Loan variations, discharge/release authority and reviews

During a 10-year loan term, circumstances may change and it’s likely you will need to vary your RIC loan. You may pay out your loan and discharge your loan security at any time with no financial penalty.

Contact us early, ideally at the same time you contact your primary commercial lender to ensure we can process your request as soon as possible. RIC will also contact you annually throughout your loan term to ensure we are supporting you to achieve your business goals.

What is a variation?

Certain events could mean you need to update your loan agreement with RIC by submitting a variation request.

You will need to notify us when your circumstances change or when an update is required to your loan structure.

Examples of when you will need a variation request include:

  • change of property ownership
  • succession arrangements
  • partial discharge
  • amendment to the borrower
  • additional mortgages
  • mortgage consents including additional concessional lending, project consents, leases, easements, right of entry
  • subdivision of land / change to the title particulars
  • change in Deed of Priority arrangements changes to agreements between RIC and your commercial lender/s, including refinancing your commercial debt to a new lender
  • substituting security properties
  • court orders

You will also need to request a variation if you want to:

  • change the frequency of your interest payments
  • change the principal repayment structure, repayment cycle, timing, or amount

Our assessment team will confirm processing times with you upon receiving your request. Please provide any additional information required promptly to help us assess your request as soon as possible.

Request a variation

Discharge your loan security

You will require a discharge/release authority to:

  • pay out your RIC loan
  • refinance your debt to another finance provider
  • selling or transferring part or all security, including land or a guarantee substituting security

Please allow a minimum of 30 days for any full discharge request.

Download, complete then include this form with your variation request.

Discharge/release authority form

Loan reviews

Each year, we will contact you to review your loan. We understand your circumstances can change over time, and reviews help us make sure your loan continues to support your needs.

The way your loan is reviewed can vary from year to year and may involve one or a combination of these steps:

  • A short questionnaire to check in on how your business and loan are tracking
  • A check-in discussion with a RIC team member via phone
  • We may require additional documents from you to review any changes that could affect your loan, such as changes to your financial position or significant business events.

Frequently asked questions

Review questionnaires help RIC understand how your circumstances may have changed since your last review, allowing us to confirm key information without the need for phone calls or additional documents. Completing the questionnaire is a requirement of the review process.

In most cases, no. A loan review is not a renegotiation of your loan, its purpose is to check that your loan is still appropriate and that there are no emerging risks. If a review identifies that a change to your loan may be needed, for example due to changed circumstances in the business or its financial position, RIC will discuss this with you.

If you require additional finance, contact your commercial lender first to discuss your options. A Deed of Priority (DOP) is a legal agreement between lenders, outlining how they will share the use of security in support of a loan and the allocation of proceeds from sale of security in the event of borrower default. Generally, the commercial lender will take first position, followed by RIC in second position, then the commercial lender will take an unlimited third position. Your commercial lender will be able to advise whether there is equity available in the third position. If there is, you may not need to request a variation from RIC.

This is a 2-step process. The first step is lodging a variation with RIC, notifying us of your intention to subdivide. Once RIC has provided an initial consent and the subdivision process is complete, you or your professional adviser are required to lodge a second variation request to update your security information after registration.

Ask a question

Get in touch if you need help making a variation request or discharging your loan security.

Contact us
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