Product Overview

CALIA+ (Colonial Asset Linked Investment Accelerator Plus) is a portfolio-style credit facility that can consolidate your home, investment and personal loans into a single loan facility. The consolidation will provide you with greater visibility of your overall financial position and allows you to be prepared for opportunities that may arise in the future.

CALIA+ caters to a wide range of clients, from those looking to purchase their first home to the sophisticated investor looking to access the equity in their home and other assets. It is available to individuals, companies and trusts who wish to:

  • Purchase property;
  • Refinance and consolidate existing debts;
  • Access the equity in their home and other properties for personal or investment purposes;
  • Invest in shares, managed funds or other investments;
  • Segregate personal and investments debts to simplify tax management.

How a CALIA+ facility works

In its simplest form, a CALIA+ facility may work in the following way:

  1. CALIA+ is designed to complement advice based financial plans and is therefore only distributed through financial advisers.  Your CALIA + Application is submitted for formal Credit Assessment. Should your application be successful (subject to normal Credit Criteria) a property valuation may be undertaken to confirm the value of the property being offered as security. Once this process has taken place, you will be provided with a loan offer. The  “Bundle” Limit offered will reflect a Loan to Valuation Ratio (LVR) of no more than 80% of the security provided.
     
  2. You now have the option of opening up to 12 sub-accounts. Each sub-account has its own credit limit and the sum of those credit limits cannot exceed the Bundle Limit.

    Sub-accounts under the Bundle Limit may consist of the following two loan types: 
    • CALIA+ Variable Loan
      A line of credit with a variable interest rate. Interest is only charged on drawn funds and is charged monthly in arrears.
       
    • CALIA+ Fixed Loan
      A loan for an agreed amount with a fixed interest rate of one to five years. Interest can be charged monthly in arrears or annually in advance. When your loan matures you can elect to roll it into a new fixed loan, convert it to a variable loan or repay the loan.
    CALIA+ Variable and Fixed sub-accounts can be used for personal and investment purposes. Sub-accounts allow you to easily segregate your loans by use which in turn allows you to more easily manage your borrowing and tax position.
     
  3. You also have the option of setting up a CALIA+ Margin Loan. The CALIA+ Margin Loan is a separate sub-account and is independent of the Bundle. The CALIA+ Margin Loan Limit and loan size is dependent on the type and value of security held against the loan and is not impacted by the Bundle Limit.

    A CALIA+ Margin Loan is designed for clients who wish to invest in shares or managed funds and is ideal for those who wish to leverage existing shares or managed funds they may already own. The CALIA+ Margin Loan can be secured by shares, managed funds and cash only. 

    The CALIA+ Margin Loan provides the same award-winning features as the Colonial Margin Loan but at the same competitive interest rate applied to your CALIA+ variable and fixed sub-accounts. The Bundle Limit and the CALIA+ Margin Loan Limit are combined to provide the Global Borrowing Limit. The CALIA+ facility structure is shown below:

Key Features and Benefits

  • There are no set repayments so you can structure your repayments in a way that best suits your needs.
  • As your circumstances change you can add or remove CALIA+ sub-accounts or simply increase or decrease their individual credit limits.
  • CALIA+ makes consolidating your debts easy which will allow you to better manage your financial position through convenient access methods and a single consolidated account statement. 
  • Be ready when investment opportunities knock. Access funds quickly and take advantage of new opportunities as they arise.
  • CALIA+ Variable Loans provide the same convenient access to your everyday savings account. You can access funds through the CBA ATM network*, EFTPOS, NetBank, Phone Banking, cheque book and over the counter at any CBA branch.
  • CALIA+ Variable Loans allow for salary crediting and direct debit arrangements to pay your bills.
  • Subject to our credit assessment we can lend up to 80% of the value of residential, vacant land and rural properties†.
  • CALIA+ Margin Loans are offered at the same competitive interest rate as our CALIA+ Variable Loan and CALIA+ Fixed Loan making it the lowest priced margin loan in Australia.

For more information or to apply for a CALIA+ facility speak to your financial adviser or call us on 1800 646 151.

 

* Access fees apply to all transactions, including balance enquiries, when using non-Commonwealth Bank ATMs in Australia, ASB Bank ATMs in New Zealand, PT Bank Commonwealth ATMs in Indonesia and the Cirrus/Maestro networks overseas. Withdrawals are subject to daily withdrawal limits.

† Security lending ratios are specific to each property type under the facility and are determined during the loan approval process.

CALIA+ is one of the products available under the Colonial Geared Investments brand, and is provided by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (‘Bank’). The Bank’s wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814, a Participant of the ASX Group, only administers the Margin Loan Sub-accounts within CALIA+. This information has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regard to their objectives, financial situation and needs and, if necessary, seek professional advice. Applications are subject to credit approval. Fees and charges apply.

This website notes some features of a Colonial Margin Loan. Please obtain and consider the product disclosure statement (PDS), available from the Commonwealth Bank of Australia (ABN 48 123 123 124 AFSL 234945) as the product issuer, at www.colonialgearedinvestments.com.au before making any decision about the product.

Please consider the full terms and conditions available on application. Only investors who fully understand the risks associated with gearing into investments should apply.