This Target Market Determination (TMD) has been prepared in accordance with the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 (Cth) and associated Regulations. TMDs are designed to assist issuers to ensure that the financial products they issue are likely to be consistent with the likely objective, financial situation and needs of the consumers for whom they are intended (the target market) and to assist distributors to ensure that financial products are distributed to the target market.
This TMD is general in nature and should not be construed as financial advice. Consumers should obtain independent advice prior to acquiring the product to ensure that it is appropriate for their objectives, financial situation and needs.
Property Expense loans.
This product is issued by Property Credit Pty Ltd ACN 638 329 674, Australian Credit Licence Number 528878
12 December 2022
Description of target market, including likely objectives, financial situations and needs
This product has been assessed as meeting the likely objectives, financial situation and needs of consumers who:
Description of product including key attributes
This product’s key attributes include the following:
Class of customers for whom this product is not suitable
This product may not be suitable for consumers who:
Explanation of why the product is likely to be consistent with the likely objectives, financial situation and needs of consumer in the target market
The product allows property owners who own a residential investment property managed by a property manager or real estate agent to have a facility available to cover expenses required to enhance or maintain the property so as to enable the property to be in a presentable condition for rent.
The product also allows borrowers to progressively access funds.
This product can be distributed through the distributors set out below. All distribution channels require an application for the loan to be submitted to Property Credit via its website or the Property Credit sales team.
1. Direct – Property Credit’s website and sales team
Property Credit staff are required to undertake training prior to assisting applicants with loans and must follow all documented procedures. Property Credit will ask screening questions as part of the application to ensure that a prospective borrower is within the target market set out above.
Property Credit considers this is an appropriate distribution channel because the nature of the target market and the requirement of all sales staff to have the necessary training, skills and knowledge to assess whether the consumer is within the target market.
2. Third Party – Real Estate Agents
Real estate agents who are appointed as property managers by property owners of residential investment properties may refer those property owners to Property Credit to assist them with funding expenses required to enhance or maintain their residential investment property. Property Credit will only enter into agreements with real estate agents who it considers are reputable and who have the necessary licences Property Credit require.
Property Credit considers this is an appropriate distribution channel due to their industry knowledge and the nature of the target market.
The following events are review triggers that would reasonably suggest that the TMD is no longer appropriate:
First review date
6 months after the date of this TMD
Every 12 months after the initial and each subsequent review.
Review to be completed within 10 business days of the identification of a trigger event.
The following information must be provided to Property Credit by distributors if they become aware of any of the following matters within the corresponding timeframe.
|Type of Information
|What is reported
|When it is reported
Information relating to complaints received about the product or the distribution of the product, including:
|As soon as practicable and in any event within 10 business days of receipt of the complaint
|Any feedback received about the product or the Distribution Conditions for the product
|Every 3 months
|Date or date range of any significant dealing of the product outside the Target Market
|As soon as practicable and in any event within 10 business days after becoming aware of the significant dealing