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Features and Benefits	Eligibility Criteria	Applicable Loan Options	Lending Margins
Property Share allows for borrowers to purchase one property using separate loan facilities. Note: A maximum of two loan facilities per security is allowed where each loan may have multiple borrowers. Borrowers can split their loan facility to best suit their needs (see example below).   Each loan facility can be for different amounts, with different loan types, duration and payment structures. LVR is calculated on the combined debt and LMI (where applicable) will be split proportionately and capitalised to each loan.     Property Share arrangements with only one application are acceptable, where both parties are purchasing a property togethertogether, but one party is borrowing, while the other is contributing cash. In these cases, the cash party must be reflected as the Guarantor for the borrower’s loan in CommBroker and as with all Property Share arrangements, they must obtain legal advice and complete a Statutory Declaration.	All parties in the application/s (applicants and guarantors) must be owners of the property – i.e. no third party guarantors, including Government Guarantee Schemes. Customers must prove servicing for their own loan facility. It is mandatory that customers seek independent legal advice before entering into a Property Share arrangement and sign a Statutory Declaration which will be sent with the Guarantee to each Guarantor.	Property Share is available on all Home and Investment Home Loans. Mortgage Advantage (MAV) benefits may apply. Loan purposes include: Owner occupied or investment property purchase Home renovations (Top ups) Consolidation of personal debt Off the plan purchases Personal needs Personal investment	The circumstances of the loan will determine whether LMI may apply. Refer to Security Lending Margins for LVR limits and use the Postcode Lookup Tool for specific LMI Policy.

 

Interest Rates

Standard Home Loan and Investment Home Loan interest rates apply.

 

Fees and charges

Standard Fees and Charges apply.
A Security Guarantee fee will be payable on each loan.

 

Exclusions

Property Share is not available for:

• Equity Unlock Loan for Seniors
• Business purposes
  
• Bridging loans
• Purchase of land
• Building/construction loans

 

How does it work?

Standard Property Share Arrangement

Example:

Nick and Sue, and James are friends who currently rent a house together. They want to buy a house together valued at $540,000 but want to keep their finances separate.

• James takes a loan for $250,000 in his name (one loan facility);
• Nick and Sue take out two loans totalling $250,000 in their name (one loan facility);
• All loan facilities would be liable for LMI in this example.

Some examples of where Property share is a suitable option:

• First time buyers looking to buy property with friends
• Multiple investors looking to invest together but keep their finances completely separate.
  
• Parents seeking to help their child purchase their first home by contributing cash, while their child is borrowing. Both parties will own the property together (single application Property Share) Note: It is not a requirement to be a First Home Buyer.
  
• Multiple generations purchasing a property to live in.
  

 

 

Standard Two- Application Property Share Arrangements - Process

• Complete two separate applications
  • Record in the notes that the applications are for Property Share, select "Guarantor Support Security" as a feature for each application.
  • Record details of the other application in the notes (on both applications) so these can be cross referenced i.e. loan amount/s product type/s and application id (if known)
    
  • Ensure the applicant in the first application is the guarantor of the second application, and the guarantor in the first application is the applicant of the second application.
    
  • Follow all requirements of the standard Guarantor Process, including providing details interview notes for each applicant.
    
  • When completing the Guarantors section you only need to include the Guarantor names- full details of the Guarantors personal particulars or financial position are not required as they have been provided in the other application
    
  • For online applications the system calculated LVR is only based on the single application (not the combined debt). This may result in the system decision incorrectly advising LMI is not applicable. All property share applications will be manually re-assessed so the security position (LVR/LMI) is done on a combined basis. You should await confirmation of the decision by a credit manager before conveying to your client.
    
  • Where LMI is payable the premium will be split proportionately between the applications.
    
  • The Statutory Declaration for Mortgages (002-421) will be sent to the guarantors for execution and is mandatory to complete. This document provides confirmation that they have sought independent legal advice regarding the guarantee and mortgage, and their rights and obligations as co-owners of the security property.
    

 

Single application Property Share arrangement Example

Dave and Sue want to help their son Sam to purchase a property They will have an ownership share in the property in lieu of a gift and therefore Sam’s parents will also be on title.

Property purchase price is $550,000. Ownership will be 80%Sam & 20% to Dave and Sue Maximum loan for Sam is $440,000 (80% LVR). The Guarantors- Dave and Sue will provide a 20% cash contribution to complete the purchase

LVR cannot exceed ownership split between the cash party and the borrower(s).

 

Single Application Property Share Arrangements - Process

• Property Share arrangements with only one application are acceptable, where both parties are purchasing a property together, but one party is borrowing their funds while the other is contributing cash.
• Complete a single application for the party borrowing funds, and capture the party contributing cash as a guarantor.
  
• Follow all requirements of the standard Guarantor Process, including providing details interview notes for each applicant.
  
• The Statutory Declaration for Mortgages (002-421) will be sent to the guarantor (i.e. cash part) for execution and is mandatory to complete. This document provides confirmation that they have sought independent legal advice regarding the guarantee and mortgage, and their rights and obligations as co-owners of the security property.
  

 

 

Fact Sheet