Choosing the loan purpose and ABS codes

When preparing your client’s application for a purchase, refinance or principal increase, you’ll need to provide the primary purpose for the loan amount or top-up and the sub-purpose, which is captured by selecting the most appropriate ABS code.

For each loan account or split, you’ll need to nominate the primary purpose and sub-purpose (ABS code). In ApplyOnline:

1. Go to the Loans tab
2. Select the Loan account you need to edit
3. Choose the Primary Purpose: Owner Occupied, Residential Investment or Non-Residential Investment
4. Once selected, enter or select the ABS code.

Once the primary purpose is selected, you’ll need to enter the most appropriate ABS code. If you know the ABS code, you can enter this directly into the ABS purpose field. Alternatively, you can use the manual ABS purpose finder which will show the ABS codes available.

The ABS code matrix below replicates how the ABS codes are organised in ApplyOnline, you can use this to select the most appropriate ABS code.

To support you in selecting the correct ABS code, validation messages in ApplyOnline will appear when you’ve entered an invalid combination of primary purpose and ABS code e.g. where an ABS code related to personal lending was selected under the Residential Investment primary purpose.

• A yellow validation message pop-up will highlight other potential ABS codes that may be suitable. You'll be prompted to review the options and either update the ABS code to a more appropriate code, or you can select Dismiss to keep the chosen ABS code.
• A red validation message will appear where an invalid combination of primary purpose and ABS code has been selected. For example, for personal lending, if you’ve selected: 
  • Primary purpose = Owner occupied and ABS  237 (purchase of household and personal goods), you’d be prompted to change to,
  • Primary purpose = Non-Residential Investment and ABS 237.