgage insurance is normally payable by borrowers on all loans with a Loan to Value ratio LVR

The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s). For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total. The LVR is 70% in this case ($350,000 divided by $500,000 times 100).

exceeding 60% on Low Doc Loans. Mortgage Insurance is a once-off cost and can often be added to the loan. The premimum varies from Lender to Lender and will also depend on the amount being borrowed and the LVR

The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s). For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total. The LVR is 70% in this case ($350,000 divided by $500,000 times 100).

.

) on loans to 60% LVR

Maximum exposure to MORTGAGE INSURER is $2,400,000 where LMI

Lenders Mortgage Insurance (or LMI) does not protect the borrower in any shape or form. It is an insurance policy taken out by the Lender in case you are late with your payments or default on the loan. If this occurs, then the Mortgage Insurer will pay the lender the shortfall and will then recover this amount from you. Mortgage insurance is normally payable by borrowers on all loans with a Loan to Value ratio LVR

exceeding 60% on Low Doc Loans. Mortgage Insurance is a once-off cost and can often be added to the loan. The premimum varies from Lender to Lender and will also depend on the amount being borrowed and the LVR

is involved.

Can add LMI

premium to loan where LVR

exceeds 60%.

No Line of Credit or Fixed Rates Loans available for the first 2 years.

No Genuine Savings Required (but 'gifts', borrowed funds and recent unexplained large deposits not allowed).

ACREAGE Properties (Rural / Lifestyle blocks):
    - Max Land size of 150 acres (60 ha) to 60% LVR, 25 acres (10 ha) 60% to 80% LVR. Rural zoning considered.
    - To 60% LVR, will consider Category ONE and TWO locations (Click Here).
    - 60% to 80% LVR, Category ONE locations only (Click Here).
    - MUST have CONNECTED Town Electricty and Bitumen sealed road to gate.
    - For loans over a 60% LVR, connected Telephone and Town Water is usually required.

Land loans allowed (no requirement to Build).

Construction allowed (max of 2 dwellings allowed where LVR

exceed 60%, but MUST be on separate Titles
on completion). 4 Dwellings allowed where LVR

is less than 60% (separate Titles also required).

Click Here for Category postcode listings (applies where LVR exceeds 60%, more latitude 60% and under).

Loan is portable (simultaneous Settlement required).

First Home Owners are allowed (Bank will process Grant on your behalf).

Minimal documentation requirements.

Pre-Approvals valid for 3 months.

Cash out is available (refinances) but some high level detail will need to be provided by way of a signed letter.

Things you need to know

Personal Borrowers Only (no Companies or Trusts).

ALL parties on Title MUST be parties to the loan and vice-versa (including Husband and Wife scenarios).

Not suitable for Commercial Property Loans.

Companies and Trusts as Borrowers are NOT allowed.

Initial loan must be at least $100,000.

Not suitable for applicants with Bad Credit

Bad Credit refers to entries that have been recorded on your Credit Report because you have not paid a bill following repeated requests from the Credit Provider (commonly called a Default), or where a credit related matter has been formally placed before the Courts (Judgements and Court Writs). Defaults often relate to unpaid Telco bills (telephones, mobile phones etc) as well as Utility bills (Electricity, Gas etc). Once an entry has been recorded on your Credit Report, it can stay there for up to 7 years (regardless of whether you pay the outstanding amount or not). Generally speaking, it is difficult to obtain Credit at favourable Terms if you have entries of this nature on your Credit Report (particularly if the account has not been paid). Note that being late with a bill payment or having an overdue account does not constitute Bad Credit. It is only a problem if it has been formally recorded on your Credit Report (eg: placed with a debt collection agency).

As part of the Loans process, we usually check your Credit Report before we complete formal paperwork. We will then discuss the results with you and advise you of your options if there are any matters of concern.

What is a Credit Report

When you make a Credit Application with a Credit Provider (eg: a Bank, a Telephone company or for a Credit Card), the details of your enquiry are logged in a Central Database (accessible, by Subscription only, over the Internet). If you do not pay an outstanding account, then the Credit Provider can record this in the same Database (commonly called a Default). Most Credit Providers will check your Credit Report before granting Credit. If there are adverse entries (Defaults, Judgements, Writs etc), then your application for Credit MAY be declined (without reason).

Note that you have to give express permission to the Credit Provider before they can access your information. This is usually done by signing a Privacy Authority included with the Credit Application Form. You are not required to grant permission to the Lender to do this, but your Credit Application is unlikely to be approved without it.

The company that provides this service in Australia is Veda Advantage. They are required (by law) to provide you with a copy of your Credit Report on request.

. NO EXCEPTIONS (regardless of size/age of Default).

Favourable purchases NOT allowed.

Fees and Charges

Lender setup costs of $700 applies (includes Valuation).

NO ongoing Fees.

Mortgage Insurance will apply (if LVR

exceeds 60%):
- Click Here for LMI Premiums. (multiply expected loan amount by percentage to arrive at Premium).

Other fees and charges may apply at the discretion of the Bank. For example:
- Where there is more than one Security property.
- Where Guarantors are involved.

Early Repayment Fees:
- $600 Admin Fee, regardless of time of discharge.
- NO OTHER Early Repayment Fees apply.

Government stamp duties and other government charges may apply.

Paperwork you will need to provide to apply for this Loan

ALWAYS REQUIRED

Evidence of ABN (refer to THIS SITE to lookup your ABN).

Signed Low Doc Declaration (we will supply).

100 point ID for each applicant (usually a Passport or Birth Certificate PLUS a Drivers Licence).

If co-borrowers are PAYG, then we require:
      - 2 most recent & consecutive payslips. YTD figures / Employers ABN & Company name obligatory.
      - If employed 6 months or less: Previous years PAYG summary or tax return as well as Letter from
        Employer confirming not on probation, Date Started and Annual Salary.
        NOTE - Employment checks are made in all instances.
IF YOU ARE PURCHASING

Signed and dated Copy of the Contract of Sale.

Evidence that you have sufficient funds to cover the Deposit and Purchasing Costs (eg: Bank Statement).
IF YOU ARE REFINANCING (MAXIMUM 60% LVR ONLY)

Latest Rates Notice(s) on the Property(s) being offered as Security.

Last SIX months Home Loan Statements on all Home Loans being refinanced. Latest statement CANNOT be older than 1 month. Some GENUINE bank statements are required (ie: cannot provide all statements as Internet printouts, does not matter how old genuine statements are).

Last SIX months Statements for all Credit Cards, Personal/Car loans being refinanced.

NOTE - Will refinance a MAXIMUM of 4 external debts if consolidating debts.
IF YOU ARE BUILDING

To enable the loan to be APPROVED - Copy of the Quote, Plans and Builders Specifications.

BEFORE Progress Payments can be made, we will need:
      1. Copy of the signed and dated Fixed Price Building Contract from a Registered Builder.
      2. Copy of Builders Registration.
      3. Copy of STAMPED Council Approved Plans REDUCED to A4 size.
      4. Construction Certificate (NSW) or Building Permit (VIC).
      5. Builders Insurance (Certificate of Currency).
      6. Builders Indemnity / Public Risk Insurance (minimum of $5m).
      7. Slab Survey for NSW properties required prior to first payment drawdown.

Loan Stucturing Information and Interest Rates

As at: 8th December, 2009
Variable Interest Rate to 60% LVR: 6.05% (Comparison Rate - 6.10%)
Variable Interest Rate to 60.01 to 80% LVR: 6.55% (Comparison Rate - 6.60%)
Minimum Loan Amount: $100,000 (You can have as many splits as you like at no cost, $20,000 min per Split)
Payments Frequency: Weekly, Fortnightly, Monthly (P & I), Monthly (Interest Only)
Interest Only Option: 1 to 5 Years (Construction 12 months)
Offset Account: Yes (optional) - $15 monthly fee applies
Redraw: Yes - Free online ($5,000 daily limit applies), $50 if at Branch (minimum $1,000)
Extra Repayments: Yes - no limits
Deposits to Home Loan: Bank ATM or via Australia Post Bank@Post network

The Comparison Rate is calculated on a loan amount of $300,000 over a term of 30 years. Fees and charges may be payable. A Comparison Rate schedule is available at our Miami offices. WARNING: This Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.