Unloan Home Loan Terms and Conditions

Unloan products are issued by Commonwealth Bank of Australia
ABN 48 123 123 124 and AFSL/Australian credit licence 234945

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Important Notice

This document contains the usual Terms and Conditions for our home loans. The Contract for the Loan is made up of the Terms and Conditions (set out in parts A and Part B of this document), and a Schedule setting out the particulars of your Loan.

By signing and returning the Schedule to us you agree to be bound by the relevant terms of the Contract as set out in both documents.

Parts C and Part D of this document contain additional information we are required to give you.  Part C (Credit Guide) gives you information about our dispute resolution procedures and responsible lending obligations. Part D (Information Statement) gives you information about your and our rights under the National Consumer Credit Code.

Please note: Parts A and B of this document do not contain all the information we are required to give you before you enter into the Contract. Other information is contained in the Schedule. Please read both documents carefully. If you do not fully understand these documents, please ask one of our Home Loan Specialists to help you.

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Part A – General Terms and Conditions

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A.1 Meaning of words in Parts A and B

If we use an example to show the meaning of a word, the meaning of the word is not limited to that one example or examples of a similar kind. A reference in this document to the singular includes the plural and vice versa.

The following words have the meaning specified except where the context indicates otherwise.

Account Access Service means a service where:

• the user must provide one or more codes to a service provider to enable the service provider or another person to access accounts at an account institution on the user’s behalf; or
• the user must record or store one or more codes in a manner required by the service provider to facilitate the user, the service provider or another person acting on the user’s behalf to access an account at an account institution using that code or codes (for example, if we [acting as a service provider] provide the user with a software wallet to store codes and the wallet is used by the user or us to access an account).

Annual Percentage Rate means the interest rate determined by us in accordance with clause A5.1, as varied by us from time to time in accordance with this Contract.

AutoPay means a direct debit instruction you provide us through the Unloan App to enable payments to be made to your Loan Account.

Available Redraw means, at any time, the amount you have available for redraw, calculated as set out in clause A.9.

Business Day means a day that is not:

• a Saturday or Sunday; or
• a public holiday, special holiday or bank holiday in Sydney.

Code means any password or code used to access:

• an account or Device; or
• a Method of Obtaining a Secure Code

and includes a Secure Code.

Contract means the Schedule and these Terms and Conditions.

Device means a physical device which is used:

• with the Unloan App to access your Unloan account; or
• to access your email account or mobile phone number for the purposes of obtaining a Secure Code.

Identifier means information that you:

• know but are not required to keep secret, and
• must provide to perform a transaction,

such as an account number.

Loan means that part of the Loan Amount we provide to you under the Contract and includes any redraw funds you access.

Loan Account means the account we open in your name to record transactions under the Contract.

Loan Amount means the Loan Amount as stated in the Schedule.

Maximum Loan Amount means, at any time, the sum of your Unpaid Balance and your Available Redraw.

Method of Obtaining a Secure Code means the email account, mobile phone number or other method you have registered with Unloan to which you will receive Secure Codes.

Mistaken Internet Payment means a payment through a ‘pay anyone’ internet banking facility where funds are paid into the account of an unintended recipient, being an individual, as a result of the BSB number and/or account number being incorrect due to an error by the person initiating the transaction or that person having been given the wrong BSB number and/ or account number.

Proscribed Person means a person who appears to us to:

• be a proscribed person or entity under the Charter of the United Nations Act 1945 (Cth);
• be in breach of the laws of any jurisdiction relating to money-laundering or terrorism financing;
• appear in a list of persons with whom dealings are prescribed by the government or a regulatory authority of any jurisdiction; or
• act on behalf of, or for the benefit of, a person referred to above.

Receiving ADI means an entity authorised by the Australian Prudential Regulation Authority to take deposits whose customer has received a payment which you have reported as being a Mistaken Internet Payment.

Sanctioned Jurisdiction means a jurisdiction which is the subject of Australian or international sanctions, including those listed at https://www.commbank.com.au/support.banking.accessing-online-services-overseas.html

Schedule means the Unloan Home Loan Schedule we give you that sets out key details of your Contract.

Secure Code means an Unloan-generated code we send to your mobile phone or email address to facilitate Two Factor Authentication.

Secured Agreement means any contract we have with you or a guarantor that is secured by any Security.

Security means any security (including any guarantee) stated in the Schedule (or any security substituted for it with our consent).

Security Agreement means any Security document you or a guarantor provide us, including incorporated terms such as a registered memorandum of common provisions.

Security Property means any property mortgaged to us, to which the Security is attached or which is otherwise subject to the Security.

Security Provider means a person providing Security.

Shared Scheme means each scheme or plan which is regulated by a Shared Scheme Law and which affects the Security Property. For example home units, strata titles, town houses and properties in integrated developments are properties that are often part of a Shared Scheme.

Shared Scheme Law means any law which provides for the:

• subdivision and development of land with shared property;
• subdivision of buildings;
• management of land which is subdivided and has shared property; or
• management of subdivided buildings.

Terms and Conditions means Parts A and B of this document.

Two Factor Authentication means using a Secure Code along with your registered email address or mobile phone number to authenticate you as a user.

Unloan App or App means the Unloan iOS or Unloan Android apps downloaded from an official app store and accessed locally on your Device (where available), as well as the Unloan web App accessible at ‘https://www.unloan.com.au’.

Unpaid Balance means, at any time, the difference between all amounts credited and all amounts debited to your Loan Account.

user means you or a person you authorise to conduct redraw transactions on your Loan Account.

we, us, the Bank or Unloan means Unloan, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit licence 234945 and its successors and assigns.

you means the Borrower named in the Schedule and ‘your’ has a corresponding meaning. If more than one person comprises the Borrower, ‘you’ means each of them separately and all of them jointly.

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A.2 Your Contract and Applicable Codes

A.2.1 The Contract for your Loan is made up of your Schedule and these Terms and Conditions.

A.2.2 To the extent of any inconsistency between the Schedule, on the one hand, and the Terms and Conditions on the other hand, the terms of the Schedule prevail.

A.2.3 We abide by the banking industry’s Banking Code of Practice, a code of conduct which sets standards of good banking practice for us to follow when dealing with you. It applies to your Loan. You can ask us for a copy, or download it at www.unloan.com.au.

A.2.4 When you carry out an electronic transaction (for example redraw using online or mobile banking), we warrant that we comply with ASIC’s ePayments Code.  See Part B for more detail.

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A.3 Your Loan

A.3.1 We provide you with the Loan Amount in accordance with this Contract and your written instructions.

A.3.2 If no part of the Loan Amount is advanced to you within three months of the date you sign the Schedule, we may terminate the Contract.

A.3.3 We may debit your Loan Account with any part of the Loan Amount you borrow, any amounts you redraw and any interest charges, fees, enforcement expenses or other amounts payable under this Contract.

A.3.4 Once we debit an amount to your Loan Account (if it is not already owed) it is owed to us. You must repay the Loan, interest charges and all other amounts debited to the Loan Account in accordance with the Contract.

A.3.5 Where the Loan Account is in credit or has a nil balance, you may request us to close the Loan Account.

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A.4 Conditions precedent to lending you the Loan

A.4.1 We need not provide any part of the Loan Amount until:

A.4.1.1 we have received:

• the Security Interest we require in relation to the Security Properly as stated in the Schedule. You must do all things and pay or arrange to pay all monies (including all government land titles office discharge and transfer registration fees) necessary to do this. Alternatively, we may do this on your behalf and debit your Loan Account;
• a valuation of the Security Property, and reviewed the title to the Security Property, and confirmed  both are to our reasonable satisfaction in accordance with our usual prudent credit standards;
• confirmation of your employment, financial and personal particulars;
• a copy of the contract of sale signed by the purchaser and the vendor, if the Loan purpose is to purchase a property;
• a duly completed mortgagor’s consent form where the Security required to be given under the Contract is one already held by us;
• adequate proof of your identity and the identity of any person you give power of attorney to operate on your Loan account;
• confirmation that you have not assigned your estate or entered into any arrangement or composition for the benefit of your creditors; and
• if you are required to obtain advice from the Commonwealth Government under the Foreign Acquisitions and Takeovers Act 1975, confirmation from the Commonwealth Government that you can acquire an interest in the Security Property. If the Commonwealth Government imposes conditions on your acquisition, the condition(s) must be acceptable to us.

A.4.1.2 you provide a copy of an insurance policy (or cover note) which satisfies the requirements referred to in clause A.15;

A.4.1.3 you give us settlement and disbursement instructions in respect of the Loan and have all funds necessary to complete settlement; and

A.4.1.4 you demonstrate that you have obtained independent legal or financial advice (if, acting reasonably, we request you to do so).

A.4.2 In addition to the matters set out in clause A.4.1, we may also refuse to provide you the Loan if:

A.4.2.1 you are in default under the Contract or you or any person providing a Security:

• does not provide us with any information that we reasonably request;
• has, in our reasonable opinion, engaged in fraud or provided us with materially fraudulent, incorrect, or misleading information; or
• has a material change in circumstances which, in our reasonable opinion, makes it imprudent for us to proceed with making available the Loan Amount; 

A.4.2.2 we reasonably consider necessary, for example to comply with our financial crimes policies, any laws in Australia or overseas or to manage any material risk;

A.4.2.3 we believe on reasonable grounds that you or a user may be a Proscribed Person or conducting business with a Proscribed Person; or

A.4.2.4 we reasonably suspect you or a user are residing in or travelling to a Sanctioned Jurisdiction.

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A.5 Annual percentage rate and interest charges

A.5.1 We determine the interest rate that applies to your Loan, known as the Annual Percentage Rate, by starting with a base rate, being the reference rate, and adding or subtracting any premium or discount, known as the margin.  The reference rate or rates and margin applicable to your Loan are set out in your Schedule or as we subsequently agree or notify you. If different rates or margins apply at different times or in different circumstances, how they apply is set out in your Schedule or as we subsequently agree or notify you.  The information in the Schedule is only current as at the disclosure date specified in the Schedule. Our reference rates (including the reference rate(s) applicable to your Loan) are published on www.unloan.com.au. You can also find out information about your current reference rate by emailing us at [email protected].

A.5.2 Interest charges accrue daily and are calculated on the Unpaid Daily Balance at the Daily Percentage Rate where:

• ‘Daily Percentage Rate’ means the Annual Percentage Rate divided by 365; and
• ‘Unpaid Daily Balance’ means the Unpaid Balance at the end of a day.

A.5.3 Interest charges (calculated to the end of the day prior to the debiting) will be debited to your Loan Account monthly in arrears starting one month after the day the Loan (or any part) is first advanced and on the same day in each subsequent month.  If the date the Loan (or any part) was first advanced was the 29th, 30th or 31st and any month does not contain such a day, interest charges will be debited on the last day of that month.

A.5.4 On the date the Loan is paid out or closed, interest charges (calculated to the end of the day prior to the debiting) will also be debited to the Loan Account and will be payable on that date.

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A.6 Fees and charges

A.6.1 You must pay us the fees and charges that are or may become payable under the Contract and must do so when required by the Schedule or otherwise by the Contract. This includes any applicable government fees to enable registration of a Security Interest, or registration of a transfer of a Security Property into the name of the Security Provider. These fees will be debited to your Loan Account when they are payable. For the avoidance of doubt, this does not include Transfer Duty (also known as Stamp Duty), which you are required to pay directly to the relevant government department using your own funds.

A.6.2 Information on our current interest rates, fees and charges is available on Unloan’s website: www.unloan.com.au/home-loan

A.6.3 If you terminate the Contract before obtaining or attempting to obtain any credit under the Contract, we may retain or require payment of the fees and charges payable in respect of any costs or expenses we reasonably incurred before the termination and which would have been payable under the Contract.

A.6.4 We may require you to pay a Lender’s Mortgage Insurance (LMI) premium depending on the circumstances of your loan.   Contact us to find out or check your Loan Schedule to see if LMI is payable. LMI is a one-off insurance premium designed to protect us (not you) against the potential loss we may incur if you can’t repay your Loan. If the Security Property is sold and the proceeds are insufficient to fully repay the Loan, we may recover the outstanding amount under our LMI policy. The LMI provider may then seek to recover the outstanding amount from you, as you are still responsible for repaying the whole loan. The LMI premium forms part of your Loan Amount and reimburses us for the premium we pay to our insurance provider. The LMI premium is non-refundable.

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A.7 Closing a Loan

A.7.1 When your Loan is repaid in full you can ask for the Security to be discharged provided the Security does not secure other obligations. You’ll need to pay us any applicable government fees to enable registration of our discharge. Other fees may apply as set out in the Schedule.

A.7.2 We can close your Loan Account if:

• your Loan Account has been fully repaid or we elect to waive any remaining balance; or
• your Loan has reached or will shortly reach maturity and we waive the remaining balance.

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A.8 Repayments

A.8.1 You must make repayments on your Loan in the amounts and when required by the Schedule or otherwise by the Contract.

A.8.2 If a repayment is due on the 29th, 30th or the 31st of a month that doesn’t have that day, the repayment will be due on the last day of that month.

A.8.3 You can choose to pay your minimum monthly repayment amounts by weekly, fortnightly or monthly payments. To achieve this, you can provide us with a direct debit authority, and we will automatically debit your nominated personal transaction account. Funds that we attempt to collect via direct debit are reflected on the direct debit date as a credit to your loan balance and may increase your available redraw. However, the direct debit transfer is subject to clearance (ensuring funds are available in your nominated account), which can take up to five business days. If there are insufficient funds in the nominated account for the funds to clear, the direct debit payment will be regarded as not having been made to your loan and your loan balance and available redraw will be adjusted accordingly. We may also place a hold on your available redraw to allow time for clearance .

Accessing funds transferred by direct debit and included in available redraw before they are cleared may result in us requiring you to repay the shortfall either immediately or over time.

If you choose to meet your monthly repayment by making:

• weekly payments, the amount debited will be calculated as your minimum monthly repayment divided by 4
• fortnightly payments, the amount debited will be calculated as the minimum monthly repayment divided by 2.

A.8.4 You may, at any time, make a payment or payments which exceed the amount of your minimum monthly repayment. If you do, this does not affect your obligation to pay in full the minimum monthly repayment due in any subsequent month unless we otherwise agree in writing. You may be able to redraw additional payments you make via the Unloan App or use your Available Redraw to reduce your repayments – see clause A.9.

A.8.5 You must pay the Unpaid Balance on the day the last scheduled repayment is due or, if you are in default, at the time described in clause A.17.3.

A.8.6 A payment will not be treated as made until the date it is credited by us to the Loan Account. If the payment is not honoured in full when first presented (or otherwise is dishonoured when we attempt to collect it), the payment will not be treated as a valid payment and may be reversed.

A.8.7 We may decide how your Loan repayments are used to pay off the amounts you owe. Unless you tell us otherwise, we may use money we receive under the Contract towards paying any arrears of required repayments and then towards any of the amounts then due and payable by you under the Contract, as we reasonably choose.

A.8.8 We may reject any payment that would put your account into credit. We will notify you if we do this and contact you to advise of the remaining amount owing and how to pay that in full if you wish.

A.8.9 If you have advised us that you are closing your Loan, we may reject any payment received during the two Business Days prior to the closing date.

A. 8.10  Unloan operate using specific payment methods, and as such not all types of payments may be successfully processed into your Unloan account. Unloan currently support:

• Direct Debits into your Unloan account (using Autopay, which is set up in the Unloan App)
• Salary Credits  
• Transfers via ‘Direct Entry’
• Transfers via ‘New Payments Platform’ or ‘NPP’

Examples of payments that are not supported include:

• Payments from business or savings accounts
• Payments initiated in a bank branch

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A.9 Redraw facility

A.9.1 Subject to clauses A.9.3 to A.9.9, you may be able to access funds that are available for redraw on your Unloan account, for example due to payments you have made above the minimum repayments required under the Contract.

A.9.2  Redraw funds can be used to transfer money using the Unloan App – see Part B.

A.9.3 We determine the amount available for redraw by firstly calculating what your Unpaid Balance would be each month on the interest debit date immediately prior to when you seek to access your redraw on the following basis:

• If you made all the monthly repayments which you were required to make, on time;
• If you made no additional payments above your minimum required repayments; and
• After taking into account actual interest and fees charged.

The difference between this calculated anticipated Unpaid Balance and your actual Unpaid Balance is your Available Redraw at the beginning of that monthly period (starting on the interest debit date).

A.9.4 During that monthly period, acting reasonably, we may adjust your Available Redraw to take into account events which have occurred since the last interest debit date, such as increasing Available Redraw for payments you make or other credits to your Loan Account and reducing Available Redraw for other debits to your Loan Account or to account for clearance of payments.

A.9.5 Even if you don’t use your redraw funds, your Available Redraw may reduce over the term of your Loan, for example if your payments decrease (including to take into account that you are ahead on your repayments) or if interest rates change.

A.9.6 If there is more than one borrower:

• All borrowers must approve any transfer from the Loan Account using your redraw funds, unless an 'any to approve' election is made as set out below;
• If all borrowers elect, and Unloan accepts the election, any borrower may authorise a transfer from the Loan Account using Available Redraw ('any to approve');
• An 'any to approve' election may be discontinued at any time by any borrower withdrawing their authorisation, in which case once again all borrowers will need to approve any transfer;
• Notwithstanding an 'any to approve' election, Unloan may require all borrowers to approve a redraw transaction if we reasonably consider it necessary to protect the borrowers or Unloan from loss.

A.9.7 If you have Available Redraw, you can ask us to use that to reduce your Maximum Loan Amount and your required repayments. If we agree, we will reduce your Maximum Loan Amount, Available Redraw and required repayments accordingly, and from that point, will calculate your Available Redraw as if we had on the processing date made you a new loan of the reduced Maximum Loan Amount with the loan term being the remaining loan term of your original Loan.

A.9.8 You can check your current Available Redraw in the Unloan App.

A.9.9 We may not provide redraw and can cancel or suspend your right to redraw at any time without your prior consent if we reasonably believe that there is a valid reason to do so, which is reasonably necessary to protect our legitimate interests. Circumstances where we may take this action include when:

• your Loan Account has a nil balance or we reasonably believe your Loan will shortly be fully repaid;
• your Loan has reached or will shortly reach maturity;
• you are in default under the Contract;
• any guarantor of your obligations terminates any further obligations under their guarantee;
• we reasonably believe any Security we hold is not sufficient to support your obligations under the Contract;
• the Loan has not yet been fully advanced;
• we reasonably consider doing so is necessary to comply with our financial crimes policies or any laws in Australia or overseas;
• you (or either of you) die; or
• you have advised us you are closing your Loan and the closure date is now within two Business Days.

A.9.10 If we cancel or suspend your right to redraw, we will give you notice after we do so (if we have not already given you prior notice).

A.9.11 Transaction limits may apply to your ability to use redraw funds - see Part B below.

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A.10 Assumptions we use in your Schedule

A.10.1 The repayments and the term of your Loan set out in your Schedule are based on the initial annual percentage rate and assume you will make the repayments at the intervals and for the amounts specified in the Schedule.

Fees and charges which do not form part of the Loan Amount but which may become payable are not included in the calculations.

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A.11 Statements of account

A.11.1 We will give you a statement of account at least every six months unless this is not required by law (such as where no amount is debited or credited to the Loan Account during the statement period). You can request a statement at any time or to receive statements more frequently.

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A.12   How we give you statements of account and other notices

A.12.1 Whenever we are required to give you a statement of account or other notice or document, we may do so by any method permitted by law, including:

• by mail addressed to you at your last known address;
• by any of the electronic means described in clause A.12.2, unless you tell us otherwise as set out in clause A12.3; or
• where permitted by law, by publishing a notice.

A.12.2 Where you have given us an email address, mobile phone number or other electronic address, you agree that we may give you statements of account, notice of changes to your Contract and any other notice or document permitted by law to be sent electronically, by:

A.12.2.1 electronic communication to your nominated electronic address; or

A.12.2.2 making the information available on our website or App after first notifying you that the information is ready for viewing, by:

• SMS message to a mobile phone number you have given us for contacting you;
• electronic communication to any other electronic address you have given us for contacting you;
• push notification from the Unloan App; or
• other means as we agree with you.

A.12.3 You should check your emails/text messages/push notifications regularly and update your contact details if they have changed. If you do not want to receive your statements and notices electronically, you can switch to paper correspondence by contacting us at [email protected].

A.12.4 Notices given electronically are taken to be received by you when the communication enters the first information system outside Unloan (e.g. the server of your internet or telecommunications service provider or the host of your email address).

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A.13 Changes we can make to your Contract

A.13.1 We can change your Contract, or any part of it, at any time without your consent. We’ll act reasonably when exercising these rights and only do so for legitimate business purposes.

Circumstances where we may make changes to the Contract include:

• where there has been a change to the cost of providing credit to you;
• where changes are necessary or desirable to comply with or reflect any law, code of conduct, regulator guidance or requirement, or decision of a court or other dispute resolution process;
• where changes are necessary or desirable to reflect changes in technology or our processes, including computer systems;
• changes to include new product features or services or to ensure that the Terms and Conditions match our operational processes;
• changes to reflect that we’ve discontinued or replaced a product, and for this purpose we may change your product to a different product with similar features to the discontinued or replaced product;
• changes to consolidate or simplify our terms and conditions and contractual documents;
• changes to add, change or remove concessions or benefits;
• where changes are necessary or desirable to bring us into line with our competitors, industry or market practice or best practice in Australia or overseas;
• where changes are necessary or desirable to manage risks including credit risk, fraud, operational or regulatory risk; or
• where changes are necessary or desirable to correct errors, omissions, inconsistencies, or ambiguities.

If you consider that you will be adversely affected by changes to the Contract, you can end the Contract by paying us the amount required to pay out your Contract.

Each of the type of changes above is a separate right and this clause A.13.1 is to be read as if each change was a separately expressed right.

A.13.2 How we tell you about changes

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A.14 Security

A.14.1 The Schedule specifies the Security which must be given to us. The Security must be in the form of our usual security documents and as we reasonably require. You agree that the Contract is a Secured Agreement for the purposes of any mortgage or other Security stated within the Contract or any variation to the Contract.

A.14.2 Before any part of the Loan Amount is advanced, you must ensure that the Security and/or the Security Agreement, to the extent appropriate to the form of security, is in registrable form, is stamped, and has priority for all amounts payable under the Contract.

A.14.3 You must take all reasonable steps to ensure that the obligations of any person who has provided Security to us are observed and performed.

A.14.4 If the Security is in existence at the date of the Contract, by signing the Contract you acknowledge that the Security extends to cover your obligations under the Contract.

A.14.5 You authorise us and any of our officers, acting reasonably and in good faith, to date and complete any blanks or to make amendments to the Security or any other document (including to the Contract) which we require to ensure our Loan has the intended security position.

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A.15 Insurance

A.15.1 You must ensure that any Security Property is insured at all times against fire, storm, flood, hail, cyclone, and other building risks as we may reasonably specify in accordance with our usual credit standards. The insurance must be for an amount at least equal to the full replacement cost of any building and other improvements on the Security Property. If the Security Property is part of a Shared Scheme, you must use your best endeavours to ensure the governing body maintains the building and other insurances required by law.

If you do not maintain the required Building Insurance over all Security Property, you will be in default, and we may take enforcement action set out in clause A.17. We may also adjust your margin or interest rate as we reasonably consider appropriate to reflect our increased risk.

If a claim under the policy is approved and funds are transferred to you as policy holder, where relevant you must ensure the funds are used to repair the building or other improvement the claim relates to.

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A.16 Other conditions

A.16.1 Any valuation or inspection report of any property is for our own internal use only. We are not required to disclose details about the property’s condition, construction or value to you or any other party.

A.16.2 You must inform us as soon as possible of any changes in your name or contact details such as your address, email, mobile phone number or other electronic addresses. You can update these in the Unloan App (where available) or by emailing us at [email protected]. You must also inform us when your loan purpose changes. You can do this by emailing us at [email protected].

A.16.3 If we decide not to exercise a right, remedy, or power, this does not mean we cannot exercise it later.

A.16.4 You must pay all amounts in full without setting off amounts you believe we owe you, except to the extent:

• you have a right of set off granted by law which we cannot exclude by agreement; or
• the amounts are the subject of dispute resolution proceedings or court action.

A.16.5 If there is more than one borrower, each borrower is liable individually for the full amount of the Loan and all other amounts payable under this Contract, in addition to each of you being jointly liable with each other.

A.16.6 If there is more than one borrower:

• All borrowers must approve the set up or any changes to your AutoPay unless an 'any to change' election is made as set out below;
• If all borrowers elect, and Unloan accepts the election, any borrower may set up or make changes to your AutoPay ('any to change');
• An 'any to change' election may be discontinued at any time by any borrower withdrawing their authorisation, in which case once again all borrowers will need to approve any set up or change to AutoPay;
• Notwithstanding an 'any to change' election, Unloan may require all borrowers to approve any set up or change to your AutoPay if we reasonably consider it necessary to protect the borrowers or Unloan from loss.

A.16.7 We may assign, transfer, or otherwise deal with our rights under the Contract or any Security in any way we consider appropriate. We'll act reasonably when exercising this right and only do so for legitimate business purposes.

A16.8 If the Schedule states that a commission is payable to or by us, you agree that information about you and the Loan may be given to and obtained from any person to or by whom such commission is payable to enable the calculation of the commission payable and for matters related to your relationship with them.  

A.16.9 If any part or provision of the Contract is or becomes void or unenforceable under any applicable statute, that part or provision will be removed from the Contract. Removal of any part or provision will not affect the remaining provisions of the Contract.

A.16.10 You promise that all statements made and documents provided in connection with the application to us for the Loan, and all representations which you have made or may make to us during the term of the Contract are true and correct. You acknowledge that we have relied upon the correctness of those statements, documents, and representations in entering into the Contract and will continue to do so in our dealings with you.

A.16.11 We will use best endeavours to ensure that our systems and processes calculate and apply fees, interest, reductions, benefits or other amounts or features as described in your Contract with us. However, sometimes errors do occur, for example due to:
(a) The limitations of our systems and processes
(b) The operation of manual processes
(c) Changes to our systems and processes
(d) Things that are beyond our knowledge or reasonable control.

Where that happens, without limiting any rights you may have relating to the error, we may (as appropriate) at a later time but as soon as practicable after the error has been identified:
(e) make adjustments to put you in the same position as if we had applied the correct amount or made the correct calculation initially;
(f) provide that reduction, benefit or feature to you, and make adjustments to put you in the same position as if we had provided the reduction, benefit or feature as described;
(g) take the action required, and make adjustments as necessary to put you in the same position as if we had taken the action as described.

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A.17 Default

A.17.1 You are in default under the Contract if any of the following conditions apply:

A.17.1.1 Overdue amount: You do not pay any amount due under the Contract by its due date for payment;

A.17.1.2 Breach of Contract: You do not keep to the other terms of the Contract or the terms of any Security Agreement and this materially increases our risk in relation to the Loan;

A.17.1.3 Title to the Security Property is unsatisfactory: We are not reasonably satisfied with the title to the Security Property or the Security over it. For example: we are unable to register the mortgage as a first ranking mortgage, or there has been an unreasonable delay in you becoming the registered proprietor of the Security Property, or a claim is made by a third party to an interest in the Security Property;

A.17.1.4 Enforcement action: Material creditor enforcement action is taken against you or any Security Provider or your or their assets;

A.17.1.5  Failure of Security Provider: Any Security Provider withdraws from the mortgage or from the guarantee itself, or breaches any term or condition of a Security Agreement and such breach materially increases our risks in relation to the Loan;

A.17.1.6 Insurance: You or a Security Provider fails to maintain insurance in relation to the Security Property as required under the Contract and the terms of the Security Agreement. See clause A.15;

A.17.1.7 Power of sale: A power of sale arises under the Security or under any other security interest over, or which attaches to, the Security Property. For example: you have given another party a second mortgage over your home, are in default under that mortgage and have not complied with a statutory notice served by that party to rectify the default so that the other party has the right as mortgagee to sell your property;

A.17.1.8 Insolvency: You or a Security Provider become insolvent or steps are taken to make you or the Security Provider so;

A.17.1.9 Willful damage: You or a Security Provider willfully and materially damage the Security Property;

A.17.1.10 False information: At any time, you or any Security Provider give us incorrect or misleading information (including by omission) in connection with the Contract or any Security Property and that information is material to our decision whether to provide you or continue to provide you credit; or

A.17.1.11 We believe on reasonable grounds that:

• it has become, or may become, unlawful or contrary to our legal obligations, for you or us to continue with the Loan; or
• you, a Security Provider or anyone holding power of attorney over your Loan Account appears to our reasonable satisfaction to be a Proscribed Person.

Note: We may be restricted by law from providing specific information to you and/or others in these circumstances.

A.17.2 In most circumstances we will give you notice of default. Our notice will tell you what the default is and ask you to fix the default, if it can be fixed. The notice will allow a period of time for you to fix the default (usually at least 30 days).

In some circumstances we do not have to give you a notice. For example, a court may excuse us from giving a notice or we may have made reasonable attempts to locate you without success. We do not have to give you a notice or wait for the default to be fixed where we reasonably believe that:

• we were induced by fraud on your part to enter into the Contract; or
• urgent action is necessary to protect the Security Property.

A.17.3 If you are in default and:

• you do not fix the default in the time allowed by the notice we give you under clause A.17.2;
• the default cannot be fixed, and the time stated in the notice we give you under clause A.17.2 elapses; or
• we do not have to give you notice under clause A.17.2;

THEN

provided in the notice (if any) we give you under clause A17.2 we have told you the amount required to pay out the Contract and that we can exercise our rights under this Contract if you do not remedy the default, we may:

• decide, without further notice, that all money owing by you under the Contract is due and payable immediately;
• sue you for payment of the money you owe us; and
• exercise rights under any Security, including our right to sell the Security Property.

We can do any or all of the above things in any order.

A.17.4 If an obligation to pay us an amount under the Contract becomes merged in a court order or judgment, you must pay interest on that amount calculated daily until paid, at the Daily Percentage Rate.

A.17.5 If you or any person providing any Security breaches any term or condition of the Contract or any Security Agreement, you will be required to pay reasonable expenses reasonably incurred by us or our agents in enforcing or preserving our rights under this Contract and/or the Security Agreement.

We will debit these expenses to the Loan Account and they will be due and payable immediately.

Enforcement expenses include our internal and external expenses in enforcing or taking any action to recover any amounts owing, dealing with the property the subject of a Security or otherwise in connection with its rights under the Contract and/or a Security Agreement.

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A.18 Mistaken Internet Payment into your account

A.18.1 If a person reports that a Mistaken Internet Payment has been made from the person’s account to your Loan Account:

A.18.1.2 you agree that we may inform that person’s financial institution whether or not your Loan Account has sufficient Available Redraw to cover the payment;

A.18.1.3 provided your Loan Account has sufficient Available Redraw to cover the Mistaken Internet Payment and we are satisfied that a Mistaken Internet Payment has been made:

• if the person made the report within 10 Business Days of making the payment, we may immediately debit your Loan Account for the amount of the Mistaken Internet Payment; and
• if the person made the report between 10 Business Days and 7 months of making the payment, we may immediately freeze your redraw funds and, after giving you 10 Business Days to establish whether you are entitled to the funds, debit your Loan Account for the value of the Mistaken Internet Payment if you do not establish that you are entitled to the funds;

A.18.1.4 If we debit your Loan Account or otherwise receive funds from you for the value of the Mistaken Internet Payment, we will return the funds to the person or the person’s financial institution; and

A.18.1.5 If we are satisfied that a Mistaken Internet Payment has occurred but your Loan Account does not have sufficient Available Redraw, we will use reasonable endeavours to retrieve the funds from you. In some instances, we may prevent you from accessing redraw while we investigate.

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A.19 Mistaken Payments from your account

A.19.1 If you have made a Mistaken Internet Payment from your Loan Account, you should report it to us as soon as possible. We will acknowledge each report you make and investigate whether a Mistaken Internet Payment has been made.

A.19.2 In order for us to investigate the Mistaken Internet Payment, you must email us at [email protected] or call or text us on 1300 630 000.

We will contact you if we require further information, and you must supply this information within 10 Business Days.

A.19.3 We will inform you of the outcome of your report of a Mistaken Internet Payment within 30 Business Days of you making it. If you are not satisfied with how your report has been handled (by us or the Receiving ADI) or the outcome of your report, you can lodge a complaint with us.

A.19.4 We may disclose personal and transactional information to a Receiving ADI or unintended recipient in relation to a Mistaken Internet Payment.

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A.20 Complaints and dispute resolution

A.20.1 How can you make a complaint?

If there’s something we can improve, or you're not satisfied with our products, services, people, or complaint handling process, or if you have a query about an entry on your statement, it's important we hear about it so we can make things right.

We will take your complaint seriously, work with you to address your complaint, and try to find a solution that's fair and reasonable.

You can make a complaint by emailing us at [email protected] or calling us on 1300 630 000.

A.20.2 What happens when you make a complaint?

We’ll acknowledge your complaint

Most complaints can be resolved soon after we receive them or within days.

We’ll let you know we’ve received your complaint (generally by the next business day), give you a reference number, and let you know the name and contact details of the person who’s handling it.

We’ll assess the information and work with you to find a fair outcome

We’ll assess the information you give us, investigate the issues further at our end if we need to, and work with you to find a fair solution.

If we're unable to provide you with a final response within 30 days, we'll tell you the reason for the delay, give you a date you can expect to hear an outcome, and continue to update you on our progress.

If you're unhappy with the resolution

You can lodge a dispute with the Australian Financial Complaints Authority, an external dispute resolution body. AFCA provides a fair and independent complaint resolution service which is free for customers to access:

Website: www.afca.org.au

Email: [email protected]

Phone: 1800 931 678 (free call)

Postal address:        

Australian Financial Complaints Authority

GPO Box 3

Melbourne VIC 3001

Office of the Australian Information Commissioner

You can also contact The Office of the Australian Information Commissioner if your complaint is about your privacy:

Website: www.oaic.gov.au

Phone: 1300 363 992

Postal Address:        

Office of the Australian Information Commissioner

GPO Box 5218

Sydney NSW 2001

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Part B – Additional terms and conditions relating to online banking

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B.1 Using the Unloan app to transfer available funds you may have in your redraw facility

B.1.1 Where you have Available Redraw (see clause A.9) you can transfer those funds using the Unloan App. Transfers must be made using BSB and account number. Use of the Unloan App is subject to the Unloan App terms and conditions available on our website.

B.1.2 Funds may be transferred to any Australian domestic bank account, subject to the following limitations:

• The maximum amount you can transfer per day across all such accounts is $100,000. If there is more than one of you (more than one borrower) the maximum amount you can each transfer per day across all such accounts is $100,000.
• Additional verification of your log in details and/or identity may be required when we consider appropriate, for example where transfers exceed a certain amount in one day.
• If there is more than one of you (more than one borrower), we may require each of you to provide permission for the transaction to occur (see clauses A.16.5 and A.16.6). This permission must be given within certain timeframes.
• The other financial institution you are transferring funds to may have limitations as to the transactions permitted to credit the account.

B.1.3 When you make a transaction using the Unloan App you authorise us to act on the instructions entered into the Unloan App.

B.1.4 Payments will be processed by BSB and account number, without using an account name. Some institutions with unique account numbers may disregard the BSB number. Please take care to enter the correct BSB and account number as you may not be able to recover a payment if it is credited to a mistaken account, for example, if there are no funds in the account – see clause A.19.

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B.2 Risks relating to electronic banking - accessing the Unloan App

B.2.1 There is a risk that you may not be able to access your account information or make redraw transactions as our service is reliant on computer and/or telecommunications systems. Unloan is dependent on the reliability of our own operational processes and those of our technology and telecommunications partners in respect of computers, computer networks and telecommunications. Disruptions to these processes may result in Unloan App services being unavailable from time to time.

B.2.2 Access to the Unloan App may be otherwise limited or restricted as set out in the Unloan App terms and conditions.

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B.3 Risks relating to electronic banking - security risks

B.3.1 While electronic banking allows you to transact simply using your electronic equipment and Codes, because of that simplicity, it also poses special risks.

B.3.2 If someone else has access to your Device or any Method of Obtaining a Secure Code, they may be able to transact on your account as if they were you. You may be liable for such transactions - see clause B.8 below for details.

B.3.3 You should take special care to ensure only you have access to your Device and any Method of Obtaining Secure Codes. You must also keep any Secure Codes we send to you secret and must not disclose them to any third party including family, friends and institutions.

B.3.4 You should ignore any emails that appear to come from us that require you to input personal information or Codes. We will never send such email requests. These emails may come from third parties seeking to use the information to access your accounts.

B.3.5 You should also be careful about using services which offer to interface with the Unloan App or other means of online banking on your behalf. For example, you may be led to believe that you are inputting your Codes into the Unloan App, while in fact you are disclosing your Codes to a third party hosting a hoax website or app.

B.3.6 We may use various techniques from time to time to address potential fraud, including contacting you after an unusual transaction or series of transactions to confirm that you did in fact authorise the transaction(s).

B.3.7 Your access to the Unloan App may be suspended if we detect or suspect unusual activity or risks, or for any other reason set out in the App terms and conditions.

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B.4 Entering the correct information

B.4.1 When you or any other user make a transaction with electronic equipment, it is your responsibility to tell us the correct amount you wish to pay or transfer, and the correct BSB and account number to which you wish to have the payment or transfer credited. The account name of the recipient does not form part of your payment instructions and will not be used or checked by us in making your payment. If you tell us to make a payment or transfer and after we have implemented your instructions you discover that:

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[1] Where the account you told us to make a payment to was incorrect, we will attempt to recover the funds on your behalf but we are not liable unless we fail to comply with the process and timeframes set out in clause A.19

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B.5 When are Unloan App transactions processed?

B.5.1 Transactions are generally processed (and debited to your Loan Account) on the day they are made (Sydney/Melbourne time). In some cases, the transactions may be processed in near real time. Please see circumstances below when same day processing may not apply.

B.5.2 Due to processing requirements, a funds transfer from your Loan Account made using the Unloan App between 12:00 midnight and 12:30am (Sydney/Melbourne time) on Sunday to Friday (inclusive), or transactions made between 12:00 midnight and 1:30am (Sydney/Melbourne time) on a Saturday, may be treated as if the transfer occurred on the previous calendar day.

B.5.3 Please note that, whilst debited from your Loan Account as above:

• transfers to other Unloan accounts or to CommBank accounts may not be initiated or transferred to the recipient's account until the next Business Day; and
• transfers to other financial institutions made after 6pm (Sydney/Melbourne time) or on a non-Business Day may not be initiated until the next Business Day.

B.5.4 Payments to accounts at other financial institutions will be credited to the recipient’s account when the other financial institution processes the transaction, which may take 3 or more Business Days.

B.5.5 For security reasons we may place a hold on funds transferred to or from your Loan Account through the Unloan App. The hold may apply:

• For 24 hours;
• In some circumstances, where the transaction takes place after 7:30pm (Sydney/Melbourne time), until the day after the following day; or
• For as long as we reasonably need to investigate the transaction.

B.5.6  We may cancel or suspend your ability to access redraw funds to make transactions in certain situations - see clause A.9.

B.5.7 We may also cancel or suspend your access to the Unloan App in certain situations – see your App terms and conditions. While your access is cancelled or suspended, you won’t be able to redraw funds or make any transactions.

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B.6  Disputed transactions

B.6.1 If you have a query regarding a transaction listed on your Unloan App or an entry on your Unloan statement, please contact us immediately through at [email protected] or call us on 1300 630 000.  

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B.7 Safeguarding your account against unauthorised access

B.7.1 You and any other user must do everything reasonably practical to protect all means of access to your Loan Account. That means making sure Devices and any Codes and any Method of Obtaining Secure Codes we send you are not misused, lost or stolen or disclosed to any other person.  This includes not giving access to any account access service.

B.7.2 You may suffer loss if you or another user don’t sufficiently safeguard these items.

B.7.3 You must report the loss, theft or misuse of a Device, Code or Method of Obtaining a Secure Code. Please see the table below for possible scenarios.

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B.7.4 Even if you or a user are confident that Secure Codes we sent are secure, you or the user must tell us as soon as becoming aware of the loss, theft or misuse of a Device, Code or any Method of Obtaining Secure Codes.

B.7.5 If it can be shown that you or another user unreasonably delayed telling us of the loss, theft or misuse of a Device, Code or Method of Obtaining a Secure Code, you will be liable for unauthorised transactions that occur on your account (subject to any limitations set out below).

B.7.6 We do not hold you liable for any unauthorised transactions that could have been stopped if you tried to use Unloan’s contact line and it was disconnected at the time you tried to report the loss, theft or misuse. This does not include an inability to contact us due to issues with your Device or network availability.

B.7.7 If we reasonably believe your Loan Account, your Device, your Method of Obtaining Secure Codes or a Secure Code we sent you is being used in a way that may cause losses to you or us, we may cancel or withhold its use at any time, without prior notice.

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B.8 Liability for transactions

B.8.1 Generally speaking you are liable for any losses arising from your acts and omissions. This includes you and any person you permit to carry out transactions on your Loan Account. You will be liable for:

• transactions carried out by you or another user or with your or their knowledge and consent;
• unauthorised transactions if you or another user have not made a reasonable attempt to disguise or prevent unauthorised access to a Device, a Code or a Method of Obtaining Secure Codes (however, only in the circumstances and to the extent provided for in the remainder of this clause B.8).

B.8.2 An unauthorised transaction is one which is not authorised by you, for example a transaction which is carried out by someone besides you without your knowledge and consent.

B.8.3 ASIC’s ePayments Code determines your liability for losses resulting from unauthorised transactions. We have reflected the relevant ePayments Code provisions in the following sections.

B.8.4 You will not be responsible for any loss resulting from an unauthorised transaction if any of the following apply:

• it is clear a user did not contribute to the loss in some way;
• the loss arises after you notify us that any Device used to access the account has been misused, lost or stolen or that the security of a Code, or Method of Obtaining a Secure Code, has been breached;
• the loss was due to fraud or negligent conduct by any of our employees or agents or the employees or agents of any person (including merchants) involved in the Electronic Funds Transfer network;
• the loss occurs because an Identifier or Code was forged, faulty, expired or cancelled;
• it is a transaction requiring a Device or Code that occurred before you received the Device or Code; or
• the same transaction was incorrectly debited more than once to your Loan Account.

B.8.5 Where we can prove on the balance of probability that you or a user contributed to the loss, you will be responsible for losses resulting from unauthorised transactions (refer to B.7 for details on safeguarding against unauthorised access to your account) in the following scenarios.

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B.8.6 Even if losses occur in the previous scenarios you will not be liable for:

• that portion of any money that has been transferred from your Loan Account in any one day which is more than the applicable daily transaction limits;
• that portion of any money that has been transferred from your account which exceeds the Available Redraw on your Loan Account when the transaction occurs.

B.8.7 If a Code was needed to perform the unauthorised transactions and none of the circumstances above apply (that is, it cannot be proven on the balance of probability whether or not you contributed to the loss) you will be liable for the lesser of:

• $150;
• the balance of the Available Redraw on your Loan Account; or
• the actual loss at the time you notify us (where relevant) that the Device has been misused, lost or stolen or that the security of a Code or Method of Obtaining a Secure Code has been breached (excluding that portion of any money lost on any one day that is more than the applicable daily transaction limit).

B.8.8 Where you allege that a transaction is unauthorised and we have not placed a reasonable daily transaction limit, either we or an external dispute resolution body may decide to reduce your liability having regard to:

• whether the security and reliability of the means used by us to verify that the relevant transaction was authorised by you adequately protected you from losses in the absence of reasonable daily  transaction limits protection; and
• whether at the time of making credit accessible via your Device and a Secure Code, we have taken reasonable steps to warn you of the risk of the Device and Secure Code being used to make unauthorised transactions on that line of credit.

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Part C – Credit Guide

Provided by: Unloan, a division of the credit provider, Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit licence 234945.

This Credit Guide gives you some information about our dispute resolution procedures and responsible lending obligations. If you have any queries, you can contact us at [email protected].

We will not make an unsuitable contract with you

We are not permitted to enter into a credit contract or increase the credit limit of an existing credit contract if the contract would be unsuitable for you. A contract will be unsuitable for you if at the time of our assessment it is likely that you will be unable to comply with your financial obligations under the contract or could only do so with substantial hardship, or if the contract will not meet your requirements and objectives.

In order to ensure that we do not enter into a contract with you that is unsuitable, we are required to make reasonable inquiries about your financial situation, your requirements and objectives and to take reasonable steps to verify your financial situation.

We will make an assessment that the contract is not unsuitable for you

We are required to assess that the credit contract is not unsuitable for you before we enter into the contract or agree to increase your credit limit.

If you request a copy of the assessment before entering into the credit contract or increasing your credit limit, we will not enter into the contract or increase your credit limit until we have given you a copy of the assessment.

You may also request a copy of the assessment within 7 years of the date the contract is made or your credit limit is increased. If your request is made within 2 years, we will provide you with the assessment within 7 business days of your request, otherwise we will provide you with the assessment within 21 business days. We will not charge you a fee for providing the assessment.

If you have a dispute in relation to your credit contract

At Unloan we believe in listening to our customers. This is the only way to continually improve our products and services to meet your needs. If you have a complaint about our services, facilities, or any other aspect of Unloan, we would like to hear from you.

Please contact us at [email protected] or on 1300 630 000.

Our staff will do everything they can to rectify your problem immediately. Most complaints can be resolved soon after we receive them or within days. We’ll let you know we’ve received your complaint (generally by the next business day), give you a reference number, and let you know the name and contact details of the person who’s handling it.

If you’re still not satisfied, you can ask our Customer Care Team to review the matter. Please let the Unloan staff member supporting you know that you would like your complaint escalated to Customer Care. You will be advised of the details (including the timeframes) of our internal dispute resolution process and an officer with the appropriate authority to resolve the dispute will investigate your complaint thoroughly. We will do our best to resolve any complaint promptly and to your satisfaction.

If you’re not satisfied with our handling of your matter, you can refer your complaint to an external dispute resolution.

The Australian Financial Complaints Authority (AFCA) scheme is a free service established to provide you with an independent mechanism to resolve specific complaints.

The contact details for AFCA are:

GPO Box 3,Melbourne Vic 3001 Telephone: 1800 931 678
(9am – 5pm AEST)
Fax: (03) 9613 6399

Email: [email protected] www.afca.org.au

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Part D - Information Statement

D.1 Things you should know about your proposed credit contract.

This statement tells you about some of the rights and obligations of yourself and us, your credit provider. It does not state the terms and conditions of the Contract. If you have any concerns about the Contract, contact your credit provider and, if you still have concerns, the AFCA scheme, or get legal advice.

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D.2 The Contract

How can I get details of my proposed credit contract?

Your credit provider must give you a precontractual statement containing certain information about the Contract. The precontractual statement, and this document, must be given to you before:

• the Contract is entered into; or
• you make an offer to enter into the Contract, whichever happens first.

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D.3 How can I get a copy of the final Contract?

If the Contract document is to be signed by you and returned to your credit provider, you must be given a copy to keep. Also, the credit provider must give you a copy of the final contract within 14 days after it is made. This rule does not, however, apply if the credit provider has previously given you a copy of the contract document to keep.

If you want another copy of the Contract write to your credit provider and ask for one. Your credit provider may charge you a fee. Your credit provider has to give you a copy:

• within 14 days of your written request if the original Contract came into existence one (1) year or less before your request; or
• otherwise within 30 days of your written request

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D.4 Can I terminate the Contract?

Yes. You can terminate the contract by writing to the credit provider so long as you have not obtained any credit under the Contract. However, you will still have to pay any fees or charges incurred before you terminated the Contract.

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D.5 Can I pay my credit contract out early?any other change

Yes. Pay your credit provider the amount required to pay out your credit contract on the day you wish to end the Contract.

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D.6 How can I find out the pay out figure?

You can write to your credit provider at any time and ask for a statement of the pay out figure as at any date you specify. You can also ask for details of how the amount is made up. Your credit provider must give you the statement within 7 days after you give your request to the credit provider. You may be charged a fee for the statement.

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D.7 Will I pay less interest if I payout my Contract early?

Yes. The interest you can be charged depends on the actual time money is owing. However, you may have to pay an early termination charge (if the Contract permits your credit provider to charge one) and other fees.

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D.8 Can my Contract be changed by your credit provider?

Yes, but only if the Contract says so.

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D.9 Will I be told in advance if my credit provider is going to make a change in the Contract?

That depends on the type of change. For example:

a) you get at least same day notice for a change to an annual percentage rate. That notice may be a written notice to you or a notice published by your credit provider.

b) you get 20 days advance written notice for:

• a change in the way in which interest is calculated;
• a change in credit fees and charges; or
• any other changes by your credit provider,

except where the change reduces what you have to pay or the change happens automatically under the Contract.

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D.10 Is there anything I can do if I think that my Contract is unjust?

Yes. You should first talk to your credit provider. Discuss the matter and see if you can come to some arrangement.

If that is not successful, you may contact the AFCA scheme. The AFCA scheme is a free service established to provide you with an independent mechanism to resolve specific complaints. The Australian Financial Complaints Authority scheme can be contacted at:

GPO Box 3, Melbourne Vic 3001

or phone, email, online or by fax to:

Telephone: 1800 931 678

Email: [email protected]

Website: www.afca.org.au

Fax: (03) 9613 6399

Alternatively, you can go to court. You may wish to get legal advice, for example from your community legal centre or Legal Aid. You can also contact ASIC, the regulator, for information on 1300 300 630 or through ASIC’s website at http://www.asic.gov.au.

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D.11 Do I have to take out insurance?

Your credit provider can insist you take out or pay the cost of types of insurance specifically allowed by law. These are compulsory third party personal injury insurance, mortgage indemnity insurance or insurance over property covered by any mortgage. Otherwise, you can decide if you want to take out insurance or not.

If you take out insurance, the credit provider cannot insist that you use any particular insurance company.

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D.12 Will I get details of my insurance cover?

Yes, if you have taken out insurance over mortgaged property or consumer credit insurance and the premium is financed by your credit provider. In that case the insurer must give you a copy of the policy within 14 days after the insurer has accepted the insurance proposal.

Also, if you acquire an interest in any such insurance policy which is taken out by your credit provider then, within 14 days of that happening, your credit provider must ensure you have a written notice of the particulars of that insurance.

You can always ask the insurer for details of your insurance contract. If you ask in writing, your insurer must give you a statement containing all the provisions of the contract.

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D.13 If the insurer does not accept my proposal, will I be told?

Yes, if the insurance was to be financed by the credit contract. The insurer will inform you if the proposal is rejected.

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D.14 In that case, what happens to the premiums?

Your credit provider must give you a refund or credit unless the insurance is to be arranged with another insurer.

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D.15 What happens if my credit contract ends before any insurance contract over mortgaged property?

You can end the insurance contract and get a proportionate rebate of any premium from the insurer.

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D.16 If my Contract says I have to give a mortgage, what does this mean?

A mortgage means that you give your credit provider certain rights over any property you mortgage. If you default under the Contract, you can lose that property and you might still owe money to the credit provider.

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D.17 Should I get a copy of my mortgage?

Yes. It can be part of your credit contract or, if it is a separate document, you will be given a copy of the mortgage within 14 days after your mortgage is entered into. However, you need not be given a copy if the credit provider has previously given you a copy of the mortgage document to keep.

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D.18 Is there anything that I am not allowed to do with the property I have mortgaged?

The law says you can not assign or dispose of the property unless you have your credit provider’s, or the court’s, permission. You must also look after the property. Read the mortgage document as well. It will usually have other terms and conditions about what you can or can not do with the property.

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D.19 What can I do if I find that I cannot afford my repayments and there is a mortgage over Property?

See the answers to questions D.17 and D.18. Otherwise you may:

• sell the property, but only if your credit provider gives permission first; or
• give the property to someone who may then take over the repayments, but only if the credit provider gives permission first. If your credit provider won’t give permission, you can contact the AFCA scheme for help. If you have a guarantor, talk to the guarantor who may be able to help you. You should understand that you may owe money to the credit provider even after mortgaged property is sold.

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D.20 Can my credit provider take or sell the mortgaged property?

Yes, if you have not carried out all of your obligations under the Contract.

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General

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D.21 What do I do if I cannot make a repayment?

Get in touch with your credit provider immediately. Discuss the matter and see if you can come to some arrangement. You can ask your credit provider to change the Contract in a number of ways, for example:

• to extend the term of the Contract and reduce payments; or
• to extend the term of your contract and delay payments for a set time; or
• to defer payments for a specified period.

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D.22 What if my credit provider and I cannot agree on a suitable arrangement?

If the credit provider refuses your request to change the repayments, you can ask the credit provider to review this decision if you think it is wrong. If the credit provider still refuses your request you can complain to the AFCA scheme. Further details about this scheme are set out below in question 24.

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D.23 Can my credit provider take action against me?

Yes, if you are in default under the Contract. But the law says that you cannot be unduly harassed or threatened for repayments. If you think you are being unduly harassed or threatened, contact the AFCA scheme or ASIC, or get legal advice.

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D.24 Do I have any other rights and obligations?

Yes. The law will give you other rights and obligations. You should also READ YOUR CONTRACT carefully.

IF YOU HAVE ANY COMPLAINTS ABOUT YOUR CREDIT CONTRACT, OR WANT MORE INFORMATION, CONTACT YOUR CREDIT PROVIDER. YOU MUST ATTEMPT TO RESOLVE YOUR COMPLAINT WITH YOUR CREDIT PROVIDER BEFORE CONTACTING THE AFCA SCHEME. IF YOU HAVE A COMPLAINT WHICH REMAINS UNRESOLVED AFTER SPEAKING TO YOUR CREDIT PROVIDER YOU CAN CONTACT THE AFCA SCHEME OR GET LEGAL ADVICE. THE AFCA SCHEME IS A FREE SERVICE ESTABLISHED TO PROVIDE YOU WITH AN INDEPENDENT MECHANISM TO RESOLVE SPECIFIC COMPLAINTS. THE AFCA SCHEME CAN BE CONTACTED AT:

GPO Box 3, Melbourne Vic 3001

or phone, email, online or by fax to:

Telephone: 1800 931 678

Email: [email protected]

Website: www.afca.org.au

Fax: (03) 9613 6399

PLEASE KEEP THIS INFORMATION STATEMENT. YOU MAY WANT SOME INFORMATION FROM IT AT A LATER DATE.

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