Changes to Home Loan Investment Home Loan Variable and Fixed by jolinmilioncherie

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									                                                                                10 March 2008

Changes to Home Loan / Investment Home Loan Variable and Fixed
Rates

The Bank has today announced it will increase interest rates on a range of variable and fixed
rate home loans. These rate increases reflect the continued rise of wholesale funding rates
and the recent increase by the Reserve Bank of Australia (RBA).

On Tuesday 4 March 2008 the RBA increased the official cash rate by 0.25% pa. In response,
the Bank has decided to increase its standard variable home loan rate by an additional 0.10%
pa – a total increase of 0.35% pa.

Please see below for all other interest rate changes to our lending products.

The interest rates changes are effective 12 March 2008.


PRODUCT (HL / IHL)                        NEW RATE

Standard Variable Rate                      9.32%pa (+35 bp)         Effective from
                                                                     Wednesday 12 March
                                                                     2008 for new and
                                                                     current customers


Line of Credit Residential Equity           9.37%pa (+40 bp)         Effective from
Rate                                                                 Wednesday 12 March
                                                                     2008 for new and
                                                                     current customers


12 Months Discounted Variable               8.29%pa (+35 bp)         Effective from
Rate                                                                 Wednesday 12 March
                                                                     2008 for new and
                                                                     current customers


Rate Saver Base Variable Rate               8.81%pa (+35 bp)         Effective from
                                                                     Wednesday 12 March
                                                                     2008 for new and
                                                                     current customers


3 Year Special Rate Saver Rate              8.64%pa (+35 bp)         Effective from
                                                                     Wednesday 12 March
                                                                     2008 for new and
                                                                     current customers
1 Year Guaranteed Rate                      8.64%pa (+20 bp)        Effective from
                                                                    Wednesday 12 March
                                                                    2008 for new customers


1 Year Fixed Rate                           9.05%pa (+25 bp)        Effective from
                                                                    Wednesday 12 March
                                                                    2008 for new customers


2 Year Fixed Rate                           9.05%pa (+25 bp)        Effective from
                                                                    Wednesday 12 March
                                                                    2008 for new customers


3 Year Fixed Rate                           8.95%pa (+15 bp)        Effective from
                                                                    Wednesday 12 March
                                                                    2008 for new customers


4 Year Fixed Rate                           8.95%pa (+15 bp)        Effective from
                                                                    Wednesday 12 March
                                                                    2008 for new customers


5 Year Fixed Rate                           8.90%pa (+25 bp)        Effective from
                                                                    Wednesday 12 March
                                                                    2008 for new customers


7 Year Fixed Rate                           8.90%pa (+25 bp)        Effective from
                                                                    Wednesday 12 March
                                                                    2008 for new customers


10 Year Fixed Rate                          8.90%pa (+25 bp)        Effective from
                                                                    Wednesday 12 March
                                                                    2008 for new customers


15 Year Fixed Rate                          8.90%pa (+25 bp)        Effective from
                                                                    Wednesday 12 March
                                                                    2008 for new customers


NOTE: For this rate change effective 12 March 2008 we will accept rate lock requests during
the fixed rate change notice period, as outlined below.

Given that rates are changing quite regularly in the current environment, we recommend that
Rate Lock be discussed with all customers considering a fixed rate or fixed and variable rate
option (split) home loan.


Procedures

New money applications to be lodged ON-LINE with Rate Lock

Where your customer has requested to ‘Rate Lock’ at the current rate:
   • Personal Loan/Home Loan Direct Debit Request and Direct Debit Service Agreement
       000-258 must be signed and dated by customer.
    •   Select ‘Rate Lock’ option in On-Line Loan Application – Loan Details – “Add an Extra
        Feature”.
    •   Lodge application and remember to submit the Personal Loan/Home Loan Direct
        Debit Request and Direct Debit Service Agreement 000-258 to Third Party Credit
        Services with the supporting documentation before midnight, Tuesday 11 March
        2008.

Online applications received after midnight, Tuesday 11 March 2008, will be automatically
processed at the new rate.

New money applications to be lodged MANUALLY with Rate Lock

Where your customer has requested to ‘Rate Lock’ at the current rate:
   • Personal Loan/Home Loan Direct Debit Request and Direct Debit Service Agreement
       000-258 must be signed and dated by customer.
   • Select ‘Rate Lock’ option in Section 6, page 9 and include the Rate Lock fee in
       Section 6, Page 10 of manual Home Loan Application (COL2024).
   • Lodge application, together with Personal Loan/Home Loan Direct Debit Request and
       Direct Debit Service Agreement 000-258 to Third Party Credit Services before
       5:00pm, Tuesday 11 March 2008.

Manual applications received after 5:00pm, Tuesday 11 March 2008, will be automatically
processed at the new rate.

New money applications without Rate Lock

Where your customer has elected not to ‘Rate Lock’:
   • Application will be subject to any changes in Fixed Rates that may occur prior to
       settlement (funding).
   • Rate can still be locked at a later date prior to settlement by completing the Personal
       Loan/Home Loan Direct Debit Request and Direct Debit Service Agreement 000-258
       and faxing an addendum to Third Party Credit Services. The rate which will be locked
       is the prevailing rate at the time that the rate lock request is submitted.

Un-funded loan applications in progress – Rate Locked

Where you have previously lodged a loan application which is currently un-funded and is Rate
Locked at a higher rate, you will need to fax a request to Third Party Credit Services to break
the Rate Lock for the new lower rate to be applied to the application. No action is required
where the new rate is higher.

Where your customer has requested to ‘Rate Lock’ the new rate:
   • Rate Lock form (Personal Loan/Home Loan Direct Debit Request and Direct Debit
       Service Agreement 000-258) must be signed and dated by customer and forwarded to
       Third Party Credit Services in your state.
   • Retrieve the application (if submitted online) and make necessary amendments and
       resubmit.
   • If you lodge your application manually, fax Addendum (section 6, 7 and 8 of the Home
       Loan Application COL2024) to Third Party Credit Services.
   • A new rate lock fee must be paid.

Un-funded loan applications in progress – not Rate Locked

Where you have previously lodged a loan application which is currently un-funded and is not
Rate Locked and the customer has requested to Rate Lock the current rate:
   • Rate Lock form (Personal Loan/Home Loan Direct Debit Request and Direct Debit
       Service Agreement 000-258) must be signed and dated by customer and forwarded to
       Third Party Credit Services in your state.
   • Retrieve the application (if submitted online) and make necessary amendments and
       resubmit before midnight, Tuesday 11 March 2008.
    •   If you lodge your application manually, fax Addendum (section 6, 7 and 8 of the Home
        Loan Application COL2024) to Third Party Credit Services before 5pm, Tuesday 11
        March 2008.
    •   A rate lock fee must be paid.

Addendum Fax Numbers            NSW              02 8837 1595
                                QLD              07 3225 4641
                                VIC,TAS          03 8327 0220
                                WA               08 9422 2196
                                SA, NT           08 8203 1190

Un-funded loans - what will happen

If documents have not been issued, we will process the request and issue documents to the
customer for signing and return.

For customers who have received their documents (either signed and returned to the Bank or
yet to be signed) and wish to rate lock their applications, please submit an Addendum and
completed Rate Lock form. In these circumstances the clients are to sign and return the non-
amended CCC Schedule (where they have not already done so). A letter of Variation is issued
to the clients disclosing the new interest rates, new repayment amount and the Rate Lock fee.

Please note that the Rate Lock fee is not refundable.


THE NEW COMPARISON RATES WILL BE UPDATED ON THE ADVISER SITE SHORTLY.

Forms for rate lock and loan switching can be downloaded from the Colonial Adviser
site Sales materials > ordering > banking

Notes relating to Rate Lock

Note 1 - Rate Lock Fee is $395 and will be debited to the relevant bank account after loan
approval.
Note 2 – Homeseeker Loans (approval in principle) cannot be Rate Locked.
Note 3 – Rate Locked fee is not refundable.
Note 4 – Rate Lock is valid for 90 days from date of charging Rate Lock Fee. Should the 90
days expire prior to loan funding (settlement) the customer may elect to re-lock at the same
cost $395 but this will be at the current rate at that time. Follow procedure for Un-funded
Loans (above).
Note 5 – Any changes (Addendums) to a Rate Locked Loan will cause a ‘break’ of Rate Lock
and the benefit to be lost. The Rate Lock Fee is not refundable (see Note 3).

THE NEW COMPARISON RATES WILL BE UPDATED ON THE ADVISER SITE SHORTLY.

								
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