Origin Mortgage Management Services Lending Policy (Version 3.6 – 22 July 2019) commercial-in-confidence Origin MMS Lending Policy Table of Contents 1. Introduction ......................................................................... 1 1.1 Purpose of the Lending Policy .......................................................... 1 1.2 Responsibilities ................................................................................ 2 1.3 National Credit Code ........................................................................ 3 1.3.1 Introduction .................................................................................................... 3 1.3.2 Responsible Lending Obligations .................................................................. 4 1.3.2 Regulated and Unregulated Loans ................................................................ 5 1.3.3 Financial Obligations ..................................................................................... 7 1.3.4 Substantial Hardship ...................................................................................... 7 1.4 Lenders Mortgage Insurance (LMI) .................................................. 8 1.4.1 Purpose of Lenders Mortgage Insurance ....................................................... 8 1.4.2 Lenders Mortgage Insurance Approvals ........................................................ 8 1.4.3 Lenders Mortgage Insurance Policy .............................................................. 8 2.0 Products ............................................................................. 10 2.1 Product Summary .......................................................................... 10 2.2 Maximum Loan Size, LVR and Security Location Matrix ................ 10 2.2.1 Full Documentation ............................................................................................. 10 2.2.2 Alternative Documentation .................................................................................. 11 3.0 Credit Policy ...................................................................... 11 3.1 Maximum Loan Amounts ................................................................ 11 3.2 Maximum Loan, Interest Only and Fixed Rate Terms..................... 11 3.3 Maximum Loan to Valuation Ratio’s (LVRs) ................................... 12 3.4 Maximum Exposure ....................................................................... 13 3.5 Loan Purpose ................................................................................. 13 3.5.1 Acceptable Loan Purpose ............................................................................ 13 3.5.1.1 Purchase property ........................................................................................... 14 3.5.1.2 Refinance ........................................................................................................ 14 3.5.1.3 Debt Consolidation .......................................................................................... 15 3.5.1.4 Equity Release/Cash Out ................................................................................. 15 3.5.1.5 Business Purposes .......................................................................................... 16 3.5.1.6 Off-The-Plan Purchases .................................................................................. 16 3.5.1.7 First Home Buyers ........................................................................................... 17 3.5.1.8 Marital Property Settlement ............................................................................. 17 3.5.1.9 Construction Loans .......................................................................................... 18 3.5.1.11 Home Renovations ........................................................................................ 22 3.5.2 Unacceptable Loan Purpose ....................................................................... 22 commercial-in-confidence Origin MMS Lending Policy 3.6 Borrowers/Guarantors .................................................................... 23 3.6.1 Eligible Borrowers ........................................................................................ 23 3.6.1.1 Expatriates....................................................................................................... 25 3.6.1.2 Companies ...................................................................................................... 25 3.6.1.3 Trusts .............................................................................................................. 26 3.6.1.4 Self-Managed Super Funds ............................................................................. 27 3.6.2 Excluded Borrowers ..................................................................................... 27 3.6.2.1 Borrowers of Convenience ............................................................................... 27 3.6.3 Guarantors & Guarantees ............................................................................ 28 3.6.3.1 Unacceptable Guarantors ................................................................................ 29 3.6.4 Power of Attorney ........................................................................................ 30 3.7 Employment ................................................................................... 31 3.7.1 Types ........................................................................................................... 31 3.7.1.1 PAYG .............................................................................................................. 31 3.7.1.2 Self Employed ................................................................................................. 31 3.7.1.3 Breakdown of Employment Types ................................................................... 31 3.8 Income ........................................................................................... 32 3.9 Documentation and Verification...................................................... 35 3.9.1 PAYG Documentation and Verification ........................................................ 35 3.9.1.1 PAYG Documentation ...................................................................................... 35 3.9.1.2 PAYG Verification ............................................................................................ 36 3.9.2 Self Employed Documentation and Verification ........................................... 37 3.9.2.1 Self Employed Full Documentation .................................................................. 37 3.9.2.2 Self Employed Alt Documentation .................................................................... 38 3.9.2.3 Self Employed Verification ............................................................................... 38 3.9.3 Company Documentation and Verification ................................................... 38 3.9.3.1 Company Full Documentation .......................................................................... 38 3.9.3.2 Company Alt Documentation ........................................................................... 39 3.9.3.3 Company Verification ....................................................................................... 39 3.9.4 Trust Documentation and Verification .......................................................... 39 3.9.4.1 Trust Documentation ....................................................................................... 39 3.9.4.2 Trust Verification .............................................................................................. 40 3.9.5 Other Income ............................................................................................... 40 3.9.5.1 Rental Income Documentation and Verification ............................................... 40 3.9.6.2 Other Income Documentation and Verification ................................................. 40 3.10 Serviceability ................................................................................ 41 3.10.1 Net Disposable Income .............................................................................. 41 3.10.2 Net Serviceability Ratio .............................................................................. 42 3.10.3 Joint Income/Joint Commitments ............................................................... 42 3.10.4 Living Expenses ......................................................................................... 42 3.10.4.1 Basic Living Expenses ................................................................................... 43 3.10.4.2 Discretionary Living Expenses ....................................................................... 43 commercial-in-confidence Origin MMS Lending Policy 3.10.4.3 Specifically Excluded Expenses ..................................................................... 43 3.10.5 Allowable Add-backs ................................................................................. 44 3.10.6 Unacceptable Add-backs ........................................................................... 44 3.10.7 Rental Expenses ........................................................................................ 44 3.10.8 Credit Card Limits ...................................................................................... 44 3.10.9 Self-Managed Super Funds ....................................................................... 45 3.11 Credit Bureau Reports ................................................................. 45 3.11.1 Credit