Ultra Prime

The features of this product have been assessed as meeting the likely objectives, financial situation and needs of consumers who:

• meet the eligibility criteria;
• require a loan to purchase or refinance an owner occupied or investment residential property;
• require the flexibility of a variable interest rate;
• require the ability to make unlimited extra repayments and access redraw;
• may want access to other optional features and benefits (such as linked offset account; and
• require the option of either principal and interest or interest only

Whilst variable interest rates may fluctuate, the product meets the likely objectives, financial situation and needs of consumers in the target market because it allows them to make additional repayments and/or deposit funds into an offset account to reduce interest payable whilst retaining the ability to draw on those funds when required.

Owner Occupied Residential Property

This product allows consumers to finance the purchase or refinance of an owner occupied residential property with the ability to select principal and interest repayments in order to reduce the overall debt and build equity or interest only.

Investment Residential Property

This product allows consumers to finance the purchase or refinance of an investment property with the ability to select:

• principal and interest repayments in order to reduce the overall debt and build equity; or
• interest only for tax

Description of product, including key attributes

• Variable interest
• Offset account is available.
• Redraw is available .
• Minimum loan amount $150,000.
• Maximum loan amount $1,000,000.
• Maximum loan term 30 years.
• Maximum Loan to Valuation Ratio (LVR): 95% including LMI
• Lenders Mortgage Insurance applies if LVR is above 80%.
• Repayment options:
  • principal and interest and interest only for Owner Occupied.
  • principal and interest and interest only for Investment.
• Repayment frequency – weekly, fortnightly or
• Application fee is payable.
• Settlement fee is payable.
• Annual Facility fee is payable where a 100% offset account is linked.
• Nil redraw fee for redraw conducted via internet banking (a fee applies for staff assisted redraw).

Classes of consumers for who the product may not be suitable

This product may not be suitable for consumers who:

• do not meet the eligibility requirements;
• are seeking the certainty of fixed repayments over the term of the loan;
• are looking to construct a property;
• are looking to consolidate more than 4 debts;
• are self-employed other than medical professionals

The following distribution channels and conditions have been assessed as being appropriate to direct the distribution of the product to the target market:

The distribution channels and conditions are appropriate because:

• the product has a wide target market;
• our distributors have been adequately trained to understand their DDO obligations;
• we rely on existing distributors, methods, controls and supervision already in place;
• our approval system has controls in place to flag applicants who may be outside the target market; and
• accredited mortgage brokers are subject to a higher duty under BID to ensure that the product is in the best interests of the particular consumer;

• A significant dealing of the product to consumers outside the target market occurs;
• A significant number of complaints are received from customers in relation to the product;
• A significant number of defaults occur;
• There is a material change to the product or the terms and conditions of the product.

Periodic reviews: at least every 12 months from the initial review and each subsequent review.