Part A – Loan Terms
About these Terms and Conditions
These are the Nano Loan Terms and Conditions incorporated into your Loan Contract referring to these Nano Loan Terms and Conditions Version 3 dated October 21. They form part of your contract with us.
This document does not contain all the precontractual information required to be given to you. You must read this document together with the Loan Contract that contains the Financial Table.
Words in italics have a special meaning. These words are defined at the end of this document or in the Loan Contract.
Other documents you must read
You must read and comply with:
- your Loan Contract;
- these Nano Loan Terms and Conditions;
- the Mortgage Common Provisions;
- payment access methods, which you will see when you download the mobile app; and
- any other conditions reasonably imposed by us.
Take particular notice of the things you must do and must not do with the mortgaged property and when your payments are due.
When there is a binding legal contract between you and us
NOTE: Until the loan date, we have the right to change the terms of your contract or to withdraw our offer to lend altogether.
There is no binding legal contract between us until the loan date or such earlier date as we decide. This means that until the loan date
- you are not bound to go ahead; and
- we have the right to change the terms of your contract or to withdraw it altogether and decline to make an advance of funds to you if anything occurs which we reasonably believe makes proceeding with the loan undesirable. We are not obliged to make an advance of funds until all relevant conditions are fulfilled to our satisfaction. You may be liable for costs even if we decide not to proceed.
If there are two or more borrowers, each of you is individually liable, and all of you are jointly liable. This means that we may take legal action against any one of you for all the outstanding amounts.
Each borrower can bind each other borrower. For example, any one of you can authorise a transaction on any offset sub-account, a split into one or more loan accounts, or any other activity in respect of your loan. Each borrower and any guarantor will be liable even though they did not know about or agree to the transaction.
NOTE: This means that each one of you can be required to pay the whole amount even if you have some other arrangement among yourselves and even if not all of you benefit equally.
Despite this clause, we may require all borrowers and guarantors to authorise any activity with respect to your loan.
Representations and warranties
You represent and warrant that all information you have given us regarding your financial and personal affairs and any mortgaged property is true and correct. You also represent and warrant that other than as disclosed to us in writing prior to the loan date:
- there are no unpaid rates or taxes owing in respect of the mortgaged property;
- the mortgaged property will be occupied by you unless it is for an investor loan, in which case we approve for it to be leased;
- there are no notices or proposals from any government or other authority adversely affecting the mortgaged property;
- there are no defects or disputes relating to the mortgaged property; and
- there are no structural alterations or improvements on the mortgaged property which require approval by the council or any other authority which have not been approved.
Things you must tell us
You must notify us promptly if any of the following occurs:
- there is a change of loan purpose;
- your circumstances change to an extent that your ability to make loan repayments is impacted;
- you cease to reside in the mortgaged property (unless you have already told us);
- your contact details change (including any residential, postal or electronic address, or your phone number);
- you think there is any information that we should be aware of about your ability to comply with your contract.
What we can do with your loan account
We can debit your loan account with any amounts lent to you or due under your contract, such as interest and credit fees and charges. If you have more than one loan account, we can debit these amounts to any of your loan accounts.
If a third party makes a payment to you on our behalf, we can debit your loan account on the date that money is made available to you.
Combining split loans and sub-accounts
We may combine two or more split loans if they have identical repayment types, annual percentage rates, interest only periods (if applicable), and loan purposes. We may also combine any offset sub-account with another loan account.
Switching account types
You may with our approval split your loan account into two or more accounts or switch account types.
The following are examples of switches. Some or all of these options may not be available to you.
- Consolidate one or more loan accounts.
- Convert from interest only repayments to principal and interest repayments and vice versa.
- Convert from one type of loan account to another type of loan account, such as owner occupier to investor.
- Split your loan into two or more loan accounts.
With our approval (which may involve re-assessing your loan), you may request a change prior to the initial drawdown, in which case the change takes effect from the loan date. We have full discretion whether or not to approve any split or switch requested by you.
New loan account
If a new loan account is created, separate repayment dates may apply to that new account. If your loan account is split into two or more accounts, or if you switch between types of interest rate, you may have to pay interest on the amount switched or split to the date on which the switch or split occurs.
Drawing down your loan
If you do not draw down the total amount of credit on the loan date, any borrowing of the balance will only be drawn down subject to our approval.
Payments you must make
You must make all the payments and pay all the credit fees and charges specified in your Loan Contract (as varied from time to time). In addition, on the final repayment date, you must pay us the amount you owe us in respect of all your loan accounts.
Payments will be credited to your loan account only when actually received by us. All payments must be made in full when they are due, without setting off or deducting any amounts you believe we owe you, and without counterclaiming any amounts from us.
The amount of each payment may include any third party fees as described in your Loan Contract.
Payments are to be made by direct debit, direct credit, New Payments Platform (NPP), by deduction from your offset sub-account, or by any other reasonable method we put in place.
In any event, we may require you to sign a direct debit authority to authorise us to debit one of your bank accounts and you must keep that account open. You authorise us to obtain any money due under your contract by using the direct debit authority. If an attempted direct debit fails, we may make further attempts to direct debit your account until the direct debit is successful. If the account you authorise us to debit from is ever closed, you must inform us immediately and provide us with an alternative account and sign a new direct debit authority to authorise us to debit the new account accordingly as soon as possible.
How your payments are credited
We can apply any payment or other credit to any amount you owe us in any order we determine.
If you have more than one account with us, and you make a payment without telling us in writing how the payment is to be applied, we can apply it to any one or more of the accounts in any way we think fit.
Payments by direct debit
If you are making payments by direct debit, we will attempt to debit each repayment for your loan from the nominated account on the day that the payment is due.
Payments made by other methods
For payments made other than by direct debit, this payment is to be paid into your account in cleared funds.
If a direct debit is not in place, you must have a sufficient balance in your offset sub-account to cover the payment you must make under the contract for your loan. The payment will be made automatically from your offset sub-account and credited to your loan account on the day your payment is due.
If any payment is due:
on a day which is the 29th, 30th or 31st of a month with no such date,
the payment must be made on or before the last day of that month
Direct debit dishonour
If any direct debit used for repayment is dishonoured, the repayment will be treated as not having been made, and interest will continue to accrue on the unpaid daily balance until actual payment is received by us.
If any of your loan accounts are in arrears while one or more of your other loan accounts or other accounts with us have funds available to be drawn, you authorise us to appropriate from any one or more of those accounts to pay some or all of your arrears. We are not obliged to do this.
Payments in the event of a death
As set out in your Loan Contract, the amount you owe us must be repaid within 180 days from the date you die (or if there is more than one borrower, the last of you dies) unless other arrangements are made for the continuation of the loan to our satisfaction. We will discuss this with your executor or beneficiaries and seek to agree a mutually acceptable solution.
If you are required by law to deduct any amount from a payment due to us, unless we can receive a credit or rebate for that deduction, you must make an additional payment so that the amount we receive is not reduced.
When you pay interest
You must pay interest on balance owing on each loan account, less any amount in your offset sub-account. Interest debited to your loan account forms part of the amount you owe us. We do not pay interest on credit balances in any loan account. You must ensure that your offset sub-account balance is never higher than your loan balance at any point in time, but even if it is for any reason, we do not pay interest on any credit balance.
How interest is calculated
Interest charges are calculated by applying the interest rate to the unpaid balance owing (less any amount in your linked offset sub-account) at the end of each day on each loan account. The interest rate applied each day is equal to the annual percentage rate applicable to the loan at the time divided by the actual number of days in that particular year, so either 365 or 366.
We calculate interest on a loan account daily by applying the daily percentage rate for the account on that day to the balance owing on the loan account at the end of that day less any amount in your offset sub-account at the end of that day. On the date we debit accrued interest to a loan account, we calculate interest on the balance owing on the account less any amount in your offset sub-account prior to debiting the accrued interest to the account.
Default interest on unpaid amounts
If you fail to make a payment on a loan account you must make under the contract for your loan, you must pay interest at the default rate on the unpaid amount.
We calculate the interest daily by applying the daily default rate for a loan account on that day to any unpaid amount on the loan account on that day.
When interest charges are debited to your loan account
Interest charges are debited to your loan account monthly in arrears on the same day of each month as the loan date and on the final repayment date.
If the day on which interest is due to be debited does not exist in a month (for example 31 April), interest will be debited on the last day of the month.
Interest charges may also be debited on the date of any switch or split.
In addition to debiting interest to your loan account as specified above, we may debit interest whenever the loan is in default, you repay the amount you owe us, there is any principal increase or variation to your contract, or there is any change to the loan terms.
Interest accrues on a daily basis from the day we disburse money at your request to make the first advance. This applies whether or not any real estate transaction to which the advance relates (e.g. refinance or purchase) occurs on that day.
If more than one interest rate applies to your loan accounts, we will apply the applicable daily percentage rate to the relevant portion of the amount you owe us.
If you become liable by a court order to pay any money due under your contract, you must pay interest at the higher of the rate ordered by the court or the rate payable under your contract.
About your offset facility
NOTE: We can change, suspend or cancel your offset facility at any time. We may debit your offset sub-account with any money due to us under any account you have with us.
We will tell you if offset facilities are available
We will tell you if offset facilities are available. If you request funds or attempt to make a payment from your offset sub-account balance, you must be aware that we have full discretion whether or not to approve your request and payment attempt. A key example of where we reserve the right to refuse your request would be if you have defaulted under your contract. We may change, suspend or cancel the offset facility at any time.
NOTE: If your offset sub-account balance is equal to the amount you owe us, we may combine your offset sub-account and your loan account, close your loan account (and offset sub-account) and discharge your mortgage.
We do not make any representations about the tax effectiveness of any offset sub-account.
Offset sub-account operation
Each offset sub-account must be linked to a separate nominated loan account.
Interest payable on each loan account linked to your offset sub-account will be calculated on the daily balance of that loan account less the balance in the linked offset sub-account.
Any offset sub-account(s) is not a standalone account and cannot be severed from your nominated loan account.
You must ensure that the balance of any offset sub-account does not exceed the amount owing under the linked loan account at any time. If the balance of your offset sub-account exceeds the amount owing under the linked loan account, we may send the excess funds back to you, or apply them towards another one of your loan accounts.
No interest is payable on your offset sub-account(s) even if the balance exceeds the amount owing under your linked loan account.
You must make sure that you do not allow your offset sub-account to be overdrawn. If your offset sub-account is overdrawn, you must repay the excess immediately, and we may charge default interest on that amount until it is repaid.
If your loan account has the interest type ‘principal and interest’, and you have funds in your offset sub-account at any point, your contractual repayment amount will not change, rather the interest you save from the balance in your offset sub-account will go towards:
- paying down more of the principal balance in the respective repayment period;
- reducing the interest charges applicable to your loan which has the result of increasing the amount of principal that is repaid with each repayment,
which helps you repay your loan faster.
If your loan account has the interest type ‘interest only’, and you have funds in your offset sub-account at any point, the amount you need to repay on a scheduled repayment date will change in line with the interest you save from the balance in your offset sub-account, thereby helping you pay less interest over your agreed interest only period.
Using your offset sub-account
You can pay funds into and draw funds from your offset sub-account using the methods we allow from time to time. You may be required to download a mobile app and accept separate terms and conditions relating to accessing your offset sub-account, or you may access your offset sub-account by any other method we allow from time to time.
Funds drawn from your offset sub-account will be processed as we decide from time to time.
We will automatically attempt to debit your contractual repayment amount from your offset sub-account whenever the funds are available to cover the amount in full. If your full repayment is not available from your offset sub-account, we will debit your repayment using the direct debit authority held by us. In some instances we may debit your offset sub-account for a partial contractual repayment.
You must keep the access method of making payments and transactions from your offset sub-account confidential to ensure there are no unauthorised transactions or other dealings with your loan account(s).
Paying third parties by direct debit
With our approval, you can arrange for third parties to have a right to debit any of your offset sub-accounts. Once set up, any request by a third party for payment under a direct debit authority will be treated as having been properly authorised by you. We can cancel this arrangement at any time, and we are not liable to you or anyone else if a payment is not made for any reason. Any arrangement must be confirmed before the loan date and may not be available after the loan date without our approval. We may impose an additional fee for any arrangement requested after the loan date.
Repaying your loan early
You may repay your loan in full at any time by paying the amount required to pay out your contract on the day you wish to end your contract.
Changes we can make to your contract
NOTE: We can make changes to your contract at any time. In making any changes, we will act reasonably. We will endeavour to give you reasonable notice of changes, but we reserve the right to make immediate changes to interest rates.
Acting reasonably, we can change or vary any term of your contract:
- that deals with the pricing of your loan (including your interest rate and credit fees and charges, but subject to any specific agreement);
- that deals with the day you make repayments or we debit interest to your loan account;
- to accommodate a change in law or market practice;
- to accommodate a change in technology or other ways of communication;
- to accommodate a change in payment and access methods; or
- to make any other reasonable change.
If you are not satisfied with any material change or variation to your contract (excluding changes to interest rates and repayments under a variable rate loan), you may repay your loan in accordance with clause 11, but we will not charge you any fees for terminating your contract except our reasonable third party fees incurred in discharging any security and finalising your loan account.
Acting reasonably, we will give you
- not less than 30 days notice of any change, except for a notice of a change to the interest rate(s) applicable to your loan which will be notified not later than the day on which the change takes effect.
- notice of a change to the interest rate(s) applicable to your loan not later than the day on which the change takes effect.
However, we may give you a shorter notice period or no notice if the change is not adverse to you or reduces your obligations. We will give you notice in writing or by electronic means. Any variation will take effect from the date specified in the notice of change we give you.
Statements of account
Statements of account will be provided to you digitally at least once every six months or more frequently if required by law. Please check your statements for errors or unauthorised transactions. If you consider there are errors or unauthorised transactions, please notify us immediately.