Financial Sector (Collection of Data) (reporting standard) determination No. 32 of 2016 - Reporting standard RRS 392.0 - Housing Finance
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Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) (reporting standard) determination No. 32 of 2016 - Reporting standard RRS 392.0 - Housing Finance.
Commonly asked questions
Q1. Should the gross or net value of bridging finance commitments be reported?
The total, or gross, value of bridging finance commitments should be reported. For example, if you make a commitment for bridging finance for $150 000 and your client anticipates repaying $100 000 upon the sale of their previous residence, then the full, or gross, value of the commitment should be reported, i.e. $150 000, not the anticipated or actual net.
Q2. How is a commitment to a "First Home Buyer" defined in Part C of RRF 392.0?
Commitments should be classified to the category "First Home Buyers" if none of the borrowing parties to the commitment has previously drawn down on housing finance for owner occupation. Commitments should be classified to "All Other" if any of the borrowing parties to the commitment has previously drawn down on housing finance for owner-occupation.
Q3. Do I report all fixed rate loans against "Fixed Rate" in Part C of RRF 392.0?
No. Fixed rate home loans (Question 9) include only those commitments whose rate of interest is fixed at the start of the loan and will remain fixed for at least the first two years of the loan.
Q4. Who should report commitments originated by mortgage managers and mortgage brokers?
All commitments where the lender identified on the form label is the legal lender on the loan contract, and only those commitments, should be reported on RRF 392.0 or RRF 394.0 (where relevant). For example, where the lender is a bank, report all and only those commitments made where the bank is the legal lender on the loan contract. Where a non-bank subsidiary is the legal lender on the loan contract, those commitments should be reported on a separate form (please contact APRA for additional guidance). In this way, all commitments will be counted once and once only.