Topic 3-4

Supplementary material

Letter of offer
© Reproduced with permission.

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Term Loan Facility Agreement Details

Important: The information in these Details is current as at 04/09/2015 (the disclosure date). The amounts
and figures marked * are only estimates. They are based on a number of assumptions, including that
payments will be made on time, that the interest rate and fees and charges will not change after the
disclosure date and that you borrow the loan amount in full on the disclosure date.
This document does not contain all the terms of your facility agreement or, if your facility is regulated
under the National Credit Code, all of the information we are required by law to give you before the facility
agreement is made. Further terms and information (including the meaning of words printed like this) are in
the Facility Agreement General Terms for the Fixed Rate (Interest Only) Mortgage Loan (“General Terms”).
(In the General Terms, a reference to the “Details” is a reference to these Term Loan Facility Agreement
Details.)

Customer:

A. Financial information table

The facility limit is made up of:
Facility limit • Fees and charges included in the facility limit $1,228.00
• Balance $214,772.00

Total facility limit $216,000.00

The product type is: ____________________ with principal and interest repayments

The annual percentage rate is a variable interest rate, being the ______________ on the settlement date,
Interest rate currently 5.91% per annum less a margin of 0.81% per annum. Accordingly, the variable interest rate
is currently 5.10% per annum.

Interest offset arrangement

A 100% Interest Offset is only effective on _______________________ Home Loan accounts during any
period when a variable interest rate applies to your account.

You must make 360* consecutive monthly principal and interest repayments (over a period of an equivalent
Repayments length) as follows:
• 360 * repayments of $1,182.77* each.
The first repayment is due on the first principal and interest repayment day after the settlement date.
Each subsequent repayment is due on each subsequent principal and interest repayment day. If there is
no corresponding day to the principal and interest repayment day in any month, the repayment is due on the
last day of that month.
If the repayment is due on a day which is not a banking day, you may make the repayment on the next
banking day.
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Fees and charges

Each credit fee and charge listed below is not payable by you to the extent that it Included in the facility Debited to an
has already been paid in connection with another facility agreement or mortgage limit and payable on account after the
with entered into with, or on or about the same time as this agreement. the settlement date settlement date

1. These fees and charges are payable under this agreement

1.1 Credit charges payable to ___________________

• Application fee $600.00

• Legal services fee $200.00
• External valuation fee $0.00

1.2 Government charges

(a) Stamp duty (payable to the government revenue office in the state or
territory where the relevant security or security property is located).

(b) Land registry fees (payable to the land titles office in the state or territory
where the security property is located).
Important: These are the maximum fees payable as at the offer date.
If the Land Titles Office charges us less, you will only be required to pay
that lesser amount.

• NSW — Discharge of pre-existing mortgage registration fee $107.00

• NSW — Mortgage Registration fee $107.00
• NSW — Registration of transfer fee $214.00
• Discharge of mortgage registration fees payable each time a discharge of $107.00
____________ mortgage is lodged.

Total fees deducted from the facility limit. $1,228.00

TOTAL FEES AND CHARGES WHICH ARE DEFINITELY PAYABLE $1,335.00

(to the extent ascertainable)
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2. These fees and charges are or may become payable under this agreement
2.1 Credit charges payable to __________________________________ Amount
• Service fee $10.00
– The monthly service fee is payable each month, after the settlement date, on the day which
corresponds with the settlement date. If there is no corresponding day in any month, the fee is
payable on the preceding day of that month.
– If the fee is payable on a day which is not a banking day, the fee is payable on the preceding
banking day.

• External valuation fee Unascertainable

Payable each time we require external valuers to conduct a valuation of the security property.

• Additional legal service fee Unascertainable

Payable where, after the disclosure date, we ask our solicitor or conveyancer to provide additional
legal services relating to this contract because:
– the information you provided to us prior to the disclosure date is inadequate, incomplete or
incorrect; or
– after the disclosure date, you request a change to this contract or the security.

• Rate lock fee (payable each time you apply to enter into a rate lock agreement). The amount of the fee Unascertainable
is agreed at the time the rate lock agreement is entered into.

• Economic costs (payable whenever an economic costs event occurs). However, we will waive economic Unascertainable
costs if you prepay less than the whole of the loan amount during an introductory fixed rate period.
It is calculated using the economic costs method (see clause 12 of the General Terms).

• Variation fee $300.00

Payable each time you request us to increase your facility limit, change or discharge the security.

2.2 Government credit fees and charges (payable to the Land Titles Office in the relevant state or territory)

• Registration fee (payable each time we need to register any additional document with the land titles Unascertainable
office). The fee is the amount we are required to pay the land titles office.

• Production fee (payable each time we need to produce a title deed at your request). The fee is the Unascertainable
amount we are required to pay the land titles office when it produces the document.

Changes we may make without your consent

Under this agreement, any of the following information which is given above maybe changed and without your consent:

• any interest rate, including the annual percentage rate

• method of calculating interest and the frequency of charging it
• a rate, name or description of any of our published indicator rates
• any interest rate margin
• amount, method of calculation, number, frequency or time for payment of repayments, or period over which repayments are to
be paid
• interest rate amount and type of fees and charges and when they are payable (including by imposing new fees and charges or
changing the method of calculation of a fee or charge).
However, if your interest rate is fixed for a period, the interest rate cannot be changed during that period.
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B. Other information
Other information applicable to your account
Loan term: The loan term is 30 years
Last date for borrowing: 03 December 2015
Due date for last repayment: 30 years from the settlement date

Commission to be paid by
A commission is to be paid by ____________________ to _____________________ (Broker) for the introduction of credit business
or business financed by the contract. Details are as follows:
• An amount of $1,404.00 to ____________________ (Broker).
• Ongoing monthly commission based on volume of business introduced and loan life are payable by ____________________
____________________ (Broker) the amounts of which are not presently ascertainable. This commission is in the range of 0% to
0.35% of the average debit balance owing on the account.
This commission disclosure is correct as at the date this agreement was issued and is subject to change.

Security for the loan

The following securities, if any, have been or are to be taken by us:

• Mortgage over real property

A first ranking mortgage is to be or has been taken over the following property:
Mortgagor(s):
Address of mortgaged property:
Title reference: To be confirmed:

Credit provider

Financial summary
We have attached a summary of your financial information (see Annexure document 'Financial Summary') based on the information
provided in the application process. We have used the financial information to assess your loan application and your ability to meet
your loan obligations based on our Credit Policies.

Offer from _____________________________

We offer to lend you the loan amount on the terms and Signed on behalf of:
conditions set out in this offer and the separate General Terms
booklet.
To accept the offer, you must sign and date this document and
return it to us in the envelope provided.

Date: 04 September 2015

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Acceptance by customer
Do not sign this document unless you have received and read through the General Terms and the Facility Agreement Details.
If you don't understand anything in the Facility Agreement Details or the General Terms, or believe they do not set out the
agreement between you and us please contact us and ask for an explanation. You must understand that:
• the security described in the Facility Agreement Details will secure the Facility Agreement;
• if you default under the Facility Agreement, the property provided to us as security may be at risk;
• we will rely on the accuracy of information that you give us in relation to the Facility Agreement; and
• when you sign the Facility Agreement Details, we will rely on this as your acceptance of the Facility Agreement.

The notes in the following box only apply to you if you are an individual and, at the time you sign this offer,
you intend to use the facility limit wholly or predominantly for personal, domestic or household purposes
or investment relating to investment property.

IMPORTANT
BEFORE YOU SIGN THINGS YOU MUST KNOW
• READ THIS CONTRACT DOCUMENT so that you know exactly • Once you sign this contract document, you will be bound by
what contract you are entering into and what you will have to it. However, you may end the contract before you obtain
do under the contract. credit or a card or other means is used to obtain goods or
services for which credit is to be provided under the contract
by telling ____________________ in writing, but you will still
be liable for any fees or charges already incurred.

• You should also read the information statement: • You do not have to take out consumer credit insurance unless
“THINGS YOU SHOULD KNOW ABOUT YOUR PROPOSED you want to. However, if this contract document says so,
CREDIT CONTRACT”. you must take out insurance over any mortgaged property
that is used as security, such as a house or car.

• Fill in or cross out any blank spaces. • If you are to take out insurance, ____________________
cannot insist on any particular insurance company.

• Get a copy of this contract document. • If this contract document says so, ____________________
can vary the annual percentage rate (the interest rate),
the repayments and the fees and charges and can add new
fees and charges without your consent.

• Do not sign this contract document if there is anything you • If this contract document says so, ___________________
do not understand. can charge a fee if you pay out your contract early.

Accepted by:
Signature of Borrower: Please sign here

Borrower's Full Name:

Date Signed: