1. Iden Loan Services
Go-Between &
Construction Loans
www.iden.com.au Correct as at Sept 12, subject to change without notice

2. What is a Go-Between Loan?
• Offers an easy way to purchase or
build a new home before selling the
existing home
• Rather than 2 sets of repayments,
whilst selling the existing home no
repayments are required
• The length of the Go-Between period
will depend on whether the customer
buys or builds their new home
www.iden.com.au Correct as at Sept 12, subject to change without notice

3. Go-Between Highlights
✔ Principal & Interest
✔ Interest Only
✔ Fixed rates (from the outset!)
✔ Variable rates
✔ No rate loading
✔ 100% offset (from the outset!)
✔ Lo Doc Loans
www.iden.com.au Correct as at Sept 12, subject to change without notice

4. Go-Between Loan Repayments
The repayment amount will be based on the end loan which
includes:
• Loan amount required to purchase/build the new
home; plus
• Accumulated interest on the new loan during the
Go-Between period; less
• The agreed amount by which the new loan can be
reduced upon sale of the existing property
www.iden.com.au Correct as at Sept 12, subject to change without notice

5. Buying an Established Home
• A new loan is established to purchase
the new home
• Refinances existing loan at the time of
application for the Go-Between
• Interest is charged to the new loan as
normal and no repayments are
required until the existing property
sells (maximum of 6 months)
www.iden.com.au Correct as at Sept 12, subject to change without notice

6. Established Home
• Once the existing property is sold, the
customer must pay sufficient funds
into the new loan so that it reduces to
the amount specified in the Go-
Between Loan Contract.
• The customer must be made aware
of the interest capitalisation and the
need to sell the property at a realistic
price, within the agreed time frame.
www.iden.com.au Correct as at Sept 12, subject to change without notice

7. Building a New Home
• A new loan is established to
purchase the land and cover
construction costs
• Continue to make repayments on
existing loan
• Interest is charged to the new loan
as normal and no repayments
made on that loan until the
existing property sells (maximum
12 months)
www.iden.com.au Correct as at Sept 12, subject to change without notice

8. How much can we borrow?
• Up to 100% of the new home value
plus fees and charges
• Combined loans cannot exceed
85% LVR (80% Lo Doc) including
any capitalised LMI premium
• Capitalised interest must be
considered in the LVR calculation
• Assessment is based on the
repayment required once the
existing home is sold (End Debt)
• Loans up to $5.0m may be
considered.
www.iden.com.au Correct as at Sept 12, subject to change without notice

9. Application Details
• In all cases where LMI is required
(i.e. peak debt or end debt is >80%
for full doc and 60% for Lo Doc),
cover must be obtained at loan
approval stage.
• The LMI premium is calculated on
the peak debt.
• Full valuation required on property
to be sold. Normal valuation criteria
applies on new property.
www.iden.com.au Correct as at Sept 12, subject to change without notice

10. What if I don’t sell my home in the
Go-Between period?
• Once the Go-Between period ends
(maximum 6 months established
home, maximum 12 months
construction) and the existing
home has not been sold,
repayments will be required on
both the existing and new loan.
• Application for extension (3 month)
available.
www.iden.com.au Correct as at Sept 12, subject to change without notice

11. Scenario
• Existing property valued at $400k (customer owes $170K to
BankC)
• Customer signs contract on new property for $550k and pays a
$10k deposit
• Calculate 6 months capitalised interest on the new purchase =
$566,500 less $10k deposit = $556,500 as the peak debt ‘worse
case scenario’ at the end of 6 months period
• Iden loan second RM behind BankC
• Option to refinance BankC at time of application
(if opt to refinance BankC loan, customer would make no repayments
during the Go-Between period)
www.iden.com.au Correct as at Sept 12, subject to change without notice

12. Scenario (cont)
• Ensure the customer can service the end debt
• Customer has two properties = $950k in total value (400+550)
• Total debts (BankB + Iden loan) = $726,500 (170+556.5)
• Total LVR = 76.5%
• Existing property then sells for $400k – minus $8k sales costs
and $170k BankB loan = $222k
• Subtract the $222k from the Iden loan peak debt of $566,500
- this leaves end debt = $344,500 (assuming proceeds from
sale takes the full 6 months)
www.iden.com.au Correct as at Sept 12, subject to change without notice

13. Construction Loans
• Progress payments
• Principle & Interest or Interest
Only
• 100% Offset Home Loan
• Lo Doc option available
• Fixed and variable rate options
available from the outset
www.iden.com.au Correct as at Sept 12, subject to change without notice

14. Construction Loans
• FHOG released upon land
settlement
• Where the total building cost is
greater than the loan amount, the
funds the customer is contributing
must be paid to the builder prior to
the bank releasing any funds
• P&I Home Line available on the land
loan component
www.iden.com.au Correct as at Sept 12, subject to change without notice

15. Summary
• Go-between loans offer an affordable and simple way of bridging
the buying and selling of your own home. This saves you having to
1) Sell first… then
2) Move in to Rental …then
3) Buy ….then
4) Move in (two moves)
Now you can
A) Buy & Build
B) Move in stress free when you want to
C) Sell your old home – easy (only 1 move)
• Construction loans help you with building your dream home, with
loan repayments made progressively during construction.
www.iden.com.au Correct as at Sept 12, subject to change without notice