Q&A

How do I claim a First Home Owners Grant?

As a broker we can submit your application for a First Home Owner’s Grant to the lender.  You simply need to submit the completed application and supporting documentation.  If approved, we then make the First Home Owner Grant funds available to you at settlement.

My partner and I are both eligible for the First Home Owner’s Grant.  Will we receive it twice?

The First Home Owner Grant is payable per property purchase, not per individual.  So you will only receive one payment.

What are the costs involved:

Costs vary depending on which Home Loan you choose and the amount you borrow.  In additional to the application, valuation and settlement fees, you need to allow for Stamp Duty, Government Fees and Solicitors Fees.  Use our calculators to find out how much stamp duty you’ll pay in your State or Territory.  We will also provide you with a funds position at interview.

What documentation do I need to provide:-

Completed and signed Fact Finder

100 point check AML Customer Identification Checklist per applicant

First Home Owner Grant application (if applicable)

6 months loan statements (for refinances only)

Rates notice & Home Insurance Policy for existing property used as security (required for refinance)

Copy of last 3 months bank statements/credit cards (required for debt consolidation) .  Only need to provide most recent statement if debt consolidation not involved.

Evidence of income – last three payslips or full tax return and Notice of Assessment.  For self employed applicants, evidence of ABN registration for last 2 years and 2 years tax returns, and individual tax returns and Notice of Assessment for each applicant.

What is a Deposit Bond?

A Deposit Bond is a simple cost-effective way to cover the deposit on a property purchase when you do not have immediate access to cash, but have financed approved.  The value of the bond is equal to the required deposit.  A Deposit Bond can be particularly useful if you are buying at auction. See Deposit Bond for more information.

What is a Low Doc loan?

A low doc loan has simplified paperwork and is designed for self-employed applicants, who may have difficulty providing up-to-date financials to prove their income.  If you are self-employed and apply for a low doc loan, all you need to support your application is a signed Borrowers Declaration and Accountants declaration stating your income and the ability to make your repayments.  Subject to meeting lending criteria, there’s no need to supply financial statements or tax returns.

What is a pre approval?

A pre-approval is an approval that is given confirming that you can afford the loan based on your current circumstances.  It is subject to conditions, for example, acceptable security and the verification of income.  It is usually given before you have found a property to buy.

What is Stamp Duty?? How much do I pay?

Stamp Duty is a state government duty payable when property is purchased or transferred.  Stamp Duty is calculated on the purchase price of the property and is paid by the buyer.  Each State and Territory has a different rate of duty.  Check out the Stamp Duty calculator to work out how much Stamp Duty will be payable on your property purchase.

What is the minimum length of time I must be employed before I can apply for a loan?

Generally 6 months, however, some lenders will allow 3 months.

Are Home Loans transportable?

Yes, most lenders do offer portability when simultaneous settlement of sale and purchase occurs.  This means you can save on set-up fees and you may also save on stamp duty.  If you have a fixed rate loan, you may also save on exit costs by substituting your security and leaving loan as is.

Can I access my Home Loan online?

Yes you can view specific home loan information, your transaction history and balances online at any time.  Most lenders also allow you to redraw additional funds on line when you have paid lump sums off your mortgage in excess of requirements.

Can I make extra repayments?

You can make extra repayments on your Home Loan, however, if you have a fixed rate, most lenders have maximum amounts per annum that can be paid as lump sums under your contract.  Please see individual products for full details.

Can I pay out my loan early?

Yes, however, early repayment  fees may be payable.  If your loan is currently in a fixed rate period, break costs may also be payable.  Check your loan agreement for details and other fees and charges that may be applicable.

Can I split my Home Loan between different loan accounts?

Yes, minimum loan amounts may apply to each loan and monthly fees may also apply.

Can I switch my Home Loan to a different Home Loan, including a fixed rate ?

It depends on the type of loan you currently have.  To discuss your options, please contact your lender.

Do you do business lending?

Yes we can have a look at business lending as well as we do have options available under some of our Home Loans provided a residential property is provided as security.

Does the Home Loan come with a credit card etc?

Some of our lenders offer the Home Loan as a package but you can take out a Home Loan stand-alone.

Do I have to bank with the Lender who I apply with?

No you don’t have to bank with the lender as most of the banks offer to direct debit your loan repayments from whatever Bank you choose.

Do you offer bridging loans?

We do have lenders who can assist with bridging loans or relocation loans.

For what purpose can I borrow?

To purchase a residential property in which you plan to live

To purchase a residential property for investment purposes

To refinance an existing home loan

To refinance an existing home loan and consolidate other debts (in some cases Business loans)

For investment purposes

To release equity in an existing property (cash out)

For some business purposes (provided a residential property is offered as security)

To purchase land and construct a dwelling

To refinance an existing loan from another loan provider and construct a dwelling

To finance the construction of a dwelling on existing land

To conduct major renovations to a new or existing property

How much deposit do I need?

You can borrow up to 95% of the full purchase price.  You need to make sure you can show genuine savings, that you can  afford the repayments and have funds to cover the transaction costs such as bank fees, legal fees, statutory charges such as stamp duty etc.   Funds must have been saved for a period of 3 months with most lenders  and be at least 5% of purchase price.

What is Lenders Mortgage Insurance?

Lenders Mortgage insurance is a one-off premium charged by the insurance company to allow you to lend greater than 80% of a purchase price.  Each lender has different policy regarding mortgage insurance but generally they will lend another 2% on top of the 95% to cover the insurance.  In larger loans, this may not cover the actual cost but can be used to assist.

 

General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your lending objectives, financial situation or particular needs. Before making a decision on the basis of this advice, you should consider how appropriate the advice is to your particular lending needs, and objectives.