Document ID: chunk:federal_register_of_legislation:F2023L00410:body:0:p7
Version: federal_register_of_legislation:F2023L00410
Segment Type: other
Provision Reference: 
Character Range: 18233–21434

italics indicate that the definition is provided in these instructions.

Definitions of security types and loan purposes

Dwelling              A self-contained room or suite of rooms, including cooking and bathing facilities, intended for long-term residential use. A dwelling is private (not generally accessible by the public) and is contained within a building that is an immobile structure. A dwelling may comprise part of a building or the whole of a building. Regardless of whether they are self-contained or not, rooms within buildings offering institutional care (e.g. hospitals) or temporary accommodation (e.g. hotels, motels or hostels) are not defined as dwellings.

Investment            A loan for the purpose of housing, where the funds are used for a residential property that is not owner-occupied.

                      Where the loan is for a residential property that is different to the residential property against which the loan is secured, this definition refers to the occupation status of the residential property for which the loan has been obtained (not the occupation status of the property used as security).

                      It includes: holiday or vacation homes and part-time residences that are not the borrower's or borrowers' principal place of residence.

                      It excludes: part-time residences that are the borrower's or borrowers' principal place of residence. These should be reported under owner-occupied.

Owner-occupied        A loan for the purpose of housing, where the funds are used for a residential property, that is occupied or to be occupied by the borrower(s) as their principal place of residence.

                      Where the loan is for a residential property that is different to the residential property against which the loan is secured, this definition refers to the occupation status of the residential property for which the loan has been obtained (not the occupation status of the residential property used as security).

                      It includes:
                           * dwellings and residential land that are vacant while under construction, but that the borrower intends to occupy as a principal place of residence;
                           * part-time residences that are the borrower's or borrowers' principal place of residence.

                      It excludes:
                           * part-time residences that are not the borrower's or borrowers' principal place of residence. These should be reported as investment.

                      Where finance is to be used for more than one purpose (owner-occupied, investment or non-housing purposes), the entire amount of the finance should be classified according to the predominant purpose (i.e. the purpose for which the largest share of the funds will be used).

                      Where there is any doubt or ambiguity about whether a loan is for an owner-occupied or investment property, report the loan as for investment.

Non-housing purposes  A loan secured by residential property where the funds are not used for the purchase, renovation or development of residential property. For example, personal loans secured by