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Fixed rate loan
Fixed rate loans have a set interest rate which cannot be varied, either upward or downward, for a specified period. Capped loans are not categorised as fixed rate loans because their interest rate can vary within period for which the cap applies.
Lending for investment dwellings relates to loan agreements entered into for the purpose of purchasing or constructing an investment dwelling (i.e. a dwelling for rental or resale purposes). Investment dwellings are dwellings that will be occupied by persons other than the owner(s).
Includes cars, station wagons, four-wheel drive, and forward control passenger vehicles with up to nine seats (including the driver).
Newly constructed dwellings
A new dwelling is one that has been completed within 12 months of the lodgement of a loan application, and the borrower will be the first occupant. This includes lending for off-the-plan purchases of dwellings.
Financial institutions that are not Authorised deposit-taking institutions (ADIs). Non-ADIs are money market corporations such as brokers, finance companies and securitisers.
Off-the-plan dwelling purchases typically require a deposit from the buyer before dwelling construction is completed and usually before construction has commenced. Buyers often obtain in-principal, pre-approval for a home loan for the completed dwelling. In practice, lenders usually value the nearly completed dwelling and make a lending decision based on consideration of circumstances prevailing at that time. The lending commitment associated with off-the-plan dwellings usually eventuates close to the dwelling’s completion which is usually many months after the deposit was paid.
Loans for off-the-plan purchases of dwellings should be categorised as loans for new dwellings and not as loans for construction. Some lenders routinely misclassify off-the-plan loans as loans for construction and so lending to households for construction of owner occupier dwellings is over-stated and lending to households for purchase of newly constructed dwellings is understated by an unknown amount.
Plant and equipment
Includes agricultural machinery and equipment, construction and earth moving equipment, electronic data processing equipment, manufacturing equipment, motor vehicles and office machines.
Of the loan is that specified by the borrower. Where possible multiple purpose loans are split and each component is reported in the appropriate purpose category. Otherwise the whole loan is classified to the major purpose.
Comprises both residential and non-residential land, buildings and fixed structures.
For lending to households for the purchase of dwellings, for both owner occupation and investment, refinancing only refers to loans that are being refinanced to a new lender, and the security is unchanged (For example, refinancing existing home loans on the same residence). This does not include commitments to refinance existing loans, where there is no change in the property offered as security, and the institution offering the commitment is the original lender (For example refinancing from a variable rate loan to a fixed rate loan).
Generally has the following characteristics:
Secured credit limits
Includes overdrafts, lines of credit, credit cards, etc. backed by a mortgage or other assets owned by the borrower.
Secured housing finance
Comprises all secured commitments to households for the construction or purchase of dwellings for owner occupation, regardless of type of security.
Total credit limits at end of month
Comprises total approved credit limits available at the end of the reference month. In principle, this can be derived by adding new and increased lending commitments during the month less cancellations and reductions of credit limits during the month to the balance of credit limits at the end of the previous month. In practice, however, revisions and other adjustments (such as the transfer of an existing fixed credit facility) will mean that such a derivation is inexact.
Comprises finance for the purchase of goods by retailers and wholesalers.
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