Target Market Determination

Description of target market

The features of this product have been assessed as meeting the likely objectives, financial situation and needs of consumers who:

• meet the eligibility criteria;
• require a loan to purchase or refinance a portfolio of owner occupied and investment residential properties;
• require variable interest rate only;
• require the ability to make unlimited extra repayments and access redraw;
• may want access to other optional features and benefits (such as linked offset account);
• require the option of either principal and interest or interest only repayments for investment property loans; and
• who want to own their own home sooner and who have one or more investment properties as part of their financial strategy.

Whilst variable interest rates may fluctuate, the product meets the likely objectives, financial situation and needs of consumers in the target market because it allows them to make additional repayments and/or deposit funds into an offset account to reduce interest payable whilst retaining the ability to draw on those funds when required.

Owner Occupied Residential Property

This product allows consumers to finance the purchase or refinance of an owner occupied residential property with the ability to select principal and interest repayments in order to reduce the overall debt and build equity.

Investment Residential Property

This product allows consumers to finance the purchase or refinance of an investment property with the ability to select:

• principal and interest repayments in order to reduce the overall debt and build equity; or
• interest only for tax purposes.

Description of product, including key attributes

• Variable interest rate.
• Offset account is available.
• Redraw is available .
• Minimum loan amount $250,000.
• Maximum loan amount $2,000,000
• Maximum loan term 30 years.
• Maximum Loan to Valuation Ratio (LVR): 95% including LMI
• Lenders Mortgage Insurance applies if LVR is above 80%.
• Repayment options:
  • principal and interest for Owner Occupied.
  • principal and interest and interest only for Investment.
• Repayment frequency – weekly, fortnightly or monthly.
• Application fee is payable.
• Settlement fee is payable.
• Annual Facility fee is payable where a 100% offset account is linked.
• Nil redraw fee for redraw conducted via internet banking (a fee applies for staff assisted redraw).

Classes of consumers for who the product may not be suitable

This product may not be suitable for consumers who:

• do not meet the eligibility requirements;
• are non-resident for Australian tax purpose
• are seeking the certainty of fixed repayments over the term of the loan;
• do not own their own home and at least one investment property

Distribution conditions

The following distribution channels and conditions have been assessed as being appropriate to direct the distribution of the product to the target market:

The distribution channels and conditions are appropriate because:

• the product has a wide target market;
• our distributors have been adequately trained to understand their DDO obligations;
• we rely on existing distributors, methods, controls and supervision already in place;
• our approval system has controls in place to flag applicants who may be outside the target market; and
• accredited mortgage brokers are subject to a higher duty under BID to ensure that the product is in the best interests of the particular consumer;

The following review triggers would reasonably suggest that the TMD may no longer be appropriate:

• A significant dealing of the product to consumers outside the target market occurs;
• A significant number of complaints are received from customers in relation to the product;
• A significant number of defaults occur;
• There is a material change to the product or the terms and conditions of the product.

First review date: 01 July 2026

Periodic reviews: at least every 12 months from the initial review and each subsequent review.

Trigger reviews: review to be completed within 10 business days of the identification of a trigger event.

The following information must be provided to the Issuer by distributors who engage in retail product distribution conduct in relation to this product: