Home and Investment Loans

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1 Head Office 117 Camberwell Road Hawthorn East VIC 3123 PO Box 338 Camberwell VIC 3124 Branch Office 687 Mt Alexander Road Moonee Ponds VIC 3039 PO Box 210 Moonee Ponds VIC 3039 victeach.com.au Victoria Teachers Limited ABN AFSL/Australian Credit Licence Number VTLD Home and Investment Loans

2 Where to find Our Home Loans 1 Saving for your home 2 How much can you borrow 4 First Home Buyers 6 Our Home Loan range 8 Home Loan features 10 Home Loan range comparison 12 Refinancing, renovating or building 14 Protecting your investment 16 Our Home Loans You can trust Victoria Teachers Mutual Bank to provide superior service, great value and easy to understand Home Loans. Our Home Loans offer: Competitive interest rates. No redraw fees. Flexible repayment options. Quick approval. Whether you are buying your first home, an investment property, renovating or refinancing, we offer a range of Home Loans with features to suit your needs. Mobile Lenders Our Mobile Lenders can advise and assist you to understand the buying and refinancing process; determine which loan is best suited to your needs, assisting with the application and take you through the settlement process. And for your convenience, we will come to you. We can visit you at home or work (if you live in metropolitan Melbourne). Alternatively we also offer phone, and video conference consultations via Skype for our regional customers (although individual requests for home visits will be considered). If you would like further information, or to apply, please call our Lending Consultants on Applying is easy Contact one of our Home Loan Consultants on , apply online or download an application from victeach.com.au. Attach all relevant information. (Please see Home Loan Documentation Checklist, available at victeach.com.au). You can submit your application: By post: Victoria Teachers Mutual Bank PO Box 338 Camberwell Victoria By fax: By visiting one of our branches. Over the phone: Scan and loans@victeach.com.au. This information does not take into account your objectives, financial situation or needs. Therefore you should firstly consider the appropriateness of this information and refer to the Terms and Conditions or the relevant Product Disclosure Statements (PDS) before acquiring a product. These documents are available at our branches or by contacting us on

3 Saving for your home The first step towards purchasing a home is saving for the deposit and other costs. When added to a 5% deposit, these additional costs could amount to 10-15% of the value of the property. Get your home deposit faster with our range of savings accounts. Online Saver (S99) This easy to use account offers high returns on your savings. It is accessible via our secure and convenient Internet, Mobile and Phone Banking services. First Home Bonus Saver (S21) Save for your first home while earning bonus interest.^ You ll also receive $600 cash back, and we ll waive the establishment fee when your Home Loan is funded by the Mutual Bank. ~ Bonus Saver (S98) Our Bonus Saver Account offers bonus interest 1 and no transaction fees. For more information regarding our First Home Bonus Saver, Bonus Saver or Online Saver, please contact one of our Customer Service Consultants on The table below gives you an example of the indicative costs involved, based on a $350,000 property in Victoria with a loan amount of $330,000: Government Charges 2 First Home Buyers Owner Occupied (PPR 6 ) Investment Stamp Duty on Transfer of Land $6,935 $13,870 $16,070 Registration of Transfer of Land $912 $912 $912 Registration of Mortgage $113 $113 $113 Other Costs Home Loan Establishment Fee $0 $600 $600 Solicitor s or Conveyancer s Fee $750 $750 $750 Lenders Mortgage Insurance 3,4 $10,692 $11,611 $12,428 Settlement Adjustments $1,500 $1,500 $1,500 Total Costs 5 $20,902 $29,356 $32,373 ^Bonus interest is earned when deposits totaling a minimum of $100 and no withdrawals are made in the calendar month. ~ Cash back will be paid when a new home loan is funded by the Mutual Bank and the account was held for a minimum of twelve months with a balance of $5,000 maintained over three consecutive months immediately prior to lodging a home loan application. 1. When you make at least one deposit and no withdrawals during the month. 2. Subject to change. 3. Lenders Mortgage Insurance (LMI) is only required if the loan exceeds 80% of the property value or 85% for Education Package Home Loan holders where approval conditions are met. These conditions include applicants to be employed in the Education sector, owner occupied only, no equity release with refinanced loans, no off the plan or construction loans, standard security types, some postcode restrictions apply. LMI protects the lender. Loans of up to 95% Loan to Value Ratio (LVR) can be approved, subject to meeting LMI approval conditions and may be extended to 98% inclusive of LMI fee capitalisation for First Home Buyers. 4. Concessions on LMI premiums are available to eligible First Home Buyers. 5. The costs are approximate figures only to provide a guide of the amount you will require. These costs may differ with other lenders and in different states. 6. A stamp duty discount is available to all home buyers purchasing a home as their principal place of residence (PPR). PPR Statutory Declaration required. Your solicitor/conveyancer will arrange this for you. 2 3

4 How much can you borrow The amount you can borrow will depend on your income and living expenses, credit history and current savings. Your credit history is a record of loans and credit cards that you have had in the past. Calculating your repayments The amount you borrow will determine how much the minimum loan repayments will be. Victoria Teachers Mutual Bank can lend you up to 98% of the value of the property 7, but you will need to have at least 5% of the value in genuine savings. 8 To get an indication of the amount you can borrow and what your minimum repayments might be visit victeach.com.au. As a general rule of thumb, aim to spend less than one third of your gross income on mortgage repayments. It is prudent to calculate loan repayments of at least 2.0% higher than current interest rates to allow for rate increases. Pre-approval We offer fast pre-approval of your loan so you can search for a property with confidence, knowing your affordability. Conditional preapproval is valid for 3 months. Home Loan repayments case study Shannon and Liam have been renting for the last 2 years and are keen to purchase a place of their own. Shannon has been teaching for 4 years and Liam has been in his office position for 5 years. Shannon and Liam have a Car Loan, a Credit Card with a limit of $4,000 and a Store Card with a $2,000 limit. They put aside savings as well each week. Based on Shannon and Liam s situation they could borrow approximately $450,000. Monthly budget Net (take home) income $6,500 Less new Home Loan repayment $3,146* Less Credit Card repayments (5% of limit) $200 Less Store Card repayments (5% of limit) $100 Less Car Loan repayments $240 Less Allowance for Living $2,410** Surplus $404 *Based on an interest rate of 7.5% over a 30 year loan term.**approximate figure only. 7. Lenders Mortgage Insurance (LMI) is only required if the loan exceeds 80% of the property value or 85% for Education Package Home Loan holders where approval conditions are met. These conditions include applicants to be employed in the Education sector, owner occupied only, no equity release with refinanced loans, no off the plan or construction loans, standard security types, some postcode restrictions apply. LMI protects the lender. Loans of up to 95% Loan to Value Ratio (LVR) can be approved, subject to meeting LMI approval conditions and may be extended to 98% inclusive of LMI fee capitalisation for First Home Buyers. 8. Genuine savings are savings where there is proof you have deposited regularly over a minimum 3 month period. This does not include gifts from friends or relatives. 4 5

5 First Home Buyers Package Live the Australian dream with a Home Loan package specifically designed to meet the needs of first home buyers. Our Home Loans Choose from a Complete Home Loan or Education Package Home Loan and turn your dream of home ownership into reality with: $0 Home Loan establishment fee % offset facility on variable rate home loans (multiple offset accounts available on the Education Package Home Loan). Competitive interest rates. Ability to borrow up to 98% of the value of the property. 10 May borrow 100% with Family Guarantee. 11 No Personal Loan establishment fee. No transaction fees. 12 Premium CGU insurance policies at competitive prices. 13 Pre-approved Visa Classic Credit Card for day to day expenses. 14 First home owners grants If you re a first home buyer you may also be eligible for the Federal and State Government s First Home Owner Grant (new homes only) and Stamp Duty discounts. For more information, book an appointment with one of our friendly Lending Consultants on Choosing the right loan Our friendly Home Loan Consultants will help you choose the right loan for your circumstances and can organise: A free, no obligation Home Loan assessment or Mobile Lending Consultation. 15 Processing of the First Home Owners Grant. Pre-approval of your loan. Family Guarantee This may allow you to borrow more than 95% of the value of the property. It may reduce the need to pay Lenders Mortgage Insurance. 11 First Home Buyers Hub Buying your first home is an exciting time with seemingly endless possibilities. We know there is a lot to consider and we re here to help every step of the way. We ve developed an online First Home Buyers Hub packed with information and tips for the home buying journey including; saving for a deposit, tips and tools, costs associated with buying a home, the home buying process, choosing your loan and insurance. Visit the First Home Buyers Hub at campaigns.victeach.com.au/fhb. 9. Applicants who decide not to proceed with the loan may incur establishment fees. 10. Lenders Mortgage Insurance (LMI) is only required if the loan exceeds 80% of the property value or 85% for Education Package Home Loan holders where approval conditions are met. These conditions include applicants to be employed in the Education sector, owner occupied only, no equity release with refinanced loans, no off the plan or construction loans, standard security types, some postcode restrictions apply. LMI protects the lender. Loans of up to 95% Loan to Value Ratio (LVR) can be approved, subject to meeting LMI approval conditions and may be extended to 98% inclusive of LMI fee capitalisation for First Home Buyers. 11. Subject to approval and conditions apply. Fees and charges apply. Available on Standard, Complete and Education Package Home Loans. 12. Charges may apply at non-cba ATMs. 13. General insurance is issued by Insurance Australia Limited ABN , AFSL trading as CGU Insurance. In arranging this insurance, Victoria Teachers Limited ABN , AFSL acts under an agreement with CGU, not as your agent. This information does not take into consideration your objectives, financial situation or needs. Therefore you should firstly consider the appropriateness of this information and refer to the Terms and Conditions or relevant Product Disclosure Statement (PDS) before acquiring a product, available by calling We receive commission on these insurance products as a percentage of the premium price for each policy ranging from 5-35%.14. A $5,000 limit will be provided for eligible applicants, higher limits will be considered upon request. 15. Available in metropolitan Melbourne. Alternatively we also offer phone, and video conference consultations via Skype for our regional customers (although individual requests for home visits will be considered). 6 7

6 Our Home Loan range Whether you are buying your first home, an investment property or renovating, we offer a range of Home Loans to meet your needs. Your needs 100% offset and free redraw. No frills with a lower variable or fixed rate option to help repay it faster. Range of features for flexibility, with a variable and fixed rate option. Buying or building your first home Building or house and land package and major renovations. Lowering your repayments by making interest repayments only. Access to a line of credit for ongoing renovations or to take advantage of investment opportunities. Investment property. Bought another house but haven t sold your existing house. Complete Home Loan This is a simple and easy to manage loan with a lower variable interest rate and fixed rate options. It offers 100% offset on variable home loans, flexible repayments and free redraw. 16 The Complete Home Loan is also suitable for the following: Construction A flexible option for people who are building a home or investment property or undertaking major extensions/renovations which allows for progress payments to your builder during the construction period and an interest only option during construction. Our loan solution Standard, Complete, Education Package Complete Standard Complete, Education Package Complete, Education Package Standard, Complete, Education Package Equity Line of Credit Standard, Complete, Education Package Standard Investment You can choose from variable and fixed loans, as well as features like interest only and offset facility. First Home Buyer Package A variety of discounts and benefits to help turn your dream of home ownership into reality. Standard Home Loan This is a flexible loan that offers a competitive variable interest rate with a fixed rate option. There are no administration or redraw fees 16. With 100% offset, we deduct your transaction account balance from your Home Loan balance and you are only charged interest on the reduced amount. 17 The Standard Home Loan also offers the following options: Bridging This option provides finance for people purchasing a home or investment property prior to the sale or settlement of their current home or investment property. Investment You can choose from variable and fixed loans, as well as features like interest only and offset facility. Education Package Home Loan The Education Package Home Loan is suitable for construction purposes and all stages of home ownership, including First Home Buyers and investors. The Education Package includes a range of discounts and benefits such as: 0.80% p.a. discount off Standard Home Loan variable interest rates. Home Loan interest rate discounts on eligible fixed rate loans. Multiple Offset Accounts Reduced Home Loan establishment fee. Ability to borrow up to 85% LVR with no LMI. 18 No transaction fees. 19 Premium CGU insurance policies at competitive prices. 20 No Platinum Credit Card annual fee. No Personal Loan establishment fee. Keep your finances on track with a free yearly one hour Financial Planning consultation (normally $150 each consultation). Additional benefits apply to First Home Buyers, refer to page 6 First Home Buyers Package. Equity Line of Credit Home Loan Our Equity Line of Credit Home Loan provides you with a convenient way to access the equity in your home. This all-in-one loan combines income, savings and credit into one Home Loan account that offers a line of credit facility. You can access funds to pay for renovations, shares or any other purpose, without making further applications. The Equity Line of Credit has an approved limit and you do not need to make repayments as long as you keep your balance within your approved limit. 21 You are able to make repayments at any time to reduce your loan balance and to ensure that your debt is paid off in a period that suits your financial goals. 16. Minimum redraw is $ Not available during fixed interest rate period. When you link a transaction account to an offset facility, you earn no interest under the transaction account even if the balance of the transaction account exceeds the loan balance. 18. Lenders Mortgage Insurance (LMI) is only required if the loan exceeds 80% of the property value or 85% for Education Package Home Loan holders where approval conditions are met. These conditions include applicants to be employed in the Education sector, owner occupied only, no equity release with refinanced loans, no off the plan or construction loans, standard security types, some postcode restrictions apply. LMI protects the lender. Loans of up to 95% Loan to Value Ratio (LVR) can be approved, subject to meeting LMI approval conditions and may be extended to 98% inclusive of LMI fee capitalisation for First Home Buyers. 19. Charges may apply at non-cba ATMs. 20. General insurance is issued by Insurance Australia Limited ABN , AFSL trading as CGU Insurance. In arranging this insurance, Victoria Teachers Limited ABN , AFSL acts under an agreement with CGU, not as your agent. This information does not take into consideration your objectives, financial situation or needs. Therefore you should firstly consider the appropriateness of this information and refer to the Terms and Conditions or relevant Product Disclosure Statement (PDS) before acquiring a product, available by calling We receive commission on these insurance products as a percentage of the premium price for each policy ranging from 5-35%. 21. If at any time the unpaid balance of the account exceeds the credit limit, you must immediately repay such amount as is necessary to reduce the unpaid balance to the credit limit. 8 9

7 Home Loan features Tailor your Home Loan to meet your needs with our great range of features. Offset facility With 100% offset, we deduct your transaction account balance from your home loan balance and you re only charged interest on the reduced amount.* Splitting your loan Take advantage of the flexibility of splitting your loan into variable and fixed interest rate portions or into two or more different loan products. For example, you can split a $200,000 Home Loan into two loans, with a fixed interest rate on $100,000 (for 1-5 years) and a variable rate on the other $100,000. Redraw facility Redraw is a feature available with most of our Home Loans. Redraw is the funds paid in excess of your normal repayments. Minimum redraw is $500. Repayment options Customers are able to align repayments to their pay cycle either weekly, fortnightly or monthly. Repayments can be credited to your loan straight from your salary for convenience. Repayment Holiday Allows you to stop making repayments for a short period if you are ahead on your scheduled loan repayments. 22 Family Repayment Pause Allows you to take a breather by stopping or reducing your loan repayments for a specific period when one of you goes on maternity or paternity leave. 23 Fixed Rate Options To safeguard against interest rate increases you can fix your interest rate for a period of time. This gives you the certainty of knowing what your repayments will be during this period and the flexibility of repaying your loan without any penalty after the fixed interest rate period. Fixed Rate Lock A Fixed Rate Lock allows you to hold a fixed interest rate for up to 90 days from the date of application or loan approval. The Fixed Rate Lock applies to fixed rate Home Loans not exceeding 3 years or an amount of $1M. There is a fee associated with this feature - refer to the Terms and Conditions. Interest Only For investment loans, you can select an interest only option with a fixed or variable interest rate. Available for 1-5 year terms (subject to 10 year maximum over the life of the loan). Interest only option for owner occupied loans may be considered in certain circumstances. *Not available during fixed interest rate period. When you link a transaction account to an offset facility, you earn no interest under the transaction account even if the balance of the transaction account exceeds the loan balance. 22. Loan must be in advance to enable repayment holiday. 23. Repayment pause is between 3 and 6 months and approval is required. Conditions apply (must have no redraw)

8 Home Loan range comparison Product Features Standard Home Loan Education Package Home Loan Complete Home Loan Equity Line of Credit 100% Offset 24 Yes Yes Yes N/A Multiple Offset Accounts No Yes No N/A Line of Credit No No No Yes Establishment Fee Yes Yes (50% discount) This fee is waived for First Home Buyers Yes This fee is waived for First Home Buyers Yes Annual Fee No $350 No $150 Administration Fee No $350 Construction only 25 $350 Construction only 25 No Repayment Frequency W,F,M 26,27 W,F,M 26,27 W,F,M 26,27 N/A 28 Additional Repayments Accepted Yes 29 Yes 29 Yes 29 Yes Interest Only Available Yes 30 Yes 30 Yes 30 N/A Fixed Interest Rate Available Yes 31 Yes 31 Yes 31 No Fixed Rate Lock available Yes 32 Yes 32 Yes 32 No Redraw Available 33 Yes Yes Yes N/A Redraw Fees $0 $0 $0 $0 Repayment holiday Yes 34 Yes 34 Yes 34 No Family Repayment Pause Yes 35 Yes 35 Yes 35 No Early Repayment Penalty No No No No Fixed Rate Break Cost Yes Yes Yes N/A Minimum Loan Amount No 36 No 36 No 36 No Maximum Loan Amount No No No No Maximum Loan Term 30 Years 30 Years 30 Years 30 Years Maximum LVR (with no LMI) 80% Up to 85% 37 80% 80% Maximum LVR with LMI Up to 98% 37 Up to 98% 37 Up to 98% 37 90% 24. Not available during fixed interest rate period. When you link a transaction account to an offset facility, you earn no interest under the transaction account even if the balance of the transaction account exceeds the loan balance. 25. One-off fee to cover progress draw downs and valuations. 26. Weekly, fortnightly or monthly repayments. 27.Monthly repayments only for interest only loans. 28. If at any time the unpaid balance of the account exceeds the credit limit, you must immediately repay such amount as is necessary to reduce the unpaid balance to the credit limit. 29. A maximum of $30,000 per year additional repayments accepted during the fixed interest rate period. Any funds paid in excess of $30,000 per year will incur a Break Cost Fee. Additional repayments are unlimited on this loan during variable interest rate period. 30. Available for 1-5 year terms or 5 years for owner occupied. Conditions apply. Monthly repayments only during interest only term. Capped at 10 years over the term of the loan or 5 years for owner occupied. Conditions apply. 31. Available for 1-5 year terms, excludes loans classified as Bridging Loans. 32. Available for 1-3 year fixed terms only with a maximum loan amount of $1M. 33. Minimum redraw $ Loan must be in advance to enable repayment holiday. 35. Repayment pause is between 3 and 6 months and approval is required. 36. $50,000 minimum loan amount for fixed rates and $50,000 minimum loan increase for existing customers switching from a loan funded prior to 1 December Lenders Mortgage Insurance (LMI) is only required if the loan exceeds 80% of the property value or 85% for Education Package Home Loan holders where approval conditions are met. These conditions include applicants to be employed in the Education sector, owner occupied only, no equity release with refinanced loans, no off the plan or construction loans, standard security types, some postcode restrictions apply. LMI protects the lender. Loans of up to 95% Loan to Value Ratio (LVR) can be approved, subject to meeting LMI approval conditions and may be extended to 98% inclusive of LMI fee capitalisation for First Home Buyers

9 Refinancing, renovating or building As time goes on our needs and financial situation will change, meaning our loans and homes often need to as well. We re here to help and make these changes simple for you. Refinancing Refinancing is about saving money to improve your financial position. It may save you thousands of dollars through switching to a loan with a lower interest rate and fees. Ask yourself some questions to see if refinancing is the best course of action for you: Are you planning on renovating in the future? Would you like to access the equity in your home for investment purposes? Is your current loan not as competitive as it was when you first took it out? Are you paying for features that are free with another provider? Would you like to split your loan into part fixed and part variable? Are you satisfied with the level of service provided by your lender? If you re thinking about refinancing, we can provide you with an estimate of repayments and discuss options to help you save money. Renovating or building If you are thinking about renovating, there are many ways to access extra funds: If you have been paying more than your minimum repayments, you can redraw from your Home Loan. With an Equity Line of Credit Loan you can have easy access to extra funds for renovations, extensions and other purposes. You can increase or refinance your current Home Loan. Our Education Package Home Loan and Complete Home Loan are ideal for house and land packages. These loans can also be used for major extensions to your existing property. To discuss your options, call a friendly Home Loan Consultant on

10 Have you considered your insurance options? We can help you protect your home and your finances in the event something unexpected occurs, through our range of providers. Home Insurance Home Insurance is required before you sign the mortgage documents and the loan contract. It is worthwhile arranging Home Insurance straight after paying the deposit rather than waiting for settlement. Victoria Teachers Mutual Bank can help you with your insurance needs. Our underwriters offer free building insurance cover for up to 90 days (during your settlement period) when you purchase a Home Insurance policy through us. Make sure you insure your property for the full cost of rebuilding it plus any enhancements or features you have made not including the value of the land. To help you determine the costs, use the home replacement calculator at victeach.com.au. We can arrange cover for: Home-owner occupied. Contents. Landlord - investment property. What is Loan Repayment Insurance? Loan Repayment Insurance 38 is an optional cover which provides peace of mind and added security. Loan Repayment Insurance provides a simple way to ensure your loan repayments are made even if something prevents you from making them. This includes if you are injured in an accident, fall ill and are unable to work, if you suffer one of the four covered traumas 39, if you become involuntarily unemployed or pass away. With Loan Repayment Insurance, you are covered world-wide, 24 hours a day, and your loan repayment will be made for you irrespective of whether you are receiving sick pay, Work Cover or Government unemployment benefits. 40 How do I arrange this insurance? When your loan has been approved, one of our Lending Consultants will contact you to discuss the applicable insurance products and assist you with your application. For an obligation free quote, please contact our Insurance Consultants on or apply online at victeach.com.au. 38. The insurer of the Loan Repayment Insurance is Insurance Australia Limited ABN , AFSL trading as CGU Insurance. AMP Life Limited ABN AFSL No Covered traumas under Trauma cover - Cancer, Heart Attack, Stroke and Coronary artery surgery as defined in the Product Disclosure Statement. 40. Subject to the terms and conditions of the insurance policy. This information does not take into account your objectives, financial situation or needs. Therefore you should firstly consider the appropriateness of this information and refer to the Terms and Conditions or the relevant Product Disclosure Statements (PDS) before acquiring a product. These documents are available at our branches or by contacting us on Insurance providers are Insurance Australia Limited ABN , AFSL trading as CGU Insurance and Doug Kerr Insurance Consultants P/L trading as Brokers National ABN , AFSL In arranging this Insurance, Victoria Teachers Limited, ABN , AFSL/ Australian Credit Licence Number , acts under an agreement with the insurers, not as your agent. A Product Disclosure Statement (PDS) should be considered before acquiring a product and can be requested by calling our Insurance Services on We receive commission on these insurance products as a percentage of the premium price for each policy ranging from 5 35%. 16 D