lender will ask you to fill out and sign a loan application. You will
have to provide details of your financial circumstances and give
written permission for the home loan lender to look at your file with
CRAA. You may be asked to pay an application fee at this stage. The
lender will either reject your application or make a loan offer to
you. The loan offer will include details of the contract such as the
amount you can borrow, the interest rate, the length of the loan, the
approximate repayment amount and the initial and ongoing costs of the
you decide to accept the offer, you will need to sign a loan
contract. You will probably be asked to give a mortgage over the
property you are buying/refinancing. You may also be asked whether
another person such as a friend or relative will provide a guarantee.
Once the loan contract, mortgage or guarantee is signed it is legally
binding. The loan money is usually paid at settlement.
you have only made the loan application or received the loan offer
you are not obliged to sign the loan contract and go through with the
you have signed the loan contract and the loan money has not been
paid out by the lender you can still choose not to go ahead with the
loan. You can cancel the loan contract by notifying the lender in
writing before the settlement. The contract cannot be cancelled once
the lender has paid any of the loan money to you or another person,
such as the seller of the house.
will ask for an establishment fee once your loan has been approved.
If you have paid the establishment fee up front and then your loan is
declined, you may be entitled to a refund. However, if your loan is
approved and you decide not to go ahead with the loan, it is unlikely
the fee will be refunded.
rate – interest rates
INTEREST IS CALCULATED
is calculated on the outstanding balance of your loan. If you make
repayments that are more than the minimum repayment or make
additional payments, you will pay the loan off sooner and pay less in
total interest. Be Careful! Some loans will not allow you to pay
extra, or a charge may apply for early repayment.
interest rate is the amount you each for every $100 you borrow. It
does not matter how complex the calculation is, to find the annual
interest see how much you will per annum on the loan amount and
convert that to an equivalent amount for $100. This is the effective
ability to make additional repayments may depend on the type of loan
you choose. Most lenders will not charge you for making additional
repayments if you have a variable rate home loan. However, if you
plan on paying off your fixed rate loan early, or make additional
payments, or want to change it to a variable rate, you may have to
pay fees. You should discuss this with your lender.
IF I HAVE BEEN
MAKING ADDITIONAL RE PAYMENTS CAN I GET ACCESS TO THE SURPLUS IN MY
Ask your lender if
this option is available. You may be able to redraw the surplus
payments. However, a minimum withdrawal amount may be required and a
fee may apply.
up costs - loans
fees and charges