Homeloans FlexiChoice Product Features

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1 Homeloans Narre Warren South is operated by Mark Laaksonen, Authorised Credit Representative (No ) of Synergy Financial Services. Homeloans Limited ABN Australian Credit License Number Homeloans FlexiChoice Product Features Features and Product Parameters Inward Direct Debits Inward Direct Credits Inward Deposit Book Payment Inward Outward Cheques Loan Access Card Loan Access System Borrowers may make regular repayments to their loan from their savings account or cheque account with their Approved Deposit Taking Institution (ADI). Borrowers may make regular electronic repayments to their loan e.g. crediting salary payments, rental income, dividend payments etc. Establish internal portion transfers, between loan portions (in a split loan) on a monthly, fortnightly or weekly cycle. Make manual payments to a loan over the counter using a deposit book at Westpac Branches. Borrowers may access their loan using the internet or telephone to make one-off principal reduction payments to their loan using their Bank s, Credit Union s or Building Society system. Bill payments can be made via at any time through our online Loan Access System. makes paying bills easy and gives you total control of your payments as a one off or scheduled for a future date. Set up regular payments to be taken from their loan account by a Third Party Service Provider i.e. credit card provider, health insurer, local council etc. Borrowers may make cheque payments using their Line of Credit facility. A debit card that enables borrowers to access the redraw available on their loan using EFTPOS or Automated Teller Machines (ATMs). Borrowers may access their loan using the internet or telephone. Split Loan Where applicable minimum loan portion is $10,000. Offset Stepped Rate Discount Applies to FlexiChoice and FlexiChoice Extra Lo Doc Variable Rate Loans only. An offset loan portion can be linked to an interest bearing variable rate portion of a loan to reduce the amount of interest applied, based on the balance in the offset portion. If on the first and second anniversary of 12 on time payments, the funder will decide in our absolute discretion that the conduct of the loan has been satisfactory, then the interest rate will reduce by the following levels: First Anniversary Discount: 0.25%p.a. e.g. 9.00% to 8.75% Second Anniversary Discount: 0.25%p.a. e.g. 8.75% % Notes: Satisfactory is defined as the loan not being in default at the review date, and the Borrower has not defaulted on any payment in the 12 months immediately prior the anniversary (i.e. on time payments and no arrears balance). The applicable interest rate reduction will be made in the month following the relevant anniversary but applied with effect from the anniversary date. Where a loan has been in arrears at any stage in the first two years, the applicable 12 month period does not re-commence until all payments have been adjusted in full, including all fees and charges. It is possible for the original step-down period of two years to be extended if there has been a missed or late payment within the first two years. Credit Impairment / Risk Level Mortgage / Rent Arrears Less than 1 >1 and <3 3 or more Bureau Listings (Defaults, Judgements, Writs & Summons) 0 Up to 2 3 or more Bankruptcy Discharge Timeframe (including Part 9 & Part 10) Never 2 years or more Discharged or in a part 9 or 10 Refer to page 4 for Credit Impairment / Risk Level parameters. Maximum Loan Amounts FlexiChoice, FlexiChoice Extra Lo Doc and FlexiChoice Lo Doc (Level 1 only) *FlexiChoice and FlexiChoice Extra Lo Doc only Up to 75% 80% 85% 90% Cat. A Cat. B Cat. A Cat. B Cat. A Cat. B Cat. A Cat. B Level 1 $1,500,000 $1,250,000 $1,250,000 $1,000,000 $1,000,000 $750,000 $750,000* N/A Level 2 $1,250,000 $1,000,000 $1,000,000 $750,000 $750,000 $400,000 N/A N/A Level 3 $1,000,000 $750,000 $750,000 $500,000 $500,000 N/A N/A N/A

2 Product Matrix FlexiChoice Eligibility Loan Purpose Product parameters PAYG & Self Employed Applicants (clear & adverse credit considered) Any worthwhile Personal, Business or Investment Purpose considered (Construction excluded) Loan Amount From $50,000 to $1,500,000 Loan Term From Years Maximum LVR 90% Interest Only 1-5 Years (Investment Security only) Minimum Portion Amount $10,000 Fixed Rate / Line of Credit Option Risk Fee Payable Income Verification Requirements Redraw Available Offset Available Split Loan Facility Dynamic Repayments Inward Direct Debits / Credits Not Available / Not Available PAYG - Base Income Only (i.e. regular income excluding any variable component e.g. O/T, allowances etc) - Either 2 of the 3 most recent computer generated payslips or 3 months statements from a financial institution showing regular salary credits with the name of the employer evident as a minimum. If O/T, allowances, bonuses or commissions are used, latest PAYG Payment Summary (computer generated) or Tax Assessment Notice are also required. Self Employed - Last 2 years full Business/Company & Personal Taxation Returns. This must also be supported by the latest available Tax Assessment Notice. 1 month bank statements - For LVR > 80% Personal (salary recipient) & Business (main transactional account, if applicable) issued within the last 90 days. Loan Features Not Available / (if a split loan) FlexiChoice Extra Lo Doc Eligibility Loan Purpose Product parameters PAYG & Self Employed Applicants (clear & adverse credit considered) Any worthwhile Personal, Business or Investment Purpose considered (Construction excluded) Loan Amount From $50,000 to $1,500,000 Loan Term From Years Maximum LVR 90% Interest Only 1-5 Years (Investment Security only) Minimum Portion Amount $10,000 Fixed Rate / Line of Credit Option Risk Fee Payable Income Verification Requirements Redraw Available Offset Available Split Loan Facility Dynamic Repayments Inward Direct Debits / Credits Not Available / Not Available Completed signed and dated Declaration of Financial Status. ABN for GST purposes is to be registered with the Australian Taxation Office for a minimum period of 6 months (must be a Director/Shareholder for a minimum period of 6 months). Last 3 months Business bank statements (main transactional account). 1 month Personal bank statement issued within the last 90 days. Completed signed and dated Accountant s Letter or most recent 6 months BAS (annualised). Loan Features Not Available / (if a split loan)

3 FlexiChoice Lo Doc Eligibility Loan Purpose Product parameters Self Employed Applicants (clear credit only) Adverse Veda listings < $1,000 considered Any worthwhile Personal, Business or Investment Purpose considered (Construction excluded) Loan Amount From $50,000 to $1,500,000 Loan Term From Years Maximum LVR 85% Interest Only 1-5 Years (Investment Security only) Minimum Portion Amount $10,000 Fixed Rate / Line of Credit Option Risk Fee Payable Income Verification Requirements Redraw Available Offset Available Split Loan Facility Dynamic Repayments Inward Direct Debits / Credits Fees and Charges Not Available / Not Available Completed signed and dated Declaration of Financial Status. Completed signed and dated Accountant s Letter or most recent 6 months BAS (annualised). ABN for GST purposes is to be registered with the Australian Taxation Office for a minimum period of 12 months (must be a Director/Shareholder for a minimum period of 12 months). Loan Features Not Available / (if a split loan) Capitalisation Fees Lenders Risk Fee can be capitalised to the loan at settlement up to but not exceeding 85% LVR for FlexiChoice Lo Doc, 90% for FlexiChoice and FlexiChoice Extra Lo Doc. LMI Waiver Fee (payable at settlement) <65% 70% 75% 80% 85% 90% FlexiChoice 0.65% 0.90% 1.15% 1.40% 1.65% 1.90% FlexiChoice Extra Lo Doc 0.90% 1.15% 1.40% 1.65% 1.90% 2.15% FlexiChoice Lo Doc 1.05% 1.30% 1.55% 1.80% 2.05% - Other Establishment Fees Lenders Application/ Settlement Fee $599 Valuation Fee Legal Fees Ordered and payable upfront by originator/borrower directly to the panel valuer; (can be reimbursed from loan proceeds if required). Approx. $260. Not applicable Discharge Fees (GST inclusive) Discharge Administration Fee Discharge Preparation and Attendance Fee $300 per security $308 per attendance

4 Acceptable PAYG Income Employment type Minimum Duration (months) Allowance (%) Bonuses (paid at least quarterly) Car Allowance Current 50 Casual PAYG Contract Current 100 Commission Dividends Family Allowance Current 100 Fully Maintained Company Car Current Up to $5k Full-Time Employment Interest Received (Bank/Financial Institution) Maintenance Payments (13 years and under) Overtime (refer to product parameters below) Permanent Part-Time Permanent Pensions Current 100 Rental Income Current 80 Second Job Shift Allowance and Penalties Note: Government Assistance / Welfare Payments - This income will only be considered as a supplementary source of income. Serviceability Ratio Test A minimum Net Surplus Ratio of 1.00 times or greater is required. The stressed assessment rate is based on the benchmark rate, 2.00%p.a above the actual borrower rate for Specialist Lending loans. Existing Loans (not being refinanced) are assessed at current rates and repayments. Existing credit card limits are assessed at 3% per month. Product Parameters Borrowers Natural person/s (either PAYG, sole trader or partnership) who are Australian residents / citizens over 18 years old Proprietary companies limited by shares (registered with the Australian Securities & Investment Commission) and Trusts (Unit or Discretionary only) - restricted to a single entity Applicant (i.e. no multiple company or trust applications). Maximum number of shareholder directors per borrowing company or Trustee Company is 4, must hold at least 25% of issued capital (equity). Property Developers are an unacceptable borrower type. Guarantees Joint and several guarantees are required from: All third party security providers. All directors (particularly shareholder directors) of the borrowing entity (including trustee company). Any corporate shareholder of the borrowing entity. Level of Credit Impairment All defaults and judgements under $1000 are disregarded for Borrower credit rating purposes. All defaults, judgements, writs and summons paid more than 12 months ago at the time of application are disregarded (not applicable to FlexiChoice Lo Doc loans). All unpaid defaults, judgements, writs and summons are ignored if listed more than 2 years ago at the time of application are disregarded (not applicable to FlexiChoice Lo Doc loans). If the Applicant fits into more than one credit rating, the highest level is to apply. First Home Buyers are restricted to level 1 only. Refinance of Private Funder/Solicitors loans are restricted to FlexiChoice and FlexiChoice Extra Lo Doc. Procedure and Documentation Copies of all supporting documentation must be provided. Acceptable Security Properties Residential or rural residential properties up to 25 acres.

5 Residential properties greater than 40sqm (exclusive of balconies and parking). Vacant residential land (encompassing kerbed and sealed road access and water, sewerage and power connections on the property or running immediately up to the property boundary allowing connection at minimal cost) in Category A type localities only. Permitted provided it forms collateral security only to a maximum 50% of total gross security value. The maximum LVR to be applied is 80% for residential allotments. Valuation Report An independent valuation from an approved Specialist Lending Panel Valuer must be obtained in respect of each security property. The valuation must be: Addressed to the funder. Valuation report is to be extended for use by the Security Trustee (Perpetual Trustee Company Limited). No greater than 90 days old at the date of loan settlement. Valuation reports remain the property of the funder. Audit Valuations The following circumstances require an Audit Valuation, in addition to random selection, at the funder s expense: Where the loan amount and security value (for any particular security) are $750,000 or greater and the LVR exceeds 80%. Property value is > 2 times the median value for the suburb. New Unit developments lack of arm s length comparable sales within and outside the subject complex (require a minimum of 2 outside the complex). Unacceptable Security Properties Income producing properties (other than residential investment property). Rural residential properties greater than 25 acres. Rural zoned or Commercial or mixed use properties having residential units above commercial shops. Leasehold properties (excluding ACT Crown Land). Residential properties less than 40sqm (exclusive of balconies and parking). Flood prone areas / flood affected properties (less than 1:100 year flood is unacceptable). Areas affected by high tension power lines or motorways. Properties adversely affected by mine subsidence or land slip. Contaminated or potentially contaminated sites. Unique or specialised properties. Properties with restrictive zoning or usage (i.e. National Heritage listing). Security located on an island without a sealed road connection to the mainland. Construction, development or partially completed dwellings. Residential improvement value is less than 10% of the value of the property. Properties where there are 2 or more residences on the same title. Ownership of more than 4 or 25% of residential units in any single development, whichever is the lower. Total exposure of more than 4 or 25% to the funder of residential units in any single development, whichever is the lower. Exhibition homes. Retirement villages. Studio and Serviced apartments. Owner builder, relocatable or kit homes, time share. Properties in poor condition. Properties with less than 3 comparable sales. Properties with an extended selling period. Cash Out Policy Any loan or component of a loan that is to be used for anything other than for the purchase of a residential property or refinance/consolidation of a current mortgage/ loan will be classified as cash out. Levels 1 and 2: Unlimited cash out to 80% LVR, with documentary evidence required (i.e. relevant invoices / quotations, financial plans, accountants projections, etc) if LVR exceeds 70% LVR. Level 3 and Refinance of Solicitor Loans: Cash out limited to $10,000 and 80% LVR. Unacceptable Sources of Equity Favourable purchase involving some form of government subsidy / equity scheme. Purchases involving vendor finance (apart from those listed above) due to the high risk of being exposed to inflated purchase price schemes. Cash backs included into the sale price by property developers, or any form of vendor assisted deposit from a developer or builder. Purchaser is renting the property from the Vendor, with the understanding that if the settlement is met by a certain date, the moneys paid in rent will be refunded to the purchaser. Bartercard / Trade Dollar Credit Reports - Resimac to obtain Credit reports cannot be accessed without the Applicant(s) written consent. Individuals must sign and date a Privacy Statement & Acknowledgement form. A credit report must be obtained for: - Individual Applicant(s) - Consumer and Commercial enquiries; - Company and Company Trustee entities; - Applicable Guarantors. Credit reports must be current at time of application and be no older than 21 days at submission. In Australia, the only approved credit reference agency is Veda Advantage.

6 Redraw Conditions Internet and telephone redraws are free. Minimum redraw amount $100, maximum is $20,000 per day. Manual redraws attract a $26 fee. Minimum redraw amount is $100, maximum is the balance available. Additional Repayments Free additional payment facility on variable rate product. Split and Switch Loans There is a maximum of 6 split loan accounts. The minimum amount of a split loan is $10,000. Further Advances Available subject to normal lending criteria. A minimum of $10,000 will apply. Partial Discharge of Security Request to be in writing (signed by all Guarantors). Subject to a formal credit submission. If the remaining security valuations are > 6 months old, revaluation is required. For securities being sold, the funder to receive sufficient sale proceeds to reduce the existing indebtedness to within original LVR. If the loan is in arrears then full proceeds to be received and applied to the debt. Remaining security location to be classified (i.e. if security has gone from Category A to B, LVR is to be reduced to Category B maximum; if the security has gone from a Category B to A, original Category B LVR maximum applies). Subject to formal documentation requiring consent from all parties. Non-Resident Loan Non-Resident Loans are not available. Maximum LVR (Specific Cases Only) Where the security property is located in Victoria, the maximum LVR will be 5% less than the product limit. Acceptable Property Locations Contact us enquiries@homeloans.com.au