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Determinations/Financial (Other) as made
This instrument determines Reporting Standard ARS 223.0 Residential Mortgage Lending.
Administered by: Treasury
Made 16 Jan 2018
Registered 22 Jan 2018
Tabled HR 05 Feb 2018
Tabled Senate 05 Feb 2018

Financial Sector (Collection of Data) (reporting standard) determination No. 2 of 2018

 

Reporting Standard ARS 223.0 Residential Mortgage Lending

Financial Sector (Collection of Data) Act 2001

I, Katrina Ellis, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) DETERMINE Reporting Standard ARS 223.0 Residential Mortgage Lending (‘the reporting standard’), in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.

Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities on 1 February 2018.

 

This instrument commences on 1 February 2018.

 

Dated: 16 January 2018

 

[Signed]

 

Katrina Ellis

General Manager

Data Analytics
Interpretation

In this Determination

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the same meaning given by section 5 of the Act.

 

 

 

Schedule     

Reporting Standard ARS 223.0 Residential Mortgage Lending comprises the 25 pages commencing on the following page.


 

 

 

Reporting Standard ARS 223.0

Residential Mortgage Lending

Objective of this Reporting Standard

This reporting standard outlines the requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s residential mortgage lending.

 

It includes Reporting Form ARF 223.0 Residential Mortgage Lending and the associated specific instructions.

 

 

Authority

1.             This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Purpose

2.             Information collected by Reporting Form ARF 223.0 Residential Mortgage Lending (ARF 223.0) is used by APRA for the purposes of prudential supervision. It may also be used by the Reserve Bank of Australia.

Application and commencement

3.             This Reporting Standard applies to all authorised deposit-taking institutions (ADI) with the exception of:

(a)           providers of purchased payment facilities (PPFs); and

(b)          subject to paragraph 4 of this Reporting Standard, foreign ADIs.

This Reporting Standard may also apply to the authorised non-operating holding company (NOHC) of an ADI (refer to paragraph 6).

4.             If APRA considers that a foreign ADI undertakes material residential mortgage lending in Australia, APRA may, by notice, apply this Reporting Standard to that ADI and such a notice may specify that some or all of the requirements in this Reporting Standard apply to that ADI.

APRA may, by notice, vary or revoke a notice given under this paragraph 4 having regard to:

(a)           the particular circumstances of the ADI; and

(b)          the extent to which information is required for the purposes of the prudential supervision of the ADI.

5.             This Reporting Standard applies:

(a)           in the case of locally-incorporated ADIs to which Reporting Standard ARS 320.8 Housing Loan Reconciliation (ARS 320.8) applies, for reporting periods ending on or after 31 March 2018; or

(b)          in the case of all other locally-incorporated ADIs, for reporting periods ending on or after 30 September 2018; or

(c)           in the case of a foreign ADI to which paragraph 4 of this Reporting Standard applies, for reporting periods ending after the date the applicable notice under paragraph 4 is given.

Information required

6.             If an ADI to which this Reporting Standard applies is part of a Level 2 group, the ADI must provide APRA with the information required by ARF 223.0 at Level 2 for each reporting period unless the ADI is a subsidiary of an authorised NOHC. If the ADI is a subsidiary of an authorised NOHC, the ADI’s immediate parent NOHC must provide APRA with the information required by ARF 223.0, for each reporting period. In doing so, the immediate parent NOHC must comply with this Reporting Standard as if it were the relevant ADI.

7.             If an ADI to which this Reporting Standard applies is not part of a Level 2 group, the ADI must provide APRA with the information required by ARF 223.0 at Level 1.

Method of submission

8.             The information required by this Reporting Standard must be given to APRA in electronic format using the ‘Direct to APRA’ application, or by a method notified by APRA prior to submission.

Note: the ‘Direct to APRA’ application software (also known as ‘D2A’) may be obtained from APRA.

Reporting periods and due dates

9.             Subject to paragraph 11, an ADI to which this Reporting Standard applies must provide the information required by this Reporting Standard in respect of each quarter ending 30 September, 31 December, 31 March and 30 June.

10.         The information required by this Reporting Standard must be provided to APRA within 28 calendar days after the end of the reporting period to which the information relates[1].

11.         APRA may, by notice, change the reporting periods, or specified reporting periods, for a particular ADI, to require it to provide the information required by this Reporting Standard more frequently, or less frequently, having regard to:

(a)           the particular circumstances of the ADI; and

(b)          the extent to which the information is required for the purposes of the prudential supervision of the ADI.

12.         APRA may grant an ADI an extension of a due date, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

13.         The information provided by an ADI under this Reporting Standard may be completed on a best endeavours basis for a transition period, being:

(a)           for ADIs to which ARS 320.8 applies, for the reporting periods ending on or before 30 June 2018; or

(b)          for ADIs to which ARS 320.8 does not apply, for the reporting periods ending on or before 31 December 2018; or

(c)           for reporting periods as specified by APRA by notice.

Note: for the avoidance of doubt, paragraph 13 of this Reporting Standard does not limit APRA from, under section 17 of the Financial Sector (Collection of Data) Act 2001, directing an ADI to give APRA explanation of, or variation to, information provided by an ADI under this Reporting Standard.

14.         For reporting periods ending after the relevant transition period in paragraph 13, information provided by an ADI under this Reporting Standard must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI as set out in Prudential Standard APS 310 Audit and Related Matters. Relevant standards and guidance statements issued by the Auditing and Assurance Standards Board provide information on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if necessary to enable the external auditor to form an opinion on the accuracy and reliability of the information.

15.         All information provided by an ADI under this Reporting Standard must be subject to processes and controls developed by the ADI for the internal review and authorisation of that information. These systems, processes and controls are to assure the completeness and reliability of the information provided.

Note: for the avoidance of doubt, paragraph 13 of this Reporting Standard does not limit the requirements of paragraph 15 of this Reporting Standard.

Authorisation

16.         When an officer or agent of an ADI provides the information required by this Reporting Standard using the ‘Direct to APRA’ software, it will be necessary for the officer or agent to digitally sign the relevant information using a digital certificate acceptable to APRA

Minor alterations to forms and instructions

17.         APRA may make minor variations to:

(a)           a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or

(b)          the instructions to a form, to clarify their application to the form

without changing any substantive requirement in the form or instructions.

18.         If APRA makes such a variation it must notify each ADI that is required to report under this reporting standard.

Interpretation

19.         In this reporting standard:

AASB has the meaning in section 9 of the Corporations Act 2001.

ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.

authorised NOHC has the meaning given in the Banking Act 1959.

due date means the last day of the 28 calendar days provided for in paragraph 10 or, if applicable, paragraph 12.

 

foreign ADI has the meaning in section 5 of the Banking Act 1959.

immediate parent NOHC means an authorised NOHC, or a subsidiary of an authorised NOHC, that is an immediate parent NOHC within the meaning of Prudential Standard APS 001 Definitions.

Level 1 has the meaning in Prudential Standard APS 001 Definitions.

Level 2 has the meaning in Prudential Standard APS 001 Definitions.       

locally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or Territory law.

provider of purchased payment facilities means an ADI that is subject to a condition on its authority under section 9 of the Banking Act 1959 confining the banking business that the ADI is authorised to carry on to providing purchased payment facilities.

reporting period means a quarter of a year as provided for in paragraph 9 or, if applicable, paragraph 11.

subsidiary has the meaning in the Corporations Act 2001.

20.         Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard (including related guidance) is a reference to the instrument as in force or existing from time to time.

21.         Where this Reporting Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.


ARF_223_0: Residential Mortgage Lending

 

Australian Business Number

Institution Name

Reporting Period

Scale Factor

Quarterly

Millions to one decimal place for banks

Thousands with no decimal place for other ADIs

Percentages to two decimal places

Reporting Consolidation

 

Level 1 or Level 2

 

 

Section A: Outstanding loans secured by residential property 

 

 

 

Secured in Australia

Secured overseas

 

(1)

(2)

1. Credit limits (including redrawable amounts)

 

 

1.1. Term loans - owner-occupied

 

 

1.2. Term loans - investment

 

 

1.3. Term loans - non-housing purposes

 

 

1.4. Revolving credit

 

 

2. Balances in offset accounts

 

 

 

 

 

 

Secured in Australia

Secured in Australia: Past-due or impaired

 

(1)

(2)

3. Credit outstanding

 

 

3.1. Term loans - owner-occupied

 

 

3.1.1. of which: interest-only

 

 

3.1.2. of which: third-party originated

 

 

3.2. Term loans - investment

 

 

3.2.1. of which: interest-only

 

 

3.2.2. of which: third-party originated

 

 

3.3. Term loans - non-housing purposes

 

 

3.3.1. of which: interest-only

 

 

3.3.2. of which: third-party originated

 

 

3.4. Revolving credit

 

 

3.4.1. of which: third-party originated

 

 

3.4.2. of which: reverse mortgages

 

 

3.5. Credit outstanding

 

 

3.5.1. of which: low-documentation

 

 

3.5.2. of which: loans to non-residents

 

 

3.5.3. of which: loans to SMSFs

 

 

3.5.4. of which: with lenders mortgage insurance

 

 

3.5.5. of which: loans for units or apartments

 

 

 

4. Term loans - credit outstanding by vintage

 

4.1. Loans funded <= 3 years ago

 

 

4.2. Loans funded > 3 years and <= 5 years ago

 

 

4.3. Loans funded > 5 years ago

 

 

 

5. New past-due or impaired loans in the quarter

 

 

6. Mortgagee in possession

 

 

7. Loans 30-89 days past-due

 

 

8. Loans currently subject to temporary modifications due to financial difficulty

 

 

 

 

 

LVR<60

60<=LVR<80

80<=LVR<85

85<=LVR<90

90<=LVR<95

LVR>=95

Missing LVR

 

(1)

(2)

(3)

(4)

(5)

(6)

(7)

9. Term loans outstanding by LVR - Australia

 

 

 

 

 

 

 

9.1. of which: owner-occupied

 

 

 

 

 

 

 

9.2. of which: investment

 

 

 

 

 

 

 

9.3. of which: third-party originated

 

 

 

 

 

 

 

9.4. of which: past-due or impaired

 

 

 

 

 

 

 

 

Section B: New loans funded during the quarter, secured by residential property

 

Secured in Australia

Secured overseas

 

(1)

(2)

10. New loans funded - total committed amount

 

 

 

 

Owner Occupied

Investment

Non-housing purposes

Total

 

 

(1)

(2)

(3)

(4)

 

10.1. Term loans - Australia

 

 

 

 

 

10.1.1. of which: interest-only

 

 

 

 

 

10.1.2. of which: third-party originated

 

 

 

 

 

10.1.3. of which: loan-to-income >= 4x <6x

 

 

 

10.1.4. of which: loan-to-income >= 6x

 

 

 

10.1.5. of which: debt-to-income >= 4x <6x

 

 

 

10.1.6. of which: debt-to-income >= 6x

 

 

 

10.2. Revolving credit - Australia

 

 

10.3. New loans funded - total committed amount - Australia

 

10.3.1. Externally refinanced

 

10.3.2. Loans to SMSFs

 

10.3.3. Loans to non-residents

 

10.3.4. With lenders mortgage insurance

 

10.3.5. Impaired customer credit history

 

10.3.6. Exceptions to serviceability policy

 

10.3.7. Serviceability verification waivers

 

10.3.8. Loans for units or apartments

 

 

 

 

LVR<60

60<=LVR<80

80<=LVR<81

81<=LVR<85

85<=LVR<90

90<=LVR<95

LVR>=95

 

(1)

(2)

(3)

(4)

(5)

(6)

(7)

11. New term loans funded by LVR - Australia

 

 

 

 

 

 

 

11.1. of which: owner-occupier

 

 

 

 

 

 

 

11.2. of which: investment

 

 

 

 

 

 

 

11.3. of which: interest-only

 

 

 

 

 

 

 

11.4. of which: third-party originated

 

 

 

 

 

 

 

 

12. Interest rates - new loans funded during the quarter - Australia

12.1. Average variable rate

 

12.2. Average loan serviceability assessment rate

 

 

13. Increase in credit limits for existing term loans during the quarter

 

13.1. of which: interest-only loans

 

 

Section C: Loans to private unincorporated businesses secured by residential mortgages

 

 

 

14. Loans to private unincorporated businesses - Australia

 

14.1. Credit outstanding

 

14.2. New loans funded during the quarter - total committed amount

 


Reporting Form ARF 223.0 Residential Mortgage Lending

 

Instructions

 

This instruction guide is designed to assist in the completion of Reporting Form ARF 223.0 Residential Mortgage Lending (ARF 223.0). The purpose of this form is to provide quarterly statistics on residential lending activities, including the stock and flow of credit and composition of loans by type.

 

General directions and notes

 

Reporting entity

 

The form is to be completed by all locally-incorporated ADIs (other than providers of purchased payment facilities) and any foreign ADI that has received a notice from APRA under paragraph 4 of Reporting Standard ARS 223.0 Residential Mortgage Lending.

 

Securitisation deconsolidation principle

 

Except as otherwise specified in these instructions, the following applies:

 

1.             Where an ADI (or a member of its Level 2 consolidated group[2]) participates in a securitisation that meets APRA’s operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120):

 

(a)          special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for ARF 223.0, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes; and

 

(b)          the assets, liabilities, revenues and expenses of the relevant SPVs may be excluded from the ADI’s reported amounts in ARF 223.0.

 

2.             Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA’s operational requirements for regulatory capital relief under APS 120, or the ADI undertakes a funding-only securitisation or synthetic securitisation (per APS 120), such assets are to be reported in ARF 223.0.

 

Reporting period

 

The information provided in this form must be for the three calendar months up to and including the last day of the stated quarter (i.e. September, December, March and June).

 

Unit of measurement

 

This form must be completed in Australian dollars (AUD) and in accordance with the units set out for each class of ADI in the following table, with the exception of item 12.

 

Class of ADI

Units

Bank

Millions of dollars rounded to one decimal place

Building Society

Thousands of dollars with no decimal place

Credit Union

Thousands of dollars with no decimal place

Other ADI  

Thousands of dollars with no decimal place

 

Convert amounts denominated in foreign currency to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.

 

Report item 12 as a percentage to two decimal places.

 

Basis of preparation

 

Unless otherwise specifically stated, information reported on this form must comply with Australian accounting standards.

 

Standard Business Reporting (SBR)

 

The accounting type (i.e. credit or debit) is stated for all monetary items and represents the natural balance of the item collected.


Definitions

 

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

 

Definitions of security types and loan purposes

 

Dwelling

A self-contained room or suite of rooms, including cooking and bathing facilities, intended for long-term residential use. A dwelling is private (not generally accessible by the public) and is contained within a building that is an immobile structure. A dwelling may comprise part of a building or the whole of a building. Regardless of whether they are self-contained or not, rooms within buildings offering institutional care (e.g. hospitals) or temporary accommodation (e.g. hotels, motels or hostels) are not defined as dwellings.

Investment

A loan for the purpose of housing, where the funds are used for a residential property that is not owner-occupied.

Where the loan is for a residential property that is different to the residential property against which the loan is secured, this definition refers to the occupation status of the residential property for which the loan has been obtained (not the occupation status of the property used as security).

It includes: holiday or vacation homes and part-time residences that are not the borrower’s or borrowers’ principal place of residence.

It excludes: part-time residences that are the borrower’s or borrowers’ principal place of residence. These should be reported under owner-occupied.

Owner-occupied

A loan for the purpose of housing, where the funds are used for a residential property, that is occupied or to be occupied by the borrower(s) as their principal place of residence.

Where the loan is for a residential property that is different to the residential property against which the loan is secured, this definition refers to the occupation status of the residential property for which the loan has been obtained (not the occupation status of the residential property used as security).

It includes:

·         dwellings and residential land that are vacant while under construction, but that the borrower intends to occupy as a principal place of residence;

·         part-time residences that are the borrower’s or borrowers’ principal place of residence.

It excludes:

·         part-time residences that are not the borrower’s or borrowers’ principal place of residence. These should be reported as investment.

Where finance is to be used for more than one purpose (owner-occupied, investment or non-housing purposes), the entire amount of the finance should be classified according to the predominant purpose (i.e. the purpose for which the largest share of the funds will be used).

Where there is any doubt or ambiguity about whether a loan is for an owner-occupied or investment property, report the loan as for investment.

Non-housing purposes

A loan secured by residential property where the funds are not used for the purchase, renovation or development of residential property. For example, personal loans secured by residential property.

Residential land

Any vacant land that does not have a dwelling attached, where the construction of a dwelling is allowed under zoning regulations.

Residential property

 

Residential land and dwellings.

Secured in Australia

Loans where the majority (by valuation) of residential property used as collateral for the loan is located in Australia.

Secured overseas

Loans where the majority (by valuation) of residential property used as collateral for the loan is located outside Australia.

Units or apartments

Dwellings in a building that has more than two dwellings. These dwellings do not have their own private grounds and usually share a common entrance foyer or stairwell. Do not include duplexes, townhouses or a detached residence that includes a flat (such as a granny flat) on the same property. Dwellings included in this item are categorised as class 13 ‘Flats, units or apartments’ in the Australian Bureau of Statistics’ (ABS) Functional Classification of Buildings, 1999 (Revision 2011) Cat. no. 1268.0.55.001.

 


Definitions of borrower types and characteristics

 

Households

Individuals (that is, natural persons), or groups of individuals, whose dealings are for personal or household purposes. Exclude:

·         individuals, or groups of individuals, whose dealings with other sectors are for business purposes; 

·         sole proprietors, partnerships, and any other unincorporated enterprises;

·         family trusts; and

·         any other counterparties, such as corporations, partnerships and managed funds.

Impaired customer credit history

Borrowers with previous record of default, bankruptcy or other credit impairment, to the extent this information is known to the ADI.

Non-residents

Borrowers whose centre of predominant economic interest (i.e. principal place of residence) is outside Australia’s economic territory.

Private unincorporated businesses

Persons acting as sole proprietors or in partnerships for business purposes. The major businesses to be included in this sub-sector are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradespeople such as plumbers, electricians, carpenters, etc.

It includes:

·         households whose dealings with other sectors are for business purposes; and

·         family trusts.

It excludes:

·         any unincorporated business that is a branch of a non-resident company;

·         unincorporated businesses that are owned by private trading corporations (e.g. joint ventures); and

·         government unincorporated enterprises.

SMSFs

Self-managed superannuation funds and has the meaning given by sections 17A and 17B of the Superannuation Industry (Supervision) Act 1993.

 


Definitions of measures of loans

 

Borrower’s gross income

 

Borrower’s annual before tax income, excluding any compulsory superannuation contributions and before any discounts or haircuts under the ADI’s serviceability assessment policy.

Credit limit

The maximum amount of funds available to the borrower without additional authorisation or approval. This amount should include the credit outstanding and any other funds that can be drawn without additional approval by the lender.

For term loans, report the amortised value of the loan, gross of offset accounts.

For revolving credit facilities, any amounts in a net-deposit position should not add to the credit limit.

Credit outstanding

The balance owed by borrowers at the end of the reporting period (including capitalised interest or fees). The credit outstanding is the original loan amount, less any repayments, plus any redraw facilities drawn.

The balance should be reported gross of provisions. Do not net any deposit balances in offset accounts against the outstanding loan amount.

For revolving credit facilities, report the drawn amount.

Debt-to-income ratio

The ratio of the credit limit of all debts held by the borrower, to the borrowers’ gross income.

Include the credit limit of any debts, such as other mortgage lending, personal loans, credit-cards, consumer finance, margin lending and any other debts held by the borrower, to any party, to the extent this is known to the ADI.

Loan serviceability assessment rate

The interest rate used in the ADI’s serviceability assessments, such as an interest-rate floor or actual interest-rate rate plus interest-rate buffer. Loan serviceability rate does not consider other serviceability factors such as discounts or haircuts to income.

Loan-to-income ratio

The ratio of the credit limit of the loan to the borrower's gross income.

Loan-to-valuation ratio (LVR)

As defined in Attachment D of Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112).

 


Definitions of loan types and characteristics

 

30-89 days past-due

Loans that are at least 30 days past-due but less than 90 days past-due, whether or not the loan is well secured or impaired. This should be based on the original contractual terms of the loan, not restructured terms or temporary concessions.

Amortising

Loans on which interest is paid and principal is automatically amortised. Also known as principal and interest loans.

Exceptions to serviceability policy

Loans approved either with negative serviceability, below the ADI’s serviceability threshold or that have been granted other credit policy waivers related to serviceability. Include loans:

·         with net income surplus less than $0 or below the ADI’s minimum serviceability threshold, temporary or otherwise (e.g. bridging finance);

·         with net income surplus of more than $0 or the ADI’s minimum serviceability threshold, but where input parameters have been adjusted below policy minimum levels (e.g. changes to interest rate floors or expense assumptions); and

·         where additional income outside of policy is included to achieve net income surplus above $0 or the ADI’s minimum serviceability threshold.

Exclude loans:

·         that initially fail automated internal decision tools but meet serviceability policy requirements after income is manually added; and

·         with non-serviceability policy exceptions (for example, valuation and LVR exceptions).

Externally refinanced

Loans where a new loan is obtained to replace an existing loan that was provided by a different lender (that is not within the regulated ADI itself). It excludes:

  • refinanced loans for a different residential property. These should only be reported as new funded loans.

Funded

A loan is considered funded once any portion of the funds is made available for the borrower to draw down according to the terms of the contract, whether or not it is drawn down within that period.

Interest-only

Loans on which only interest is paid during a set period and no principal is automatically amortised. The loans will typically revert to principal-and-interest repayments at the end of the interest-only period. Only report loans as interest-only loans during their interest-only period.

Impaired

Loans that are impaired as defined in Prudential Standard APS 220 Credit Quality (APS 220).

Lenders mortgage insurance (LMI)

As defined in Attachment D of APS 112.

Low-documentation

A loan for which the lender has not, prior to loan origination, fully documented and verified the income of the borrower.

Mortgagee in possession

Loans for which the ADI has taken possession of the property securing the loan due to borrower default. Do not include loans where the property has been sold.

Offset accounts

Deposit accounts that are offset against the balance of an outstanding loan when calculating the interest owing. Exclude accounts with no credit outstanding associated with them, and all-in-one facilities where it is not possible to separate the loan balance from the borrower’s deposits.

Past-due

Loans are loans that are past-due and well secured as defined in APS 220.

Reverse mortgages

Loans secured by residential property in which repayments are generally deferred and capitalised, with full repayment due when the owner dies, sells the property or moves out of the house.

Revolving credit

Lending facilities that the borrower may repeatedly draw down, in part or in full up to an authorised credit limit, and repay any credit drawn, in part or in full, on multiple occasions without the facility being cancelled. Repayments (other than of charges and interest) reduce the borrowings, thereby increasing the amount of unused credit available. Include facilities with a fixed term that meet the above criteria. Include reverse mortgages.

Serviceability verification waivers

Loans with material waivers to serviceability verification requirements, which may impact the reliability of the serviceability assessment.

Temporary modifications due to financial difficulty

Loans where the ADI has made temporary modifications to the conditions to the loan, for example, temporary concessions to repayments, due to the financial difficulty of the borrower.

Term loans

Loans extended for a fixed period, with a maturity date by which the loan must be repaid. Repayments over the fixed period reduce the credit outstanding and do not make further finance available. Include redraw facilities attached to fixed-term loans as part of the term loan. Exclude reverse mortgages, report reverse mortgages as revolving credits.

Third-party originated

Loans where the ADI’s primary contact with the borrower at origination is through a mortgage broker or another party (including a related body corporate) that is not within the regulated ADI itself. This includes where this third party accepts or completes applications, and is regardless of whether the third party has the ability to approve transactions or not.

 


 

Specific instructions

 

Section A: Outstanding loans secured by residential property

 

Report information as at the end of the quarter, on all outstanding loans to households and SMSFs that are secured by residential property, in section A.

 

SBR: the accounting type of item and items 3 - 9 is debit (items are assets). The accounting time of item 2 is credit (items are liabilities).

 

Item 1 Credit limits and Item 2 Balances in offset accounts

 

Items 1 and 2 collect information on the credit limits and offset accounts for loans secured by residential property.

 

Column 1

The amount for facilities secured in Australia.

Column 2

The amount for facilities secured overseas.

 

Item 1

Report the total credit limit for facilities secured in Australia in item 1 column 1.

Item 1 column 1 is a derived item. Report the total credit limit in item 1 column 1 as the sum of items 1.1 to 1.4 inclusive.

Report the total credit limit for facilities secured overseas in item 1 column 2.

Item 1.1

Report the total credit limit for owner-occupied, term loans, secured in Australia.

Item 1.2

Report the total credit limit for investment, term loans, secured in Australia.

Item 1.3

Report the total credit limit for non-housing purposes, term loans, secured in Australia.

Item 1.4

Report the total credit limit for revolving credit facilities secured in Australia.

Item 2

Report the gross deposit balance in offset accounts which offset loans secured in Australia.

 

Item 3 to Item 8: Credit outstanding

 

Items 3 to 8 inclusive collect information on the credit outstanding for loans secured by residential property.

 

Column 1

The credit outstanding for loans secured in Australia.

Column 2

The credit outstanding for loans secured in Australia that are past-due or impaired.

 

Item 3

Item 3 is a derived item. Report the value of credit outstanding in item 3 column 1, and past-due or impaired in column 2, as the sum of items 3.1, 3.2, 3.3 and 3.4.

Item 3.1

Report owner-occupied term loans.

Item 3.1.1

Of the amount reported in item 3.1, report interest-only loans.

Item 3.1.2

Of the amount reported in item 3.1, report third-party originated loans.

Item 3.2

Report investment term loans.

Item 3.2.1

Of the amount reported in item 3.2, report interest-only loans.

Item 3.2.2

Of the amount reported in item 3.2, report third-party originated loans.

Item 3.3

Report term loans for non-housing purposes.

Item 3.3.1

Of the amount reported in item 3.3, report interest-only loans.

Item 3.3.2

Of the amount reported in item 3.3, report third-party originated loans.

Item 3.4

Report revolving credit facilities.

Item 3.4.1

Of the amount reported in item 3.4, report third-party originated facilities.

Item 3.4.2

Of the amount reported in item 3.4, report reverse mortgages.

Item 3.5.1

Of the amount reported in item 3, report low-documentation loans.

Item 3.5.2

Of the amount reported in item 3, report loans to non-residents.

Item 3.5.3

Of the amount reported in item 3, report loans to SMSFs.

Item 3.5.4

Of the amount reported in item 3, report loans currently covered by LMI.

Item 3.5.5

Of the amount reported in item 3, report loans predominantly for the purpose of units or apartments.

 

Item 4: Credit outstanding: Vintage

 

Item 4 collects information on the time since loans were funded.

 

Item 4.1

Report term loans that were funded less than or equal to 3 years before the end of the reporting period.

Item 4.2

Report term loans that were funded greater than 3 years and less than or equal to 5 years before the end of the reporting period.

Item 4.3

Report term loans that were funded greater than 5 years before the end of the reporting period.

 

Items 5 to 8: Credit outstanding: Other information

 

Items 5 to 8 collect other information about outstanding loans.

 

Item 5

Report loans that were previously performing and have become past-due or impaired during the quarter.

Item 6

Report mortgagee in possession loans.

Item 7

Report loans 30-89 days past-due.

Item 8

Report loans granted temporary modifications due to financial difficulty.

 

Item 9: Credit outstanding: LVR profile

 

Item 9 collects information on the credit outstanding for term loans, secured in Australia grouped by LVR.

 

Column 1

Report loans with an LVR less than 60 per cent.

Column 2

Report loans with an LVR greater than or equal to 60 per cent, and less than 80 per cent.

Column 3

Report loans with an LVR greater than or equal to 80 per cent, and less than 85 per cent.

Column 4

Report loans with an LVR greater than or equal to 85 per cent, and less than 90 per cent.

Column 5

Report loans with an LVR greater than or equal to 90 per cent, and less than 95 per cent.

Column 6

Report loans with an LVR greater than or equal to 95 per cent.

Column 7

Report loans with an unknown or missing LVR. Column 7 is a derived item.

 

Item 9

Report the credit outstanding for term loans grouped by LVR for loans secured in Australia.

Item 9 column 7 is derived as the sum of item 3.1 column 1, item 3.2 column 1, and item 3.3 column 1; less the sum of item 9 columns 1 to 6 inclusive.

Item 9.1

Of the amount reported in item 9, report owner-occupied loans grouped by LVR.

Item 9.1 column 7 is derived as item 3.1 column 1 less the sum of item 9.1 columns 1 to 6 inclusive.

Item 9.2

Of the amount reported in item 9, report investment loans grouped by LVR.

Item 9.2 column 7 is derived as item 3.2 column 1 less the sum of item 9.2 columns 1 to 6 inclusive.

Item 9.3

Of the amount reported in item 9, report third-party originated loans grouped by LVR.

Item 9.3 column 7 is derived as: the sum of item 3.1.2 column 1, item 3.2.2 column 1, and item 3.3.2 column 1; less the sum of item 9.3 columns 1 to 6 inclusive.

Item 9.4

Of the amount reported in item 9, report past-due or impaired loans grouped by LVR.

Item 9.4 column 7 is derived as: the sum of item 3.1 column 2, item 3.2 column 2, and item 3.3 column 2; less the sum of item 9.4 columns 1 to 6 inclusive.

 

Section B: New loans funded during the quarter, secured by residential property

 

Item 10: New loans funded

 

Items 10 to 11 inclusive collect information on the total credit limit of loans to households and SMSFs secured by residential property that were funded during the quarter.

 

For revolving credit facilities, report the entire value of the credit limit from the time at which the credit is first made available to the borrower (whether or not it is drawn down within that period).

 

For term loans, report the entire committed value of the loan from the time at which the credit is first made available to the borrower (whether or not it is drawn down within that period). If the loan is disbursed over a period of time (multiple drawdowns) then report the entire loan as being funded from the time at which funds are first made available to the borrower, whether or not it is drawn down within that period.

 

Report values gross of offset account balances (i.e. do not subtract offset account balances) and redraw facilities (i.e. do not subtract the amounts available in redraw facilities).

 

For internal refinances report the total value refinanced, not just the increase in the credit limit.

 

SBR: the accounting type of items 10 to 13 is debit (items are assets).

 

Item 10

Report the total credit limit of loans funded in item 10.

Item 10 column 1 is a derived item. Report the value of item 10 column 1 as the sum of item 10.1 column 4 and item 10.2.

Report the value of loans originated and secured overseas in item 10 column 2.

 

Column 1

Report owner-occupied loans.

Column 2

Report investment loans.

Column 3

Report loans for non-housing purposes.

Column 4

Report total loans. Column 4 is a derived item. Report column 4 as the sum of columns 1 to 3 inclusive.

 

Item 10.1

Report the credit limit of term loans that are secured in Australia that were funded during the quarter.

Item 10.1.1

Of the amount reported in item 10.1, report interest-only loans.

Item 10.1.2

Of the amount reported in item 10.1, report third-party originated loans.

Item 10.1.3

Of the amount reported in item 10.1, report term loans where the loan-to-income ratio is greater than or equal to 4 times, but less than 6 times.

Item 10.1.4

Of the amount reported in item 10.1, report term loans where the loan-to-income ratio is greater than or equal to 6 times.

Item 10.1.5

Of the amount reported in item 10.1, report term loans where the debt-to-income ratio is greater than or equal to 4 times, but less than 6 times.

Item 10.1.6

Of the amount reported in item 10.1, report term loans where the debt-to-income ratio is greater than or equal to 6 times.

Item 10.2

Report the total credit limit of revolving credit facilities, secured in Australia, that were funded during the quarter.

Item 10.3.1

 

Report the total credit limit of loans secured in Australia that were funded during the quarter that were externally refinanced.

Item 10.3.2

Report the total credit limit of loans to SMSFs, secured in Australia, that were funded during the quarter.

Item 10.3.3

Report the total credit limit for loans to non-residents, secured in Australia, that were funded during the quarter.

Item 10.3.4

Report the total credit limit for loans with LMI, secured in Australia, that were funded during the quarter.

Item 10.3.5

Report the total credit limit for loans with impaired customer credit history, secured in Australia, that were funded during the quarter.

Item 10.3.6

Report the total credit limit for loans with exceptions to serviceability policy, secured in Australia, that were funded during the quarter.

Item 10.3.7

Report the total credit limit for loans with serviceability verification waivers, secured in Australia, that were funded during the quarter.

Item 10.3.8

Report the total credit limits for loans predominantly for the purpose of units or apartments, secured in Australia, that were funded during the quarter.

 

Item 11: New term loans: LVR profile

 

Item 11 collects information about term loans, secured in Australia that were funded during the quarter, grouped by LVR.

 

Column 1

Report loans with an LVR less than 60 per cent.

Column 2

Report loans with an LVR greater than or equal to 60 per cent, and less than 80 per cent.

Column 3

Report loans with an LVR greater than or equal to 80 per cent, and less than 81 per cent.

Column 4

Report loans with an LVR greater than or equal to 81 per cent, and less than 85 per cent.

Column 5

Report loans with an LVR greater than or equal to 85 per cent, and less than 90 per cent.

Column 6

Report loans with an LVR greater than or equal to 90 per cent, and less than 95 per cent.

Column 7

Report loans with an LVR greater than or equal to 95 per cent.

 

Item 11

Report the total credit limit of term loans funded during the quarter secured in Australia, grouped by LVR. Calculate LVR using the total credit limit of the loan.

Item 11.1

Of the amount reported in item 11, report owner-occupied loans.

Item 11.2

Of the amount reported in item 11, report investment loans.

Item 11.3

Of the amount reported in item 11, report interest-only loans.

Item 11.4

Of the amount reported in item 11, report third-party originated loans.

 

Item 12: Interest rates of new loans

 

Item 12 collects information about the interest rates of new term loans funded during the quarter.

 

Item 12.1

Report the weighted average interest rate for variable-rate loans secured in Australia that were funded during the quarter, as the average of the individual loans’ contractual interest rates, weighted by the credit limit, including any interest rate discounts received by the borrower. Include loans with temporary fixed-rate periods of less than 12 months.

Item 12.2

Report the weighted average loan serviceability assessment rate for loans secured in Australia that were funded during the quarter, as the average of the individual loan interest rates weighted by the credit limit.

 

Item 13: Increase in credit limits for existing loans

 

Item 13 collects information about increases in credit limits made during the quarter to existing loans.

 

Item 13

Report any increases in total credit limits for term loans to households and SMSFs during the quarter that are not already included in new loans funded. Only report the increase in the credit limit, not the entire new limit.

Item 13.1

Of the amount reported in item 13, report interest-only loans.

 

Section C: Loans to private unincorporated businesses secured by residential mortgages

 

Item 14 collects addition information on loans secured by residential mortgages in Australia.

 

SBR: the accounting type of item 14 is debit (items are assets).

 

Item 14.1

Report the value of credit outstanding to private unincorporated businesses, secured in Australia by residential property.

Item 14.2

Report the total credit limit of loans that were funded during the quarter to private unincorporated businesses, secured in Australia by residential property.

 



[1]         For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, an ADI is nonetheless required to submit the information required no later than the due date.

[2]           Level 2 is defined in accordance with Prudential Standard APS 001 Definitions.