HOME LOAN PROCESS

A typical home loan process is as follows:


If you meet the lender’s requirements, they will make you a loan offer which contains the full terms and conditions. Once you accept the offer, a letter will be sent to your solicitor/conveyancer detailing the Lender’s requirements, such as council or controlling authority’s certificates, a current survey report and title particulars. When your solicitor/conveyancer provides these requirements, the Lender will prepare all the necessary documentation and contact you to arrange a suitable time for signing these documents.

SETTLEMENT

The final step is settlement, which is simply the handing over of the money in return for the title deed of your property. Settlement takes place between your solicitor/conveyancer, the vendor's solicitor/conveyancer and the Lender.

Ask about how much deposit you'll need and how much you can borrow. Even before you apply for your home loan, the lender can tell you how much deposit you'll need and give you a good estimate of the loan repayments that are required. You could need to contribute as little as 5% of the property's purchase price if the Lender finances up to 95% of the property's value or up to 90% of the value of vacant land.

MORTGAGE INSURANCE

Typically, the Lender's mortgage insurance is required for loans more than 80% of the property's value, and conditions and limits apply. If you find you cannot afford the house you want, the lender can work with you to suggest ways you can reach your goal quickly and easily.

See mortgage insurance.

INTEREST RATES AND RATE OPTIONS

Typically you have the option to repay principal and interest or pay interest only. In addition, most lenders offer a variety of ways to structure your loan to make it more affordable.

EXAMPLES

THE COMPLETE HOME LOAN

One year Guaranteed Rate. Has the advantage of being able to predict repayments during the first year of the loan, coupled with a special introductory rate.

STANDARD VARIABLE INTEREST RATE

Ability to take advantage of a fluctuating interest rate and the option of increasing your repayments to pay off your loan more quickly.

FIXED INTEREST RATE

Security of having predictable repayments and knowing your rate won't change for an agreed period of time   1, 2, 3, 4 or 5 years.

See fixed rate loan.

VARIABLE AND FIXED RATE OPTIONS

Fix the interest rate on part of your borrowing; have the rest at a variable rate so you can make higher monthly payments.

BASE VARIABLE INTEREST RATE

Gives you the ability to take advantage of a lower fluctuating interest rate, as you don't pay for the features that you may not want or use.

OTHER FACTORS

ACCESS ADVANTAGE

Access advantage is money on standby giving you a convenient way to access the equity in your home any time you may need it. You can choose to use it for any personal purposes. It is separate and won't affect the term or repayments on your home loan. It's at a home loan interest rate (the residential equity rate) making it affordable. Usually not available in conjunction with the Economiser Home Loan.

ADDITIONAL MONEY

When you need to borrow for renovations, a pool, landscaping, etc.

REPAYMENT REDRAW

Reduce your loan (excluding fixed rate loans) as fast as you like, with the assurance you can redraw your special repayments if you need to. Minimum redraw amounts, other conditions and fees may apply.

PORTABILITY


Take your loan with you when you move house. You keep all the advantages of the original Home Loan and save time, money and hassle. Usually not available on the Economiser Home Loan.

FEES AND OTHER COSTS

No matter which lender you choose, there is usually an establishment fee, and there are always other costs associated with getting a home loan. Make sure you know the costs, and all fees and charges in the loan offer. Our establishment fee and lender's mortgage insurance fee (if applicable) are added to your loan.

A monthly service fee applies to most home loans. You may be eligible for certain fee concessions on selected transaction accounts. But Government fees still apply. Not only can you get the essential home insurance on your property, but also for contents and for repayment of your loan (in the event of death or total and permanent disablement).

See:

information required by lender
 
start up costs - loans
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