Target Market Determination

3.3.  ELIGIBILITY CRITERIA 

To be eligible for the 60- 90- and 120- Days Products, a consumer must satisfy the following requirements:

• be an individual aged 18 years or above;

• fall within the definition of Australian Property Owner (see above);

• have an anticipated monetization event (for example, proposes to sell their property within the foreseeable future). Elepay may offer the product based on other monetization events (e.g. refinance from a third party lender) subject to an individual assessment of the consumer’s circumstances.*

• if the monetization event is the sale of the consumer’s property, then meets Elepay’s Property Sale Equity Analysis, which ensures that the consumer has sufficient net equity to repay the loan upon the sale of the consumer’s property without causing financial hardship. The consumer will not be subject to an income serviceability assessment.* Elepay will request details regarding the sale of the property (to ensure that there is sufficient net equity and the consumer proposes, or are actively taking steps, to sell their property). This includes, but is not limited to:

• details of the proposed sale – e.g. listing date and expected sale price;

• details of the appointed real estate agent and conveyancer or solicitor;

• details of any registered co-owner(s);

• a copy of a recent mortgage statement and supporting documentation regarding any other registered encumbrance);

• a copy of the real estate agent sales appointment form;

• a copy of the contract of sale (if available);

• a copy of any valuation of the property (if available).

Elepay’s Property Sale Equity Analysis involves an analysis of the total net equity and forecasted sale value of the consumer’s property based on the stage in which the sale of the property is at – that is, pre-listing, listed, sold (conditional) or sold (unconditional).

In order for a loan application to be approved, the application must satisfy each of the following criteria:

• Total Net Equity Threshold – which sets the minimum thresholds an application must satisfy based on a comparative ratio between the loan amount and total net equity (forecasted sale price less all related liabilities and costs of selling the property); and

• Forecasted Sale Value Threshold – which sets the minimum thresholds an application must satisfy based on a comparative ratio between the loan amount and forecasted sale price (e.g. minimum low value obtained from a property valuation company or actual sale price).

The minimum threshold amounts for each criteria vary depending on the stage in which the sale of the property is at. Elepay utilises its internal Funding Assessment Calculator to determine:

• whether both the Total Net Equity Threshold and Forecasted Sale Value Threshold are satisfied; and

• the maximum amount of funding a consumer may receive,

• based on a number of variables such as, the stage of the monetization event, total net equity and forecasted sale price;

• meet Elepay’s standard lending criteria including:

  • conducting a credit check on the consumer;

  • conducting an identity verification check on the consumer;

  • conducting an ownership check (including title search of the property);

  • conducting an online property valuation report (for the property);

• require funding of a minimum amount of $100.00;

• the maximum amount of funding a consumer may be eligible for is $500,000 (this is subject to stringent assessment of Elepay’s Property Sale Equity Analysis and other lending criteria (see further below)).