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SMSF Loan Term Sheet


SMSF Loan Term Sheet

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									              SMSF Loan Term Sheet
Target Market           •   Complying Self Managed Superannuation Funds looking to acquire
                            residential property.

Features               ACCEPTABLE LOAN              Purchase only.
                       PURPOSE                      Refinance not allowable

                                                    Individuals and Trustee of the Instalment
                                                    Warrant Trust.
                                                    Individuals must be Australian residents and
                       ELIGIBLE BORROWER TYPES
                                                    residing in Australia and over the age of 18.
                                                    All individual beneficiaries of the SMSF must be

                       PROPERTY OWNERSHIP           Trustee of Instalment Warrant Trust

                       TERM OF LOAN                 10 - 30 years

                       INTEREST TYPE                Variable.

                                                    Initial 5 year term with opportunity to continue
                       INTEREST ONLY                with further interest only terms. (Subject to

                                                    Capital cities, Metro and major regional centres
                       SECURITY LOCATION
                                                    (>25k population).

                       ACCEPTABLE SECURITY          Residential property only with 1st Mortgage.

                                                    Vacant Land
                                                    Construction Loans
                                                    Units less than 50sqm
                                                    Properties greater than 2 hectares.
                       UNACCEPTABLE SECURITY
                       TYPE                         Serviced Apartments.
                                                    Properties zoned commercial or with any
                                                    commercial use.
                                                    Properties in need of significant repair or that
                                                    have any defect that may restrict resale value.

                       SUBSTITUTION                 Fully portable

                       MULTIPLE SECURITIES          Not Allowable.

                       MIN LOAN AMOUNT              $100,000

                       MAX LOAN AMOUNT              $2,000,000. More by special approval.

                       LOAN SPLITS                  Not available.
                       MAXIMUM LVR
                       (Loan to Valuation Ratio)

REIT Warrant Loan – V2 February 2009
                                                Monthly in arrears on last day of the month.
                                                Repayments made via electronic direct debit.

                                                No limit and can be made at any time via
                       ADDITIONAL REPAYMENTS
                                                electronic payment.

                       REDRAW                   Not permissible.

                                                NO annual reviews of Trust’s financial position or
                                                further valuations are required.

                                                      •   Requested Loan meets standard
                                                          serviceability criteria

                       MINIMUM APPROVAL               •   Applicants have clear credit history
                       CRITERIA                       •   Security property is within acceptable
                                                      •   Required documentation is provided

Fees and
Charges                INTEREST RATE            Currently 6.85%

                       MORTGAGE APPLICATION     This fee is included in the REIT Warrant
                       and PROCESSING FEE       Establishment Fee.

                                                Included within the Mortgage Application and
                       VALUATION FEE
                                                Processing Fee.

                                                Professional Legal Fees charged by lender’s
                                                solicitor is included in the Mortgage
                                                Application and Processing Fee.
                       LENDER’s LEGAL FEES
                                                Solicitor’s disbursements, search costs and
                                                government or title office fees are payable by
                                                borrower at settlement.

                       MONTHLY or ANNUAL FEES   Nil
                                                Year 1          1.2%   of   approved   loan   amount
                                                Year 2          1.2%   of   approved   loan   amount
                       EARLY REPAYMENT FEE
                                                Year 3          1.2%   of   approved   loan   amount
                                                Year 4          1.0%   of   approved   loan   amount
                                                Year 5          0.8%   of   approved   loan   amount
                                                Year 6          NIL

REIT Warrant Loan – V2 February 2009

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