This report is no longer current. Please refer to the CANSTAR CANNEX website for the most recent star ratings report on this topic.

Transcription

1 This report is no longer current. Please refer to the CANSTAR CANNEX website for the most recent star ratings report on this topic. LOW-DOC HOME LOAN STAR RATINGS Report No. 4 January 2009 IN THIS REPORT WE EXPLORE Low-doc borrowers feel the brunt Lenders cut back on LVRs Refinancing a risky strategy Between a rock and a hard place? Mortgage insurers backing away LVR methodology tracks product changes LOW-DOC BORROWERS FEEL THE BRUNT The last six months has seen a continuation of the tightening lending environment which we highlighted in the previous report in July With the economic slow-down now hitting home, Australia s cash rates have shifted into reverse, tumbling from 7.25% to 4.25% with the likelihood of further cuts soon to follow. Rather than giving the lending industry a shot in the arm, this loosening of monetary policy has merely underlined a certain wariness by some lenders to approve loans. The difficulty of shoring up funds from the wholesale money markets combined with expected increases in defaults has resulted in lenders being more cautious about how much they lend and to whom. The generous cash rate cuts make lending rates more favourable for borrowers but they do not change the fact that lenders are generally less willing to lend than previously. In this restrained lending climate borrowers perceived to be higher-risk suffer most when looking to obtain credit. Low-doc borrowers, therefore, can expect to find it much more difficult to obtain a loan than previously.. LENDERS CUT BACK ON LVRs Not only have we seen many lenders withdraw from the low-doc market, but several of those who remain are now unwilling to lend more than 60% of loan-to-valuation ratio (LVR) on a property purchase so that in many cases you need a 40% deposit before you can even think of applying for a low-doc mortgage. Stalling property prices, faltering job security and a general flatlining of the economy are behind the moves by many lenders to lower the amount they are willing to lend. This is tough on low-doc borrowers who can now also be asked to provide a greater level of documentation than before when applying for a loan. Several lenders have reduced their maximum available LVRs by as much as 20%. Six months ago lenders such as ANZ, ING Direct, and Police & Nurses Credit Society were willing to lend 80% of a property s value to a low-doc borrower. Now they will lend a maximum of just 60% and it s likely that more lenders will soon follow suit. YOUR GUIDE TO PRODUCT EXCELLENCE

2 REFINANCING A RISKY STRATEGY Regardless of whether now may or may not be an ideal time to buy, refinancing an existing lowdoc loan is now fraught with problems. With a growing number of lenders willing only to lend up to 60% of a property s value, it s vital to ensure that you have enough equity in the property to qualify for a low-doc loan. LVR requirement after 5-year ownership 90% 80% 70% Can't 60% Can 60% LVR 60% 50% 40% 30% 20% 10% 0% -10% 10% decrease No change 10% increase 25% increase Change in property value over 5 years Source: CANSTAR CANNEX January 2009 The above chart assumes you borrowed an 80% LVR loan to purchase a property five years ago, in possession of a 20% deposit. The four scenarios are based on what has happened to the property s price during these five years, ranging from a decrease of 10% to an increase of 25%. The chart highlights that only if you have had 25% growth would you now be able to refinance your original 80% LVR home loan with a 60% LRV loan even though you have been paying down your loan during the five-year period. The implication is that many low-doc loan customers are stuck with their current loan provider until they have 40% equity in their property. Another consideration is your credit rating. Is it strong enough to qualify for another mortgage? If you have honoured all your mortgage payments in a timely manner since first obtaining a low-doc loan, your credit rating will be ideal. If however, you have experienced occasional trouble in making your regular mortgage payments, you could well find yourself struggling to refinance. Therefore, it s worth checking with your lender, or even with a credit rating agency such as to see whether your credit rating has been affected, and if so to what extent. BETWEEN A ROCK AND A HARD PLACE? Several institutions have disappeared from the list of low-doc lenders since our July report. The majority although not all of these lenders have simply stopped advertising their low-doc products rather than withdrawing them altogether. Another development noted during the past six months has seen several lenders have withdrawn low-doc loans from their packaged products. YOUR GUIDE TO PRODUCT EXCELLENCE 2

3 A by-product of the credit crunch which has caused headaches for a few unfortunate borrowers is certain lenders business models which necessitate an active reduction in their loan books in order to increase their capital ratio. Those lenders with low capital ratios are generally finding that their loan book is undergoing a higher default risk than other lenders with a lower loan-to-value ratio. One approach which helps them to achieve a capital ratio improvement has been to maintain fairly consistent interest rates despite the new lower cash rate environment. The double whammy for borrowers comes with the fact that early termination fees still apply as normal. For those who arranged finance at a fairly recent stage, the choice is either accept the high interest rate being charged, or pay the early termination fees to move the loan and take advantage of lower interest rates elsewhere. MORTGAGE INSURERS BACKING AWAY Despite what many people think, the lenders mortgage insurance they usually have to take out when they apply for a home loan does NOT protect the borrower in the event that they can t pay. It is designed instead to protect lenders against defaults by borrowers. The mortgage insurer will pay the lender if there is a shortfall in recovery costs once the repossessed property has been sold. Banks typically require lenders mortgage insurance (LMI) to be taken out on loans with an LVR over 80%, and also for mortgages perceived to be high risk, such as low-doc home loans. After a reshuffle of companies offering lenders mortgage insurance, the two main ones left servicing the Australian financial industry are Genworth Financial and QBE LMI (formerly PMI). Last September QBE began to increase premiums on high LVR loans and withdrew insurance on all loans above a 95% LVR. In December Genworth increased documentation criteria for low-doc loans. These applicants are now required to provide bank statements and a year s worth of Business Activity Statements. Furthermore, low-doc loans involving any form of equity release will no longer qualify for insurance under Genworth s umbrella. What this means to the low-doc consumer is that new or refinanced low-doc loans will be harder to obtain, as lenders show more and more reluctance to operate without LMI underpinning their loanwriting business. For low-doc borrowers, it seems that saving for an even bigger deposit is the only way. For low-doc borrowers keen to refinance, paying a big chunk off your mortgage could be the only way to meet the 40% equity requirement. LVR METHODOLOGY TRACKS PRODUCT CHANGES This time around, we analysed 132 loans from 33 lenders. That s a reduction of 21 loans and five lenders since our last star ratings report. To better capture the current market trend of capping the minimum borrowing at 60%, CANSTAR CANNEX is now basing its comparisons on 60% rather than 80% LVR, as was previously the case. This also removed the knock-out factor, which would have seen a large number of lenders not qualify for star ratings analysis, thereby diluting our market comparison. Our updated methodology rewards those loans which are available at over 60%, with the higher LVRs receiving higher scores in this particular feature category. The full methodology used to calculate the star ratings can be found after the results at the end of this document. In all three low-doc categories rated, variable, 3-year fixed and revolving line of credit, banks once again dominate the ratings, with only Acura Finance breaking the five major banks stranglehold on the 5-star ratings awards. As can be seen by the results, there are still plenty of excellent products available for this market. Studying the full list of results in the star ratings report makes it easy to compare products and short list those of interest. YOUR GUIDE TO PRODUCT EXCELLENCE 3

4 COPYRIGHT CANSTAR CANNEX Pty Ltd ABN , The recipient must not reproduce or transmit to third parties the whole or any part of this work, whether attributed to CANSTAR CANNEX or not, unless with prior written permission from CANSTAR CANNEX, which if provided, may be provided on conditions. DISCLAIMER To the extent that any CANSTAR CANNEX data, ratings or commentary constitutes general advice, this advice has been prepared by CANSTAR CANNEX Pty Ltd ABN AFSL and does not take into account your individual investment objectives, financial circumstances or needs. Information provided does not constitute financial, taxation or other professional advice and should not be relied upon as such. CANSTAR CANNEX recommends that, before you make any financial decision, you seek professional advice from a suitably qualified adviser. A Product Disclosure Statement relating to the product should also be obtained and considered before making any decision about whether to acquire the product. CANSTAR CANNEX acknowledges that past performance is not a reliable indicator of future performance. Please refer to CANSTAR CANNEX s FSG for more information at YOUR GUIDE TO PRODUCT EXCELLENCE 4

5 low-doc home loan star ratings January 2009 Text218: VARIABLE RATE PROFILE SUMMARY Company Product Name "superior value" Rate (%) $250k Loan Total Upfront Ongoing fee Loan Amount Eligibility Period for Self Employed Allow bad credit history Max LVR 100% Offset Account Features Acura Finance Lo Doc Nil No min 80% Colonial Standard Variable Lo Doc ( /m mths 80% Commonwealth Bank Standard Variable Lo Doc ( /m mths 80% Westpac Premium Opt Loan-Low Doc /m mths 82% Westpac Rocket Repay LowDoc /a mths 82% "excellent value" Acura Finance Lo Doc 80 No Mort Insur Nil No min 80% Colonial Low Doc Loan 60-80% LVR /m mths 80% Colonial Standard Variable Lo Doc /m mths 80% Commonwealth Bank Economiser Low Doc /m mths 80% Commonwealth Bank Low Doc Loan 60-80% LVR /m mths 80% Commonwealth Bank Standard Variable Lo Doc /m mths 80% St George Bank Low Doc Home Loan <$ /m mths 80% State Custodians Lo-Doc Standard Variable Nil mths 83% Westpac Premium Opt Loan-Low Doc /m mths 82% "strong value" ANZ Low Doc 60 Standard Var /m mths 60% ANZ Low Doc 60 Standard Var (B /m mths 60% ANZ Low Doc Simplicity Plus Nil mths 60% Colonial Economiser Low Doc /m mths 80% IMB Limited Lo Doc Loan /m mths 80% Mortgage Ezy Lo Doc Fee Free Variable /s mths 83% nab Tailored HL Var Low Doc /m mths 80% one direct lo doc 60 Var Nil No min 60% Savings & Loans Cred Un Low Doc Home Loan /m mths 80% Suncorp Back to Basics Low Doc Nil mths 80% "average value" Adelaide Bank Lo Doc Bonus Term Loan /m mths 80% AMP Banking Std Low Doc Variable /a mths 80% AMP Banking Std Low Doc Variable (Affinit /a mths 80% AMP Banking Std Low Doc Variable (Low /a mths 80% Redraw Split Loans Construction Loan your guide to product excellence 29th January 2009 LOW-DOC HOME LOAN - VARIABLE: Page 1 of 2

6 low-doc home loan star ratings January 2009 Text218: VARIABLE RATE PROFILE SUMMARY Company Product Name "average value" Rate (%) $250k Loan Total Upfront Ongoing fee Loan Amount Eligibility Period for Self Employed Allow bad credit history Max LVR 100% Offset Account Features BankWest Easy Doc Home Loan Nil mths 80% Colonial Low Doc Loan < 60% LVR /m mths 60% Commonwealth Bank Low Doc Loan < 60% LVR /m mths 60% HomeSide Lending HomePlus Var >250k /m mths 80% HomeSide Lending Offset Variable LoDoc /m mths 80% HomeSide Lending Plain & Simple Var P+I Nil mths 80% Mortgage HOUSE Freedom Home Loan Lo Do Nil yrs 80% Mortgage HOUSE Pure Basic Lo Doc Nil No min 76% MyRate Lo-Doc <600K 7 0 Nil mths 80% RAMS Home Loans SE Pro Pack /a mths 80% RAMS Home Loans Smartway Low Doc /a mths 80% RESI Mortgage Corp LoDoc LMI Nil mths 80% RESI Mortgage Corp LoDoc Pro LMI /a mths 80% Suncorp Standard Variable LowDoc /m mths 80% "satisfactory value" A M O Group Lo Doc Home Loan Nil mths 80% Adelaide Bank Lo Doc Bonus Homebuyer /a mths 80% AIMS Home Loans Gold Lo Doc Variable Nil No min 80% BMC Mortgage Low Doc - No Cred Impair Nil mths 80% BMC Mortgage Low Doc -Low Cred Impair Nil mths 60% Citibank Self Cert 80 Std Var (Mortga /m mths 80% Collins Home Loans Low Doc Rate Reverter Nil mths 60% Collins Home Loans Low Doc Variable /a mths 80% Homeloans Hassle Free Home Loan Nil mths 80% Homeloans Premium Lo Doc Variable Nil yrs 80% Homeloans Premium LoDoc ProPk Var /a No min 80% HomeSide Lending Plain & Simple Var IO Nil mths 80% HomeSide Lending Reducible Variable LoDoc /m mths 80% ING Direct Lo Doc Standard Variable Nil mths 60% La Trobe Financial Servs Lite Doc Housing Nil mths 80% Police & Nurses Cred Soc Low Doc Home Loan /m mths 60% Redraw Split Loans Construction Loan your guide to product excellence 29th January 2009 LOW-DOC HOME LOAN - VARIABLE: Page 2 of 2

7 low-doc home loan star ratings January 2009 Text218: 3-YEAR FIXED RATE PROFILE SUMMARY Company Product Name "superior value" Rate (%) Total Upfront Ongoing fee Loan Amount Eligibility Period for Self Employed Allow bad credit history Max LVR 100% Offset Account Features St George Bank LowDocNew Portfol 3yrFxd ( /m mths 80% Westpac 3 yr Fixed Low Doc /m mths 82% Westpac 3 yr Fixed Low Doc (Premier /m mths 82% "excellent value" St George Bank Low Doc 3yr Fixed /m mths 80% St George Bank Low Doc 3yr Fixed (Low Doc /m mths 80% St George Bank LowDocNew Portfol 3yrFxd /m mths 80% "strong value" BankSA LowDoc Portfolio 3yr Fxd /m mths 80% BankSA LowDoc Portfolio 3yr Fxd (Lo /m mths 80% Colonial 3yr Fixed Low Doc /m mths 80% Colonial 3yr Fixed Low Doc (Wealth /m mths 80% Commonwealth Bank 3yr Fixed Low Doc /m mths 80% Commonwealth Bank 3yr Fixed Low Doc (Wealth /m mths 80% nab Tailored HL 3yr Fxd LD /m mths 80% Savings & Loans Cred Un LowDoc Home Loan 3yr Fxd /m mths 80% St George Bank LowDoc Portfolio 3yr Fxd /m mths 80% "average value" ANZ Low Doc Stand 3yr Fixed /m mths 80% ANZ Low Doc Stand 3yr Fixed (Br /m mths 80% HomeSide Lending Homeplus 3yr Fxd >250K /m mths 80% HomeSide Lending Reducible 3yrFxd LoDoc /m mths 80% one direct lo doc 60 3y fxd Nil No min 60% RAMS Home Loans Fixed SE Pro Pack1 3yr /a mths 80% "satisfactory value" AIMS Home Loans Gold Lo Doc 3yr Nil No min 80% AMP Banking Std Low Doc 3yr Fixed Nil mths 80% AMP Banking Std Low Doc 3yr Fixed (Affin Nil mths 80% Citibank Self Cert 80 3Y Fixed /m mths 80% RAMS Home Loans Fixed Low Doc 3yr /a mths 80% State Custodians Lo-Doc 3yr Fixed Nil mths 80% Redraw Portable Loan Construction Loan your guide to product excellence 29th January 2009 LOW-DOC HOME LOAN - 3-YEAR FIXED RATE: Page 1 of 2

8 low-doc home loan star ratings January 2009 Text218: 3-YEAR FIXED RATE PROFILE SUMMARY Company Product Name "satisfactory value" Rate (%) Total Upfront Ongoing fee Loan Amount Eligibility Period for Self Employed Allow bad credit history 100% Offset Account Features Suncorp 3yr Fixed Low Doc /m mths 80% Max LVR Redraw Portable Loan Construction Loan your guide to product excellence 29th January 2009 LOW-DOC HOME LOAN - 3-YEAR FIXED RATE: Page 2 of 2

9 low-doc home loan star ratings January 2009 Text218: REVOLVING LINE OF CREDIT Company Product Name "superior value" PROFILE SUMMARY Rate (%) Total Upfront Ongoing fee Loan Amount Eligibility Period for Self Employed Allow bad credit history Max LVR Interest Capitalised Features Colonial Residential Equity Loan (We /m mths 80% N/A Commonwealth Bank Residential Equity LoDoc (W /m mths 80% N/A Westpac Equity Access Ln Low Doc /m mths 82% N/A Westpac Equity Access Ln Low Doc ( /m mths 82% N/A "excellent value" Colonial Residential Equity Loan /m mths 80% N/A Commonwealth Bank Residential Equity LoDoc /m mths 80% N/A nab FlexiPlus Low Doc /a mths 80% 2 "strong value" ANZ Low Doc Equity Manager (Br /a mths 70% No max BankSA Low Doc Portfolio Ln Var (Lo /m mths 80% 10 Commonwealth Bank Viridian LOC Lo Doc /m mths 80% N/A HomeSide Lending Peak Perform LoDoc >250k /s mths 80% N/A RAMS Home Loans LOC SE Pro Pack /a mths 80% N/A St George Bank Low Doc Port Ln Var<500K /m mths 80% 10 "average value" AMP Banking Std Low Doc Line of Cred /a mths 80% 10 AMP Banking Std Low Doc Line of Cred (A /a mths 80% 10 AMP Banking Std Low Doc Line of Cred (L /a mths 80% 10 ANZ Low Doc Equity Manager /a mths 70% No max BankSA Low Doc Portfolio Ln Var /m mths 80% 10 Suncorp Asset Line Low doc /m mths 75% N/A Wizard Home Loans Fastdoc Plus LOC Nil mths 80% N/A "satisfactory value" Citibank Self Cert 80 Mort Power (Mo /m mths 80% 4 Collins Home Loans Low Doc Line of Credit /a yrs 80% 3 Colonial Viridian LOC Qtly Lo Doc (W /m mths 80% N/A Commonwealth Bank Viridian LOC Lo Doc (Wealt /m mths 80% N/A ING Direct Lo Doc Smart Home Loan /a mths 60% N/A Mortgage HOUSE Professional Pac Lo Doc /a No min 80% N/A one direct lo doc 60 equity loan Nil No min 60% N/A Max no of sub accounts Split Loans Mandatory repayments your guide to product excellence 29th January 2009 REVOLVING LINE OF CREDIT: Page 1 of 2

10 low-doc home loan star ratings January 2009 Text218: REVOLVING LINE OF CREDIT Company Product Name "satisfactory value" PROFILE SUMMARY Rate (%) Total Upfront Ongoing fee Loan Amount Eligibility Period for Self Employed Allow bad credit history Interest Capitalised Features RAMS Home Loans LOC Low Doc /a mths 80% N/A Max LVR Max no of sub accounts Split Loans Mandatory repayments your guide to product excellence 29th January 2009 REVOLVING LINE OF CREDIT: Page 2 of 2

11 Methodology - low-doc home loan star ratings What is the CANSTAR CANNEX low-doc home loan star ratings? CANSTAR CANNEX loc-doc home loan star ratings is a consumer-friendly benchmark or value index. CANSTAR CANNEX star rated products represent a short list of financial products. This short list narrows the search for consumers to products that have been independently assessed and ranked. All star rated lowdoc home loans rated from one to five achieved a borrowing grade suitable for consumers to consider with qualities ranging from Superior to Satisfactory. The CANSTAR CANNEX low-doc home loan star ratings are an independent and transparent analysis comparing both the Cost and all the Features across home loan products. The results are reflected in a consumer-friendly 5-star concept. The star ratings from the CANSTAR CANNEX low-doc home loan star ratings are described as follows: Superior Product Excellent Product Strong Product Average Product Satisfactory Product Rising Star What types of products are evaluated for CANSTAR CANNEX low-doc home loan star ratings? The following account types are assessed in the ratings: Variable Rate Home Loans 3-Year Fixed Rate Home Loans Revolving Line of Credit For all these three product categories, CANSTAR CANNEX low-doc home loan star ratings assess the products competitiveness based on a scenario where the borrower requires a $250,000 loan at 80% loan to value ratio (LVR). Loans targeted at medium-to-severely-credit-impaired borrowers were excluded from our analysis, as were non-conforming loans. Loans assessed are only for residential purposes and not for business, investment or any other purpose. Package banking low doc loans are included within our analysis, as stand-alone products. How often are all the products reviewed for rating purposes? All ratings are fully recalculated every six months based on the latest features offered by each lender. CANSTAR CANNEX also monitors rate changes on an ongoing basis. How does it work? Each product reviewed for the CANSTAR CANNEX low-doc home loan star ratings is awarded points for its comparative pricing and for the array of positive features attached to the product. To arrive at the total score CANSTAR CANNEX applies a weight (W) against the Pricing Score (P) and Features Score (F). This weight will vary for each product type and will reflect the relative importance of either costs or features in determining the best low-doc home loan. This method can be summarised in the graph below: YOUR GUIDE TO PRODUCT EXCELLENCE

12 CANSTAR CANNEX star ratings methodology TOTAL SCORE ( T ) = W1PRICING SCORE( P ) + W2FEATURES SCORE ( F ) + W3EARLY TERMINATION FEE SCORE( E ) CANSTAR CANNEX low-doc home loan star ratings Overall Weightings W1 W2 W3 Pricing (P) Feature (F) ETF (E) Variable Rate Home Loans 65% 30% 5% 3-Year Fixed Rate Home Loans 70% 25% 5% Revolving Line of Credit 55% 40% 5% Pricing Score (P) Ranges from 55% to 70% Based on total interest costs and fees over 25 years Feature Score (F) Ranges from 25% to 40% Feature Categories Weightings CATEGORY DESCRIPTION Variable Early Termination Fee (E) 5% 3-Year Fixed Revolving Line of Credit Descriptions LOAN APPROVAL REQUIREMENTS* 20% 20% 20% Document requirements, eg. payslip, tax return ADDITIONAL REPAYMENTS 12% 7% 4% List flexibilities in making additional repayments LENDING TERMS 10% 10% 10% Min loan amount, max LVR, loan terms SPLIT LOANS 8% 6% 6% Ability to have split loans (fixed & variable rate) TRANSACTIONAL MORTGAGES 7% 6% 10% Details on redraw facility & flexibilities to withdraw SPECIALIST LENDING FEES 5% 5% 5% Other fees, such as arrears fee OFFSET FACILITY 5% 4% 2% Details on 100% offset account CONSTRUCTION LOANS 4% 2% 1% Ability to have progressive drawdown SECURITY/EQUITY/GUARANTEE OPTIONS 4% 3% 2% Flexibility of guarantor to help borrower SWITCH FEES 4% 6% 4% related to switching loan type TOP UP LOAN FACILITIES 4% 4% 4% Flexibility to unlock equity on the house LENDING AREAS 3% 3% 3% Area where the loan is available PORTABILITY 3% 3% 3% Can the loan be transferred to different security? SECURITY REQUIREMENTS 3% 3% 4% Different type of security allowed for this loan LOAN APPROVED BUT NOT DRAWN 2% 2% 2% Flexibility to have undrawn loan SPECIALIST LEND LOYALTY DISCOUNT 2% 2% 2% Rate discount after specific term LOAN PURPOSE 2% 2% 4% Can the loan be used for business/personal? CHANNEL AVAILABILITY 1% 1% 1% Different channels to apply for this loan SPECIALIST LENDING BORROW ENTITY 1% 1% 1% Who can use this loan LINE OF CREDIT DETAILS 0% 0% 12% Specific features for line of credit FIXED INTEREST DETAILS 0% 10% 0% Specific features for fixed rate loan * Includes information on document requirements for a lender to assess the loan application YOUR GUIDE TO PRODUCT EXCELLENCE 2

13 CANSTAR CANNEX star ratings methodology How are the stars awarded? The total score received for each product ranks the products. The stars are then awarded based on the distribution of the scores according to the following guidelines. As you can see, only the accounts that obtain a score in the top 5% of the of the score distribution receive a 5 star rating and only the top 75% of the score range receive a star rating. How often are CANSTAR CANNEX low doc home loan star ratings re-rated? Products are officially re-rated every six months. The results are published in a variety of mediums (newspapers, magazines, television, websites etc) Does CANSTAR CANNEX rate other product areas? CANSTAR CANNEX researches, compares and rates the suite of banking and insurance products listed below. These star ratings use similar methodologies to guarantee quality, consistency and transparency. Results are freely available to consumers who use the star ratings as a guide to product excellence. The use of similar star ratings logos also builds consumer recognition of quality products across all categories. Please access the CANSTAR CANNEX website at if you would like to view the latest star ratings reports of interest. Business banking Car insurance Credit cards Deposit accounts Health insurance Home & Contents Life Insurance Low-doc home loans Margin lending Mortgages Package banking Personal loans Reward programs COPYRIGHT CANSTAR CANNEX Pty Ltd ABN , The recipient must not reproduce or transmit to third parties the whole or any part of this work, whether attributed to CANSTAR CANNEX or not, unless with prior written permission from CANSTAR CANNEX, which if provided, may be provided on conditions. DISCLAIMER To the extent that any CANSTAR CANNEX data, ratings or commentary constitutes general advice, this advice has been prepared by CANSTAR CANNEX Pty Ltd ABN AFSL and does not take into account your individual investment objectives, financial circumstances or needs. Information provided does not constitute financial, taxation or other professional advice and should not be relied upon as such. CANSTAR CANNEX recommends that, before you make any financial decision, you seek professional advice from a suitably qualified adviser. A Product Disclosure Statement relating to the product should also be obtained and considered before making any decision about whether to acquire the product. CANSTAR CANNEX acknowledges that past performance is not a reliable indicator of future performance. Please refer to CANSTAR CANNEX s FSG for more information at YOUR GUIDE TO PRODUCT EXCELLENCE 3