Have you ever had any defaults, judgements or legal proceedings recorded against you?
Are all of your current credit commitments up to date?
Are you a tax resident of a foreign country?
Please enter a number from 1 to 10.
On a scale of 1-10 how concerned are you about rising interest rates (1 not concerned, 10 highly concerned)
Please enter a number from 1 to 10.
On a scale of 1-10 how would you rate your current job security (1 not secure, 10 highly secure)
Anticipated changes
Does the applicant plan or anticipate changes (other than retirement) to their future financial circumstances that could ADVERSELY impact their ability to repay the loan?
Retirement planning
Will the applicant reach their planned retirement age during the term of the loan?
Will the applicant's age reach 70 during the term of the loan?
How would the applicant propose to repay the loan?
Applicant declared purpose
Risks
  • I have discussed that the goods being financed / refinanced may not hold their value for as long as the remaining term of the loan and so the applicant(s) may be paying for those goods beyond their useful lifespan and value. Additionally, I have discussed that the applicant(s) may not be in a position to finance the replacement of those goods if the term exceeds the lifespan of the original goods.
  • I have discussed with the applicant(s) that they may end up paying more interest compared to taking the loan over a shorter term more in line with the useful life of the goods.
  • I have discussed with the applicant the option of a separate loan with a shorter term for the part of the loan required for the purpose of the goods.

Will existing credit card limits be reduced or cancelled?

Risks

  • I have discussed with the applicant(s) that they may end up paying more interest, particularly if the applicant(s) incurs further credit card, personal loan or car loan debt after consolidating existing debts.

Refinance and debt consolidation

What are the reason(s) for the applicant(s) wanting to refinance the existing loan?

Risks

  • If refinancing or debt consolidation increases the term of the loan, this may cause the applicant(s) to pay more interest and mean the applicant(s)'s equity in the property builds up at a slower rate

Rate Type

Which product rate type is most important to the applicant(s)?

Variable rate

  • Interest charged and repayments will change to reflect interest rate movements
Why is variable rate important to the applicant(s)?

Risks

  • Interest rate and repayment amount may increase while the loan is on a variable rate

Repayment type

Principal and interest

  • Repayments cover loan principal and interest so that the loan is paid in full by the end of the loan term
  • Applicant(s) could pay less interest over the life of the loan as compared with a loan which features a period of interest only repayments
  • Interest rates on principal and interest repayments are generally lower than interest only
Why is principal and interest important to the applicant(s)?

Interest only

  • Allows smaller repayments during the interest only period enabling:
    • Higher cash on hand for other purposes
    • Flexibility to manage cash flow
    • Smaller initial payments on investment home loans may serve a tax purpose

Product features

Offset account

  • Allows applicant(s) to link a savings account in their name to a loan account to reduce amount of interest payable under loan
  • Will only be of benefit where the applicant expects to have sufficient funds in the offset account so that the interest savings on the loan will exceed additional costs related to the offset account
Why is having an offset account important to the applicant(s)?

Risks

  • Feature may not be available when the loan is on a fixed rate
  • May only be a partial interest rate offset
  • Fees may apply
  • Explain any different risks applicable to specific lender products, including a higher interest rate on the loan

Redraw feature

  • Allows applicant(s) to access extra repayments that they made additional to their required minimum repayments
Why is having a redraw account important to the applicant(s)?

Risks

  • Lender may charge fees for each redraw
  • Each redraw may be subject to the lender's discretion

Other

Do the applicant(s) have any other requirements and objectives not already stated which may affect whether the loan is suitable, including whether there are any particular personal circumstances of the applicant(s) not documented in any previous responses in this interview guide that are relevant to the loan features that have been identified as 'Important'?

Conflicts

Are there any conflicts between any of the loan features selected in the application?