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Home Loan Key Fact Sheet Regulations
The National Consumer Credit Protection Amendment Regulations 2011 (No.5) were registered on 5 September 2011.
The Regulations set out the operational detail of the home loan provisions in the National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Act 2011 which commences on 1 Janauary 2012.
The Act requires lenders to provide consumers with personalised Key Facts Sheets for home loans.
What home loans require a Key Facts Sheet?
Section 133AA(1) of the Act defines a standard home loan of a licensee as a standard form of credit contract under which the licensee provides credit:
- to purchase residential property; or
- to refinance credit that has been provided wholly or predominantly to purchase residential property.
Regulation 28LA prescribes that a standard form of credit contract is a contract for a home loan that obliges the consumer to make repayments that repay principal and interest for the full term of the home loan with one of the following types of interest rates:
Variable rate home loan: The interest rate on the entire loan balance may vary at the lender’s discretion
Fixed rate home loan: The interest rate on the entire loan balance is fixed for the whole or part of the loan
Interest only loans and “split loans” are not covered.
Home Loan Key Facts Sheets
Does giving me a home loan key fact sheet mean my loan has been approved?
A home loan key fact sheet is not an offer of credit. A lender is not obliged to provide you with the home loan described in the home loan key fact sheet, you still need to apply for the loan and meet the lending criteria.
How long do I have to take up the loan on the home loan fact?
A home loan fact sheet is a comparison tool, it is not an offer of credit. You still need to apply for and meet the lending criteria.
Is the home loan fact sheet an Australian Government requirement?
The Australian Government requires all lenders offering home loans to give you a home loan fact sheet when you ask for one, and to make them available on their website.
How do I know the fact sheet I am given is the Australian Government home loan fact sheet?
Home loan fact sheets have the words 'This Key Fact Sheet is an Australian Government requirement under the National Consumer Credit Protection Act 2009' on the top right hand corner.
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