Commercial Loan Principal and Interest Calculator by dtk93581

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									                                ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                     PRIORITY COMMERCIAL APPLICATION OVERVIEW


                                                        Stage1
                                                 Discussing a Scenario
                                               Contacts
                                               Target Market
                                               Credit Criteria
                                               Product Features
                                               Frequently Asked Questions (FAQ’s)



            Stage3                                                                                        Stage2
          Submission                                                                             Packaging the Application
   Service Levels
                                                                                                            PCM Summary Checklist
   Pre Assessment Review
                                                                                                            Supporting Documents
   Application Prioritisation
                                                                                                            Legal Requirements
   Application Process Flowchart
                                                                                                            Fees




           Stage4
                                                                                                                     Stage5
Initial Credit Assessment
                                                                                                                 Credit Decision
   Process
   Contact                                                                                                  Indicative Approval
   Credit Authority                                                                                         Declined (Appeal Process)
                                                                                                             Pending Further Information
                                                                                                             Typical Conditions




           Stage7
                                                                                                                           Stage6
       Formal Decision
                                                                                                                          Valuation
   Process
                                                                                                               Valuation Process
   Typical Conditions
                                                                                                               Panel Valuers
                                                                                                               Valuation Fee Structure
                                                                                                               Valuers Check List
                                                                                                               FAQ’s




            Stage8
                                                                                                                        Stage9
    Solicitors Instructions
                                                                                                                       Settlement
   Process
   Solicitors Contacts                                                                                        Process
   Hickson Procedures
   Gadens Procedures




          Stage 11
                                                                                                                      Stage 10
      Non Credit Issues
                                                                                                                   Post Settlement
   Bank Statements
   Direct Debits                                                                                              Loan Variations
   3rd Party Loan Access                                                                                      Product Switches
   Customer Support                                              Page 1                                       Increases
   Internet Access                                                                                            Rollovers
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                        PRIORITY COMMERCIAL APPLICATION OVERVIEW




                                           STAGE 1
                                    DISCUSSING A SCENARIO

   PCM Business Development Manager Contacts
Name                      State             Mobile                Email Address
Clem Marcocci             National          0401 145 180          clem.marcocci@ingdirect.com.au
Andrew Lim                NSW               0424 135 875          andrew.lim@ingdirect.com.au
Amanda Branch             NSW               0434 510 545          amanda.branch@ingdirect.com.au
John Maldonado            NSW               0413 007 608          john.maldonado@ingdirect.com.au
Greg Russell              NSW               0404 816 537          greg.russell@ingdirect.com.au
Peta Flynn                ACT               0406 993 126          peta.flynn@ingdirect.com.au
Dave Smith                QLD               0402 891 938          dave.smith@ingdirect.com.au
Colin Mason               QLD               0421 050 270          colin.mason@ingdirect.com.au
Michael Ruhle             Sunshine          0411 172 976          michael.ruhle@ingdirect.com.au
                          Coast
Damian Halton             Gold Coast        0406 993 127          damien.halton@ingdirect.com.au
Robyn White               VIC               0406 994 975          robyn.white@ingdirect.com.au
Shellie Hall              VIC               0406 664 105          shellie.hall@ingdirect.com.au
Noelle James              VIC               0424 150 842          noelle.james@ingdirect.com.au
John Leveque              VIC               0420 973 916          john.leveque@ingdirect.com.au
Ashley Amaro              SA                0413 055 007          ashley.amaro@ingdirect.com.au
Richie Allen              SA                0413 013 106          richie.allen@ingdirect.com.au
Tony Prollifrone          SA                0406 530 458          tony.prollifrone@ingdirect.com.au
Stephen Plummer           WA                0420 981 776          stephen.plummer@ingdirect.com.au
Stephen Geel              WA                0421 143 682          stephen.geel@ingdirect.com.au




                                                     Page 2
                      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                           PRIORITY COMMERCIAL APPLICATION OVERVIEW



   Target Market
-   Commercial Mortgages $250,000 to $2,000,000
-   Property investors and experienced owner occupiers
-   Secured by non-specialised: -
       Commercial
       Industrial
       Retail
-   Located in Major metro locations (regional locations considered on case by case basis),
-   Market is defined by the security property offered, not the purpose of the transaction (ie:
    residential security offered for a commercial purpose would be funded using normal
    residential loan products),
-   Not for property development


   Credit Criteria
-   Maximum Lending Value Ratio: -
       75% for Principal and Interest Loans
       70% for Interest Only Loans


   Competitive Advantages
-   Generally a set and forget type facility (ING DIRECT reserves the right to review loans at its
    discretion)
-   No ongoing fees or charges
-   Low commitment fee (0.25%)
-   Repayment flexibility
-   Competitive and flexible pricing


   Full Serviceability assessment
-   Serviceability ratio of 1.40x with positive surplus to be evident, note: -
       Commercial assessment rate is the higher of +2.0% on the Commercial variable rate or
        the ‘floor’ assessment rate of 8%,
       Commercial loans assessed on Interest Only basis
       Commercial rental income to be supported by current lease agreement


                                                        Page 3
                    ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                         PRIORITY COMMERCIAL APPLICATION OVERVIEW

       Use the current version of the Serviceability calculator Version located on the Introducer
        Website.


   Stand-alone assessment
-   Serviceability ratio of 1.30x with a positive surplus to be evident, note: -
       Serviceability is assessed solely based on this loan request being serviced by net rental
        income from a lease over the commercial security property,
       Commercial assessment rate is the higher of +2.0% on Commercial variable rate or the
        ‘floor’ assessment rate of 8%
       Commercial loan is assessed on an Interest Only basis,
       Arms length registered lease to be available with a minimum remaining term of 3yrs
        (NB: shorter lease terms will be considered for long standing tenants, however not
        month to month lease agreements or leased to related entities),


   Product Features


 Maximum term is 15 years principal & interest (Interest Only up to 5 years),


 Variable Interest Rate or Fixed terms of 1, 2, 3, 4 or 5yrs
    (1yr Interest in advance option is also available)


 0.25% commitment fee (refundable up until issuance of formal Letter of Offer)


 Carded Indicative Variable Rate
    (Example:- ING DIRECT Commercial Cash Rate + margin)


 Carded Indicative Fixed Rate - Relevant swap rate % + margin.
    (Rates are indicative up until day of settlement, ie: can not be locked in)


 Interest rates are flexible for quality business
    (Please discuss with your Relationship Manager)




                                                      Page 4
                    ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                         PRIORITY COMMERCIAL APPLICATION OVERVIEW

 Unrestricted additional repayments are available on variable rate loans with redraw option
    (minimum redraw of $10,000 at a cost of $150).


 Up to $20,000 in additional repayments are available on fixed rate loans per calendar year,
    without penalty


 Early repayment fee - 1 month's additional interest on the original loan amount if discharged
    within the first 5 years


 Legal costs
    Loans <=$600,000 - approx $600 + disbursements
    Loans > $600,000 - approx 0.1% of loan amount + disbursements
    We use Hicksons Lawyers in NSW and Gadens National Mortgage Service interstate

   Frequently Asked Questions (FAQ’s)


    1. Client is wishing to purchase commercial property and then complete major
        extension can ING DIRECT assist? Currently ING DIRECT Priority Commercial
        Mortgages does not provide funding for development / construction works.


    2. Is vacant commercial land acceptable as security? Unfortunately No – however on a
        case by case basis we may considered limited exposure against vacant land taken as
        secondary commercial security.


    3. Client wants to purchase a commercial office and use a mixture of commercial &
        residential security – who assesses this request? Mixed commercial / residential loans
        are assessed within our Commercial team. Fax both requests to 1800 352 922 (do not
        split one to the residential team and one to the commercial team).


    4. Business customers currently have a business loan with another lender, which it is
        secured by a residential property - where do I lodge this and what is the rate?
        Customers can refinance a business loan
        secured by a residential house through our normal Residential channel at residential
        rates (conditions and terms apply).


                                                      Page 5
               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                    PRIORITY COMMERCIAL APPLICATION OVERVIEW



5. Purchase is in the name of a Family Trust is this ok? Yes – please provide a copy of the
   trust with the application.


6. There are several companies involved, is this a problem? No – however please ensure
   two (2) years tax returns are provided for all entities as well as how the companies
   interact with each other.


7. Is ING DIRECT Priority Commercial Mortgages able to negotiate on rate? Yes for
   quality business we are able to consider reducing the margin.


8. Can a client make reductions on their Fixed Rate Commercial Loan? Yes up to $20K
   per calendar year with out penalty (redraw not available).


9. Are there any hidden ongoing fees?
   No – ING DIRECT has no ongoing fees or charges.


10. My client wishes to borrow in their Superannuation Fund is this possible?
   Due to legal reasons we cannot lend to a Superannuation fund or against a property
   owned by a superannuation fund.


11. Will my client need to provide financials for the loan facility to be reviewed?
   No, if the client wanted a variation / increase their facility these would be requested.
   Generally a set and forget facility, however, ING DIRECT reserves the right to review
   loans at its discretion.


12. The rent covers the interest expense, would ING DIRECT consider?
   Under PCM Credit Policy we will look at a Stand Alone Facility for investment property
   where the net rental income covers the interest expense by 1.30x (at the higher of our
   assessment or ‘floor’ rate). Tax returns are still required to be provided.


13. Is there stamp duty re-finance concession for commercial mortgage?




                                                 Page 6
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                         PRIORITY COMMERCIAL APPLICATION OVERVIEW

       From 1 August 2005, mortgage refinance is capped at $1 million. The concession applies
       to this amount of the lower of (a) the earlier loan; or (b) $1m. Duty currently (0.4%) will
       be payable on the amount of any excess.




                                                   TAG
                                     STAGE 2
                             PACKAGING THE APPLICATION
                                                     E1
   PCM Summary Checklist
This Document is to be fully completed and sent in with the loan application form.


   Supporting Information Checklist
All Applicants
          Fully completed Loan Application Form
          Applicants/Guarantors Identification form (include copies of photographic
           identification)
          Company & Trust Appendix
          0.25% Commitment Fee + Valuation Fee
          Have you advised your client the 0.25% Commitment Fee becomes non-refundable
           upon issuance of the formal Letter of Offer?
          Serviceability calculation print out (mandatory)
          Letter/statement from Real Estate Agent confirming proposed/existing rental
           income or lease agreement.
          Description of property eg: warehouse, office, factory
          Statutory Declaration stating that funds being gifted are not repayable (if
           applicable)
          Rates Notice for all properties owned
          Copy of recent statement for all loans held


PAYG Applications / Guarantors
          Last 2 year full Personal Taxation Returns (mandatory)


                                                     Page 7
                    ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                         PRIORITY COMMERCIAL APPLICATION OVERVIEW

            Latest ATO Assessment Notice (if available)


Self Employed Application
            Last 2 years full Business/Company Taxation Returns and Financials (Notes
             inclusive) PLUS
            Last 2 years full Personal Taxation Returns
            Latest ATO Assessment Notice
            BAS Statements (if applicable)
            Memorandum & Articles of Association (by settlement)
Trusts
            Trust Deed PLUS
            Last 2 years full Trustee Taxation Returns (mandatory)


Refinance Applications
            Last 6 months statements of loans being refinanced
            Last 6 months statements of trading account, (if interest from Loan account is offset
             to trading account)
            Land Tax Certificate (also applicable for increases to existing commercial loans – by
             settlement)
            Zoning Certification (by settlement)


   Typical Servicing Considerations


Interest:
If the interest relates to a loan we are either refinancing or are including in our assessment of
serviceability then we can add the P&L interest cost back for servicing purposes. ie: If a company
has two commercial loans with the ANZ and are refinancing one of them to us, our serviceability
calculator would calculate loan payments on the new ING DIRECT term loan (e.g. Interest only
at 9.60%) as well as the remaining ANZ Term Loan (e.g. Interest only at 9.60%). In this instance
we would addback 100% of Interest costs as we are recalculating the assessed interest expense.
It is important to be careful not to addback interest costs on Hire Purchase or leases etc as we
don't recalculate these expenses in our serviceability assessment and as such should leave the
original expense in the P&L statement.


                                                      Page 8
                    ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                         PRIORITY COMMERCIAL APPLICATION OVERVIEW



Depreciation:
ING DIRECT does not allow depreciation to be added back that relates to motor vehicles (given
these need to be regularly updated and theoretically the depreciation expense should be used to
fund the replacement). In addition to this, ING DIRECT does not addback depreciation that is on
core equipment for a business, ie: if the company is a granite and marble manufacturer then
Depreciation on plant & equipment would not be added back as the P&E is core to the
businesses operation. Otherwise, depreciation on P&E would be an acceptable addback.


It is recommended that you consider (1) the amount of depreciation being expensed and (2) at
the depreciation schedule, if the amount is around the $10k mark and not motor vehicles then it
is probably OK. If, however it is a sizeable figure ($20k, $30k $90k etc) then in most cases we
would not be able to addback 100% of depreciation, depending on what the depreciation
schedule shows us we may addback a reduced percentage (typically <20%).


Rent:
If the clients pay rent to a 3rd party and that will cease on purchase of the new property then
rent is considered a non-recurring expense and can be added back - put it under 'Other' in the
company income part of the serviceability calculator.


Super:
If the customers contribute more than 9% of their salary to their personal superannuation, this
surplus payment is discretionary and can be stopped at any time, as such it can be added back to
assist with serviceability.
NB: don't addback 100% of superannuation payments only that in excess of 9% of the salary
expense.


One-offs:
Expenses that are genuinely 'one-off' expenses can arguably be added back, ie: total refit of the
office etc. This would exclude loss from sale of an asset given the client may need to sell off
other surplus assets and incur losses in the future (conversely we would exclude any profits from
the sale of assets, given they are non-recurring income).




                                                      Page 9
                       ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                            PRIORITY COMMERCIAL APPLICATION OVERVIEW

Nb: addbacks of this nature would be up to the discretion of the assessor and would be based on
the business the customer is in and supporting comments about the 'one-off' expense. If this is a
major item talk to us first.




     Legal Requirements


Pre-settlement Legal Requirements:

     1)    If the loan is a refinance transaction you should have your clients execute the relevant
           discharge authority and forward the original to this office (GPO Box 4094 Sydney NSW
           2001 Attention: Priority Commercial Mortgages) prior to execution of the formal Letter
           of Offer.

     2)    Please note that typical settlement conditions include the provision of Zoning and
           Land Tax Certificates.



For more specific details on our typical pre-settlement requirements please refer to attached
documents:


     FEES
The following fees will apply to all Priority Commercial Mortgage applications submitted.
     Commitment fee –
A commitment fee of 0.25% of the total loan amount is to be payed to ING DIRECT prior to the
Formal Approval Letter being issued.
NB: Commitment fee is fully refundable up until issuance of Letter of Offer.


     Commercial Property Valuation Fees –
    EMV or Purchase Price                                                          Estimated Valuation Fee
                                                                                   (subject to confirmation)
    $0 - $500,000                                                                                $600



                                                        Page 10
                     ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                            PRIORITY COMMERCIAL APPLICATION OVERVIEW

    $501,000 - $750,000                                                                        $800
    $751,000 - $1,000,000                                                                      $950
    $1.01 - $1.5m                                                                             $1,250
    $1.51m - $2.0m                                                                            $1,750
    $2.1m - $2.5m                                                                             $2,000
    $2.51m - $3m                                                                              $2,500
    $3.1m - $4m                                                                               $3,000
GST is not applicable on the fee


Where residential security is to be provided as additional security, valuation costs in this regard
remain the same as with a standard ING DIRECT Home or Investment Loan application. This can
be summarised as:


The first residential property valuation (up to an estimated market value of $1m) is free;
The valuation cost of a residential property with an estimated market value between $2m and
$3m is $350 + GST (of which ING DIRECT pays $200);
Second and Subsequent Sydney metro residential valuations will cost $200 each (inclusive of
GST)


     Legal Fees –
This is a guide to the costs that may be charged directly to the borrower by the solicitors
representing ING DIRECT. Please note that this does not include all costs that may be payable
by the borrower in the relation to obtaining finance for the purchase of property.


     Loan Variation Fee –
A fee of $290.00 applies to make changes to the Letter of Offer between the disclosure (date of
original issue) and settlement.




                                                      Page 11
                    ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                         PRIORITY COMMERCIAL APPLICATION OVERVIEW




                                                  STAGE 3
                                                SUBMISSION


    Service Levels
The following time frames are indicative, we aim to provide quicker turn-around at each
stage, however from time to time these service levels may be stretched due to volumes.
    Service Levels
      Courtesy Call / SMS                              30min; made to broker to confirm receipt of
                                                       application
      Pre-assessment review                            24hrs: Review application and have any
                                                       request for additional information faxed to
                                                       the broker
      Indicative approval                              2 to 3 business days, once all information is
                                                       to hand
      Valuation                                        5 business days from date of inspection,
                                                       assuming no delays in access
      Formal Approval                                  9 business days, from date application is
                                                       received
      Solicitors – Document                            48 hrs, once relevant information is to hand
      Preparation                                      (ie: copy of transfer etc)


    Contact



                                                     Page 12
                 ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                      PRIORITY COMMERCIAL APPLICATION OVERVIEW

   -   If you wish to follow up the status of your Commercial Loan application, the
       following options are available: -
      Tracking of the deal via ING DIRECTS’ Introducer website
       (introducer.ingdirect.com.au)
      Phoning our Introducer Solutions team – Ph: 1300 656 226
      Contacting our Team Administrators: -
       Mats Lindfors:            (02) 9028 4523                 mats.lindfors@ingdirect.com.au




       Each administrator is allocated their own deal where they will introduce
       themselves upon receipt of application and will be your dedicated contact right
       throughout the pre-settlement process.
Communication Milestones
    At each stage of the application process, our team administrator or credit
    assessor will be contact with you to inform you on the progress of the
    application.

        Action Item                             Contact                            Responsibility
        Application Received                    Phone/Text                         Team Administrator
        Initial Credit Review                   Fax or E-mail                      Credit Assessor
        Initial Credit Decision                 E-mail or Fax/Text                 Team Administrator
        Fee Follow-up                           E-mail or Phone                    Team Administrator
        /Indicative/Other
        PFI Follow-up                           E-mail or Phone                    Team Administrator
        Valuation                               E-mail/Fax to valuer               Team Administrator
                                                Text to Broker
        Letter of Offer                         E-mail/Text                        Team Administrator
        Settlement                              Phone                              Team Administrator




                                                  Page 13
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                        PRIORITY COMMERCIAL APPLICATION OVERVIEW




                                        STAGE 4
                              INITIAL CREDIT ASSESSMENT

   Process
-   On initial receipt of the Commercial application, a Credit Assessor will briefly review
    all information provided and reply by fax if any information / supporting documents
    were not received


    If full sufficient information is not available to assess the loan a request for
    ‘Additional Information’ will be faxed to the broker within 24hrs. Typically,
    information requested include: -


       Fully Completed Priority Commercial Mortgage Application Summary &
        Checklist, including full description of the security being offered,
       Fully completed Loan application form,
       Two years full tax returns for all personal and company entities,
       Copy of lease agreement for all investment properties,
       Completed Serviceability Assessment worksheet,
       Copies of rates notices for all properties owned and recent bank statement for all
        loans held,
       Copy of six (6) months bank statements for all loans being refinanced,
       Copy of Contract for sale.




                                                    Page 14
                       ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                            PRIORITY COMMERCIAL APPLICATION OVERVIEW

       Our service standard commences once sufficient information to assess a loan is
       received.


                   -   Where sufficient information is available to commence assessment of
                       the loan, a request for additional information is sent and the loan is
                       assessed as per our normal process.



      Contact
If you wish to discuss further the “Additional Information” required for your Commercial
Loan application, please contact one of our credit assessors:

    Peter Webster        Credit Assessor                02 9028 4326         peter.webster@ingdirect.com.au
    Denis Starr          Credit Assessor                02 9028 4186         denis.starr@ingdirect.com.au
                         (Existing Business)
    Ross Bradbury        Credit Assessor                02 9028 4943         ross.bradbury@ingdirect.com.au



      Credit Authority
-      We are able to approval deals up to $1,000,000 within our own team.
       For deals above this amount we obtain quick turn-around from our ‘Credit Risk
       Managers’ located in our offices.




                                                      STAGE 5
                                                   CREDIT DECISION

      Indicative Approval


-      On receipt of the application a Credit Assessor will review the proposal in full within
       2 to 3 business days and advice the outcome by fax.


Being: -


                                                        Page 15
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                        PRIORITY COMMERCIAL APPLICATION OVERVIEW

       Approval: -
        An ‘Indicative Approval Advise’ is faxed off which will provide a summary of the
        loan approved and any specific conditions of approval, in addition an SMS is sent
        to the broker advising the approval,


       Declined: -
        A letter is faxed off to the broker outlining reason for our decision. If the decision
        is serviceability related a copy of our workings is included.


       Deferred (PFI – Pending Further Information): -
        If after full assessment of the application, sufficient information is not available
        to make a decision a request for specific additional information is faxed to the
        broker and the matter is placed on hold pending a response.


   Declined (appeals process)


-   We are aware that in some instances the information on which we make a decision
    may not fully reflect the strength of the applicant.


-   If you believe the strengths of a deal sufficiently mitigate and shortcomings we are
    happy to review our decision.


-   In these instances, please contact with your Business Development Manager and
    provide sufficient information to mitigate any adverse features and we will review
    our decision within 24hrs.


   Pending Further Information (PFI)


-   Deal’s, which have been placed on hold pending further information, are followed up
    by our Team Administrators on a weekly basis, as well as by the Business
    Development Manager.

                                                    Page 16
                  ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                       PRIORITY COMMERCIAL APPLICATION OVERVIEW



   Typical Approval Conditions


-   Approval conditions commonly included in our ‘Indicative Approvals’ include: -


 Subject to satisfactory Commercial valuation report on (subject property) with
    maximum loan amount not to exceed 75% of the sworn valuation, or contract price,
    or $ (market value) (exclusive of GST), whichever is the lesser.


 Subject to satisfactory Residential valuation report on (subject property), with
    maximum loan amount not to exceed 80% of the sworn valuation, or contract price,
    or $ (market value) whichever is the lesser.


 Attornment Notice to be taken over rental cashflow of (subject property) and
    implemented in the event of default.


 Valuation(s) to be acceptable to ING DIRECT’s Credit Risk unit.


 ING DIRECT’s solicitors are to control funds in respect to the settlement of the
    proposed commercial property purchase @ (subject property) as per the relevant
    purchase contract supplied.


 The DIRECT’s solicitors will investigate the nature of this borrowing (including
    commercial benefit) of the (subject trust) & prepare the ING DIRECT’s security
    documentation, to suit ING DIRECT’s requirements for Trusts. Any
    concerns/questions raised by ING DIRECT’s solicitors must be answered/resolved to
    ING DIRECT’s satisfaction before the borrowing can proceed. These costs are for the
    Borrower’s care.


 ING DIRECT’s Solicitors are to be presented with a copies of executed lease
    agreements in registrable form relating to commercial security property at (subject

                                                   Page 17
                  ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                       PRIORITY COMMERCIAL APPLICATION OVERVIEW

   property) containing the following terms & conditions:-

    Total combined rental income of $ xxx Gross pa to be evident,

    Minimum 3 year term to apply

   (# Included where we have a material reliance on rental income for serviceability
   purposes).


 Top up option to apply at 75% (refer Top-up Covenant below)




 Commitment Fee $ (0.25% of Commercial Loan) to be provided prior to Letter of
   Offer being issued.

   NB: Commitment fee is fully refundable up until issuance of Letter of Offer.


 Commercial Valuation Fee of $ (refer fee schedule) to be provided prior to valuation
   being ordered,


 Copies of fully completed & signed Identification Forms on behalf of all applicants to
   be provided.


COVENANT (TOP-UP CLAUSE)
COMMERCIAL
The maximum Loan to Lending Value Ratio (LVR) at any one time not to exceed 75%.
ING DIRECT has the right to revalue the security property at its discretion. The
valuations will be undertaken by a valuer of ING DIRECT’s choice and under instruction
of ING DIRECT. The cost of the valuations is to be borne by the borrower. If any
valuation obtained confirms that there has been a reduction in the value of the security
and the LVR exceeds 75%, then the borrower, within 14 days of ING DIRECT’s request,
will be required to reduce the loan amount or provide suitable additional securities in
order to reduce the LVR to a maximum of 75%.

                                                   Page 18
                  ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                       PRIORITY COMMERCIAL APPLICATION OVERVIEW




                                            STAGE 6
                                           VALUATION

   Valuation Process


To further simplify and standardise our service we have adopted a standard scale of fees
for all valuations in major metro areas (see table below).


GST is not applicable on this fee, as the valuer is contracted by ING DIRECT and not the
client.


The valuation is ordered after indicative approval and the valuation fee has been
received.


Our payment options are:


   A cheque payment by mail: addressed to:
    ING DIRECT
    Priority Commercial Mortgages
    GPO Box 4094
    Sydney NSW 2001




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                         PRIORITY COMMERCIAL APPLICATION OVERVIEW

    Note: We may not act on a faxed copy of the cheque, this is at the discretion of the
    credit assessor.


   A credit card debit authority (Page 13 of application form) faxed to:
    1800 352 922
    Note: ING DIRECT does not accept Amex or Bankcard.


   A direct debit form authority faxed to:
    1800 352 922


Our Panel Valuers have committed to a 5-day turn around time, providing access can be
arranged within the first 24 hours.


   Panel Valuers



Valuer                                     State       Phone/Fax                E-mail
Kohler Bird                                NSW         P: 02 9890 7977          admin@kohlerbird.com.au
                                                       F: 02 9890 7955
Opteon Valuers                             NSW         P: 1300 733 693          instructions@opteonvaluers.com.au
                                                       F: 1300 730 288


Herron Todd White                          VIC         P: 03 9642 2000
                                                       F: 03 9642 4422
Opteon Valuers                             VIC         P: 1300 733 693          instructions@opteonvaluers.com.au
                                                       F: 1300 730 288


Opteon Valuers                             QLD         P: 1300 733 693          instructions@opteonvaluers.com.au
                                                       F: 1300 730 288
Chesterton Corporate                       QLD         P: 07 3222 3000
                                                       F: 07 3221 9386




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Opteon Valuers                             SA          P: 1300 733 693          instructions@opteonvaluers.com.au
                                                       F: 1300 730 288



Opteon Valuers                             WA          P: 1300 733 693          instructions@opteonvaluers.com.au
                                                       F: 1300 730 288



Opteon Valuers                             TAS         P: 1300 733 693          instructions@opteonvaluers.com.au
                                                       F: 1300 730 288




   Valuation Fee Structure

    EMV or Purchase Price                                             Estimated Valuation Fee
                                                                      (subject to confirmation)
    $0 - $500,000                                                                    $600
    $501,000 - $750,000                                                              $800
    $751,000 - $1,000,000                                                            $950
    $1.01 - $1.5m                                                                  $1,250
    $1.51m - $2.0m                                                                  $1,750
    $2.1m - $2.5m                                                                  $2,000
    $2.51m - $3m                                                                   $2,500
    $3.1m - $4m                                                                    $3,000


Where metro residential security is to be provided as additional security, costs in this
regard remain the same as with a standard ING DIRECT Home or Investment Loan
application. This can be summarised as:


 The first residential property valuation (up to an estimated market value of $1m) is
    free;

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 The valuation cost of a residential properties with an estimated market value of
    between $2m and $3m is $350 + GST (of which ING DIRECT pays $200);
 Second and subsequent metro residential valuations will cost $200 each (inclusive of
    GST)


   Valuers Check List
To assist the valuer and speed up the appraisal process the following information should be
provided wherever possible.


 Correct Address is provided,
 If Unit no, does it conform with its Lot No. in the strata Plan. Is there a copy of a the
    Strata Plan which can be supplied to the valuer
 Is the given client the registered proprietor
 Is it a current or recent purchase (not settled) or a re-finance. If a purchase, what is
    the contract price, is it GST inclusive or exclusive, are there any special clauses or
    conditions
 What is the estimate of value (any relevant information which could assist the valuer
    ie recently purchased, nearby sales known of which may not be registered as yet
    etc.)
 Access details must be accurate and give names, alternate contact numbers,
    background if not the actual client (ie managing agent, tenant, broker, solicitor etc)
 Those providing access should be forewarned that a valuer will be ringing or
    otherwise contacting them for access to a specific property over the next few days.
    We would like access at a reasonable time at short notice, hopefully within business
    hours
 Lease details where applicable are vital to have as early as possible. A copy of a
    current lease should be provided, however if this is not available, the minimum
    details in summary form are as follows:
 Lessor
 Lessee
 Commencement & Termination Date


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 Term of Lease and any option periods
 Initial Rental
 Current Rental
 GST Inclusive or Exclusive
 Escalation Clauses – CPI / minimum increases p.a / can the rent be reduced at all
 Outgoings – are they recoverable, if so does that apply to all property outgoings or
    statutory rates and taxes, insurance etc. (Does this include maintenance, sinking
    fund, management fees?)
 All Special Lease Clauses
 Is the tenant a related entity to the registered proprietor
 If no lease, is there an informal tenancy agreement
 Can building plans or floor area surveys be provided or referenced as opposed to the
    valuer having to establish lettable areas through their own measurements
 Has the property been valued recently or at all
 Is there a copy of a s149 Certificate available
 Is there D.A approval for its current usage, if so when was this granted?


   Frequently Asked Questions (FAQ’s)


Can a tax invoice be issued for payment of valuation fees?
No, as valuation fees charged to the customer is input-taxed which means we do not
charge the customer the GST, then there is no GST for them to claim


What if the 5-business day turnaround time is not met? Why is there a delay?
Please keep in mind that this a 5-day turnaround time is an agreement between ING
DIRECT and our panel valuers, which is well above industry standard (usually 10 business
days). Therefore, our team administrators remain in constant contact with our valuers to
ensure that the 5-day turnaround is not met. Some delays are caused by:
   Not being able to gain access into the property within 24 hours of instruction.
   Valuer is waiting on documents such as leases, outgoings etc from the broker before
    the report can be completed.


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                       PRIORITY COMMERCIAL APPLICATION OVERVIEW

When our valuers are instructed, we provide the broker contact details to ensure that
access can arranged as soon as possible if the contact for access cannot be contacted.
Our team administrators will provide you with any updated concerning the valuation.


Can we refund the valuation fee if the valuation has come in low or the deal is no
longer proceeding?
Once the valuer has been instructed and inspected the property, the valuation fee can
no longer be refunded as we are required to pay the valuation fee.


What if the customers EMV or MV came in lower than the valuers market value, are
we able to get a refund in the difference of fees?
No.
Are we able to order the valuation directly through to the valuer?
No, as we will require the valuation report to be prepared for ING DIRECT and the
valuation fee structure is agreed between ING DIRECT and our panel valuers only.


Can I get a copy of the valuation report sent to me?
Generally no, however in some exception cases we can send it to the client upon their
written request, specifying the reason for the request. The valuation will be stamped,
indicating that it is only to be used and/or relied upon for mortgage purposes by ING
DIRECT, prior to it being sent to the client.




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                  ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                       PRIORITY COMMERCIAL APPLICATION OVERVIEW


                                       STAGE 7
                                  FORMAL DECISION
                                  (FINAL APPROVAL)


   Process


-   Valuation is received and signed off as acceptable by ING DIRECT,
-   Confirm that conditions of approval that need to be satisfied prior to settlement (as
    per indicative approval advise) have been finalised,
-   Letter of Offer (LOO) is prepared for all commercial and residential loans and
    checked,
-   Copy of Letter of Offer is emailed to the Broker for their information (copy only not
    for execution),
-   Banks’ Solicitors (Hicksons Lawyers or Gadens National Mortgage Service) are
    instructed and original Letter of Offer forwarded to them to prepared mortgage
    documentation


   Typical Conditions


-   Attornment Notice to be taken over rental cashflow of (subject property) and
    implemented in the event of default.


-   Title ownership of the subject security property at (subject property) is to be
    confirmed on settlement by ING DIRECT’s solicitor to be held in the sole name of
    (property owner)


-   The ING DIRECT’s solicitors will investigate the nature of this borrowing (including
    commercial benefit) of the (related trust) & prepare the ING DIRECT’s security
    documentation, to suit the ING DIRECT’s requirements for Trusts. Any
    concerns/questions raised by the ING DIRECT’s solicitors must be answered/resolved



                                                   Page 25
                  ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                       PRIORITY COMMERCIAL APPLICATION OVERVIEW

    to the ING DIRECT’s satisfaction before the borrowing can proceed. These costs are
    for the Borrower’s care.


-   Independent legal & financial advice has been waived in this instance, given the
    personal guarantor(s) wholly own the borrowing company.


-   ING DIRECT’s Solicitors are to be presented with a copies of executed lease
    agreements in registrable form relating to commercial security property at (subject
    property) containing the following terms & conditions:-
       Total combined rental income of $(xxx) net pa to be evident,
       Minimum 3 year term


-   ING DIRECT’s solicitors are to control funds to pay out and close (existing bank loan)
    in the names of (related borrower) of approx $(xxx)


-   Borrower to acknowledge that a default under this loan or any other loan with ING
    DIRECT shall constitute default by the borrowers under each loan.




                                                   STAGE 8
                                 SOLICITORS INSTRUCTIONS

Process


-   Instructions to prepare mortgage documentation and attend settlement on our
    behalf are issued to our Solicitors together with: -


           Original Letters of Offer,
           Copy of full Contract for Sale,


                                                   Page 26
                      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                           PRIORITY COMMERCIAL APPLICATION OVERVIEW

              Copy of full Lease agreement,
              Copy of stamped and marked Trust Deed,
              Copy of Constitution of the Company
              Discharge Form
              A copy of the valuation report
              Guarantor Pack


      NB: Where full copies of related documents (contract for sale, lease agreements etc)
      are not provided, our Solicitors will request these from the Clients (or their solicitor)
      – this may add a day or so to the documentation process.


Settlement Tracking
Our solicitors provide excellent websites for tracking the status of commercial
applications (as well as regular commentary on their discussions with clients). The links
to the sites are below:
Hicksons: www.secure.hicksons.com.au
Gadens:      www.gadensnms.com.au




     PCM Solicitors
Solicitor             State                                        Contact
Hicksons              Level 32/2 Park Street                       Terri Waesch
NSW
                      Sydney NSW 2000                              P: 02 9293 5350
                                                                   F: 02 9293 5333
                                                                   E: terri.waesch@hicksons.com.au
                                                                   W: www.hicksons.com.au
Gadens NMS            Level 24, Bourke Place                       Melissa Campisi
VIC                   600 Bourke Street                            P: 03 9620 7311
                      Melbourne VIC 2000                           F: 03 9620 7511
                                                                   E:
                                                                   ingdirect@vic.gadens.com.aubank@vic.ga
                                                                   dens.com.au



                                                       Page 27
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                        PRIORITY COMMERCIAL APPLICATION OVERVIEW

                                                                W: www.gadens.com.au




Gadens NMS        Level 10, 410 Queen Street                    Benita Hoad
QLD               Brisbane QLD 4001                             P: 07 3226 9000 or 07 3226 9020
                                                                E: ingcommercial@nms.gadens.com.au
                                                                W: www.gadens.com.au
Gadens NMS        Level 23, 44 St Georges Terrace               Joe Claudio
CBA Legal         Perth WA 6000                                 P: 08 9223 9223
WA                                                              F: 08 9223 9224
                                                                E: incommercial@nmsperth@com.au
                                                                W: www.gadens.com.au
Gadens NMS        Level 15, FGIC Building                       Michael Smith
WA & NT           211 Victoria Square                           P: 08 8233 0678
                  Adelaide SA 5001                              F: 08 8205 0805
                                                                E: ingcommercial@fisherjeffries.com.au
                                                                W: www.gadens.com.au
Gadens            93 York Street                                Robert Greatbatch
TAS               Launceston TAS 7250                           P: 03 6338 5552
                                                                F: 03 6337 5554
                                                                E: ingcommercial@raepartners.com.au
                                                                W: www.gadens.com.au




     Solicitors Fees and Charges


This is a guide to the costs that may be charged directly to the borrower by the solicitors
representing the ING DIRECT. Please note that this does not include all costs that may
be payable by the borrower in relation to obtaining finance for the purchase of property




                                                    Page 28
                     ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                          PRIORITY COMMERCIAL APPLICATION OVERVIEW

    Maximum Fees and Disbursements
    Documentation and settlement costs payable by the borrower
    Service                                                                         ALL STATES
    Documentation & settlement fee
    loans $0.00 to $600,000.00 (exclusive of GST)                                        $600
    loans over $600,000.00 (exclusive of GST)                                     0.1% of principal
    Disbursements – search fees, administration out-
    of-pocket fees, settlement fees – maximum                                          $150.00
    charge (exclusive of GST)
    Registration fee (der dealing)                                                      $75.00
    Company search (per search)                                                         $30.00
    Stamp duty                                                                          At cost
    Matter not proceeding (maximum fee)                                                $100.00
    Additional interstate security (exclusive of GST)                                  $200.00
    Variation (exclusive of GST)                                                       $150.00
    Company charge (exclusive of GST)                                                  $100.00
    Substitution (exclusive of GST)                                                    $600.00
    Old system title and other special titles (eg.                                     $200.00
    Company title, community title) (exclusive of GST)
    Old system search fee (exclusive of GST)                                            At cost
    Lease – consent costs (exclusive of GST)                                           $150.00




   Solicitors Procedures
    Documents          Commercial Term Loan Facility Letter of Offer (+ copy)
                             Mortgage
    provided by
                             Memorandum 8303572
    solicitor
                             Directions to pay
                             Undertaking
                             Direct Debit Request Form
                             Loan Account Instructions Form
                             Warranty



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               ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                       PRIORITY COMMERCIAL APPLICATION OVERVIEW

                        ING DIRECT Solicitors Fee (payable by client)
                        List of APRA approved Insurers


Documents               Letter of Offer duly signed or initialled
required for            The Mortgage duly executed and stamped to secure a total loan of $xxx. Please
completion              ensure that the mortgage is stamped prior to return
                        Direction to Pay duly executed
                        Undertaking duly executed
                        Direct Debit Request Form completed and signed
                        Loan Account Instructions Form completed and signed
                        Warranty duly executed
                        Bank cheque in payment of our account
                        A certificate of currency issued by the insurer and not a broker or an original
                        building insurance policy for $xxx on a replacement basis noting ING Bank
                        (Australia) Limited of 140 Sussex Street, Sydney NSW 2000 as Mortgagee. The
                        insurance must be effected with one of the approved insurers
                        Survey Certificate by exception only. ING DIRECT will advise specifically where a
                        survey certificate is required, in all other instances provision of Survey Certificate
                        is not required. Where a Survey Certificate is required it must: -
                        (i) Identify the land by reference to its present title particulars,
                        (ii) Identify any building erected on the land by street number or name and
                        (iii) Certify that there are no encroachments by or upon the property and that
                        the Local Government Regulations and/or Environmental Planning and
                        Assessment Act Regulations have been complied with as to the distance of
                        walls, eaves and gutters from boundaries.
                        Zoning Certificate, not more than 2 years old and to confirm current zoning as
                        listed in the valuation report.
                        Land Tax Certificate (for refinance and increase requests only).
Special Conditions /    Cheque in favour of the Land & Property Information NSW in the sum of $xxx in
Requirements            payment of registration fees
                        Existing ABC Bank loan number 12344556 is to be repaid in full and closed at
                        settlement. YOU WILL NEED TO ARRANGE FOR THIS.
                        Discharge of Mortgage no 123445 from ABC Bank will be required at settlement.
                        YOU WILL NEED TO ARRANGE FOR THIS.
                        Copy of lease number 12344556.




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                    ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                         PRIORITY COMMERCIAL APPLICATION OVERVIEW

                            Copy of variation of lease number 12344556.

                            Copy of any other lease/s in place for the properties.




                                          STAGE 9

                                    SETTLEMENT



   Process


Commercial deals for NSW are completed through Hicksons. They fax their certification
to our settlements department usually the day before settlement. Settlements then
draw the settlement cheques in accordance with their certification. Hicksons collect the
cheques from ING DIRECT at midday on settlement day.


Settlements in other states are handled by firms in the Gadens National Mortgage
Service (NMS) group. They certify to settlements department 2 days prior to
settlement. Settlements then send the settlement funds electronically to Gadens in
accordance with the certification on settlement day.

   PCM Solicitors (see above)




PCM Contacts List
PCM Address
140 Sussex Street
Sydney NSW 2000

PCM Mailing Address
GPO Box 4094
Sydney NSW 2001


                                                     Page 31
                    ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                          PRIORITY COMMERCIAL APPLICATION OVERVIEW


PCM Fax
1800 352 922

PCM Team

       Name                   Position                 Phone                                E-mail
                                                      Contacts
 Clem Marcocci          Senior Manager             02 9028 4112           clem.marcocci@ingdirect.com.au
                                                   0401 145 180
 Peter Webster          Credit Assessor            02 9028 4326           peter.webster@ingdirect.com.au
 Denis Starr            Credit Assessor            02 9028 4186           denis.starr@ingdirect.com.au
                        (Existing Business)
 Ross Bradbury          Credit Assessor            02 9028 4943           ross.bradbury@ingdirect.com.au
 Mats Lindfors          Team Administrator         02 9028 4523           mats.lindfors@ingdirect.com.au


PCM Related Contacts
 Who                                Relation                              Contact
 Introducer Solutions               Broker Enquiries                      www.introducer.ingdirect.com.au
                                                                          Hotline: 1300 656 226
                                                                          Mon – Fri: 8:30am – 5:30pm

 ING DIRECT Call Centre             Post Settlement Enquires for          133 464
                                    Clients




                                                     Page 32
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                              PRIORITY COMMERCIAL APPLICATION OVERVIEW


Parameter:                                  Commercial Loan Products – Commercial Property Security


1. Acceptable loan purpose                      Debt refinance ( commercial; industrial & retail securities)
                                                Property purchase
                                                Business & Investment Capital needs
                                                Equity reimbursement
                                                Note cash-out is limited to 20% of the property value


2. Acceptable security property                 Income producing fully tenanted non specialised investment property.
Registered First Mortgage over:                 Owner occupied property used for commercial purposes and company
                                                 can demonstrate debt service /interest cover at 1.4 times.
                                                Retail shops, with subject site to consist of a minimum of 10 adjoining
                                                 shops (vacancy levels not to exceed 25%) located in an established
                                                 lending area with no other adverse features
                                                Panel beating and mechanical operations of a ‘clean’ nature (the latter
                                                 subject to Risk Management approval,
                                                Childcare centres (minimum of 3yrs profitable operation or lease in
                                                 place with an established childcare business). A charge over the
                                                 business may be required where the childcare centre is owner
                                                 occupied.
                                                Commercial properties greater than 50 sq m’s


3. Collateral security                          Owner occupied residential or investment property, including the
(i.e. Make Weight)                               principal place of residence of an applicant or guarantor, providing the
                                                 loan is clearly for business purposes


4. Acceptable security property                 Major target markets are major metropolitan areas and established
location                                         regional areas where ING DIRECT Australia (INGD AUS) has a Business
                                                 Development Manager presence (see Acceptable Lend Area List).
                                                ING DIRECT may seek amortisation or a lower LVR in some instances,
                                                 depending on the nature and location of security.


5. Interest Rate                                INGD Commercial Cash Rate.

Benchmark – Variable rate                       INGD AUS Rate for relevant fixed period [eg 1-5 Yr )

Benchmark – Fixed rate                          Plus the applicable commercial margin.


6. Credit inquiries                             CRAA Reports are conducted on all participants in the borrowing
                                                 structure and must be found to be satisfactory
                                                For refinance applications, evidence is required that the existing
                                                 facility has been well conducted via 6 months bank statements. ING
                                                 DIRECT reserves the right to request trading account statements on a
                                                 case by case basis.




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                               PRIORITY COMMERCIAL APPLICATION OVERVIEW


7. Early prepayment                              One month’s additional interest on the original loan amount if the loan
                                                  is repaid in full within five years from the settlement date.
(All Loans)                                      Economic Break Cost Policy calculation for fixed rate loans, plus one
                                                  month interest.


8. Non-recourse lending                          Not permitted


9. Personal                                     A practical, commercial approach is taken to the level of Guarantees
                                                 required.
                                                Joint & Several Guarantees are generally required from:
                                                  The Shareholder Directors of the Borrowing Entity and any
                                                      Corporate Shareholder of the Borrowing Entity
                                                Joint & Several Guarantees may be required from:
                                                  Other Corporate Entities controlled by the Borrower or any
                                                 Guarantor
                                                  The adult Beneficiaries/Unit Holders of any Trust controlled by the
                                                  Borrowing Entity or any Guarantor
                                                 In the case of the Borrower being a limited liability partnership or
                                                  syndicate, several guarantees of the individual Borrowers or Unit
                                                  Holders will be required




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                              PRIORITY COMMERCIAL APPLICATION OVERVIEW

10. Interest cover – Investment &
Owner Occupied                                  1.3 times minimum interest cover for stand alone commercial
                                                 “investment” transactions. Interest coverage is calculated from net
                                                 rental over interest costs at the higher of the actual interest rate or the
                                                 floor assessment rate of 8%.
                                                1.4 times minimum interest cover is required for “owner occupied” &
                                                 investment commercial transactions. Including mixed residential /
                                                 commercial loans.
                                                Lower interest cover may be acceptable with good cash surplus or
                                                 lower LVR’s.
                                                Interest Cover being the total of personal taxable income / net
                                                 operating revenue / rent after all operating expenses but before
                                                 interest, tax, depreciation (where allowed) and amortisation (Personal
                                                 taxable income, net rental or EBITDA) divided by other external loan
                                                 repayments plus the projected annual interest expense, being:
                                                  Variable or fixed < 3 years
                                                       - COF + margin + interest rate buffer ( # ) to arrive at “Plug
                                                        Rate”
                                                       - # Buffer 2.0% for commercial loans, 1.5% for residential
                                                        loans.
                                                       - The assessment rate to be used for servicing will be the
                                                        higher of the ING DIRECT “Plug Rate” (as above) or the
                                                        ‘floor’ assessment rate of 8%.
                                                    Fixed > 3 years
                                                       - COF + margin.
                                                   NOTE:
                                                    Other commercial debt is assessed at the higher of the ING
                                                       DIRECT ‘Plug Rate’ (as above) or the ‘floor’ assessment rate of
                                                       8%.
                                                    Other residential debt is assessed at the higher of the current
                                                       Mortgage Simplifier rate plus a ‘plug rate’ of 1.5% or the ‘floor’
                                                       assessment rate of 8%.
                                                All term loans are to be tested on the following basis:
                                                    Interest cover including a plug rate – the cover is to exceed the
                                                       hurdle as set out in this policy.
                                                    P & I so as to reduce the LVR to 60% after 5 years. at plug rate,
                                                       unless fixed rate applies.
                                                    P & I fully amortising over 15 years at plug rate, unless fixed rate
                                                       applies.

                                            The hurdle for all three tests is as set out in the first two bullet points of this
                                            section.

                                                These three tests must be included in Term Loan Expose’s which allow
                                                 review of how the asset / cash flow performs under the various
                                                 scenarios.


11. Loan amount – maximum                       Individual loans up to $2 million.
                                                Maximum one obligor exposure up to $3 million.
                                                Any proposals above $2 million may be referred to INGD AUS
                                                 Commercial Property Finance Division (CPF) by the Priority
                                                 Commercial Team



                                                          Page 35
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                                PRIORITY COMMERCIAL APPLICATION OVERVIEW


12. Loan amount – minimum                         $250,000 for commercial property secured transactions although we
                                                   will consider lower loans if taken with other residentially secured
                                                   loans.


13. Loan terms                                    Maximum loan term of 15 years
                                                  P&I          : up to 15 years, with full amortisation.
                                                  Interest only : 1-5 years (with a maximum period of 5 years).
                                                   Note: updated financial statements, and lease agreements will be
                                                   required upon rollover/renewal of any Interest Only facility.

14. Loan type                                     Fixed or Variable Rate - Interest only and P&I


15. LVR                                           Maximum 75% (for P&I loans) for acceptable security located in major
                                                   metro area. Interest only loans are limited to 70%.
                                                  Maximum LVR of 65% for childcare centres (valued on a vacant
                                                   possession basis).
                                                  Maximum LVR of 60% for Stand-alone commercial investment
                                                   transactions where full financial disclosure (i.e. related personal &
                                                   company tax returns) is not provided – defined as ‘Lease Doc’ loan.
                                                  A lower LVR may apply on a case by case basis depending on security
                                                   type/location .


16. Amortisation                                  ING DIRECT has the right at its discretion to seek amortisation/debt
                                                   reduction depending on the nature/structure of the transaction.


17. Margins (Net Minimums)                        Fixed loans: Margin over INGD AUS fixed Rate. 1-5 years.
                                                  Variable loans: Margin over INGD AUS Commercial Cash Rate.
Margins quoted are gross to ING                   Larger loans of over $1M to be priced on risk.
DIRECT – inclusive of originator trail            < $1m, see fortnightly pricing schedule.
commission
Borrowers will be quoted effective
interest rates whenever possible as
opposed to quoting straight margins.

18. Commitment Fee                                0.25%.
                                                  Any reduced Fees to be signed off by Senior Manager Commercial
                                                   Mortgages or delegates.
                                                  Commitment fee represents 0.25% of the application amount
                                                   however is refundable if the application is declined or withdrawn prior
                                                   to issuance of the formal Letter of Offer.


19 Option to fix /                                Available once only upon request at the discretion of INGD AUS for
                                                   Variable rate – higher rate (INGD AUS discretion) to apply with
Variation Fee                                      conditions.
                                                  Variation fee of $290 per item including security substitutions and
                                                   lease consents.




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20. Valuation                                    By INGD AUS Panel Valuer with valuer to be instructed by the INGD
                                                  AUS PCM Team.
                                                 Brokers/clients cannot instruct commercial valuers on the INGD AUS
                                                  behalf.
                                                 Valuation to be no more than 90 days old on the date of settlement
                                                  without Risk sign off.
                                                 Valuation Fee to be paid prior to INGD AUS instructing valuer. The
                                                  PCM Team will advise quoted valuation cost at time of assessment of
                                                  loan application.
                                                 Valuations are to be net of GST


21. In-one-line value                            Adopted in the case of multi unit developments – generally represents
                                                  a discount of around 15% to gross realisation value


22. Lending against ‘added value’                Not Generally Permitted. The lesser of current valuation or purchase
                                                  price will be applied with the appropriate LVR calculation.


23. Owner occupied property                      Where commercial security property is substantially owner occupied,
Valuations                                        the Valuer is instructed to provide an assessment of the differential in
                                                  value of the property in a ‘vacant possession’ condition as compared to
                                                  ‘tenanted at market rental’ condition.

                                                 The loan to valuation ratio is based on the lower of these two values.

                                                 Amortisation will normally be required for owner occupied properties
                                                  and depending on loan size/LVR a fixed and floating charge over the
                                                  operating company may also be sought.


24. Specialised security property                Property containing an element of specialisation may be considered if
                                                  there are mitigating factors (e.g. low LVR).
                                                 Generally not acceptable are hotels (“pub” applications should be
                                                  referred to INGD AUS Commercial Property Finance Division – (CPF),
                                                  motels, caravan parks, serviced apartments or serviced offices, nursing
                                                  homes, hospitals, service stations [unless leased to a major operator
                                                  who is responsible for environmental damage], abattoirs, boarding
                                                  houses, strip shops (i.e. less than 10 shops), and commercial retail
                                                  properties less than 50 sq m or any other property requiring specialist
                                                  management


25. Substitution of security                     Will be considered but at the absolute discretion of INGD AUS


26. Vacant land / broad acres                    Lending against vacant land not considered acceptable security unless
                                                  it forms part of top up, collateral security.




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27. Direct Debit authority                             Required in all cases – interest is paid direct from the Borrower’s
                                                        account into the Lender’s account – no pipeline risk.


28. Privacy Act declaration                            Required up front from each participant in the borrowing structure
CRAA                                                    including guarantors to enable credit inquiries to be made

29. Acceptable Lend Areas                       Acceptable 75% lend areas are
                                                    Sydney
                                                    Melbourne
                                                    Brisbane
                                                    Adelaide
                                                    Perth
                                                    Great Hobart
                                                    Canberra
                                                    Newcastle
                                                    Gold Coast – Tweed
                                                    Canberra – Queanbeyan
                                                    Wollongong
                                                    Sunshine Coast

                                                Acceptable 70% Lend areas are:
                                                    Geelong
                                                    Townsville\
                                                    Cairns
                                                    Toowoomba
                                                    Launceston
                                                    Burnie – Devonport
                                                    Rockhampton
                                                    Mackay
                                                    Mandurah
                                                    Bundaberg
                                                    Bunbury
                                                    Coffs Harbour
                                                    Hervey Bay
                                                    Gladestone
                                                    Port Macquarie
                                                    Nowra-Bomaderry




Feature                                      Description
General Description                          Variable and fixed rate loans under $2 million secured by commercial
                                             property

Target Market                                       -     Professional investors
                                                    -     Owner occupiers with excellent track record (long profitable


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                                                 trading history)


Loan Purpose                                -    The purchase or refinance of commercial property
                                            -    Loans not for working capital purposes or residential
                                                 development
Eligible Borrowers                     Personal borrowers, companies and trusts
Commitment Fee                          Commitment fee represents 0.25% of total application amount and:
                                            - Is payable upon application
                                            - Is refundable if the application is declined or withdrawn prior to
                                                 issuance of the Letter of Offer
Loan Term                              Variable loans:
                                       P&I – 5, 10 and 15 year terms
                                       IO – 5 year term
                                       Fixed loans:
                                       1, 2, 3, 4 and 5 year terms
Interest Rate                          Variable loans:
                                       $250,000 to $2m – ING DIRECT commercial cash rate + margin%
                                       Fixed loans:
                                       $250,000 to $2m – daily transfer price + margin%
                                       NB: Rates are subject to change and the final rate charged will be the
                                       rate at day of settlement. The base rate normally includes ING DIRECT
                                       Treasury Costs
Repayment Type                         Principal & Interest:
                                       Repayments may be fully amortising over the loan term
                                       Interest only:
                                            - 5 year term: Interest only repayments for up to 5 years, with
                                                 lump sum payment at the end of the 5 years (or re-negotiable
                                                 for a further term of 5 years if loan conducted satisfactorily)
                                            - 10 year term: Interest only repayments for up to 5 years
                                                 converting to P&I for the remaining 5 years
                                            - 15 year term: Interest only repayments for up to 5 years
                                                 converting to P&I for the remaining 10 years
Early Repayment Fee                    Variable rate loans – 1 month’s additional interest on the original loan
                                       amount if the loan is repaid in full within five years from the settlement
                                       date.
                                       Fixed rate loans – 1 month’s interest on the amount repaid plus break
                                       costs (if break costs applicable)
Repayment Method                       Direct Debit
LVR                                    75% maximum for Principal and Interest Loans
                                       75% maximum for Interest Only Loans
Security                                    - Non specialised Commercial (Retail, industrial, office,
                                                 residential) in major metro areas
                                            - Lending outside Capital Cities is considered on a case-by-case
                                                 basis (i.e. reduced LVR)
Minimum Loan                           $250,000 (unless existing ING DIRECT client or offering additional
                                       residential loan)
Maximum Loan                                - $2 million for total facility; up to $3 million available for group
                                                 exposure
                                            - Higher amounts may be available subject to confirmation from
                                                 Commercial Property Finance that it does not fall into its target
                                                 market
Deferred Establishment Fee             N/A

Valuations                             - Mandatory

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                                         - ING DIRECT to instruct accredited panel valuers
                                         - Client must pay for the valuation
                                         - Indicative cost is $1 per $1000 of Estimated Market Value (see ING
                                           DIRECT Introducer site for exact fee structure). This cost is requested
                                           to be paid prior to issuance of the Letter of Offer
Lump sum payments                        Unlimited on variable rate loans. $20,000 per calendar year on fixed rate
                                         loans
Additional regular repayments            Unlimited on variable rate loans. Additional repayments of up to $20,000
                                         per calendar year on fixed rate loans without incurring break costs.

Redraw                                   - Available on both P&I and IO variable rate loans
                                         - Minimum redraw of $10,000 applies
Redraw Fee                               $150 per redraw
Statements                                    - P&I repayments: quarterly statements
                                              - IO repayments: monthly statements
Repayment Holiday                        Not permitted
Repayment Order                          All outstanding fees and arrears interest owed are capitalised to the loan
                                         amount
Interest calculations                         -   Interest is charged only on the principal advanced
                                              -   Monthly interest owed equals the daily interest rate multiplied by
                                                  unpaid balance at 5pm Sydney time each day of the month
                                              - Daily interest rate is the interest rate (annual percentage rate)
                                                  divided by 365 at 5pm Sydney time each day
                                              - Interest charged in arrears
Interest Rate Setting                         - Variable rates are based on the official cash rate and will
                                                  change from time to time
                                              - Fixed rates are guaranteed for the fixed term set
Broken Period Interest                   If the drawdown date is not an interest due date (i.e. first of each month),
                                         broken period interest is calculated. No principal is repaid on the initial
                                         broken period repayment (interest only)

Default Interest                              -    3% additional interest payable on any amount not paid by the
                                                   due date
                                              -    Debited to account monthly in arrears on the 1st of each month


Interest Rate Change Notification             -    Minimum of 20 days notice provided to customers of upcoming
                                                   increases to the minimum repayment amount
                                              -    Variable rate changes are advertised in the national press on or
                                                   before the effective date
Discharge                                On termination of the loan, the entire balance outstanding must be
                                         repaid. Discharge amount includes:
                                             - Current balance
                                             - Unpaid interest estimated to payout date
                                             - Unpaid fees
                                             - 1 month’s interest
                                             - If fixed rate loan: Fixed rate break costs (if applicable)




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Feature                               Description
General Description                   Equity line of credit loan, secured by commercial property


Target Market                              -   Professional investors
                                           -   Owner occupiers with excellent track record (long profitable trading
                                               history)
Loan Purpose                               - The purchase or refinance of commercial property
                                           - Loans not for working capital purposes or residential development
Eligible Borrowers                    Personal borrowers, companies and trusts
Commitment Fee                         Commitment fee represents 0.25% of total application amount and:
                                           - Is payable upon application
                                           - Is refundable if the application is declined or withdrawn prior to
                                               issuance of the Letter of Offer
Loan Term                                  - Within 5 years, must be repaid in full or re-negotiated for additional 5
                                               year term
                                           - Loan amount and interest rate reviewed annually; can be changed at
                                               any time with 30 days’ written notice to borrower
Interest Rate                         ING DIRECT Commercial Cash rate + margin
                                      NB: Rates are subject to change and the final rate charged will be the rate at day
                                      of settlement
Repayment Type                        Interest only
Repayment Frequency                   Monthly

Repayment Method                      Direct Debit
LVR                                   Up to 70% maximum
Security                                   -  Non specialised Commercial (Retail, industrial, office, residential) in
                                              major metro areas.
                                          - Lending outside Capital Cities is considered on a case-by-case basis
                                              (i.e. reduced LVR)
Minimum Loan                          $250,000 (unless existing ING DIRECT client or offering additional residential
                                      loan)
Maximum Loan                              - $2 million for total facility; up to $3 million available for group
                                              exposure
                                          - Higher amounts may be available subject to confirmation from
                                              Commercial Property Finance that it does not fall into its target
                                              market
Early Repayment Fee                   No

Valuations                                 -    Mandatory
                                           -    ING DIRECT to instruct accredited panel valuers
                                           -    Client must pay for the valuation
                                           -    Indicative cost is $1 per $1000 of Estimated Market Value (see ING

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                                                  DIRECT Introducer site for exact fee structure). This cost is requested
                                                  to be paid prior to issuance of the Letter of Offer
Lump Sum Payments                          Any amount acceptable
Additional Regular Repayments              Not permitted


Redraw                                          -    Only in multiples of $10,000
                                                -    Request made in writing (letter or fax) or by telephone
                                                -    Requires one business day’s notice
Redraw Fee                                 Nil
Statements                                 Issued monthly
Repayment Holiday                          Not permitted
Repayment Order                            All outstanding fees and arrears interest owed are capitalised to the loan
                                           amount.
Interest calculations                           -   Monthly interest owed equals the daily interest rate multiplied by
                                                    unpaid balance at 5pm Sydney time each day of the month
                                               - Daily interest rate is the interest rate (annual percentage rate)
                                                    divided by 365 at 5pm Sydney time each day
                                               - Interest is charged only on the principal advanced
Interest Rate Setting                      Variable rates are based on the official cash rate and will change from time to
                                           time

Broken Period Interest                     If the drawdown date is not an interest due date (i.e. first of each month),
                                           broken period interest is calculated. No principal is repaid on the initial broken
                                           period repayment (interest only).

Default Interest                                -    3% additional interest payable on any amount not paid by the due
                                                     date
                                                -    Debited to account monthly in arrears on the 1st of each month

Interest Rate Change Notification               -    Minimum of 20 days notice provided to customers of upcoming
                                                     increases to the minimum repayment amount
                                                -    Variable rate changes are advertised in the national press on or
                                                     before the effective date
Discharge                                  On termination of the loan, the entire balance outstanding must be repaid.
                                           Discharge amount includes:
                                               - Current balance
                                               - Unpaid interest estimated to payout date
                                               - Unpaid fees
                                               - 1 month’s interest




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Priority Commercial Mortgages Overview
Target Market
      Commercial Mortgages from $250k to approximately $2m (i.e. maximum property value normally up to
       $4m). The dollar limit is applied to individual loan size, therefore the group exposure may be larger
      We define the market by security (i.e. commercial property) not purpose
      Property investors and experienced owner operators (with proven business track record)
      Non specialised commercial security (traditional industrial, office with alternative use and prime retail
       properties)
      Major metro (regional on a case by case basis and/or reduced LVR)
      No property development

Product Features
      Maximum term is 15 years P&I or 5 years IO
      0.25% commitment fee (refundable until issuance of formal Letter of Offer)
      Carded Indicative Variable Rate (ING DIRECT Commercial Cash Rate = RBA Cash Rate + margin)
      Carded Indicative Fixed Rate (up to 5 years) = (Relevant swap rate % + margin). Rates are determined at
       settlement
      Rates are flexible for quality business
      Full additional repayment flexibility on variable rate loans and up to $20k pa on fixed rate loans
      Redraw ability of variable rate loans (minimum redraw $10k at a cost of $150)
      Early repayment fee = 1 month's additional interest on the original loan amount if discharged within the first
       5 years
      Legal costs for loans under $600k is approx. $600. Legal costs for loans above $600k is approx. 0.1% of
       commercial loan amount plus disbursements. We use Hicksons in NSW and Gadens interstate
      Valuation cost = see valuation matrix attached or via the introducer site at
       https://introducer.ingdirect.com.au

          Benefits
       Generally a set and forget type facility (ING DIRECT reserves the right to review loans at its discretion)


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        No ongoing fees or charges
        Low commitment fee (0.25%)
        Repayment flexibility
        Competitive and flexible pricing


Service Standard
       Indicative decision within 2 - 3 working days
       Valuation 5 working days
       Formal Approval approximately 8 working days


        Benefits
        Accessibility to Credit Assessors to discuss applications
        Same Credit Assessor for related residential and commercial applications
        Preferred valuation turn around times and cost structure



Remuneration
       Upfront commission on commercial loans now equivalent to that paid on residential loans introduced to ING
        DIRECT. The exception being upfront on commercial loans is capped at a loan size of $2.5m, as apposed to
        $2.0m on residential loans
       0.25% trail commission


Risk Profile
       Maximum LVR 75% on Principal and Interest Loans, 70% on Interest Only loans
       Interest coverage of 1.40 times (the higher of actual rate plus 2.0% assessment margin or ING DIRECT Floor
        Rate of 8%)
       Average of last 2 years tax returns
       Stand alone: Interest coverage of 1.3 times (the higher of actual rate plus 2.0% assessment margin or ING
        DIRECT Floor Rate of 8%) from net rental


PCM Primary Contacts
Clem Marcocci:               Senior Manager – 0401 145 180 or 02 9028 4112
Peter Webster:               Credit Assessor, New Business – (02) 9028 4326
Denis Starr:                 Credit Assessor, Existing Business - (02) 9028 4186
Ross Bradbury:               Credit Assessor – (02) 9028 4943
Mats Lindfors:               PCM Team Administrator - (02) 9028 4523 (for general loan status enquiries)



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Application, PCM Checklist and other information visit the ING DIRECT Introducer Site at
https://introducer.ingdirect.com.au


PCM Application Fax Number: 1800 352 922




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Priority Commercial Mortgages:

Product Information and Fees

  Product         Owner        Repayment Type              Maximum              Maximum        Maximum           Additional                 Redraw                Access to Funds                 Early
   Type          Occupier                                   Term                  Loan           LVR            Repayments                                                                      Repayment
                    or                                                           Amount        (No LMI)                                                                                            Fee
                 Investor
 Variable Rate     Both              P&I or IO                15 years                                                                        Yes            In writing (letter of fax) or by
                               (IO is available for a      (minimum 5           $2 million          75%               Yes              Minimum $10,000                 telephone                   Yes
                            maximum period of 5 years)         years)                            (70% I/O)                             ($150 per redraw)
  Fixed Rate       Both              P&I or IO           15 years (min 5yr                                           Yes
                               (IO is available for a     term, max 5yr         $2 million          75%        Max. $20,000 per                No                          No                      Yes
                            maximum period of 5 years)      fixed rate)                          (70% I/O)      calendar year
 Equity Loan       Both                                     Evergreen                                                                                        In writing (letter of fax) or by
                                       IO                  (Reviewable          $2 million         70%                Yes                      Yes                     telephone                   No
                                                          every 5 years)
 Residential       Both              P&I or IO                30 years                                                                         Yes           In writing (letter of fax) or by
 any product                   (IO is available for a      (minimum 5           $2 million      70% - 80%             Yes               Minimum $2,000                 telephone                   Yes
                            maximum period of 5 years)         years)                                                                   (N/A for IO loans)




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Commercial Loans Product Chart

 Commitment Fee
 A commitment fee of 0.25% of the total commercial loan amount is payable upon application. This
 fee is refundable up until the point of issuance of the formal letter of offer.


 Early Repayment Fee
 If the Borrower repays the loan in full within five years from the settlement date, the Borrower must
 pay interest to the date of repayment plus one month’s additional interest on the original loan
 amount.


 Combination Loans
 If more than one loan is involved in a combined loan, the upfront commission will be based on the
 total loan amount. Applications can request a combination of loans, namely variable rate, fixed rate
 or commercial equity facility. A minimum of $50,000 per loan in a combined loan applies.


 Commercial Purpose with Residential Security
 Applicants may request any residential loan where the purpose is commercial however the security is
 residential property.

 Please refer to the Retail Loan Product Chart for appropriate fees and charges.


 Change to Letter of Offer
 A fee of $290 applies to make changes to the Letter of Offer between the disclosure (date of original
 issue) and settlement.


 Pre-approval
 ING DIRECT does provide access to pre-approval for commercial loans. A non-refundable $500 pre-
 approval fee is payable, however this amount can be form part of the 0.25% commitment fee when
 the borrower has located a property and makes a formal application with ING DIRECT.


 Bank Guarantee
 Bank Guarantees are available to customers secured by commercial property. A non-refundable
 Commitment Fee equal to the greater of $500 or 0.25% of the guarantee amount is payable upon
 application. A Guarantee Fee of the greater of $500 or 0.25% of the guarantee amount is payable
 Annually in Advance.




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Commercial Loans Legal Fees and Charges

ING DIRECT Solicitor Fees and Charges

This is a guide to the costs that may be charged directly to the borrower by the solicitors representing ING
DIRECT. Please note that this does not include all costs that may be payable by the borrower in relation to
obtaining finance for the purchase of property.


Maximum Fees and Disbursements
Documentation and settlement costs payable by the borrower
Service                                                                                ALL STATES
Documentation & settlement fee
loans $0.00 to $600,000.00 (exclusive of GST)                                              $600
loans over $600,000.00 (exclusive of GST)                                             0.1% of principal
Disbursements – search fees, administration out-of-pocket
fees, settlement fees – maximum charge (exclusive of GST)                                  $150.00

Registration fee (der dealing)                                                             $75.00
Company search (per search)                                                                $30.00
Stamp duty                                                                                At cost
Matter not proceeding (maximum fee)                                                       $100.00
Additional interstate security (exclusive of GST)                                         $200.00
Variation (exclusive of GST)                                                              $150.00
Company charge (exclusive of GST)                                                         $100.00
Substitution (exclusive of GST)                                                           $600.00
Old system title and other special titles (eg. Company title,                             $200.00
community title) (exclusive of GST)
Old system search fee (exclusive of GST)                                                   At cost
Lease – consent costs (exclusive of GST)                                                   $150.00




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Commercial Loans Valuation Fee

Commercial Valuation Fee Structure
Fee applicable for valuing standard commercial properties located in Sydney, Melbourne & Brisbane.
EMV or Purchase Price                                           Estimated Valuation Fee (subject
                                                                to confirmation)
$0 - $500,000                                                   $600
$501,000 - $750,000                                             $800
$750,001 - $1,000,000                                           $950
$1.01m - $1.5m                                                  $1,250
$1.51m - $2.0m                                                  $1,750
$2.1m - $2.5m                                                   $2,000
$2.51m - $3m                                                    $2,500
$3.1m - $4m                                                     $3,000
GST is not applicable on the fee.

For commercial properties outside Sydney, Melbourne, & Brisbane CBD, please contact the Business
Development Manager to obtain a commercial valuation quote

Where residential security is to be provided as additional security, valuation costs in this regard
remain the same as with a standard ING DIRECT Home or Investment Loan application. This can be
summarised as:

The first residential property valuation (up to an estimated market value of $1m) is free;
The valuation cost of a residential properties with an estimated market value of between $2m and
$3m is $350 + GST (of which ING DIRECT pays $200);
Second and subsequent Sydney metro residential valuations will cost $200 each (inclusive of GST)

Panel Valuers
Sydney: Kohler Bird Appraisals (02) 9890 7977
Melbourne: Herron Todd White (03) 9642 2000 or Opteon Valuers 1300 733 693
Brisbane: Chesterton International (07) 3222 3026 or Opteon Valuers 1300 733 693
Canberra: Opteon Valuers 1300 733 693
South Australia: Opteon Valuers 1300 733 693
Western Australia: Opteon Valuers 1300 733 693
Tasmania: Opteon Valuers 1300 733 693




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                                           Stamp Duty Refinance Exemptions

A borrower may be eligible for a full or partial stamp duty exemption on re-finance providing it meets all of the following criteria:


    Same borrower
    Same property
    Same or different lender


       st
From 1 August 2005 the mortgage re-finance exemption will be capped at $1million.
The new concession will apply to the amount of the lower of:
a)   the earlier loan; or
b) $1million
Stamp Duty (currently at 0.4%) will be payable on the amount of any excess.


This is significant for re-finances in excess of $1 million and it may make it less attractive for borrowers to switch lenders as the
borrower will need to bear the additional stamp duty over $1million.


A borrower would not be eligible to apply for an exemption where for example:


    The borrower under the new loan was Mr and Mrs X but the borrower under the existing loan being re-financed was Mr X only.


    Similarly, exemption would not be able to apply if the security offered for the new loan was 2 High Street, but the security for
     the loan being re-financed was 2 New Street even if the borrower in both loans was Mr X.


The exemption applies up to the value of the loan being re-financed. If the new loan is greater than the one being financed stamp
duty is payable on the difference only.


Documents Required for Re-finance Exemption


Assuming the re-finance is eligible the following are required to lodge an application for exemption:


    A copy of the prime stamped, mortgage being discharged
    The original discharge for the loan being refinanced
    A copy of the previous loan offer showing the borrower
    A statutory declaration, generally this can be made by us or the borrower.


If all of the above documents are not available, it is not possible to lodge a re-finance exemption application.



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When can I apply for a Re-finance Exemption?


It is not possible to apply for a re-finance exemption before the existing loan being discharged is re-financed as the stamp office
requires the original discharge of the existing loan and this will only be available at settlement when the existing loan is paid out.


For this reason it is recommended that even if it likely a borrower will qualify for refinance exemption, full stamp duty on the
mortgage is collected at settlement of the refinance. If the application for the refinance is successful the stamp duty can be
refunded to the borrower.


What If stamp duty is not collected at settlement?


If stamp duty is not collected at settlement and it is later found the re-finance is ineligible, full duty would need to be collected.
After settlement a borrower may be reluctant or delay payment. Until the mortgage is stamped either for full duty or exempt, it is
not possible to register the mortgage. For this reason, it is strongly recommended that stamp duty is collected for re-finances and
subsequently refunded to the borrower, if the stamp approves the exemption application.


Additional Advances of not more than $10,000


From 1 August, stamp duty is not payable on advances secured by a mortgage if the total additional advance does not exceed
$10,000 in any 12 month period, not being the period of 12 months following the initial advance. While this concession is minor it
may assist in some further advances.




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      Priority Commercial Mortgage
      Application Summary & Checklist
    Please fax together with completed application to 1800 352 922
    Postal Address: GPO Box 4094 Sydney 2001 – Attention: Priority Commercial Mortgages

NAME OF BORROWER:                                            DATE:

BROKER NAME/COMPANY:                                         INTRODUCER No:

E-MAIL ADDRESS:                                         BUSINESS DEVELOPMENT MANAGER:

CHECKLIST

                                                                     All Applications (Continued)
All Applicants                                                               Letter/statement from Real Estate Agent confirming
                                                                             proposed/existing rental income or lease
      Fully completed Loan Application Form                          agreement
      Applicants/ Guarantors Identification Form                             Description of property eg: warehouse, office,
      (Include copies of identification)                             factory
      0.25% Commitment Fee + Valuation Fee                                   Statutory Declaration stating that funds being gifted
      Have you advised your client the 0.25%                                 are not repayable (if applicable)
      Commitment Fee becomes non-refundable upon                             Rates Notice for all properties owned
      issuance of the formal Letter of Offer?                                Copy of recent statement for all loans held
      Serviceability calculation print out (mandatory)
      Company & Trust Appendix

PAYG Applications / Guarantors                                       Trusts
       Last 2 years full Personal Taxation Returns                             Trust Deed PLUS
       (mandatory)                                                             Last 2 years full Trustee Taxation Returns (mandatory)
       Latest ATO Assessment Notice (if available)                            Company & Trust Appendix

Self Employed Application                                            Refinance Applications
       Last 2 years full Business/Company Taxation Returns                     Last 6 months statements of loans being refinanced
       and Financials (Notes inclusive) PLUS                                   Last 6 months statements of trading account, (if
       Last 2 years full Personal Taxation Returns                             interest from loan account is offset to trading
       Latest ATO Assessment Notice                                            account)
       BAS Statements (if applicable)                                          Signed Discharge Authority (fax & post original to
       Memorandum & Articles of Association (by                                ING DIRECT’s solicitor following formal approval)
       settlement)                                                             Land Tax Certificate (also applicable for increases
                                                                               to existing commercial loans – by settlement)
                                                                               Zoning Certification (by settlement)

Introducer’s acknowledgment that required supporting documentation is attached to the completed
application

_________________________________________________                                 Date_________________________




                                                               Page 53
                             ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                  PRIORITY COMMERCIAL APPLICATION OVERVIEW



Security Property Details (To be completed in full)
(Please refer to PCM Credit Policy Section 24 “Specialised Security Property”)

Description:
Property (1) Address & Description


Property (2) Address & Description




Site Area, Lettable Area :
Property (1)

Property (2)

Lease Agreements / Tenancy Schedules:
Tenant:
Term:
Start Date:
Expiry Date:
Option Period:
Reviews:
Outgoings:
Initial Annual Rent:
Current Annual Rent:
Current/Permitted Use:


Please ensure you include the following points in your notes covering the Borrower:- Industry (including risks,
trends, payment terms), experience and if an existing ING DIRECT Customer




                                                              Page 54
ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
     PRIORITY COMMERCIAL APPLICATION OVERVIEW




                                 Page 55
                       ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                            PRIORITY COMMERCIAL APPLICATION OVERVIEW

Priority Commercial Mortgages
Pre-settlement Legal Requirements
Documents provided            Commercial Term Loan Facility Letter of Offer (+ copy)
by solicitor                  Mortgage
                              Memorandum 8303572
                              Directions to pay
                              Undertaking
                              Direct Debit Request Form
                              Loan Account Instructions Form
                              Warranty
                              Bank Solicitors Fee (payable by client)
                              List of APRA approved Insurers

Documents required            Letter of Offer duly signed or initialled
for completion                The Mortgage duly executed and stamped to secure a total loan of
                              $xxxxxxx. Please ensure that the mortgage is stamped prior to return
All of the above              Direction to Pay duly executed
documents and                 Undertaking duly executed
requirements need to          Direct Debit Request Form completed and signed
be met at least 3             Loan Account Instructions Form completed and signed
business days prior to        Warranty duly executed
settlement. Cheque            Bank cheque in payment of our account
direction is to be            A certificate of currency issued by the insurer and not a broker or an
received by the solicitor     original building insurance policy for $xxxxxx on a replacement basis
no later than 10am on         noting ING Bank (Australia) Limited of 140 Sussex Street, Sydney NSW
the morning before            2000 as Mortgagee. The insurance must be effected with one of the
settlement.                   approved insurers
                              Survey Certificate by exception only. ING DIRECT will advise specifically
                              where a survey certificate is required, in all other instances provision of
                              Survey Certificate is not required. Where a Survey Certificate is required
                              it must: -
                              (i) Identify the land by reference to its present title particulars,
                              (ii) Identify any building erected on the land by street number or name
                              and
                              (iii) Certify that there are no encroachments by or upon the property and
                              that the Local Government Regulations and/or Environmental Planning
                              and Assessment Act Regulations have been complied with as to the
                              distance of walls, eaves and gutters from boundaries.
                              Zoning Certificate, not more than 2 years old and to confirm current
                              zoning as listed in the valuation report.
                              Land Tax Certificate (for refinance and increase requests only).
Special Conditions /          Cheque in favour of the Land & Property Information NSW in the sum of
Requirements                  $xxx in payment of registration fees
                              Existing ABC Bank loan number 12344556 is to be repaid in full and
                              closed at settlement. YOU WILL NEED TO ARRANGE FOR THIS.
                              Discharge of Mortgage no 123445 from ABC Bank will be required at
                              settlement. YOU WILL NEED TO ARRANGE FOR THIS.
                              Copy of lease number 12344556.
                              Copy of variation of lease number 12344556.



                                                        Page 56
                                                ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                                        PRIORITY COMMERCIAL APPLICATION OVERVIEW

                                                         Copy of any other lease/s in place for the properties.

                     PCM Application Process

                                                                                                FAX                                                          PAPER
                                                                                     Application is received via:                                  Application is received via:
                                                                                    1800 352 922 (Level 12)                                      Postal Address
                                                                                                                                                  Courier
                                                                                                                                                  Walk in at Level 6 (Sussex St)



                   If application is for an                                 PCM Application is loaded on to the                            Courtesy call/SMS made to
                   existing client,                                                  team register:                                        the broker to confirm
                   existing file must be                                     Groups/Retail/S&D/Commercial/                                 receipt of app
                   requested via e-mail                                      MIS/Commercial Register “Year”
                   to:
                   AU-ID File Request



                                                   Application is reviewed by credit assessor to determine if sufficient information
                                                  has been provided to allow application to be assessed and if application meets
                                                                               our underwriting criteria



                                                                                   Application is loaded into LPI and
                         Credit Assessor will fax                                   designated an account number.
                     “Additional information” request                                SLA = 2 – 3 hrs from receipt
                          to broker. This is then
                     highlighted (yellow) in the team
                       register and loaded into LPI
                                                                                                                                      Outside                Application is declined and
                                                                                                                                      Policy                  notification is sent to the
                                                                                Update team register with account                                             broker. UPDATE QUICK
                    PFI is followed up weekly by TA                              number and data entry details                                                 DECLINE REGISTER



                    Once additional information is                           Compile Application Folder and ensure
                    received it is then resubmitted                                       folder has:
                    to Credit Assessor to be                                    Application Details summary
                    assessed                                                    Labelled correctly
                                                                                CRAA searches




                                                                      Additional                                    Sufficient
                                                                      Info                                          Info




                                                                                                                           Application is then
                                                                                                                        submitted to Credit for full
                                                                                                                              Assessment
                                                                                                                        (SLA 2-3 business days)
                      Refer to credit assessment
                   procedures and credit decision to
                               be made


                          Request              Indicative Approval                       Indicative is followed
   Declined               further              Indicative Approval                       up weekly by TA                                          Once additional information is
Declined in LPI,          Additional            is sent/SMS to the                                                                                received it is then
broker notified           Information             broker, outlining                                                                               resubmitted to Credit
 and file stored          Requested              conditions of the                                                                                Assessor to be assessed.
 for 6 months             from the            loan and request for
                          broker                        fees




                                                                                    Valuation & Commitment Fee
           Process Fees in the receipt book:
                                                                                      received and processed
            Yellow Copy – to be kept in file
         Blue Copy – to be left in receipt book
      White Copy – to be attached to payment and
                given to L4 to process
                   Update Register
                                                                             Order valuation in LPI. Refer to
                                                                             Panel Valuer for each state.
                                                                             However generally in:
                                                                                 NSW (Kohler Bird)                                         Track valuation reports and
                                                                                 VIC (PRP)                                              updates from valuers in the AU-ID
                                                                                 Opteon Valuers (National)                              RMG Commercial inbox folder to
                                                                                          Page 57
                                                                             Agreed SLA w/ valuer = 5 days                                      ensure SLA is met.
                                                                             Update register
                                           ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                                                 PRIORITY COMMERCIAL APPLICATION OVERVIEW


                 Continuation…

                                                                      Order valuation in LPI. Refer to
                                                                       Panel Valuer for each state.                  Track valuation reports from
                                                                          However generally in:                     valuers in the register to ensure
                                                                      NSW (Kohler Bird)                                       SLA is met.
                                                                      VIC (PRP)
                                                                      Opteon Valuers (National)
                                                                      Agreed SLA w/ valuer = 5 days
                                                                          UPDATE REGISTER

                                                                                                                         Valuation is followed up on
                                                                                                                              th
                   Refer to credit risk assessment                  Once valuation report is received,                   the 4 business day by TA
                    procedures when assessing                        forward to Credit Assessor with
                           valuation report                             Expose to assess report.
                                                                           Credit Assessor to
                                                                          UPDATE REGISTER




                                                                   LOO is generated and then
                                                                   submitted to Credit Assessor for
         Unacceptable            Acceptable                        approval. LOO templates is located
             Security            Security                          under:
        Broker to advise                                             Groups/Retail/S&D/Commercial/
        how client wants         If valuation report
                                                                       Commercial Templates/LOO
           to proceed            meets our
                                                                      Templates (1) “Type of Loan”.
                                 requirements,
                                                                      However, residential LOO are
                                 Credit Assessor
                                                                            system generated
                                 updates and
                                 approves
                                 application and
                                 loan is QA in LPI.                                                                          PDF copy of LOO and
                                                                   Once LOO has been signed off,                             courtesy email sent to
                                                                   package documents:                                          broker for review.
                                                                   Print out LOO
                                                                        Valuation Report
                                                                        Guarantor Pack (1 x copy per
                                                                         guarantor)
                                                                        Solicitors Instructions



                                                                     Instruct Solicitors in LPI. Refer to
   If ING DIRECT hold existing                                        solicitor for each state. However
security, a security packet will need             Existing                         generally:
            to be ordered                         Security            NSW – Hicksons
                                                                      Other states – Gadens
                                                                             UPDATE REGISTER




                                                                      Documents are then packaged
                                                                     and sent to level 6 to be sent to
                                                                     solicitors. LPI is then updated to
                                                                     reflect that solicitors have been
                                                                                  instructed.




                                                                              Page 58
                  ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                       PRIORITY COMMERCIAL APPLICATION OVERVIEW



                    Gadens Commercial Settlement Procedures.

PURCHASE DEAL - Please provide the following:


      Enquiry Certificates
      The following certificates should be not be more than three months old before settlement.
           Land Information Certificate
           Planning Certificate
           Land Tax Certificate
           Vic Roads Certificate
           Relevant Water Rates Certificates
           Relevant Water Encumbrance Certificate
      The enquiry certificates are required for Commercial deals only not Residential


      Insurance
           A certificate of currency must be supplied and issued by the insurance company/broker (as long as
            it is underwritten by an approved insurer – see list below).
           The policy must be current for at least 3 months
           The policy must be in the name MORTGAGOR as owner.
           "ING Bank (Australia) Limited" must be noted as mortgagee.
           The property must be insured for no less than the recommended insurance amount noted on the
            lender’s valuation for Commercial Deals only. No need for a replacement amount for Residential
            Deals


           The insurance company must be one of the approved insurers on the list
            ACE Insurance Limited
            Allianz Australia Insurance Limited
            American Home Assurance Company
            Ansvar Insurance Limited
            Australian Alliance Insurance Company Limited(Also known as Australian Pensioners Insurance
            Agency)
            Australian Associated Motor Insurers Limited (AAMI)
            Auto and General Insurance Company Limited (Budget Direct)




                                                   Page 59
       ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
            PRIORITY COMMERCIAL APPLICATION OVERVIEW

Calliden Insurance Limited
Catholic Church Insurances Limited
CGU Insurance Limited
CGU-VACC Insurance Limited
Chubb Insurance Company of Australia Limited
CIC Allianz Insurance Limited
Commonwealth Insurance Limited
Cumis Insurance Society, Inc
Defence Service Homes Insurance
Elders Insurance Limited
GIO General Limited
Guild Insurance Limited
Hallmark General Insurance Company Ltd
Hollard Insurance Company
HBF Insurance Pty Ltd
ING General Insurance Pty Limited
Insurance Australia Limited this includes all the insurers in the Insurance Australia Group viz:-
NRMA Insurance, SGIO, SGIC, CGU, NZI & RACV (See alpha listings)
Liberty Mutual Insurance Company
Lloyds of London
Mutual Community General Insurance Pty Ltd
NRMA Insurance
NZI Insurance Australia Limited
QBE Insurance (Australia) Limited
RAA Insurance Limited
RAC Insurance Proprietary Limited
RACQ Insurance Limited
RACT Insurance Pty Ltd
RACV Insurance Proprietary Limited
Real Insurance (The Hollard Insurance Company)
SGIC
SGIO
Suncorp Metway Insurance Limited




                                        Page 60
              ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

      TIO (Territory Insurance Office)
      Vero Insurance Limited
      Wesfarmers Federation Insurance Limited
      Westpac General Insurance Limited
      Zurich Australian Insurance Limited


Purchase Contract
If this is a purchase then we require a full copy of the signed Contract of Sale (including special
conditions)


Transfers of Land
If this is a purchase then we require a copy of the proposed transfer of land.


PLEASE NOTE if the parties are purchasing as tenants in common, that is not in equal shares,
we will need to receive further instructions from our client. This is because loans are often
approved on the basis that joint owners will hold the property in equal shares. If this is not the
case further approval may be required to be obtained.


There may also be stamp duty implications under the State Revenue Office's fractional interest
policy.


If the consideration in the transfer is by way of natural love and affection, gift or other similar
consideration then we will require it to be stamped prior to settlement.


Powers of Attorney
If any party is signing under a power of attorney including the Vendor, then we will need a
  copy. At settlement you will need to ensure we receive a certified copy.


New Instruments (Enduring Power of Attorney) Act 2003 effective 1 April 2004


Please be aware that enduring powers of attorney signed from 1 April 2004 must comply with
the new legislation. Please note in particular section 125B(b) states that the attorney must
sign and date a Statement of Acceptance including a statement “to avoid acting where there is
any conflict of interest between the interests of the donor and the attorney’s interest”..


We take this to mean that where an attorney is a co-mortgagor or co-transferor that in
addition we will require the following:




                                               Page 61
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                        PRIORITY COMMERCIAL APPLICATION OVERVIEW



       1.   Letter from the Donor or their solicitor addressed to the Land Titles Office confirming
            that he/she is aware of and consents to the transaction; OR


       2.   Evidence we can submit to the Land Titles Office establishing that the transaction is in
            the interests of the Donor.


       Guarantors are not permitted to sign by way of power of attorney.


       First Home Owners Grant (FHOG)
       Please confirm whether this will be applicable. In most cases the application would have been
       made direct with our client and the funds should be available at settlement.


       If the application for the FHOG is being applied for independently of our client it will not be
       available at settlement. You will be able to apply for the grant after settlement on the
       production of a copy of the stamped transfer of land to the State Revenue Office. We are able
       to provide you with a dealing number of the transfer after settlement if requested or
       alternatively order and provide a copy for a fee of $55 (inc GST).


       Tenancies
       If the property is tenanted a copy of the executed lease.


       Trusts
       Where any party is a Trustee we require a certified copy of each trust deed




SETTLEMENT GUIDELINES


Please note carefully to ensure a smooth transition to settlement.


At least three (3) clear working days prior to settlement we will require ( eg for a Friday settlement no
later than Tuesday prior):


       Return of the signed loan documentation and ancillary documents by 2.00 pm 3 days
       before settlement.




                                                    Page 62
              ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                   PRIORITY COMMERCIAL APPLICATION OVERVIEW

A breakdown of the cheques to be disbursed. Cheque requests must be in writing. We must
have cheque details by no later than 12.00 pm 1 days before settlement. We cannot guarantee
settlement if received outside these guidelines and will need to obtain instructions from our
client. If faxing details close to the deadline please call our office to ensure the fax is received.


The date, time and place for settlement. PLEASE NOTE settlement must not be arranged
before 12.30 pm. If settlement is to take place outside the central business district we may
require to appoint an agent. If so there will be additional agency costs to your client.


Remember if there are 2 or more properties involved you must ensure all settlements take
place simultaneously.


A certificate of currency of insurance noting the particulars in the checklist above.


Confirmation that any of the above special conditions in Part 2 have been satisfied or that
cheques to be disbursed will ensure they are satisfied at settlement


Any other outstanding requirements noted in our checklist.


Please note if settlement is outside the Melbourne CBD and we are required to use agents then
an agency fee may be applicable. The agent's fee will be advised at time of booking
settlement.


If the Transfer of Land has a consideration of over 1 million dollars and any party is a
company, we require a certified copy of a company search not over 14 days old for the Land
Titles Office


Copy of the Vendors Chattels statutory declaration and if applicable a copy of the Land
Building statutory declaration or Refurbishment statutory declaration. We want to ensure
the correct duty has been allowed.


Copy of the Nomination statutory declaration and supporting evidence if applicable.




                                               Page 63
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                        PRIORITY COMMERCIAL APPLICATION OVERVIEW

       Settlement Re-booking Fee


       If settlement is cancelled and has to be re-booked for another day, a settlement re-booking fee
       of $33.00 may be charged.


REFINANCE DEAL - Please provide the following:


The notices are required for Commercial deals only not Residential


       Evidence of payment of rates and land tax
       We need to be satisfied that there are no arrears. Please provide a copy of your last council
       rate notice evidencing payment. If your property is subject to land tax we also require
       evidence of payment.


       Insurance
            A certificate of currency must be supplied and issued by the insurance company/broker (as long as
             it is underwritten by an approved insurer – see list below).
            The policy must be current for at least 3 months
            The policy must be in the name MORTGAGOR as owner.
            "ING Bank (Australia) Limited" must be noted as mortgagee.
            The property must be insured for no less than the recommended insurance amount noted on the
             lender’s valuation for Commercial Deals only. No need for a replacement amount for Residential
             Deals


            The insurance company must be one of the approved insurers on the list
             ACE Insurance Limited
             Allianz Australia Insurance Limited
             American Home Assurance Company
             Ansvar Insurance Limited
             Australian Alliance Insurance Company Limited(Also known as Australian Pensioners Insurance
             Agency)
             Australian Associated Motor Insurers Limited (AAMI)
             Auto and General Insurance Company Limited (Budget Direct)




                                                    Page 64
       ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
            PRIORITY COMMERCIAL APPLICATION OVERVIEW

Calliden Insurance Limited
Catholic Church Insurances Limited
CGU Insurance Limited
CGU-VACC Insurance Limited
Chubb Insurance Company of Australia Limited
CIC Allianz Insurance Limited
Commonwealth Insurance Limited
Cumis Insurance Society, Inc
Defence Service Homes Insurance
Elders Insurance Limited
GIO General Limited
Guild Insurance Limited
Hallmark General Insurance Company Ltd
Hollard Insurance Company
HBF Insurance Pty Ltd
ING General Insurance Pty Limited
Insurance Australia Limited this includes all the insurers in the Insurance Australia Group viz:-
NRMA Insurance, SGIO, SGIC, CGU, NZI & RACV (See alpha listings)
Liberty Mutual Insurance Company
Lloyds of London
Mutual Community General Insurance Pty Ltd
NRMA Insurance
NZI Insurance Australia Limited
QBE Insurance (Australia) Limited
RAA Insurance Limited
RAC Insurance Proprietary Limited
RACQ Insurance Limited
RACT Insurance Pty Ltd
RACV Insurance Proprietary Limited
Real Insurance (The Hollard Insurance Company)
SGIC
SGIO
Suncorp Metway Insurance Limited




                                        Page 65
                      ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                           PRIORITY COMMERCIAL APPLICATION OVERVIEW

                TIO (Territory Insurance Office)
                Vero Insurance Limited
                Wesfarmers Federation Insurance Limited
                Westpac General Insurance Limited
                Zurich Australian Insurance Limited


       Transfer of Land (if applicable)
We require a copy of the proposed transfer of land.


If the consideration in the transfer is by way of natural love and affection, gift or other similar
consideration then we will require it to be stamped prior to settlement.


       Powers of Attorney
       If any party is signing under a power of attorney including the Vendor, then we will need a
            copy. At settlement you will need to ensure we receive a certified copy.


       New Instruments (Enduring Power of Attorney) Act 2003 effective 1 April 2004


       Please be aware that enduring powers of attorney signed from 1 April 2004 must comply with
       the new legislation. Please note in particular section 125B(b) states that the attorney must
       sign and date a Statement of Acceptance including a statement “to avoid acting where there is
       any conflict of interest between the interests of the donor and the attorney’s interest”..


       We take this to mean that where an attorney is a co-mortgagor or co-transferor that in
       addition we will require the following:


       1.      Letter from the Donor or their solicitor addressed to the Land Titles Office confirming
               that he/she is aware of and consents to the transaction; OR


       2.      Evidence we can submit to the Land Titles Office establishing that the transaction is in
               the interests of the Donor.


       Guarantors are not permitted to sign by way of power of attorney.


       Tenancies
       If the property is tenanted a copy of the executed lease.




                                                       Page 66
                     ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                          PRIORITY COMMERCIAL APPLICATION OVERVIEW

       Trusts
       Where any party is a Trustee we require a certified copy of each trust deed




SETTLEMENT GUIDELINES


Please note carefully to ensure a smooth transition to settlement.


At least three (3) clear working days prior to settlement we will require ( eg for a Friday settlement no
later than Tuesday prior):


       Return of the signed loan documentation and ancillary documents by 2.00 pm 3 days
       before settlement.


       A breakdown of the cheques to be disbursed. Cheque requests must be in writing. We must
       have cheque details by no later than 12.00 pm 1 days before settlement. We cannot guarantee
       settlement if received outside these guidelines and will need to obtain instructions from our
       client. If faxing details close to the deadline please call our office to ensure the fax is received.


       The date, time and place for settlement. PLEASE NOTE settlement must not be arranged
       before 12.30 pm. If settlement is to take place outside the central business district we may
       require to appoint an agent. If so there will be additional agency costs to your client.


       Remember if there are 2 or more properties involved you must ensure all settlements take
       place simultaneously.


       A certificate of currency of insurance noting the particulars in the checklist above.


       Confirmation that any of the above special conditions in Part 2 have been satisfied or that
       cheques to be disbursed will ensure they are satisfied at settlement


       Any other outstanding requirements noted in our checklist.


       Please note if settlement is outside the Melbourne CBD and we are required to use agents then
       an agency fee may be applicable. The agent's fee will be advised at time of booking
       settlement.




                                                      Page 67
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                        PRIORITY COMMERCIAL APPLICATION OVERVIEW



       Settlement Re-booking Fee


       If settlement is cancelled and has to be re-booked for another day, a settlement re-booking fee
       of $33.00 may be charged.


                                            FEES - ING DIRECT
Fees for Residential Deals:


                                                           nd, 3rd.
Legal Fees for Refinance/Purchase/Clear Title and 2                   Mortgages - $247.50 (GST inclusive) -
ING DIRECT is billed monthly


Refinance/Clear Title Files - Borrowers to pay
Documentation and Settlement Fees $137.50 (GST inclusive)


Purchase Files - Borrowers to pay
Documentation and Settlement Fees $137.50 (GST inclusive)


Extra Costs - Borrowers to pay
- Review Trust Deed $82.50 (GST inclusive) each Trust
- Review Company's M & A's (only if they are provided - not compulsory) $82.50 (GST
 inclusive) each company
- additional collateral security property $82.50 (GST inclusive) each ppty
- Individual Guarantee $82.50 (GST inclusive) regardless the number
- Company Guarantee $82.50 (GST inclusive) regardless the number
- Company Searches $33.00 (GST inclusive) each company search


Variation and Upstamp Files - Borrowers to pay
Legal Fees $165.00 (GST inclusive).


Fees for Commercial Deals - Borrowers to pay:


Legal Fees are worked out .01% flat of the principal sum with a minimum of $600.00 (plus GST) eg. if
principal sum is $623,000.00 x .01% = Legal Fees $623.00 (plus $62.30 GST). Please note Legal Fees
are paid by the borrower (deducted from loan amount).


Account for Documentation and Settlement Fees - For a purchase and Clear Title deal $110.00 (GST
inclusive) and for a Refinance deal $165.00 (GST included).



                                                    Page 68
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                        PRIORITY COMMERCIAL APPLICATION OVERVIEW



For Company searches we charge $30.00 per company search.


Fees for Substitution files - Borrowers to pay


Legal Fees $242.00 (GST inclusive) for preparing the Discharge of Mortgage (Securities Team Fee)
Legal Fees $247.50 (GST inclusive) for preparing the new mortgage.
(Need to allow for any government fees and Registration fees )
Disbursements $137.50 (GST inclusive)




             Hicksons Lawyers Commercial Settlement Procedures
                         ING DIRECT PROCEDURES AND REQUIREMENTS

TIMEFRAMES
 Receipt of instructions from bank at 12:00pm each day
   Open file (within 24 hours of receipt of instruction)
   Letter sent to borrowers solicitors requesting title particulars (i.e. Contract, title search) (within
    24 hours of receipt of instructions)
   Where there is no solicitor or acting for self, title search ordered by is (within 24 hours of receipt
    of instruction)
   Upon receipt of title search prepare and issue mortgage documents as well as make contact with
    outgoing mortgagee for refinance matters (within 48 hours of receipt of title documents)
   Following receipt of all signed loan documents and requirements we can proceed to settlement
    with maximum 3 days notice.
   Upon booking of settlement we are required to certify to bank by 10:00am the day prior to
    settlement (Cheque details from borrower or borrowers solicitors are required by this time)
REQUIREMENTS
Refinance
   Council Zoning Certificate
   Land Tax
   Insurance
   Section 109 Certificate (for Strata Title property)




                                                    Page 69
                   ING DIRECT is a division of ING Bank (Australia) Limited ABN 24 000 893 292
                        PRIORITY COMMERCIAL APPLICATION OVERVIEW

Purchase
   Council Zoning Certificate
   Insurance
   Section 109 Certificate (for Strata Title property)
   Settlement Statement
   Vendor’s cheque directions
   Occupation Certificate (or newly built property)


Standard Loan Requirements

   Certified copy of Memorandum and Articles of Association (Required where company borrower
    or guarantor is involved)
   Certified copy of stamped Trust Deed (Required where trust borrower or guarantor involved)
   Copy of all leases in respect of security property
   Conditions Precedent as per loan offer




                                                    Page 70

								
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