Lender

Lender Name

CBA-COLONIAL

Product Name

LINE OF CREDIT

Product Type

EQUITY LINE

Interest Rates

Latest Interest Rates

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Target Market

Clients who require a Flexible All In One Portfolio Styled Facility

Equity works on the basis that the customer has an Equity Advantage facility with:

an owner occupied Home Loan and

a Line of Credit (LOC) taken to purchase an investment property (or other personal investment purposes such as the purchase of shares or managed funds)

Equity will help your customers to:

repay their owner occupied home sooner

increase their overall asset holdings

maximize investment income and advance the opportunity to invest in further property.

Repayment Type

Interest-only

Repayment Options

There are no set principal requirements. However interest-only payments and monthly fees and charges as a minimum must be met on a monthly basis or in advance.

Repayment Method

It is expected that the clients salary or primary source of income be direct credited to the Line of Credit account
Deposit books are NOT Available

Extra Repayments

There are no set principal requirements. However interest-only payments and monthly fees and charges as a minimum must be met on a monthly basis or in advance.
It is expected that the clients salary or primary source of income be direct credited to the Li

Special Offers

MAV/MAVPlus concessions available

Rates for loans >$150K< $250K receive 0.40% discount off the SVR, REF/Ref Rate LOC & Low Doc &  Low Doc LOC.

Receive 0.70% p.a. discount off the Standard Variable Rate and Colonial Line of Credit.

Rates for new Low Doc Loans of $250K or above, within MAV Receive 0.15% p.a. discount for new or maturing Fixed Rate Low Doc Loans within MAV.

Term

Ongoing is assess over 25 years

Loan Size

Minimum: $20,000

Mortgage Insurance

Note Maximum LVR with capitalized LMI premium 97%

Base LVR of 95% (capitalized LVR of 97%) All Other LMI Covered Loans including Home/Investment Home loans and Line of Credit) Aggregated credit facilities of $2.5million

Postcode restrictions no longer applicable

Acceptable Income

PAYG/ Self Employed/Casual/Contractor/Got Income excluding Newstart) note Austudy not applicable

Fees

Application Fee $750 (Nil if eligible for MAV)

A settlement fee of $100 will apply to all H/L Invest Loans/ Lines of Credit/ where the bank is required to physically attend a settlement and where a new mortgage security to be obtained (Fee displayed as Mortgage Preparation )

Settlement Fee - Discharge: $300

Security Guarantee Fee -$200 (per borrower) applies where a guarantor's) provides security to support the loan. The fee is debited to the loan account (Refer Special Notes Family Equity and Guarantors ’Support Policy) present

Offset

Not applicable

Redraw Facility

Not applicable

Product Change

Yes

Statements

Monthly statements or on client request fees apply

Portability

Loan Portability

Split Loan Facility

Split Line of Credit loans with any combination of home/ investment home loan products

Special Notes

Family Equity and Guarantors ’Support Policy

The Family Equity option has been introduced to help first home buyers and families to enter the property market. Specifically, Family Equity

will help those that:

a)may not have sufficient income at the time

of application to service the mortgage repayments

b)may wish to borrow greater than the value of the property to be purchased (ie to include stamp duty and fees relating to the property purchase)

© or a combination of both

Under Family Equity, parental help (or help from immediate family) may be used for servicing and/or security support.

This may take the form of either:

1)Guarantors providing Security support only

2)Guarantors providing Servicing support only

3)Guarantors providing Security and Servicing support, or

4)Provision of funds in the form of a gift

5)Second Mortgage

Note: : The above scenarios utilize the new Guarantors’ Support Policy for Home Loans, Investment Home Loans and Line of Credit.

Whilst some competitors have released other products targeted at the first home buyer’s market, Family Equity is a step ahead by

allowing guarantors for servicing support and making available Draft Forms of Agreement that can be used to document ancillary repayment

arrangements between the borrower and guarantor. These are only available from Commonwealth Bank branches once the loan

has been approved.

Please note Guarantors who earn solely government pension & are providing their owner occupier home as security will be deemed unacceptable.

Please note Guarantors who earn solely government pension & are providing their owner occupier home as security will be deemed unacceptable.