Extended Investment Loan 40-Year Term: How the Eligibility Tool Works
Stakeholder guide · every field and rule, traced to source (Key Fact Sheet v1.1)
What the tool does
A broker pre-check for the Extended Investment Loan 40-Year Term. The broker enters an application once; the tool returns an eligibility verdict and, when eligible, the resulting loan structure. It is indicative, not a credit decision.
How a decision is reached
Collect inputs across four areas, Loan, Security, Borrower, Structure. All fields stay visible; conditional ones become active only when relevant (e.g. refinance type only becomes active for a refinance).
Apply hard gates. Each eligibility rule is checked. Any single failure makes the application Not eligible and is listed as a blocking issue.
Note conditions & loadings. Some inputs don't block but attach a condition (e.g. a rate loading).
Output the structure. When all gates pass, the tool shows the term, interest-only staging and the servicing assessment basis.
The three field roles
Hard gate gate
A pass/fail rule. Failing it blocks eligibility.
Condition / loading condition
Allowed, but carries a note or a pricing loading.
Structure input structure
Shapes the loan structure and servicing basis rather than passing or failing.
v1.1 update: the Key Fact Sheet has been updated to v1.1 (15 May 2026, AH review). The product is now titled Extended Investment Loan 40-Year Term; the age cap (max 90 at maturity, exit strategy > 55) is now explicit in the main eligibility criteria; pricing is signed off across three LVR bands with separate P&I and IO columns; the Company/Trust +0.40% loading is no longer TBC; and the construction loading wording has been replaced with "IO loading applies to all construction applications".
Loan fields
Purpose, reason and the figures that drive amount limits and LVR.
Loan purpose gate
Select · Purchase / Standard refinance / Construction
The reason the funds are being borrowed. Selecting "Standard refinance" reveals a Refinance type field.
Only Purchase, Standard Refinance and Construction are permitted purposes.
Key Fact Sheet, Loan Purpose: “Purchase, Standard Refinance & Construction”.
Refinance type gate
Select · Standard/external / Internal / Easy / Rapid (active only when purpose is refinance)
Distinguishes a standard external refinance from restricted refinance types.
Internal, easy and rapid refinances are not eligible. Only standard/external refinance passes.
Key Fact Sheet, Not Eligible: “Internal refinances are not allowed · No easy refinances allowed · No rapid refinance allowed”.
Loan reason gate
Select · Investment / Owner-occupied
The product is investment-only.
Reason must be Investment. Owner-occupied is not eligible.
Key Fact Sheet, Loan Reason: “Investment”; Eligibility: “Loan must be for Investment Purchase & Investment construction purposes only”. Explainer FAQ: “Is this loan available for owner-occupied properties? No.”
Loan amount gate
Number ($)
Requested loan amount. Checked against both absolute limits and the location/LVR band cap (see Security).
Must be between $150,000 and $3,500,000, and within the applicable LVR-band cap.
Property type, location and equity release, these set the maximum LVR and loan amount.
Security type gate
Select · Residential / Commercial
Must be Residential. Commercial properties are not accepted.
Key Fact Sheet, Acceptable Securities: “Residential securities as per lending policy · Commercial properties not accepted”.
Location class & population test gate
Select · Inner-City / Metro / Non-Metro / Regional (+ population test for the last two)
Location sets the maximum LVR. For Non-Metro and Regional, a population/proximity test applies.
Max LVR by location: Inner-City / Metro 90%; Non-Metro 90% if the population test passes else 80%; Regional 80% if it passes else 65%. Population test = town pop > 10,000, or within 15km of the GPO of a town > 50,000.
Key Fact Sheet, LVR footnotes 4 & 5: “Non-Metro … investment … town with a population > 10,000 or … within 15k radius of the GPO in a town with a population > 50,000 is 90% otherwise 80%”; “Regional … is 80% otherwise 65%”.
Loan-amount band cap derived
Computed from location class + LVR band
Beyond the 90% LVR limit, the maximum dollar amount tightens with LVR and location:
Maximum loan amount (applies to existing dwelling & construction)
LVR range
Inner-City
Metro / Non-Metro
Regional
0 – 70%
$3.5M
$3.5M
$3.0M
70.01 – 80%
$3.5M
$3.5M
$2.0M
80.01 – 90%
$3.0M
$3.0M
n/a
Loan amount must not exceed the cell for its location and LVR band. Regional above 80% LVR is not permitted.
Key Fact Sheet, “Maximum Loan-To-Value Ratio (LVRs)” matrix.
Cash-out / equity release gate
Select (include?) + Number ($)
Equity release or debt consolidation amount.
Capped at 20% of security value for LVR ≤ 90%. Debt consolidation: max 4 debts.
Key Fact Sheet, “Cash Out / Equity Release / Debt consolidation: Max 20% of security Value for LVR <=90%”; LVR matrix: “Purchase with Debt Consolidation (max. 4 debts)”.
Borrower fields
Borrower type, age and credit standing.
Borrower type condition
Select · PAYG / Self-employed / Company / Trust
All four types are eligible. Company & Trust attract a +0.40% rate loading (signed off in v1.1) and an establishment requirement (below).
Key Fact Sheet v1.1, “Product is available for PAYG, Self-employed, Company & Trust Borrowers”; Pricing, “Company/Trust Borrower Loading +0.40%”.
Entity establishment (months) gate
Number · active only for Company / Trust
Company & Trust borrowers must be established ≥ 24 months.
Key Fact Sheet, “Company & Trust borrowers must be established for 24 months”.
Number of borrowers derived
Number
When greater than 1, the Combined Equifax score field becomes active and its minimum is enforced.
Drives the combined-score check below.
Oldest borrower age & exit strategy gate
Toggle · enter Age directly OR Birth month + Year (age is derived) + Toggle (exit strategy, active when age over 55)
Age governs both the maximum term and whether an exit strategy is required. The tool accepts either a direct age input or the borrower's birth month + year, and computes age from today's date. With more than one borrower, the OLDEST age is the one that matters (it drives the maturity cap).
Maximum age at loan maturity is 90, so max term = 90 − age. Borrowers above 55 require an exit strategy.
Key Fact Sheet v1.1, Eligibility Criteria: “Maximum age at loan maturity – 90 years, above 55 need exit strategy” and “Exit Strategy required for borrowers above 55 years of age”; Explainer, “If borrower is 54 years, they can access 36 years of Max loan term”.
Equifax credit scores gate
Number · individual (always) + combined (multiple borrowers)
Term, repayment type and interest-only, these define the loan shape and how servicing is assessed.
Loan term gate
Number (years)
Maximum 40 years, further capped by age (90 − age).
Key Fact Sheet, “Maximum Loan Terms 40 years (subject to age restrictions)”.
Repayment type & Interest-Only term structuregate
Toggle (P&I / IO) + slider+number (IO years, active for IO)
Interest-Only is captured in whole years.
Interest-Only is capped at 10 years in aggregate. A second IO period is possible but the total still cannot exceed 10 years and requires a full credit reassessment.
Key Fact Sheet, “Max Interest Only (IO) Terms 10 Years … Minimum IO Term None”; Explainer, “It will always be in years, Maximum can go up to 10 years”; “The total IO duration cannot exceed 10 years across the life of the loan”.
Construction IO staging structure
Derived when purpose = Construction and repayment = IO
For construction, IO splits into a construction phase plus an optional post-construction phase, within the 10-year cap.
Up to 1 year IO during construction, then up to a further 9 years IO post-construction, then P&I for the remaining term. Construction is priced at the IO rate (per Key Fact Sheet v1.1: “IO loading applies to all construction applications”), and the loan must convert to P&I after construction if LVR > 90%.
Explainer, “Up to 12 months Interest-Only during construction · After construction … up to a further 9 years”; Key Fact Sheet v1.1, “1 year for construction (can be extended up to 9 years post construction)”, Pricing §Construction Rates, and LVR matrix footnote 6.
Servicing assessment basis output
Computed · not entered
The tool reports the term servicing is assessed on, since this differs from the headline term when IO is selected.
Servicing is assessed on the remaining P&I term after the IO period: servicing term = loan term − IO term. Example: a 40-year loan with 7 years IO is assessed on 33 years P&I.
Key Fact Sheet, “Servicing assessment will be done on remaining P&I terms (post IO period)”; Explainer, “33 years P&I (total loan term of 40 years)”, “Servicing will be based on remaining P&I period, post IO period”.
Pricing & fees (v1.1, signed off)
For reference. The eligibility tool does not compute dollar repayments, but the conditions it surfaces (rate loadings, construction IO pricing) trace to these tables.
Investment rates, established & construction, 40-year term, 10 years IO
Loan amount ≤ $3.5M · variable rate
LVR
Variable P&I
Variable IO
≤ 80%
6.69%
7.09%
≤ 85%
6.94%
7.34%
≤ 90%
7.19%
7.59%
Key Fact Sheet v1.1, Pricing.
Loadings
Company / Trust borrower: +0.40% on the applicable rate.
Construction: "IO loading applies to all construction applications", i.e. construction loans are priced at the IO rate column above (not P&I).
Applied based on LVR band. Updated in v1.1 (each band shifted down from v1.0).
LVR ≤
Fee
LVR ≤
Fee
80%
0.00%
86%
3.00%
81%
1.75%
87%
3.25%
82%
2.00%
88%
3.50%
83%
2.25%
89%
3.75%
84%
2.50%
90%
4.00%
85%
2.75%
Construction Risk Fee
Applied based on LVR band for construction loans. Updated in v1.1.
LVR ≤
Fee
LVR ≤
Fee
80%
0.00%
86%
3.25%
81%
2.00%
87%
3.50%
82%
2.25%
88%
3.75%
83%
2.50%
89%
4.00%
84%
2.75%
90%
4.25%
85%
3.00%
The tool itself does not calculate or display these dollar fees, they're reproduced here only so stakeholders can cross-reference the v1.1 source. Final pricing is set by the credit team.
How the verdict is assembled
The engine separates inputs into gates, conditions and structure, then combines them.
1 · Hard gates (any failure blocks)
All of these must pass. A single failure returns Not eligible with every failing reason listed:
Eligible purpose & standard-only refinance
Investment reason · residential security
Loan $150k–$3.5M and within the location/LVR band cap
Construction → priced at IO rate ("IO loading applies to all construction applications", Key Fact Sheet v1.1, Pricing §Construction Rates); must convert to P&I post-construction if LVR > 90% (matrix footnote 6)
3 · Structure output (only when eligible)
When all gates pass, the tool renders the loan shape: purpose, repayment path (e.g. Interest Only → P&I), term, IO term, the stage breakdown (including construction staging), the servicing term (term − IO) and the LVR.
The tool deliberately produces no dollar repayment figures, it reports eligibility and structure only. Final figures come from full credit assessment and the servicing calculator.
The decision at a glance
The application passes through four gate groups in order. Failing any one returns Not eligible with the reasons listed; clearing all four returns Eligible, then the conditions and structure are attached.
flowchart TD
A(["Broker enters application"]) --> B{"Eligible purpose and type? Investment reason · residential security · purchase / standard-refi / construction only"}
B -->|No| X(["Not eligible all failing reasons listed"])
B -->|Yes| C{"Amount and LVR within limits? $150k–$3.5M · LVR up to 90% plus location cap · loan-amount band cap · cash-out up to 20% · exposure up to $10M"}
C -->|No| X
C -->|Yes| D{"Borrower checks pass? Equifax 600+ individual · 750+ combined · Company/Trust established 24+ months · exit strategy if age over 55 · term up to 90 minus age"}
D -->|No| X
D -->|Yes| E{"Structure valid? loan term up to 40 yrs · interest-only up to 10 yrs"}
E -->|No| X
E -->|Yes| F(["Eligible"])
F --> G["Attach conditions and loadings Company/Trust +0.40% · Construction priced at IO rate"]
G --> H["Output loan structure purpose · repayment path · term · IO staging · servicing term = term minus IO · LVR"]
%% conditions text below references Key Fact Sheet v1.1
classDef bad fill:#fbe9e7,stroke:#b3261e,color:#b3261e,font-weight:600;
classDef good fill:#e9f5ee,stroke:#1b7f4b,color:#1b7f4b,font-weight:600;
classDef out fill:#ecf6e7,stroke:#3B9B13,color:#2f7d0f;
class X bad;
class F good;
class G,H out;
Gate groups are evaluated together, not stopped at the first failure, so the verdict can list every reason an application is blocked, not just one. Each rule and its source is documented in the field tabs above.
Source documents
Every rule above traces to one of these two documents. Where a value is provisional, it is marked TBC in the source.
Key Fact Sheet, Extended Investment Loan 40-Year Term
Version 1.1 · 15 May 2026 (AH review) · signed off
Authoritative product rules: eligibility criteria (now including the explicit age-at-maturity cap), not-eligible list, loan purpose & reason, acceptable securities, amount/LVR/term/IO/exposure limits, the LVR matrix and footnotes, credit-score minimums (individual 600, combined 750), servicing basis, the signed-off pricing tables (P&I and IO across three LVR bands, Company/Trust +0.40% loading, IO loading applies to all construction) and the updated Lender Protection & Construction Risk fee schedules.
40-Year Investment Product Explainer / FAQ
15 May · v1.0
Clarifications and worked examples: IO mechanics and the 10-year aggregate cap, second IO period, construction IO staging, the servicing-on-post-IO-term rule (7yr IO → 33yr P&I), age/maturity (max 90, exit strategy > 55, 54yr → 36yr term), and standard-refinance eligibility.
v1.1 sign-off: the Company/Trust +0.40% loading is no longer TBC. The construction loading line has been replaced with "IO loading applies to all construction applications" (i.e. construction loans are priced at the IO rate, not a flat +0.40% loading). The TBC note on the maximum number of offset facilities has been removed.