100% Offset Home Loan. 100% Offset Home Loan. Product Overview. Product Specifics

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1 The is aimed at customers who want to be able to separately identify how much money they have and how much they owe, but at the same time get similar interest benefits that can be gained from all-in-one loan products like Home Line. It combines a fully featured home loan with all the benefits of a 100% offset account and lets the customer see at a glance what their offset balance and loan balance is on their statement. The offset balance accrues interest at the loan rate and reduces the interest payable on the loan. This means that the customer does not get charged interest on the part of the home loan equivalent to the offset balance on any given day. With a, funds in the offset balance can be accessed through ATMs, Online Banking, Express Line and other standard means. Product Overview Description Purpose Term loan with attached 100% offset facility with the option of a variable rate or fixed rate. Standard residential loan purposes such as: Purchase or refinance an owner-occupied or investment property Debt consolidation Equity loans for investment or personal purposes Loans for business purposes up to 20% of the loan amount (excludes working capital and the payment of personal or business tax liabilities) Building loans with progress payments (excluding owner-builder) Go-Between loans Product Specifics Minimum loan amount $10,000 Maximum loan amount Loan term Interest rate options Loan: No maximum (may be restricted by LMI) Offset: No maximum, however the customer receives no benefit (or interest) on any offset balance that exceeds the loan balance 5 30 year terms Variable rate Australian Credit Licence Version Dated 24 April 2014 Page 1 of 6

2 1 to 5 year fixed rates Note: For new loan applications during an interest only period, the fixed term must not exceed the length of the interest only period 100% offset applies to offset facility Interest calculation Interest posted Interest charge day Repayments Changing repayment types Repayment options Voluntary repayments Calculated daily on closing balance. Interest accrued on the offset balance is offset against the interest accrued on the loan balance To the loan account monthly in arrears (on the loan anniversary) Interest only customers have the option of nominating an interest charge day other than the anniversary day of loan settlement by completing an Interest Only Term Loan Interest Charged Day Request form (Loan variation fee to apply) Monthly repayments must be debited from the offset balance Principal & Interest: Principal & Interest repayments are required during the full term of the loan. Interest Only: Select up to 10 years interest only, converting to principal & interest for the remainder of the loan term. For Building Progress Payment Loans the first 10 years is interest only, converting to principal and interest for the remainder of the loan term At the end of the initial interest only period a further interest only period may be negotiated with a full reassessment in line with Lending Policy. A loan variation fee may apply Note: Scheduled repayments are required regardless of the offset benefit, except where the loan is in a Go-Between period Principal & Interest to Interest Only A customer who was originally contracted as principal & interest can convert from principal & interest to interest only repayments via a Product Conversion Credit Application form (loan variation fee to apply) A customer who was originally contracted as interest only can convert from principal & interest back to interest only (if within the 10 years of the settlement date) via the Term Loan Conversion to Interest Only form (loan variation fee to apply) Interest Only to Principal & Interest A customer can convert from interest only to principal & interest repayments via the Term Loan Conversion from Interest Only Request form (loan variation fee to apply) Monthly repayments (irrespective of any additional repayments) must be made prior to or on the anniversary date of settlement from the offset balance More frequent payments are permitted (weekly/fortnightly) Note: Any loans settled on the 29 th, 30 th, or 31 st of the month will have repayments due on the 28 th of every month Deferred repayments / interest capitalisation are only available on Go-Between loan during the Go-Between period Variable Rate Australian Credit Licence Version Dated 24 April 2014 Page 2 of 6

3 Additional repayments may be made at any time without penalty Fixed Rate Maximum of $20,000 per annum in excess of normal repayments is permitted, after which break costs apply Note: Funds must be transferred from the offset balance to the loan via Online or Telephone Banking Credit increases Available A loan variation fee and security handling fee may be payable Note: Not available for Building Loans during progress payment period, Fixed rate loans and Go-Between loans during the Go-Between period Redraw Facility Available, minimum redraw of $500. Rate Conversion Conversion to Fixed Term Borrowers may apply to convert to a fixed rate at any time. A loan variation fee is payable. Applications will be made effective from their monthly anniversary date and must be received a minimum of 14 days before the monthly due date. At the expiration of the fixed term, the loan reverts to the variable rate. Borrowers may re-fix the loan, for which a further rate conversion fee is payable. Lending Policy Guidelines Security Credit history Maximum LVR (loan to valuation ratio) Income / employment requirements Other lending restrictions Serviceability ratios LMI (Lenders Mortgage Insurance) Registered first mortgage only Normal lending policy Principal & Interest 95% maximum LVR for owner occupied loan including capitalised LMI 90% maximum LVR for investment loans Interest Only Up to 90% LVR plus capitalised LMI Normal lending policy Normal lending policy All applications assessed using the Net Surplus Income method Serviceability Ratio 1.0 Loans greater than 90% LVR require minimum serviceability ratio of 1.2 LMI required on loans with >80% LVR Australian Credit Licence Version Dated 24 April 2014 Page 3 of 6

4 Fees & Charges Application fee Determined by the Mortgage Manager Building loan fee Monthly administration fee Loan processing fee Loan variation fee Determined by the Mortgage Manager payable at first drawdown Nil This fee is paid for us to prepare loan documentation necessary to enable the home loan to settle: for standard loan $150 per split loan $50 for Go-Between loan $250 for construction $250 for Go-Between & construction $350 Payable in each instance when a customer: varies the existing contract substitutes a security converts to another annual percentage rate Redraw fee Free Online/Phone banking redraws. Manual redraws - $50. Break costs fee Nil Product Codes Ledger LPID Code Loan YX Offset - FX TERM VARIABLE (W) THV TERM FIXED 1 YEAR (W) F1W TERM FIXED 1 YR WITH EFM (W) EF1 TERM FIXED 2 YEAR (W) F2W TERM FIXED 2 YR WITH EFM (W) EF2 TERM FIXED 3 YEAR (W) F3W TERM FIXED 3 YR WITH EFM (W) EF3 TERM FIXED 4 YEAR (W) F4W TERM FIXED 4 YR WITH EFM (W) EF4 TERM FIXED 5 YEAR (W) F5W TERM FIXED 5 YR WITH EFM (W) EF5 Australian Credit Licence Version Dated 24 April 2014 Page 4 of 6

5 Printed Materials Terms & Conditions Accessing Your Account: ABTC010 Home Mortgage: ABTC004 Account History Introduced July 2004 LVR Go-Between loans Deferred establishment fee 18/10/04 Increased maximum LVR to 100% for P&I only 25/03/08 Decreased maximum LVR to 90% plus capitalised LMI for P&I 25/03/08 Decreased maximum LVR to 80% plus capitalised LMI for IO 23/08/10 Increased maximum LVR to 95% for P&I owner occupied only 23/08/10 Increased maximum LVR to 95% for category 3 24/04/14 P&I Maximum LVR 95% including capitalised LMI 28/02/05 Introduced for interest based and building loans 01/06/11 No longer applicable for loans with contract print date from 01/06/11 For contracts printed between 20/02/01 and 4/7/05: Payable if the customer discharged the loan as per the table below Time from settlement date (months) % of approval amount % % % % For contracts printed between 4/7/05 and 31/05/11 Payable if the customer discharged the loan as per the table below Time from settlement date (months) % of approval amount % of upfront advanced paid % of upfront advanced paid % of upfront advanced paid % of upfront advanced paid Additional interest 27/06/11 No longer applicable for any existing loan. Historical charges Unregulated loans with contract print date prior to 4/7/05 2 months additional interest charges upon closure Unregulated loans with contract print date betweem 4/7/05 31/12/05 1 months additional interest charges upon closure Australian Credit Licence Version Dated 24 April 2014 Page 5 of 6

6 Product enhancements 17/10/05 Interest based loans made obsolete for new business 17/10/05 Interest only loans launched. 14/12/05 - Ability introduced for Interest only loans to convert from interest only to P&I and vice versa within existing loan nominate alternative interest charge day Redraw 05/12/05 Electronic loan redraw introduced. Minimum redraw amount reduced to $500 LMI Loan variation fee Transaction fees 20/03/06 LMI premium is now allowed to be capitalised over and above the maximum base LVR up to 97% 01/08/07 Implemented, replacing the Contract variation, Loan portability and rate conversion fees 03/03/09 Removal of foreign ATM fee 09/08/10 Added wording Bendigo Bank ATM or an ATM that forms part of a Bendigo Bank shared ATM network Genuine savings 13/07/09 Amendment to 5% genuine savings requirement, now required when LVR >80% Security Loan processing fee 02/11/09 Removal of consideration of second mortgages 09/08/10 Increased the Loan processing fee Standard loan increased from $100 to $150 Go-Between loan increased from $180 to $250 Construction loan increased from $200 to $250 Go-Between construction loan increased from $280 to $350 Serviceability ratio 23/08/10 Added loans greater than 90% LVR require minimum serviceability ratio of 1.2 Australian Credit Licence Version Dated 24 April 2014 Page 6 of 6