PET - Plain English Taxonomy

Attribute: BSAO13100
Label: New Commitments For Home Loans - Excluding Revolving Credit Home Loans - Value
Concept Guidance:
This is the value of new lending commitments, or firm offers, in the form of fixed-term loans (i.e. other than those in the form of revolving credit loans), provided by the reporting party during the relevant period, regardless of whether or not they have subsequently been withdrawn, or cancelled, during or after the period. New commitments will also include commitments to provide finance to employees, the provision of bridging finance, supplementary commitments (value only) where the original approval was not large enough, commitments to refinance existing loans where the original lender was not the reporting institution. Do not report commitments to refinance existing loans where there is no change in the security offered and the reporting institution was the original lender (e.g. refinance from a variable rate to a fixed rate loan).A commitment is a firm offer to provide finance which has been accepted by the client. A commitment exists once the loan application has been approved, and a loan contract or letter of offer has been issued to the borrower. Fixed-term loans generally involve a commitment for a fixed period for a specific purpose and repayments over that fixed period which reduce the loan, but do not make further finance available.A revolving credit loan is a loan secured by the borrowers equity, has no fixed term, is effectively a line of credit, and the borrower is obliged to repay interest only.With transactions involving a change of residence, you should treat the discharge of the existing loan and the commitment to a new loan as separate events, and report the total value of the new loan as a new commitment.. 
Dimension Member Description
This dimension categorises the reported information in accordance with the type of counterparty the entity has transacted with.
The counterparty in relation to the information is a first home buyer, being an individual, or groups of individuals, whose dealings with the reporting party are for the purchase or construction of the first dwelling to be occupied by the counterparty as their residence. This does not include circumstances in which the counterparty is dealing with the reporting party in relation to a business or enterprise, regardless of how that business or enterprise is structured.
Information in relation to the interest rate type applicable to an interest-bearing agreement.
Information in relation to loan agreements which have a primary interest rate type of fixed, and where the interest rate cannot be varied for at least the first 2 years of the loan.
Information in relation to the intended purpose of the counterparty in regards to loan agreements entered into by the entity.
Information in relation to loan agreements entered into by the reporting party for the purpose of either: - constructing a dwelling for owner-occupation. Only report those amounts relating to loan agreements where funds will be advanced by way of progress payments; - purchasing a dwelling for owner-occupation; or - paying out (refinancing) existing home loans on the same residence (i.e. security unchanged), where the refinancing lender is not the original lender. It does not include the situation where an institution refinances its own loan, or where the refinancing is for the purpose of a change of residence. Include only those loans where the original lender is other than the reporting party. Exclude commitments to refinance existing loans where there is no change in the property offered as security and the institution offering the commitment was the original lender (e.g. refinancing from a variable rate loan to a fixed rate loan).A dwelling is a place of residence which is: - contained in a building which is an immobile structure; - private (i.e. not generally accessible to the public); and - self contained (i.e. includes bathing and cooking facilities).
The characteristic of whether or not assets have been pledged to secure the repayment of funds under a credit or other lending activity in the case of default by the borrower.
The repayment of funds advanced have been secured through the pledging of assets to satisfy the debt in the case of default by the borrower.