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3.7.6 Intention to Occupy


A person must intend to use the house, which is the subject of the application, as a home for him/herself and dependants.  An exception is where nurses are being assisted to acquire a hospital, sanatorium or nursing-home. Intention.  Whether there is a real likelihood of the intention being realised is a relevant consideration.  It would be expected that a decision to refuse to issue a certificate of entitlement would be based on facts that generally are not capable of any other conclusion. Time Limits.  Whether the intention to use the house for the prescribed purpose will be met within a reasonable time is relevant to the genuineness of the intention.  What is a reasonable time will vary having regard to the circumstances of each case, but where a certificate is issued to buy land and build a home and the funds are used for the purchase of land with the intention of building, it is a requirement that the home is completed within five years from settlement of the loan.  Failure to complete construction of a house capable of being occupied within five years will result in cancellation of subsidy and a change in the rate of interest to the Bank's investment rates or alternative finance.  Clients should be warned of these possible implications in such cases.