Conveyancer or solicitor? When my offer is accepted – what next? What paperwork do I need? Where do I start in buying my first property investment? So many questions – we have all the answers! Call us today we’re happy to help! 0438 092 055
Frequently Asked Questions (FAQs)
How long does a loan application take?
- The time that a loan application can take will vary significantly as some borrowers will have more complex applications than others.
- Lenders who offer a lower interest rate are often slower as they receive more applications.
- We’ll warn you if any of the lenders we’re recommending are known to have poor service levels.
- To give you some idea, it usually takes a customer 48 hours to send their documents to us.
- It will then take 24 hours for us to confirm our recommendation.
- When the lender receives the loan, it can take anywhere from 5-7 days for them to initially access the loan and supporting documents and grant a conditional approval. With some lenders, a type of conditional approval is generated electronically on submission, however, this still needs to be manually verified to the income documents by an assessor and will take 5-7 working days.
- The valuation can take from two days to one week.
- Formal approval can take up to two weeks.
- The best way to find out is to call us to confirm the time required.
- As a general rule, if you’re buying a property allow a two-week cooling off period or finance clause to give us ample time to obtain an approval.
What documents will I need?
Throughout the application process, you’ll be notified of a list of documents that you’ll be required to supply.
These documents will include the following:
- Completed and signed Fact Find document
- 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/Personal Loans/Store Cards .
- Evidence of income – last two 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.
Who’s involved in the application process?
There are many parties involved in the application process, including:
- Solicitors or conveyancers
- Real estate agents
- LMI providers and insurers
- Your mortgage broker
Conveyancer or solicitor?
The conveyancing institute says that a conveyancer can do everything for you that a solicitor can do – except represent you in court. So if a purchase goes to plan then there’s essentially no difference to you. I would add that a small office solicitor who does trial work can sometimes be unavailable at crucial moments – whereas a solicitor who has a conveyancing team to look after this work generally gets around this problem.
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?
Permanent or part time employees, generally 3 months or completed any probational period. With some lenders, casual employment is 12 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 (including your LMI premium). 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 (LMI)?
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 up to 95% (inclusive of LMI premium). In some cases, there are a few banks who will lend to 97% for either first home buyers or existing customers. 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.