Lets look at Suncorp niches in Bridging and Family guarantee lending.

Bridging Loans:- provide short term finance to "bridge" the gap between the sale of an asset and the purchase of another, when elevated debt levels are required for a short period.

Bridging Loans require full clearance from the sale of the customer's existing property or can have a residual debt provided capacity to repay the residual debt is evident. Sale of the existing property is normally the primary clearance source of the bridging component.

Bridging Loans should be structured as two separate loans.

Loan 1 - Bridging portion which will be cleared from the sale of the existing property, plus provision for interest capitalisation (where applicable). This loan is normally interest only, however, if the customer wants to make reductions to the principal during the loan term this is also acceptable.

Loan 2 - Estimated residual debt remaining after sale of the existing property (if any).

Where there is no residual debt, the loan is to be structured as a single interest only Bridging Loan fully repayable from the sale of the property.

Bridging Loans may be offered on a pre-approved basis.

If upsizing (i.e. the residual loan amount at the end of the bridging period will be greater than the existing loan), then you may use this Bridging Loan Calculator to assist structure the loan application.

Bridging Loan Facility Terms

Maximum loan term is 12 months.

Interest may be capitalised for up to 12 months.

The residual debt is to be structured in accordance with standard loan term and repayment arrangement requirements.

Family Guarantee:-

Deposit KickStart Loans (also known as family guarantee loans) allows customers to borrow up to 110% of the purchase price of an acceptable residential property for owner occupation, where additional security is provided by a guarantor.

The lending structure and the additional security removes the need for Lenders Mortgage Insurance.

These loans pose a greater credit risk and have restrictions on approval criteria. The involvement of guarantors and their security also increases the documentary requirements and processes involved in obtaining a loan approval, so ensure you allow enough time to meet contractual obligations.

Preferred Borrowers:-

While preferred borrowers are first home buyers, loans can also be provided to customers who:

· do not hold any investment properties, and

· are refinancing their principal place of residence, or

· have sold their home, seeking to finance a replacement principal place of residence.

Acceptable Purposes

Loans are only available to purchase or refinance:

· an acceptable residential property for owner occupation, or Loans may include related purchase costs (e.g. bank, government and legal charges) and, in the case of first home buyers, a very modest amount to refinance existing unsecured debt.

Disbursement is to be strictly controlled, with no funds released to the customers.

Loans for investment and/ or business purposes are specifically excluded.