ANZ Loan

The ﬁner details

Terms and conditions

Thank you for choosing an ANZ loan. When you take

out a loan, both you and ANZ have certain rights,

responsibilities and obligations. This booklet explains

some* of the terms and conditions that deﬁne these

rights, responsibilities and obligations. It applies to:

> ANZ Home Loans

> ANZ Residential Investment Loans

> ANZ Student Banking Loans

> ANZ Graduate Banking Loans

> ANZ Debt Consolidation Loans

> ANZ Personal Loans

unless you have a written agreement with ANZ that

states otherwise.

You may need to refer to this booklet in the future,

so please ﬁle it with your other loan documents. If

you need help understanding any of the terms and

conditions of your loan, please talk to your solicitor

or the helpful staff at any ANZ branch. If you need

help understanding any ANZ security document,

please talk to your solicitor.

This booklet does not contain our current interest

rates or our fees. This information is available from

any branch of ANZ.

Everything you need to know

about the terms and conditions

of your ANZ loan

* Please note: This booklet only contains some of the terms and conditions of your loan.

Other terms and conditions relating to your loan are contained in your Loan Agreement

and ANZ security documents (such as the Memorandum of Mortgage, Mortgage of

Securities, Motor Vehicle Mortgage, Guarantee and Indemnity). Further terms and

conditions may be implied by law, or may have been agreed to by you in writing.

We recommend that you read this booklet in conjunction with your Loan Agreement.

In this booklet, ‘this agreement’ means the terms and conditions set out in your Loan

Agreement and in this booklet. If any of the terms and conditions in this agreement are

different to the terms and conditions in any security document you receive from ANZ,

then the terms and conditions of this agreement will apply.

Contents

1. Explanation of terms > Pg 2

1.1 Acknowledgments > Pg 4

2. Repayments > Pg 5

2.1 Interest only > Pg 5

2.2 Early repayment > Pg 6

2.3 ANZ Fixed Rate Home Loans, ANZ Fixed

Rate Residential Investment Loans

and ANZ Debt Consolidation Loans > Pg 6

2.4 Prepayment calculation > Pg 7

2.5 Calculation of the cost of interest

foregone > Pg 7

2.6 Deﬁnitions > Pg 8

2.7 Early repayment administration fee > Pg 9

2.8 Additional interest > Pg 9

2.9 Progressive draw down > Pg 9

3. Loan types

3.1 Fixed Rate Loans

> Pg 10

3.2 Debt Consolidation Loans > Pg 11

3.3 Variable Rate Loans including

Personal Loans > Pg 11

3.4 Loan Repayment Holiday > Pg 12

3.5 ANZ Flexidraw > Pg 13

3.6 Loans for building > Pg 14

3.7 Subsidised Loans > Pg 14

3.8 ANZ Student Banking Loans > Pg 15

3.9 ANZ Graduate Banking Loans > Pg 15

4. Terms and Conditions > Pg 16

1. Explanation of terms

This is an explanation of some of the terms that

appear in your Loan Agreement.

ANZ Group

ANZ Group means ANZ National Bank Limited and its related

companies (as deﬁned by the Companies Act 1993), including

Australia and New Zealand Banking Group Limited in Australia.

Draw down date

When your loan, or part of it, is to be paid to you, or to your solicitor on

your behalf.

Fixed Rate Period

The length of time that your loan interest rate is to remain the same.

This only applies to Fixed Rate Loans. ANZ may alter your loan interest

rate during a Fixed Rate Period if additional interest becomes payable

as a result of any failure on your part to make a loan repayment when

it is due to be paid.

Funding Account

The ANZ account that you nominate as being the account from which

your loan repayments are to be automatically deducted.

Interest rate

The current per annum interest rate charged for your type of loan.

Interest is calculated on the basis of a 365-day year. The rate may be

changed from time to time by ANZ unless your loan is a Fixed Rate

Loan. If this is the case the interest rate will normally only be altered

at the end of the Fixed Rate Period (there are some minor exceptions

– refer to the section of this booklet entitled ‘Fixed Rate Loans’). ANZ

will advise you of any change in the interest rate by public notice,

notice in ANZ branches, or by personal letter to you.

Loan Account

The ANZ account that will record the balance of your loan outstanding

at any one time.

Loan security ratio

The maximum amount that ANZ will make available to you under the

loan at any one time, measured as a percentage of ANZ’s assessment

of the then current value of the security of your loan.

Outstanding balance

If this is a new loan, the initial unpaid balance on your loan account

is nil. If you had an existing facility on this account, the initial unpaid

balance will be shown as the ‘outstanding balance’ in your

Loan Agreement.

Payment of loan

What amounts of your loan will be paid to you, or your solicitor, and

what amounts of your loan will be paid on your behalf in respect of

other services (full details of which are available from any ANZ branch)

supplied to you in connection with your loan.

Repayment schedule

This shows how much your loan repayments will be, the number of

your loan repayments, how often your loan repayments are to be

made, and when your loan repayments are to be made. ANZ may

require you to increase your loan repayments if the interest rate for

your loan increases, or if you miss any loan repayments. The interest

rate applicable to your loan, and your repayment amount, will be

conﬁrmed to you shortly after the (ﬁrst) draw down date and again on

ﬁnal draw down if you have a Progressive Draw Down Loan.

Security

The security for your loan. ANZ may hold the security until your loan,

and any other amounts you owe or any liability you may have to ANZ,

is fully and ﬁnally repaid or discharged.

Subsidy scheme

This shows who is paying your interest rate subsidy and the amount

of the subsidy (if any) (refer to the section of this booklet entitled

‘Subsidised Loans’).

Term of loan

How long your loan is for. Your loan must be fully repaid by the end of

this time (unless otherwise agreed in writing by ANZ). The term of your

loan begins once your loan or any part of it is drawn down. The term of

your loan may be shortened if you are in default of the loan and ANZ

exercises its rights of early repayment of the loan (refer to the section

of this booklet entitled ‘ANZ’s right of early repayment’).

Total advances

The principal amount of your loan plus any other amounts ﬁnanced

under your loan.

Type of loan

This shows whether your loan is a Standard Variable Rate Home Loan,

Fixed Rate Home Loan, Standard Variable Rate Residential Investment

Loan, Fixed Rate Residential Investment Loan, FlexiPlus Home Loan,

ANZ Personal Loan, ANZ Student Banking Loan or ANZ Graduate

Banking Loan.

1.1 Acknowledgments

Borrower

For you to sign once you have read and understood your Loan

Agreement, this booklet and any security documents, and agreed with

the Acknowledgments.

Guarantor

For your Guarantor (if you have one) to sign after receiving copies of

your Loan Agreement, this booklet and any security documents.

Mortgagor

For your Mortgagor (if you have one) to sign after receiving a copy of

your Loan Agreement, this booklet and any security documents.

Note: Your Loan Agreement has been completed from the information supplied

by you. It is ANZ’s best estimate of the cost of the loan to you. It does not take

into account any possible changes to your loan interest rate, any drawing of the

whole or part of the loan on dates different from those speciﬁed in the Loan

Agreement as the draw down date(s), any early repayment or recovery of the

whole or part of the loan, any change in your subsidy arrangements (if you have

this) or any other alterations to the terms and conditions of your loan that ANZ is

entitled to make.

All the repayments that you make to your loan will be deducted

automatically from your Funding Account unless some other

arrangement is agreed to in writing. If there are insufﬁcient funds in

your Funding Account to meet the loan repayment on the agreed date,

ANZ may attempt to debit your Funding Account for a further three

consecutive business days. After the fourth unsuccessful attempt to

debit your Funding Account, ANZ may charge a missed payment fee.

ANZ may deduct any overdue repayments from any of your ANZ

accounts. Any overdue repayments must be made on demand. If you

become unable to meet your loan repayments, please contact your

local ANZ branch immediately.

Repayments will be of principal and interest (unless otherwise

speciﬁed in your Loan Agreement). Interest on your loan will be

calculated on the outstanding balance of your loan at the end of each

day based on a 365-day year. The end of the day will be the time of day

as determined by ANZ from time to time.

Interest shall be charged monthly (unless otherwise speciﬁed in your

Loan Agreement) to either your Funding Account or your Loan Account.

On the ﬁnal repayment date and/or when the loan is to be fully repaid,

you will be required to pay the balance of the loan outstanding and all

other sums then owing to ANZ in connection with your loan.

All repayments made to your loan must be made in cleared funds

without any deduction.

2.1 Interest only

Please note that if you have an interest-only loan (whether partially

drawn or fully drawn), any interest will be debited to your Funding

Account and not your Loan Account.

If there are insufﬁcient funds in your Funding Account to meet the

monthly interest charge, ANZ may attempt to debit your Funding

Account for a further two consecutive business days. After the third

unsuccessful attempt to debit your Funding Account, ANZ may instead

debit your Loan Account with the interest charge.

In the event that your loan is not being conducted to the satisfaction

of ANZ, ANZ may cancel any interest redirection on your Loan Account

and debit the interest to your Loan Account instead.

2. Repayments

2.2 Early repayment

You may repay all or part of your loan at any time before its due date,

but if you do, you may be liable to pay an early repayment fee plus the

early repayment administration fee. ANZ is not obligated to pay early

repayment beneﬁts.

However, you may make a regular repayment, or make a number of

repayments which in total equal your regular payment amount, on

your Fixed Rate Home Loan at any time between the date of your

last scheduled repayment up to the date of your current scheduled

repayment, without incurring an early repayment fee.

2.3 ANZ Fixed Rate Home Loans,

ANZ Fixed Rate Residential Investment Loans

and ANZ Debt Consolidation Loans

Early repayment cost

ANZ may, according to its policy at the time of early repayment, waive

the early repayment fee when you make an early or additional partial

repayment during a Fixed Rate Period or during the term of your ANZ

Debt Consolidation Loan. ANZ current policy is to waive the early

repayment fee if the total additional repayment(s) in any year are

less than the ‘tolerance amount’. Refer to the section on ‘Prepayment

calculation’ for information on how the ‘tolerance amount’ is calculated.

Cost of the early repayment

An early repayment cost is a reasonable estimate of the loss that

may be incurred by ANZ on your early repayment because it reduces

the outstanding principal of the loan and thereby reduces the future

interest payments that ANZ will receive. This is known as the ‘cost of

interest foregone’.

The early repayment cost calculation (refer below to the ‘Prepayment

calculation’ section) is used to calculate the ‘cost of interest foregone’.

It compares the net present value of the scheduled cash ﬂows

assuming you did not make the early repayment, with the net present

value of cash ﬂows calculated following the early repayment.

The size of any early repayment cost that is calculated will vary

according to the size of the early repayment, the term remaining on

the current Fixed Rate Period of your ANZ Fixed Rate Loan, or the term

remaining on your ANZ Debt Consolidation Loan, and the amount that

market interest rates have moved since the start of the current Fixed

Rate Period on your ANZ Fixed Rate Loan, or the start of your ANZ Debt

Consolidation Loan.

2.4 Prepayment calculation

When a calculation will be performed

A prepayment calculation will be performed whenever you make a

payment that exceeds the combined value of your next scheduled

payment (if it has not already been paid) and the available

‘tolerance amount’.

How the tolerance amount is calculated

ANZ Fixed Rate Loans

Current policy is that ANZ will waive the early repayment fee if the total

additional repayment(s) in any year (based on the anniversary of the

start of the current Fixed Rate Period) does not exceed the ‘tolerance

amount’, which is 5% of the loan balance at the start of the current

Fixed Rate Period, or $10,000, whichever is lesser.

However, please note that if your current Fixed Rate Period is less than

12 months, the ‘tolerance amount’ will be adjusted proportionately.

For example, for a six-month term, the waiver will apply where the

repayment(s) during the ﬁxed interest rate period does not exceed the

lesser of 2.5% of the loan balance at the start of the current Fixed Rate

Period, or $5,000.

ANZ Debt Consolidation Loans

Current policy is that ANZ will waive the early repayment fee if the total

additional repayment(s) in any year (based on the anniversary of the start

of your ANZ Debt Consolidation Loan) does not exceed the ‘tolerance

amount’, which is $500 per annum. However, please note that if the

term of your ANZ Debt Consolidation Loan is less than 12 months, the

‘tolerance amount’ will be adjusted proportionately.

2.5 Calculation of the cost of interest foregone

The ‘cost of interest foregone’ is calculated by following the steps outlined

below. Please note that for the purposes of this section, the Fixed Rate

Period for an ANZ Debt Consolidation Loan is the full term of the loan. The

terms in bold are deﬁned at the end of this section.

> Two amortisation calculations are made using the market rate at

the start of the Fixed Rate Period based on all of the scheduled

cash ﬂow events and cash ﬂow dates for the period between the

date of your early repayment and the scheduled end of the Fixed

Rate Period.

> The ﬁrst amortisation calculation is based on the balance of the

loan immediately before the early repayment less any portion of

your next scheduled repayment that you have not already paid and

the available ‘tolerance amount’.

> The second amortisation calculation is based on the balance of the

loan immediately after the early repayment.

> For each amortisation, a present value is calculated of every cash

ﬂow event, using the market rates at the date of repayment to

derive discount factors, and these calculations are added to give a

total present value.

> The total present value of the second amortisation calculation,

along with the early repayment amount, is subtracted from the total

present value of the ﬁrst amortisation calculation.

> The early repayment cost is the amount by which the total present

value of the ﬁrst amortisation calculation exceeds the total present

value of the second amortisation calculation.

> This is the amount you will be required to pay ANZ as the early

repayment fee.

While the early repayment fee is not calculated using the formula

provided in the Credit Contracts and Consumer Finance Act 2003, the

early repayment recovery is intended to compensate the Bank only for

its cost and risk in providing a Fixed Rate Loan which is repaid early.

2.6 Deﬁnitions

> Amortisation means loan repayment by instalments to pay off the

debt (principal and accrued interest) by the end of a ﬁxed period.

> Cash ﬂow events are all transactions that will alter the loan balance,

such as expected repayments, fees, charges and interest (if

capitalised to the loan).

> Cash ﬂow dates are the dates on which cash ﬂow events occur.

> Discount factors are used to give present value. The interest rate

used in discount factors is the relevant market ﬁxed interest rate

which would apply to the loan if the loan were advanced on the

early repayment date for a term equal or closest to the remaining

Fixed Rate Period of the loan.

> Market rate at the start of the Fixed Rate Period means the

wholesale interest swap rate, as quoted by ANZ, on the date of

the start of your current Fixed Rate Period for a term equal to your

Fixed Rate Period. The applicable wholesale interest swap rate

is available from ANZ or, alternatively, a close approximation is

currently published daily in The New Zealand Herald and other

newspapers.

> Market rate at the date of repayment means the wholesale interest

rate swap, as quoted by ANZ, on the date of your early repayment,

for a term up to the unexpired part of your Fixed Rate Period (as

at the date of your early repayment) but note that for terms of less

than 12 months, the relevant bank bill yield will be used instead of

the wholesale interest swap rate; and where no wholesale interest

swap rate is quoted or available for the relevant term, the rate will

be a weighted average of the closest longer and shorter quoted

terms either side of the relevant term.

> Present value is the value of receiving a lump sum today instead

of receiving an income stream in the future. Income received now

has a greater value than later because sums can be reinvested to

generate more income. The future income stream is discounted to

determine what amount received today would have the same value

as a sum received in the future.

ANZ may alter the method of calculation of the early repayment fee

from time to time.

2.7 Early repayment administration fee

An early repayment administration fee (as set by ANZ from time to

time) may also be charged if you fully repay your loan or switch to a

new Fixed Rate Period or another type of loan, before the end of a

Fixed Rate Period.

ANZ may alter the amount of the early repayment administration fee from

time to time.

2.8 Additional interest

If you do not pay any loan repayment on the day it is due, ANZ may

charge additional interest on the overdue amount calculated on a daily

basis from the due date to actual payment (both before and after the

date of any court judgment made against you).

Such additional interest will be at the rates and capitalised at such

intervals as determined by ANZ. This additional interest may be

deducted from any of your ANZ accounts and must be paid on demand.

2.9 Progressive draw down

Where you are able to draw down your loan progressively under your

Loan Agreement, only interest payments (based on the amount of your

loan that has been drawn down) will be charged until your loan is fully

drawn down. Interest will be calculated on the outstanding balance of

your Loan Account at the end of each day and debited monthly (unless

otherwise speciﬁed in your Loan Agreement) to your Funding Account

and not your Loan Account.

Additional payments of principal over and above your interest

payments may be made without penalty.

If you have an ANZ Fixed Rate Loan you may not draw down your

loan progressively.

3.1 Fixed Rate Loans

From time to time, ANZ offers loans where the interest rate is ﬁxed for

a speciﬁc period.

If you have chosen this type of loan, the period during which the

interest rate stays the same is noted on the Loan Agreement that

accompanies this booklet (this is the Fixed Rate Period). The Fixed

Rate Period begins once your loan or any part of it is drawn down.

The following additional conditions apply to this type of loan:

> The interest rate prevailing when you (ﬁrst) draw down your loan

will not be altered during the Fixed Rate Period unless you fail to

pay any loan payment when it is due to be repaid, in which case

additional interest shall be payable.

> For interest-only lending, the Fixed Rate Period must be the same as

the interest-only period.

> At the end of the Fixed Rate Period, we will contact you to obtain

your further instructions in relation to the loan. If you do not make

alternative arrangements with us, your loan interest rate will be

reviewed and, depending on the terms of your loan agreement, may

be changed to ANZ’s then prevailing variable interest rate (which

may be higher than the loan interest rate applicable during the

Fixed Rate Period).

> If you have an ANZ Fixed Rate Loan with a term of less than one year,

your loan interest rate may only be changed to ANZ’s prevailing

variable interest rate at the end of the Fixed Rate Period.

> You may make repayments over and above your regular loan

repayments within the Fixed Rate Period. However, an early

repayment fee may be payable (refer to the earlier section

entitled ‘Early repayment’ for further details). An early repayment

administration fee may also be charged if you fully repay your loan,

or switch to a new Fixed Rate Period or another type of loan, before

the end of the Fixed Rate Period.

> If you have a Fixed Rate Loan, you may request, prior to the end of

the Fixed Rate Period (such request to be in writing), to make an

additional repayment over and above your regular loan repayments

on the expiry date of the Fixed Rate Period. Such an additional

repayment will not incur an early repayment fee or an early

repayment administration fee.

> The interest rate applicable to your ANZ Fixed Rate Loan, and your

repayment amounts, will be conﬁrmed to you shortly after your

draw down date.

3. Loan types

3.2 Debt Consolidation Loans

The following additional terms apply to ANZ Debt Consolidation Loans:

> The interest rate on the loan will be ﬁxed for the term of the loan.

> The interest rate prevailing when you ﬁrst draw down your loan will

not be altered over the term of your loan, unless you fail to pay any

loan payment when it is due to be paid, in which case additional

interest will be payable on the overdue amount.

> You may make repayments over and above your regular loan

repayments. However, an early repayment fee may be payable (refer

to the earlier section entitled “Early repayment” for further details.

The ﬁxed rate period on your ANZ Debt Consolidation Loan is the

full term of your loan). An early repayment administration fee may

also be charged if you fully repay your loan, or switch to another

type of loan before the end of the term of your loan.

> The interest rate applicable to your ANZ Debt Consolidation Loan

and your repayment amounts will be conﬁrmed to you shortly after

your draw down date.

> You may not use an ANZ Debt Consolidation Loan to repay lending

from family or friends or another ANZ Personal Loan.

> If you are a new ANZ customer (ie you have not held accounts or

other facilities with us for the last 6 months) you will be required

to close any banking or other facilities that you are repaying using

your ANZ Debt Consolidation Loan. If you are an existing ANZ

customer (ie you have held accounts or other facilities with us

for the last 6 months) you may be required to close any banking

or other facilities that you are repaying using your ANZ Debt

Consolidation Loan depending on your circumstances.

3.3 Variable Rate Loans including

Personal Loans

If you have a Variable Rate Loan and ANZ’s prevailing interest rate

increases, ANZ will automatically increase the amount of your loan

repayments in order to keep the term of your loan the same. However,

if you have a Variable Rate Loan and ANZ’s prevailing interest rate

decreases, the amount of your loan repayments will not be decreased

and the term of your loan will reduce. If you wish to reduce the amount

of your loan repayments you must contact ANZ.

If you have a Variable Rate Home Loan you may apply to ANZ to

change it to any of ANZ’s other home loan types. ANZ may charge a

redocumentation fee if you choose to change from one type of loan to

another. ANZ may alter the amount of redocumentation fees from time

to time.

3.4 Loan Repayment Holiday

The Loan Repayment Holiday facility allows for repayments to your

loan to be suspended for up to three months.

Eligibility

The Loan Repayment Holiday facility applies only to ANZ Home and

Residential Investment Loans, excluding ANZ FlexiPlus, interest-only

loans, partially drawn down loans, Government Staff Housing Loan

Schemes, and Special Housing Loan Schemes such as former Housing

Corporation and National Mutual loans.

The facility is not available on Personal Loans, Student Banking Loans

or Graduate Banking Loans.

Conditions

The following conditions apply to the ANZ Loan Repayment Holiday:

> An application to take a Loan Repayment Holiday may be in writing

via an ANZ branch, via ANZ Phone Direct, or via ANZ Internet

Banking.

> Approval of a Loan Repayment Holiday application is at the

discretion of ANZ.

> A maximum of one Loan Repayment Holiday may be applied

for every two years starting from the end date of your last Loan

Repayment Holiday. If this is your ﬁrst Loan Repayment Holiday, you

may apply at any time during your loan term.

> There are some locations within New Zealand that will not qualify

for a Loan Repayment Holiday within two years of draw down.

> Interest on your loan will continue to accrue during the period of

your Loan Repayment Holiday.

> A Loan Repayment Holiday application will not be approved if it

would result in the term of your loan exceeding 30 years from the

ﬁrst draw down date.

> If you apply to take a Loan Repayment Holiday at the start of your

loan, your regular repayment amount will be increased so that your

loan will be repaid within its original term.

> If you apply to take a Loan Repayment Holiday during the term of

your loan you will be required to select one of the following options:

– Increase your loan repayment amount from the date your regular

repayments recommence so that your loan is repaid within its

original term; or

– Extend the term of your loan by the length of your Loan

Repayment Holiday up to a maximum of three months. You

will also be required to increase your repayment amount from

the date of the next interest rate change after your regular

repayments recommence to cover the extra interest accrued; or

– Keep the original term of your loan by making a lump sum catch-

up payment, equal to the total amount of your suspended loan

repayment instalments on the date that your regular repayments

are due to recommence. You will also be required to increase

your repayment amount from the date of the next interest rate

change after your regular repayments recommence to cover the

extra interest accrued.

> Your ANZ Flexidraw facility may not be available during your Loan

Repayment Holiday.

3.5 ANZ Flexidraw

The ANZ Flexidraw facility allows you to reduce the amount of interest

payable on your loan by making additional repayments over and

above the repayment amounts speciﬁed in your Loan Agreement.

The additional repayments may subsequently be redrawn from your

Loan Account at any time as long as you continue to adhere to the

repayment arrangements speciﬁed in your Loan Agreement.

The ANZ Flexidraw facility is available, on application, on ANZ Standard

Variable Rate Home Loans, ANZ Standard Variable Rate Residential

Investment Loans, ANZ Equity Loans, ANZ Personal Loans and ANZ

Graduate Banking Loans. The Flexidraw facility is not available on ANZ

Fixed Rate Loans or partially drawn down loans.

The following conditions apply to the ANZ Flexidraw facility:

> Approval of an ANZ Flexidraw application is at the sole discretion

of ANZ.

> To be eligible to apply for ANZ Flexidraw, you must have made

repayment amounts over and above those speciﬁed in your Loan

Agreement.

> Provided you continue to make all repayments due under your

Loan Agreement, you may redraw the amount by which your loan

is in advance, subject to a minimum redraw amount of $1,000 at

any one time (with the exception of ANZ Personal Loans and ANZ

Graduate Banking Loans, which are subject to a minimum redraw

amount of $500).

> You may be charged an ANZ Flexidraw facility event fee for each

redraw made. ANZ may alter the amount of the ANZ Flexidraw fee

from time to time.

> The ANZ Flexidraw facility is not available on fully repaid loans.

3.6 Loans for building

The following additional conditions apply when your loan is to ﬁnance

building work:

> The loan will only be made available when you provide:

– A registered valuer’s report (in a form satisfactory to ANZ) from

a registered valuer acceptable to ANZ. Loan funds will only be

made available at each draw down to the extent that the funds

drawn down to date do not exceed the Loan to Security Ratio

allowed by ANZ for that property type.

– Builders’ and contractors’ invoices at each draw down.

– A Code of Compliance Certiﬁcate before ﬁnal draw down.

> You must use your own money towards completing the building

before ANZ will make any of the loan funds available. ANZ may

require evidence that your own money has been used.

> Interest on your loan will be calculated on the outstanding balance

of your loan at the end of each day. The end of day will be the time

of day determined by ANZ from time to time. Please refer to the

section in this booklet regarding ‘Progressive draw down’.

> ANZ may cancel any undrawn portion of your loan and/or require

repayments of principal and interest to be commenced immediately

if, in ANZ’s opinion, there has been unreasonable delay in the

building work or in drawing down the loan.

3.7 Subsidised Loans

In some cases, employers provide a housing subsidy to their

employees. If this applies to you and if ANZ agrees that your loan

will be a Subsidised Loan, your employer will give you a certiﬁcate of

eligibility which you must provide to ANZ. The details of the subsidy

will be noted on the Loan Agreement that accompanies this booklet.

The following additional conditions apply to Subsidised Loans:

> If the payer of the subsidy (your employer) fails to pay all or part of

the subsidy when it is due or the level of subsidy is reduced, ANZ

may debit any of your ANZ accounts with additional interest charges

to cover the unpaid or reduced subsidy.

> If the payer of the subsidy ceases to pay all or part of the subsidy,

or if you cease to work for the payer of the subsidy, or if ANZ is

advised that you no longer qualify to be paid a subsidy, the interest

rate charged by ANZ on your loan will alter to the then current non-

subsidised rate for the type of loan you have taken out and you

must pay ANZ on demand all outstanding interest that has not been

paid for by the subsidy.

Note: A Subsidised Loan must be an ANZ Standard Variable Rate Loan.

3.8 ANZ Student Banking Loans

ANZ provides loans at the prevailing ANZ Standard Variable Home

Loan interest rate to students undertaking full or part-time study for

a minimum duration of one year at a government recognised tertiary

institution and/or in a New Zealand Qualiﬁcations Authority (NZQA)

approved course and/or for a NZQA qualiﬁcation relating to your job.

Student Banking Loans are available for the duration of study and

a term of up to 4 years.

The following conditions apply to ANZ Student Banking Loans. These are

in addition to the conditions that apply to ANZ’s Variable Rate Loans.

> You must have an ANZ account and all income you receive (including,

where applicable, student allowances and funds from the Government

Student Loan Scheme) must be direct credited to this account.

> If you have an ANZ Student Banking Loan you are not permitted

to arrange any loan, overdraft or other banking facility with any

ﬁnancial institution other than ANZ, with the exception being loans

provided by the Government Student Loan Scheme.

> If you cease to be in study (without completing your degree or course)

or if you fail to meet any of the conditions listed above ANZ may:

– Increase your loan interest rate to ANZ’s then prevailing variable

interest rate for personal loans, which is subject to change at

ANZ’s discretion from time to time.

– Require you to repay your loan early.

Remember: In addition to the above conditions, you must comply with the

conditions applying to ANZ Variable Rate Loans set out in this booklet.

3.9 ANZ Graduate Banking Loans

The following conditions apply to ANZ Graduate Banking Loans. These are

in addition to the conditions that apply to ANZ’s Variable Rate Loans.

> You must have graduated within the last 12 months from a

full or part-time course with a minimum duration of one year

at a government recognised tertiary institution and/or in a NZ

Qualiﬁcations Authority (NZQA) approved course and/or for a NZQA

qualiﬁcation relating to your job. Evidence of graduation must be

provided to ANZ.

> You must be in full-time employment or about to begin full-time

employment. Evidence of this must be provided to ANZ.

> Any loan approved must include the reﬁnancing of any outstanding

ANZ Student Banking Loans (if any).

ANZ’s Standard Variable Home Loan interest rate will apply to your

ANZ Graduate Banking Loan for two years following draw down. At

the conclusion of this period your loan interest rate will increase to

ANZ’s prevailing Standard Variable Personal Loan interest rate.

All variable loan rates are subject to change at ANZ’s discretion. Please

remember that, in addition to the above conditions, you must comply with

the conditions applying to ANZ Variable Rate Loans set out in this booklet.

ANZ’s right of early repayment

ANZ may require you to repay immediately the whole of your loan and

may cancel the loan or any undrawn portion of the loan, if any of the

following situations occur:

> If you fail to pay, when due, any amount required to be paid to ANZ

in connection with this loan.

> If you fail to comply with any of the terms of your loan or you or your

Guarantor or your Mortgagor fail to perform any obligation assumed

under this agreement, or any other loan, or under any guarantee or

security document with ANZ (either present or future).

> If any other event occurs, whether through your action or

otherwise, that:

– Results in ANZ forming the opinion that you should not be

allowed to continue to operate your Loan Account; or

– Results in ANZ forming the opinion that it may affect your or your

Guarantor’s or your Mortgagor’s:

(i)

ﬁnancial condition or business operation; or

(ii)

willingness or ability to perform any obligations under this

agreement, or under any other loan, or under any guarantee or

security document with ANZ (either present or future).

> You will also be required to repay immediately any outstanding

interest and fees, including all ANZ’s costs and expenses (including

legal costs and expenses and any applicable early repayment

fee) incurred in exercising, protecting or recovering the loan, and

any other amount payable in connection with the loan on a full

indemnity basis.

> ANZ may also have the right (amongst other things) to require you

to repay immediately your loan in other circumstances, in terms of

the security document(s) relating to your loan.

General conditions

The dates for repayment, interest charge dates, repayment

instalments, fees and other payments, loan term and all other terms of

this agreement (other than the interest rate for your loan) are subject

to amendment from time to time by ANZ at its absolute discretion.

The interest rate for your loan is subject to amendment under the

terms of the Interest Rate section of your Loan Agreement and as

detailed in these terms and conditions.

4. Terms and Conditions

You authorise ANZ to amend the amount of repayments debited by

automatic payment authority to any of your accounts, as a result of

ANZ amending the term of this agreement. ANZ will advise you of any

amendment by public notice, branch notice or by personal letter to you.

If this loan is made available to more than one person, each person

named in the Loan Agreement as Borrower is responsible for the

repayment of the whole of the loan and all interest and fees payable in

respect of the loan.

Where the Funding Account is held by the same persons as named in

the Loan Agreement, any of those persons may individually authorise

any amendments to any repayments debited from the Funding Account

by automatic payment authority; providing that:

> such amendments do not reduce the repayments to an amount that

is lower than any minimum repayment amount required by the Loan

Agreement; and

> the signing authority executed by the account holders for the

Funding Account authorises that account to be operated by any one

of the account holders; and

> the account holder who requests the change is available to sign

such authorising documentation as may be requested by ANZ.

All payments of fees and reimbursements of costs incurred by ANZ

relating to this loan and/or security may be deducted from any of

your ANZ accounts without prior notice to you. If ANZ makes any

such deduction, ANZ will give you written notice that it has done so.

However, if there are legal charges, you will be advised of the amount

due before we pay the account.

ANZ may, without prior notice to you, transfer the credit balance of any

of your ANZ accounts in or towards repayment of any unpaid amount

you may owe to ANZ under your loan. If ANZ makes any such transfer

of a credit balance, ANZ will give you written notice that it has done so.

Without prejudice to the terms and conditions of any security

document given by you to ANZ, you must pay on demand all costs and

expenses (including taxes and professional fees) incurred by ANZ as

a result of the exercise of or in protecting or enforcing or otherwise

in connection with any of its rights, powers or discretions under the

terms and conditions to which your loan is subject.

Should you die or be otherwise incapable of continuing to manage

your own affairs, your executor, administrator or successor (as the

case may be) will be required to meet your obligations under this loan.

ANZ may delay taking action within its rights under this agreement,

or may choose not to take action at all. Any delay or inaction by ANZ

does not mean that ANZ is unable to rely on those rights at a later date

and does not prevent ANZ from taking action within its rights under

this agreement in the future. No undertaking from ANZ that it will not

exercise a right will be binding on ANZ, unless that undertaking is

made in writing.

ANZ may, without notice to you, transfer the credit balance of any of

your ANZ accounts in or towards repayment of any unpaid amount you

may owe to ANZ under your loan, or under any security documents.

If any amount is contingently due or cannot be measured, ANZ may

withhold repayment of the credit balance of any of your ANZ accounts

until the amount owing becomes due or can be measured, up to the

maximum amount for which you may become liable. This is in addition

to any other right of set-off, combination, lien or other right that

ANZ may have.

A certiﬁcate by ANZ as to any rate of interest or any amount payable

under the terms and conditions to which your loan is subject shall be

conclusive evidence for all purposes including legal proceedings.

Any information that you provide to ANZ will be kept strictly

conﬁdential, and will be held securely by ANZ and/or the companies in

the ANZ Group. You are entitled to access and correct this information

by enquiring at any branch of ANZ, although you may have to pay a fee

for this service.

To ensure your information is accurate, please let ANZ know of any

changes to your personal details, such as your address.

ANZ may use this information to:

> consider your application for facilities, products or services;

> administer, manage and monitor any facilities, products or services

provided to you;

> conduct market research, data processing and statistical analysis; and

> unless you disagree, provide you with information about other

facilities, products or services including select third party products

or services.

ANZ may disclose information about you (including your Guarantor

and Mortgagor) to other companies within the ANZ Group, agents or

contractors for the above purposes.

ANZ may disclose information about you (including your Guarantor

and Mortgagor) to credit reference agencies for the purpose of

obtaining credit reports on you. Those credit reference agencies may

retain that information and provide it to their customers who use their

credit reporting services.

If you default in any obligations to ANZ, then ANZ may disclose

information about you (including your Guarantor and Mortgagor) to

credit reference or debt recovery agencies and it may be retained by

them. Those agencies may provide that information to their customers

who use their credit reporting services. ANZ may also disclose account

information to any authorised signatory to your accounts.

ANZ may obtain information and make such enquiries about you as

ANZ may consider warranted from any source including the ANZ Group

of companies and credit reference agencies for the above purpose.

Unless you disagree, ANZ may also disclose information about you

(including your Guarantor and Mortgagor) to reputable advertising

organisations for marketing purposes and to reputable market

research organisations so that they can obtain your views on products

and services.

Under these terms and conditions, you (and your Guarantor and

Mortgagor) authorise ANZ to:

> Contact the source of any information you provide to ANZ to check

the accuracy of the information.

> Obtain information and make any enquiries about you that we

consider justiﬁed from any source, including credit reference

agencies and other companies in the ANZ Group, for any of the

above purposes.

You also authorise anyone that ANZ approaches to provide this

information to ANZ.

If ANZ appoints agents to provide selected banking services to its

customers, these terms and conditions will apply to those agents and

their services.

Some New Zealand and overseas laws require organisations to

disclose conﬁdential customer information to government authorities

and third parties. ANZ and the companies in the ANZ Group will

comply with these laws where they apply. ANZ may let you know about

the disclosure, unless it is prohibited by law.

You acknowledge that your personal and other information may be

held and processed by other companies in the ANZ Group, including

Australia and New Zealand Banking Group Limited in Australia (‘ANZ

Australia’). ANZ Australia is subject to anti-money laundering laws in

force in Australia and certain other countries which may prohibit ANZ

in New Zealand from entering or concluding transactions involving

certain persons or entities. You agree that ANZ in New Zealand and any

other ANZ Group company may:

> Delay or block any transaction, or refuse to pay any money; or

> disclose any information concerning you or the transaction to the

New Zealand Police or Australian Federal Police or equivalent

authority in any other country in order to ascertain whether such

laws apply to any transaction or otherwise in compliance with laws

directed to the prevention and detection of terrorist ﬁnancing, in

the reasonable belief that a transaction may contravene any such law

and that ANZ in New Zealand and any other ANZ Group company will

not incur any liability to you as a result of such actions.

In this clause, ‘money laundering’ includes any dealing with the

proceeds of criminal activity and any dealing with funds or assets

of any person or entity suspected of involvement in terrorism or any

terrorist act.

Where you are a business (or hold yourself out as acquiring goods

and services for the purposes of business) any rights or remedies

under the Consumer Guarantees Act 1993 shall not apply in respect of

goods or services supplied pursuant to any agreement (including this

agreement) between you and ANZ.

ANZ may assign its rights under this agreement or any security

document to any other party without notice and may for that purpose

disclose personal information about you to any potential assignee.

You are not permitted to assign your rights or transfer your obligations

under this agreement unless ANZ agrees to this in writing.

Other than disclosures required to be made under the Credit Contracts

and Consumer Finance Act 2003, the time of receipt of which will be

governed by that Act, any notices sent by ANZ under the terms and

conditions of your loan shall be deemed to have been received by you

on the second business day after the date of posting (if sent by letter)

or on the date of actual dispatch if that day is a business day (in the

case of telex, facsimile or e-mail transmission) to your address and/or

telex or facsimile number and/or e-mail address that is the last known

to ANZ. If the telex, facsimile or e-mail is dispatched after 5:00pm on a

business day (in the place of receipt) or on a non-business day, or the

next business day (in the place of receipt) it will be deemed to have been

received on the following business day.

Right to cancel

If this agreement is a consumer credit contract (as deﬁned under the

Credit Contracts and Consumer Finance Act 2003) then you have the

right to cancel this agreement provided the following terms are met.

Statement of right to cancel

The Credit Contracts and Consumer Finance Act 2003 gives you a right,

for a short term after the terms of this agreement have been disclosed

to you, to cancel the agreement.

How to cancel

If you want to cancel this agreement you must give written notice to ANZ.

You must also return to ANZ any advance and any other property

received by you under this agreement.

Time limits for cancellation

If the disclosure documents are handed to you directly you must give

notice that you intend to cancel within three working days after you

receive the documents.

If the disclosure documents are sent to you electronically (for example

by e-mail) you must give notice that you intend to cancel within ﬁve

working days after the electronic communication is sent.

If the disclosure documents are mailed to you, you must give notice

within seven working days after they were posted.

Saturdays, Sundays and national public holidays are not counted as

working days.

What you may have to pay if you cancel

If you cancel this agreement ANZ can charge you:

> The amount of any reasonable expenses ANZ has had to pay in

connection with this agreement and its cancellation (including legal

fees and fees for credit reports etc).

> Interest for the period from the day you received the advance until

the day you repay the advance.

This statement only contains a summary of your rights and obligations

in connection with the right to cancel. If there is anything about your

rights or obligations under the Credit Contracts and Consumer Finance

Act 2003 that you do not understand, if there is a dispute about your

rights, or if you think that ANZ is being unreasonable in any way, you

should seek legal advice immediately.

ANZ, part of ANZ National Bank Limited A8030 05/07

anz.co.nz