You are here
The subsidised advance is available for the following purposes:-
- to buy a new or previously occupied home, including a strata unit;
- to buy land and build a home on it;
- to build a home on land the person already owns;
- to complete a partly built home the person owns. Under this criterion a subsidised advance may be provided for the installation of water, sewerage, electricity, drainage or gas including the connection of mains from some distant point to the boundary of the applicant's holding;
- to enlarge, modify or repair an existing home the person owns including retirement village accommodation;
- to pay the entry charges to a retirement village;
- to re finance an existing mortgage on a home.
- to re finance a debt, owed by the person in relation to the person's retirement village accommodation.
- to assist the person to obtain a right of residence in a retirement village in the case of an assigned advance.
18.104.22.168 Enlargement. Under this term the predominant purpose of the loan and the bulk of the cost must be associated with increasing the internal floor space of the house. In circumstances where there are renovations or repairs associated with the enlargement but the renovations or repairs are not the main cost factor, the certificate should be issued for enlargement.
22.214.171.124 Modification. This term is to be used where the predominant purpose of the loan does not involve increasing the internal floor space of the home. However, incidental increases to the size of the home such as the enclosure of existing sleepouts or the installation of a bay window would be included in this definition. They are modifications in that they change the purpose for which an existing area is used. This definition also covers such things as :
- renovation of existing facilities such as kitchens and bathrooms;
- changing the purpose of a room such as converting a store to a living area;
- other internal modifications such as removing walls, adding windows etc.;
- other works which do not increase the internal living area of the home eg garages, decks, pergolas etc.
126.96.36.199 Repairs. This term covers making good something which is in a state of disrepair. This includes replacing something which is defective.
188.8.131.52. Assignment. This provision may be used when the provider of the accommodation is a retirement village managed by an organisation whose prime purpose is to provide accommodation to veterans and veterans' widows (although it is extremely unlikely that a retirement village organisation would accept assignment of a loan), or is an individual who can provide satisfactory security or who will provide granny flat type housing. The advance will be assigned to the provider (the "assignee") who will assume the legal responsibilities for the advance. Loans for this purpose are not subject to the DSH lending criteria specified in Schedule C to the Agreement, but rather the Bank's normal lending criteria for loans of this type.