Non-homeowner purchasing a home 108-04070040

A non-homeowner customer advises they have purchased a home (this includes being mortgaged, a gift, or owned outright). Does the customer intend to make the residence their principal place of residence?

• Yes, go to Step 2
• No, see Assessment and sale of real estate and timeshare asset. Procedure ends here

• Yes, go to Step 3
• No, go to Step 5

• Yes, go to Step 4
• No, go to Step 7

• Action change of address and new accommodation details. Obtain details of purchase of new residence
• Update Accommodation (AC) screen
• Update Home Ownership: field to:
• 'HOM' - Fully owns home, purchasing own home, or owns jointly with their partner
• If customer previously had this home recorded as a rental property (on Real Estate/Business Summary (REBS) screen), end date details from the date the change of address occurred. (See Assessment and sale of real estate and timeshare asset for further details)
• Advise customer that as they own their principal home (including paying the home off) they do not meet the Rent Assistance criteria.
• Advise customer that their home and curtilage is exempt from the Assets Test. From 1 January 2007 the Assets Test assessment for the principal home and curtilage has been amended to a single title rule. There are two curtilage categories used to determine a customer's allowable house and curtilage concession, 'private land use test' and 'extended land use test'. A grandfathered savings provision for real estate will grandfather concessions for real estate for two groups of existing customers on payments continuously from prior to 1 January 2007. For more information on house and curtilage assessments, see Assessing house and curtilage

Go to Step 6.

If the customer has paid a deposit for a new real estate purchase, but the sale is yet to be finalised the deposit will be assessed as an asset.

Code the deposit amount on the Other Assets Summary (OAS) screen, code 'OTH' in the 'Type' and Deposit Home Purchase in the description field, use the date the deposit was paid (this is the day it ceased to be a financial investment) as the Date of Event (DOE) and record details on a DOC.

Procedure ends here until purchase is finalised.

Update as required. Generally, the customer will use some of their own funds for part of the purchase that is, deposit, conveyancing fees, etc.

Note: if the customer has not previously advised of sufficient available funds to purchase a home, initiate a review of assets. Follow up the origin of deposit funds, etc.

If customer cannot provide full details of purchase of home, request the appropriate modules, see Requesting information (CLK), and for:

• allowance customers, issue an Additional Income and Assets form (MOD IA)
• pension customers, issue a SA220m Income and Assets Update. For assistance, see Income and Assets Update

Select Information to be supplied within 14 Days + Delivery option.

Procedure ends here.

Customer remains a non-homeowner. New real estate purchased is assessed as an asset. See Assessment and sale of real estate and timeshare asset.

If customer is receiving income from the real estate. See Assessing income from real estate and timeshare.