Financial Sector (Collection of Data) (reporting standard) determination No. 32 of 2016 - Reporting standard RRS 392.0 - Housing Finance
Interest offset arrangements and redraw Interest offset arrangements and redraw facilities on fixed term loans
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Interest offset arrangements and redraw facilities on fixed term loans
Interest on customer's savings are offset against interest owed on a mortgage so that the mortgage can be paid off at a faster rate. Some or all of the repayments in excess of the original rate can be withdrawn.
Reporting instructions
If the borrower only withdraws the excess of repayments then there is no new finance associated with these arrangements, and no new commitments should be reported for any lending activity collections.
Where more than the excess repayments are redrawn, this is considered a new lending commitment and should be reported for the relevant questions on RRF 394.0 e.g. "Purchase of: Motor Cars...".