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 borrowers. 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 approval) 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 70% (Loan to Valuation Ratio) REIT Warrant Loan – V2 February 2009 Monthly in arrears on last day of the month. REPAYMENTS 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 REVIEWS further valuations are required. • Requested Loan meets standard serviceability criteria MINIMUM APPROVAL • Applicants have clear credit history CRITERIA • Security property is within acceptable policy • 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
"SMSF Loan Term Sheet"