32Borrowing additional funds under a mortgage from participating lenders

32  Borrowing additional funds under a mortgage from participating lenders

  Housing Australia must ensure that each arrangement provides that the participant may only borrow additional funds from a participating lender:

 (a) for the purpose of making a payment to reduce the Commonwealth share in respect of the relevant property; or

 (b) for the purpose of maintenance or capital expenditure in respect of the relevant property (including home improvements); or

 (c) in accordance with the participating lender’s policies for assisting borrowers who are experiencing hardship.

Note 1: This does not limit a participant’s capacity to take out a new mortgage with a participating lender, or with their current participating lender, if the refinancing does not result in a larger mortgage.

Note 2: For when participants must notify Housing Australia about borrowing additional funds from participating lenders, see clause 1.5 of Schedule 1.

Division 3—Monitoring participants’ compliance