Target Market Determination

AHC Finance Pty Limited (Clinch) has created a Target Market Determination (TMD) for the loan products that we issue.

A TMD describes the group of customers that the product is designed to target (target market) having regard to the objective, financial situation and needs of that target market.It also describes the triggers which require us to review the TMD.

The review triggers are events and circumstances that we have deemed to be significant enough to warrant a review of the TMD.

A TMD is a requirement of the Australian regulations and is not a recommendation or advice to take out a Clinch product or loan and does not take into account an individual’s objectives, financial situation or needs. This document is not a product guide or summary of the Clinch product features. It is not a replacement for our terms and condition and other documents that are provided to our customers by us or our accredited brokers or referrers.

This TMD is part of the overall governance arrangements for Clinch and forms part of Clinch’s design and distribution arrangements for its products.

Clinch Bridging Loans

Target Market

The Clinch bridging loan has been designed for customers who:

• Can provide residential property, commercial property or vacant land as security for the loan

• Require a short-term loan to allow them to: acquire a property before they sell their existing property; renovate their property before selling it; release equity in their property prior to sale; settle on a new property before they sell their current property.

• Are looking to downsize and move to less expensive homes and release the equity in their home; or upsizers with plans to move to more expensive property, or renovators looking to make changes to their property to increase their value or attractiveness in the market.

• Don’t require the certainty provided with a fixed rate loan

• Do not wish to pay interest during the term of the loan and are comfortable to have interest capitalized and the full loan amount and capitalized interest is payable on the repayment date

• Will have the ability to repay the bridging loan through the sale of their current property and/ or the refinance of the new property (if applicable)

• Are Australian citizens or residents and are over 18 years old

• Have a good credit history 

Key Attributes of the Clinch Bridging Loan

The Clinch loan is not suitable to customers who

• Do not meet the Clinch eligibility criteria

• Customers looking for a long-term mortgage

• First home buyers

• Customers who do not have property security for the loan

• Customers who are not looking to sell a property

• Customers who require other product features and benefits linked to their loan

Customer identification

Clinch considers that by applying these conditions and restrictions to distribution, it is reasonably likely that the product will be distributed to customers within the target market.

Review of the Target Market Determination

Clinch will review this document on an annual basis to ensure that it remain appropriate. If a review trigger occurs, this document will be reviewed earlier to ensure it remains appropriate.

Review Triggers

This document will be reviewed if any one or more of the review triggers occur which reasonably suggest that the TMD is no longer appropriate.

The following information must be provided in writing by distributors and staff who engage in distributing the Clinch product in accordance with this TMD (product distribution conduct).

This TMD is issued by AHC Finance Pty Limited (Clinch), ABN 35 161 006 846, Australian Credit Licence 448165. To the extent permissible by law, Clinch accepts no liability for any loss  or damage caused as a result of any reliance on this information.