Policy Changes Effective COB 24th January 2025
- Available for Non-Trading Companies or Trusts only.
- 5% liquidity changed to be post settlement liquidity (Customer declaration noting the 5% to be used towards the NDIS property expenses or interest prior to tenancy).
- NDIS investors are required to be sophisticated investors and have done proper due diligence as part of the investment process.
As such we require evidence of this including:- Proposed security due diligence report AND
- Accountant Sophisticated Investor certificate confirming the customer is a Sophisticated Investor.
- Total loan amount for construction loans to be capped to 70% of Discounted Cash Flow Value (DCF) or 100% of Alternative Use Value as deemed by the valuer.
- Interest only now available for up to 24 months (increased from 12 months) to accommodate extended build and tenancy timeframes.
- Applicants will be restricted to one construction loan in progress at any time (first property must have at least one tenant prior to starting the second).
- Maximum of 2 completed NDIS properties per household.
- Accepted NDIS income – 70%.
- The above restrictions do not apply to Owner Occupied NDIS participants or participant family members personally associated with an SDA eligible participant seeking a NDIS loan.
- Postcode exclusions apply for this product – Refer downloadable Location & Postcode Guide for full details.
- Any Construction Loan in Non-Metro Postcodes:
- Population must be greater than 20,000 AND
- Within 5 km of town centre
- Metro Postcodes minimum radius from GPO Capital City:
- Sydney and Melbourne: 35 km
- Adelaide and Brisbane: 20 km
- Perth, Hobart and Darwin: 15 km
RATE GUIDE | PURCHASE, REFINANCE & CONSTRUCTION
| LVR Options for loans to $2M | <70% | <80% | <85% | <90% |
| Established dwelling | 6.74% | 6.84% | NA | NA |
| Construction rate | 7.54% | NA | NA | NA |
| Revert rate post construction | 6.74% | 6.84% | NA | NA |
| LVR Options for loans to $2.5M | <70% | <80% |
| Established dwelling | 7.24% | 7.34% |
| Construction rate | NA | NA |
| Revert rate post construction | NA | NA |
PURPOSE LOADINGS & RISK FEES
| Interest Only^ | Up to 24 months during construction only. P&I repayments only once completed. |
| Lender Protection Fee (Established Dwellings) | LVR’s <75% – 0.75% LVR’s <80% – 1.25% LVR’s <85% – NA LVR’s <90% – NA |
| Construction Risk Fee (CRF) CRF is applicable for all construction loans. Monthly CRF is mandatory which is 1/12 of CRF amount. | LVR’s <75% an CRF of 1.25% LVR’s <80% an CRF of 1.75% LVR’s <85% an CRF of NA LVR’s <90% an CRF of NA Multi Dwelling (excludes duplex) LVR’s <75% – 2.50% LVR’s <80% – 3.00% |
MAX LOAN SIZE & LVR GUIDE
- Established dwelling <$2.5M maximum LVR is 80% otherwise 70% maximum construction loan.
- Any Construction Loan in Non-Metro Postcodes:
- Metro Postcodes minimum radius from GPO Capital City:
- Sydney and Melbourne: 35 km
- Adelaide and Brisbane: 20 km
- Perth, Hobart and Darwin: 15 km
- Minimum loan size is $50,000.
- Maximum Borrower exposure is $7.5M
PRODUCT OVERVIEW
- Available for approved NDIS securities in Metro, Non-Metro, Regional & Unclassified locations.
- ^Interest Only available only during construction then reverts to P & I repayments in all cases.
- *Max loan size for the established dwelling is up to $2,500,000.
- Concentration limit – maximum 10% concentration limit for any development by new estates/ sub divisions postcodes and the like.
- Construction loading of 0.8% is applicable only during the construction period.
- Maximum loan term is 25 years (300 months).
- Servicing derived using 70% of applicable gross income (income determined through commercial valuation).
- Debt to Income Ratio to be less than 8.00:1.
- Minimum Applicant(s) CCR score is 700.
- Progress draw fees may be higher on application subject to location.
- Includes Offset Account, BPAY®, Internet Banking, ATM/EFTPOS access, and Redraw once construction is complete.
APPROX. FEES
GET IN
| Application Fee | $399.00 |
| Valuation Fee | At cost |
| Construction Admin Fee | $750.00 |
| Lenders Legal Fee from | $440.00 |
| Annual Fee Investment | $395.00 |
| Settlement Fee | $895.00 |
GET OUT
| Product Discharge Fee | $895.00 |
Other terms, fees & charges may apply. Refer to the Postcode Guide for more details on acceptable security locations and LVR limitations. Product availability & conditions are subject to change without notice. Australian Credit Licence 409 649. Rates are effective from 28th February 2025.