Document ID: chunk:federal_register_of_legislation:F2024C01285:reg:29c:p1
Version: federal_register_of_legislation:F2024C01285
Segment Type: reg
Provision Reference: reg 29C (pt 1/2)
Character Range: 85632–88205

29C  Eligible loan
 (1) A loan is an eligible loan if:
 (a) subsection (2) or (4) applies; and
 (b) any criteria and processes established by Housing Australia for the approval of eligible loans are satisfied.
 (2) Subject to subsections (2A) and (2B), this subsection applies to a loan for which all of the following are satisfied at the time the loan agreement is entered into:
 (a) the loan is made by an eligible lender;
 (b) there are no more than two borrowers under the loan agreement;
 (d) each borrower under the loan agreement is an eligible home buyer;
 (e) the loan is for the purchase of residential property;
 (f) if the loan relates to the purchase of an interest in land on which a dwelling is not affixed, the loan also relates to the construction of a dwelling on the land;
 (g) the value of the residential property does not exceed the price cap for the area in which the property is located;
 (h) the residential property that is the subject of the loan is to be owner-occupied;
 (i) the loan-to-value ratio is between 80 and 95 per cent;
 (j) subject to subsection (3), the terms of the loan agreement require scheduled repayments of the principal of the loan for the full period of the agreement;
 (k) the loan agreement has a term of no more than 30 years;
 (l) for a Regional First Home Buyer Guarantee:
 (i) the residential property is located in a regional area; and
 (ii) at least one borrower under the loan agreement either, has lived throughout the previous 12 month period in the regional area or an adjacent regional area, or is covered by subsection (2AA).
 (2AA) The borrower is covered by this subsection if:
 (a) the borrower has lived during some of the previous 12 month period in the regional area or an adjacent regional area; and
 (b) it has been impracticable for the borrower to live in the regional area or an adjacent regional area for the remainder of that period because the borrower has, after having been employed by the same employer for at least 12 months, been required, by that employer, to relocate.
 (2A) For a New Home Guarantee, the requirements in paragraphs (2)(a) to (g) must instead be satisfied at the time the borrower or borrowers make an application for a loan, or when the contract to which the loan agreement relates is entered into (as relevant).
Note: The requirements in paragraphs (2)(h) to (k) must be satisfied at the time the loan agreement is entered into.
 (2B) For a Family Home Guarantee, paragraphs (2)(b), (d) and (i) do not apply and the following requirements must be satisfied instead:
 (a)