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, refinance or construct an owner occupied or investment residential property;
• may want access to other optional features and benefits (such as linked offset account);
• require the option of a variable or fixed rate;
• require the option of either principal and interest or interest only (available for investment residential properties and construction purposes only) repayments;
• require the option of consolidating debts;
• have any of the above requirements and are aged 60 or over (subject to adequate security); and
• have any of the above requirements and are borrowing under a Selfmanaged Superannuation Fund (SMSF) structure.

Variable Rate

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.

Fixed Rate

Whilst the product has a limit on additional repayments and does not permit redraw, the product meets the likely objectives, financial situation and needs of consumers in the target market because the fixed rate provides certainty of repayments during the fixed period, making household budgeting easier. Additionally the product benefits consumers within the target market by having an interest only repayment option which may be preferred in some instances for tax purposes.

Owner Occupied Residential Property

This product allows consumers to finance the purchase, refinance or construction 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, refinance or construction 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
• interest only during construction.

SMSF Borrower

The product allows consumers to invest in residential property through their SMSF for the sole purpose of providing retirement benefits to the members. Strict eligibility criteria and terms and conditions apply.

Description of product, including key attributes

• Variable interest rate.
• Fixed interest rate over 1-5 year term.
• Offset account is available;
• Redraw is available on a variable interest rate.
• Minimum loan amount $50,000.
• Maximum loan amount $3,500,000 ($1,500,000 on loans to a SMSF).
• Maximum loan term 30 years for all loan types and up to 40 years on principal and interest (except SMSF loans which are up to 30 years).
• Maximum Loan to Valuation Ratio (LVR): 80% including LMI.
• Repayment options:
  • principal and interest for Owner Occupied.
  • principal and interest and interest only for Investment.
  • Interest only for Construction
• Repayment frequency – weekly, fortnightly or monthly.
• Application fee is payable.
• Settlement fee is payable.
• Annual Facility fee is payable.
• Construction administration fee is payable.
• Additional legal fees payable for loans to a SMSF.
• 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;
• have less than a 20% deposit not including government costs;

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;
• accredited mortgage brokers are subject to a higher duty under BID to ensure that the product is appropriate for 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 [insert name of issuer] by distributors who engage in retail product distribution conduct in relation to this product: