Document ID: chunk:federal_register_of_legislation:F2024L00434:body:0:p30
Version: federal_register_of_legislation:F2024L00434
Segment Type: other
Provision Reference: 
Character Range: 110886–114485

ownership market for the first time, whether or not they are purchasing a dwelling for owner-occupied or investment purposes.

                                   This includes all borrowers entering the home ownership market for the first time, regardless of whether or not they have received or are eligible for a first-home buyer grant.

                                   If there is more than one party to the loan, a loan is classified as being to a first-home buyer if none of the borrowing parties to the commitment have previously owned a dwelling.

                                   It excludes: internal refinance and external refinance of loans that were originally made to first-home buyers.

Fixed interest rate                Means interest rates that do not fluctuate over:

                                       a)             the original term, or life, of the agreement; or
                                       b)             some part of the original term, or life, of the agreement.
                                   Where the interest rate is only fixed for some part of the original term, at the end of the fixed interest rate period the contract may provide for transition to a variable interest rate or for a new interest rate to be negotiated.

Fixed-term (loan)                  Means loans extended for a fixed period, with a maturity date by which the loan must be repaid.  Repayments over the fixed period reduce the loan balance and do not make further finance available.

                                   It includes: redraw facilities attached to fixed-term loans.

                                   It excludes: revolving credit facilities.
Fixed-term deposits                Means an account in which money has been placed for a fixed period for a stated interest rate.

                                   It includes:

                                        * term deposits;
                                        * fixed-term deposits with a notice of withdrawal requirement; and
                                        * non-negotiable certificate of deposits.

                                   It excludes: non-transaction deposits that do not have a fixed term.

Floating interest rate             See variable interest rate.

Foreign-sourced income             Means the allowable income, as defined within the ADI's or RFC's serviceability assessment for a given commitment, which is sourced from a country other than Australia. Allowable income is the total of the borrower's main pre-tax income and any other pre-tax income, for example, overtime, rental income and dividends, to the extent that the ADI or RFC takes such income into account, in whole or in part, in its serviceability assessment for a given commitment.

                                   It includes:

                                        * income streams derived from governments overseas or non-governmental entities incorporated overseas; and
                                        * FX-denominated income.

                                   It excludes: income streams derived from unincorporated or incorporated entities in Australia that export goods or services.

Fringe benefits tax                Represents the amount payable by employers when certain benefits in excess of normal wages or salaries (e.g. free or discounted goods or services) are received by their employees (or associates of employees) in connection with their employment.

Fully secured                      Means finance with a loan-to-valuation ratio of less than or equal to 100 per cent.