Understanding Your Low Interest Rate Concessional Loan
Lannock Strata Finance will administer the the ACT Concessional Loan on the ACT Government’s behalf, providing a stable and reliable financial loan so owners corporations can begin remediating their cladding.
When you join the ACT Government’s Concessional Loan , a Lannock Strata Finance dedicated loan relationship manager will be assigned to you for the lifecycle of the loan.
We will provide advice, support, and arrange the servicing and management of your loan.
We will be with you every step of the way.
This page is for applicants who have successfully had their eligibility checked by the Territory, to provide information regarding the concessional loan, the loan process and the support and advice available throughout the program.
- Understand your ACT Cladding loan
- The loan and how it works
- The loan process
The loan and how it works
The ACT Concessional loan is a 10 year unsecured loan with a low fixed interest rate.
How much can we borrow?
The ACT Government will confirm your eligibility to the Private Buildings Cladding Scheme. Approved participants will be issued with either a preliminary or final approval.
The owners corporation will then undertake a credit assessment with Lannock Strata Finance to gain approval to borrow the approved funds.
Within the preliminary concessional loan, you can borrow for the tender and design costs (up to $100,000 incl. GST), along with up to $10,000 incl. GST for administration costs to administer the loan and fees associated with regulatory approval. Preliminary concessional loan funds are available up to a 6 month period.
Within the final approval concessional loan, you can borrow 110% of the cost of eligible works and up to $10,000 incl GST for administration costs. Please note that access to administration funds is capped at up to $10,000 incl. GST for each owners corporation for the duration of the Private Buildings Cladding scheme. Therefore, if you initially had a preliminary approval loan, the administration funds provided will be rolled into the final approval loan and replace the $10,000 incl GST Administration funds noted above. Final concessional loan funds are available up to a maximum 24 month period.
How long does the loan process take?
Please click the appropriate loan type below to view the simple step-by-step process to obtaining your Private Buildings Cladding Scheme concessional loan.
Your loan relationship manager will ensure you have all the necessary information and documentation required to make decisions and to provide us with your instructions to process your loan requirements quickly.
What’s the security?
The ACT Government’s concessional loan is unsecured. Unlike a secured loan, there is no security held against the property to support the loan. Specifically, there are no mortgages, charges, liens or caveats. Therefore, nothing is registered on the title of the common property or any individual lot.
Can we repay the loan early?
Yes. There is no administration fee associated with early payout of the loan or ad hoc repayments. You can read more about this when a draft copy of the loan contract is provided by your loan relationship manager after the loan information session.
The loan process
The Loan information session
The ACT Government will advise Lannock of your approved application to the Private Buildings Cladding Scheme concessional loan scheme.
Your loan relationship manager will then contact you to arrange a Loan information session for the Owners Corporation. This one hour meeting will cover all aspects of the loan, the loan process and answer any questions you may have at that time.
Executing your loan contract and related paperwork
When will the loan paperwork be sent to my Owners Corporation?
Credit assessment instructions and a list of required documents will be provided to the Owners Corporation shortly after the loan information session.
Upon sending Lannock all the requested documentation, the credit assessment process will be completed within seven business days. You will be notified by your loan relationship manager of the outcome.
Following an approved assessment, the loan contract will be provided to the Owners Corporation to review and discuss.
Your loan relationship manager will be on hand to answer any questions and to attend meetings.
What documents do we need to provide as part of the loan application process?
We will require copies of various records of the Owners Corporation, such as a bank account statement, certificate of insurance, financial reports, etc. Usually, your strata manager will manage this for you.
A full list of required credit assessment documents will be provided to the Owners Corporation after the loan information session.
Is my Owners Corporation required to pass a motion to accept the loan terms and enter into the loan contract?
Yes, the Owners Corporation is required to table the concessional loan contract at a general meeting and pass a motion to resolve to borrow. This motion must pass at a general meeting. A copy of the required motion will be provided by your loan relationship manager in preparation for the meeting.
Who is authorised to sign the loan contract for my Owners Corporation?
The Owners Corporation is required to table a motion to authorise specific individuals to be signatories of the Concessional loan contract. This motion must be passed at general meeting. A copy of the required motion will be provided by your loan relationship manager in preparation for the meeting.
Who do I send my signed loan and other paperwork to?
All loan documentation and drawdown instructions must be original wet signature copies and sent via post or courier to:
Lannock Strata Finance
Unit 18.01, Level 18
227 Elizabeth Street
Sydney NSW 2000
How settlement works
Funds become available when complete and accurate executed Loan contract and meeting minutes are delivered to Lannock Strata Finance.
- Preliminary approval loan funds are available up to a six month period
- Final approval loan funds are available for twenty four months
Managing your loan
How and when do we make the repayments?
Your Owners Corporation will make monthly repayments to repay the loan via direct debit on the Owners Corporation’s bank account.
Monthly repayments are calculated on the current borrowed amount not the entire facility amount.
Preliminary approval loan repayments are interest only and will commence 30 days after the first settlement is processed.
Final approval loan interest only repayments will commence 30 days after the first settlement is processed. Principal and Interest monthly repayments will commence upon issuance of the certificate of practical completion.
The Owners Corporation will levy owners for repayments - although the Owners Corporation can choose the levy cycle, most owners corporations issue quarterly levy invoices.
What happens if some people don’t pay their levies?
It is up to each Owners Corporation to determine its policy with respect to levies in arrears by unit owners. Talk to your strata manager or adviser about what the situation in your building is currently and what it should be.
Is help available to individual owners who are unable to make the extra levy payments associated with the repayment of the loan?
Yes, residential owner occupiers who have difficulty in making their levy payments for their portion of the loan can apply for Hardship Assistance through the ACT Government.
If your application is approved monthly loan repayments from the Owners Corporation will be adjusted accordingly. Note that Hardship Assistance does not apply to levies that are not associated with the Concessional Loan.
Please contact the ACT Cladding team for more information via email: claddingprogram@act.gov.au
What happens if a unit is sold? Does the loan levy go with the title to the new owner of the property?
Yes. The loan to the Owners Corporation is serviced by levies from owners. The obligation to pay levies “runs with the land” and so it is the owner at the time the levy is due who is responsible to pay that levy.
However, if the owner has qualified for hardship assistance when the unit is sold, payment of the deferred ACT Cladding scheme levies will be due upon settlement of the sale of the unit.
Is GST applied to the loan repayments?
GST doesn’t apply to the loan repayments paid by the Owners Corporation.
Additional works
What if we have additional works?
If you have additional works not covered under the ACT Government’s Private Buildings Cladding Scheme, your loan relationship manager can assist the Owners Corporation quickly navigate the financing components.
Support & Service
What if I have additional questions or need assistance?
Your loan relationship manager is standing by to answer any additional questions you may have regarding your loan. You can contact us via email: actcladding@lannock.com.au or phone: 1300 295 759
For any queries on the Private Building’s Cladding Scheme concessional loan scheme, please contact the ACT Government Cladding team via email: claddingprogram@act.gov.au
We look forward to supporting you.
