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SCHEDULE 1 to the Act
Agreement between the Commonwealth of Australia and Westpac Banking Corporation
"Corporation advance" means an advance made under Section 20 of the Act as in force before the Date of Proclamation, being an advance made by the Corporation, whether before or after that day.
“Limit”12: means the original amount lent to a Borrower as that amount is:
the amount of all Loan Maintenance Fees debited to that Borrower's Subsidised Advance Loan Account; and
the amount of all taxes or duties on receipts or payments to or from that account (including without limitation financial institutions duty) which are debited to that account; and
reduced by any scheduled repayments of principal and payments of Loan Maintenance Fees (whether these repayments or payments were made or not); and
- (b) increased by any amount of Instalment Relief granted by the Bank pursuant to a Certificate of Entitlement.
"Subsidised Advance" means any advance made by the Bank in accordance with the Certificate of Entitlement, or an initial advance which the Bank is taken to have made pursuant to Section 37 of the Amended Act.
7.5 Application of Lending Criteria
The Bank is not obliged to make a Subsidised Advance or grant Instalment Relief or give effect to the Commonwealth's consent to the Transfer of Land and Subsidy unless the lending criteria specified in Schedule "C" are satisfied.
7.7 Failure to meeting Lending Criteria
The Bank further agrees that the failure by an Entitled Applicant to meet the lending criteria set out in Schedule "C" will be the sole basis for a refusal in whole or in part by the Bank to make the Subsidised Advance or grant the Instalment Relief or give effect to the Commonwealth's consent to the Transfer of Land and Subsidy sought by the Entitled Applicant.
Schedule "C" to the Agreement
The Bank's lending criteria are:
(i) As a general principle the amount of repayments should not exceed 25% of the gross income of the applicant or Entitled Applicant.
(ii)Where application is being made for a Subsidised Advance together with a further loan, repayments on both advances should not exceed 25% of the gross income of the applicant or Entitled Applicant.
(iii) The 25 per cent of gross income rule referred to in (i) and (ii) above constitutes a broad general rule only and each case must be considered on its merits, including the amount of residual income available after meeting commitments.
Known commitments of an applicant or Entitled Applicant will be taken into consideration in determining the capacity of an applicant or Entitled Applicant to meet the repayments.
(c) The applicant or Entitled Applicant will be generally required to meet a reasonable deposit/equity ratio. As a general guideline 10 per cent of the total cost/value of the property may be considered a reasonable deposit.