Target Market Determination

Introduction

About Propential

MediPay Holdings Pty Limited (ACN 604 221 276) trading as Propential is an Australian Credit Licence holder (ACL 474 336) (MediPay). MediPay is the provider of credit to consumers for certain purposes and currently distributes these products online via its website propential.com.au.

About Propential's product

The Propential loan is a secured term loan (from $5,000 to $175,000) used by consumers for property improvement purposes that add value to owner occupied and investment properties, including interiors, pools, fencing, landscaping and roofing. Construction loans are excluded.

Loans up to and including $50,000 have a term of 1 to 7 years. Loans from $50,001 to $175,000 have a term of 1 to 10 years.

The security takes the form of a caveat registered against the title of the property to note our interest in most Australian states. In Queensland and the Northern Territory the security takes the form of a registered second mortgage over the property.

The repayments on the loan are principal and interest repayments made fortnightly or monthly, with early repayment options available and no early repayment or exit fees.

About this Target Market Determination

We are committed to creating and maintaining a client centric approach to the design and distribution of our products. The purpose of our Target Market Determination is to ensure our products are suitable for the consumers we target.

This Target Market Determination is for our Propential loan (from $5,000 to $175,000). Separate Target Market Determinations are available for our other products.

Target market

Product description

Below is a description of the key attributes that affect whether this product is likely to be suitable for the needs of the target market.

• Loan from $5,000 to $175,000
• Term of 1 to 7 years for loans up to $50,000, and 1 to 10 years for loans from $50,001 to $175,000
• Principal and interest repayments made fortnightly or monthly
• Property improvement that adds value, on owner occupied or investment properties
• Borrower is owner of the property
• If more than one owner, all owners of the property are co-borrowers

Borrower(s) to be or have

• 21 years old or more
• An Australian citizen or Permanent Resident
• A household income of at least $40,000 before tax per year
• Holder of a current Drivers Licence, Passport or Medicare Card
• Not bankrupt or in a debt agreement
• Earning income other than from Centrelink
• All persons subject to suitability assessment

Objectives, financial situation and needs

This product is designed to enable a class of consumer to make purchases whose likely needs, objectives and financial situation (outlined below) are aligned with this product and its key attributes, including consumers who:

• Have a specific requirement to improve their residential or investment property in a way that adds value.

This product is not suitable for consumers who:

• do not meet the eligibility criteria;
• are not improving their property, or are seeking a construction loan;
• are pre settlement buyers;
• are below the age of 21;
• have low levels of financial literacy;
• have low levels of technological literacy;
• are in, or likely to experience, financial hardship;
• are going through bankruptcy; or
• are vulnerable, including those who are:
• suffering any form of cognitive impairment;
• unemployed or who have recently experienced job loss;
• suffering from any illness affecting capacity;
• suffering from any form of addiction; or
• suffering from personal or financial circumstances causing significant detriment.

Consistency between target market and product

This lending product, including its key attributes, is likely to be consistent with the likely objectives, financial situation and needs of the class of consumers in the target market, as we consider that it provides the required type of finance for that class of consumers.

We have made this determination based on an assessment of this product, including its key attributes. Individual consumers will need to consider whether this product meets their specific objectives, financial situation and needs.

Distribution

This product is designed to be distributed through the Propential website, mortgage brokers and referral partners that MediPay has approved in writing under its distributor approval process.

Before this product is issued, MediPay must collect and verify the information needed to establish whether the consumer is within the target market, confirm that the consumer meets each of the eligibility criteria, the loan meets the customer objectives and MediPay will complete a suitability assessment confirming that the consumer has the capacity to repay the loan without substantial hardship.

We consider these distribution conditions to be appropriate, because distribution is limited to MediPay, its brokers and partners that MediPay accredits or approves and trains. MediPay will regularly monitor conduct and compliance over how this product is promoted and distributed.

Review

We will review this Target Market Determination in accordance with the below:

• Initial review: Within 6 months of the effective date.
• Periodic reviews: Every one (1) year from the initial review.
• Review triggers: When any event or circumstance arises that suggests this Target Market Determination is no longer appropriate. This includes (but is not limited to):
• material changes to the key attributes of this product;
• the occurrence of a significant dealing including when distribution occurs outside the target market;
• where the distribution conditions are found to be inadequate;
• external events such as adverse media coverage or regulatory attention;
• receipt of a large volume of complaints; and
• where we detect issues with the distribution of this product through the monitoring of daily business activities as well as the monitoring and supervision of distributors.

Reporting and monitoring

If we appoint third party distributors, we will collect the following information from distributors in relation to this Target Market Determination:

• Complaints: Report all complaints in relation to this product on a monthly basis. This will include written details of the complaints.
• Significant dealings: Report if they become aware of a significant dealing in relation to this product that is inconsistent with this Target Market Determination within ten (10) business days.
• Feedback: Report all feedback in relation to this product (including the performance of this product) on a quarterly basis.