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LRBA for real property - safe harbour terms

Loan terms & conditions	Safe harbour requirements
Interest rate – fixed or variable	2024–25: 9.35% 2023–24: 8.85%
Loan term	Variable interest rate loan (original) – 15-year maximum loan term (for both residential and commercial) Variable interest rate loan (re‑financing) – maximum loan term is 15 years less the duration(s) of any previous loan(s) relating to the asset (for both residential and commercial)
Maximum loan to value ratio	Maximum 70% LVR for both commercial and residential property

Loan terms & conditions

Safe harbour requirements

Interest rate – fixed or variable

2024–25: 9.35%

2023–24: 8.85%

Loan term

Variable interest rate loan (original) – 15-year maximum loan term (for both residential and commercial)

Variable interest rate loan (re‑financing) – maximum loan term is 15 years less the duration(s) of any previous loan(s) relating to the asset (for both residential and commercial)

Maximum loan to value ratio

Maximum 70% LVR for both commercial and residential property

LRBA for equities - safe harbour terms

Loan terms & conditions	Safe harbour requirements
Interest rate – fixed or variable	2024–25: 11.35% 2023–24: 10.85%
Loan term	Variable interest rate loan (original) – 7-year maximum loan term Variable interest rate loan (re‑financing) – maximum loan term is 7 years less the duration(s) of any previous loan(s) relating to the collection of assets.
Maximum loan to value ratio	Maximum 50% LVR

Loan
terms & conditions

Safe harbour requirements

Interest rate – fixed or variable

2024–25: 11.35%

2023–24: 10.85%

Loan term

Variable interest rate loan (original) – 7-year maximum loan term

Variable interest rate loan (re‑financing) – maximum loan term is 7 years less the duration(s) of any previous loan(s) relating to the collection of assets.

Maximum loan to value ratio

Maximum 50% LVR

For further information on the safe harbour guidelines refer to PCG 2016/5.