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Loans Home / Investment Loans Home/Investment Loan FAQs
Home/Investment Loan FAQs
- Do I have to be a member to take out a loan?
- How much can I borrow?
- What costs do I need to consider?
- How do I make repayments on the loan?
- How often will I receive information on my account?
- What security is required?
- What happens if I get sick, have an accident or lose my job?
- Do I need to take out Home insurance?
- Is a redraw facility available?
- What is Lenders Mortgage Insurance?
- What is Loan Repayment Insurance?
Do I have to be a member to take out a loan?
The Credit Union is a mutual financial services organisation and as such is owned by its members, each one of whom is a shareholder. Therefore you must be a member of the credit union to have a loan. Learn more about becoming a member. ^
How much can I borrow?
The amount you can borrow is 95% of the property value. The actual amount you can borrow is however determined by your ability to meet the repayments of the loan. ^
What costs do I need to consider?
Deposit
The biggest initial cost is the deposit. This could range from 5% and above of the value of the property.
Registration fees are payable on a property purchase and on a mortgage.
Whenever a property changes hands, the change of ownership must be recorded with the appropriate State Titles Office. A document known as a Transfer of Land must be lodged, the cost of which varies in each State/Territory. Please contact your solicitor/conveyancer who should perform this task on your behalf.
There is also a government charge to register your mortgage document. We will pay the applicable state authority on your behalf. You will be charged at cost.
Legal expenses for the average home purchase include:
- Solicitors fees (between $500-$2000)
- Survey and building certificate ($450)
- building inspection and pest report ($400-$500)
Contracts should never be exchanged until the necessary searches and inspections have been completed. Searches and inspections may include the following:
Title search
A Certificate of Title obtained from the Titles Office by your solicitor/conveyancer provides details of who owns the property and who else has an interest in it. This is a good way to research if there are any mortgages, caveats, restrictive covenants etc on the property which would affect the transfer of title.
Building inspection and pest report
The report completed by your building inspector will detail any building flaws, e.g. structural issues with the building or roof, damp etc. The pest report should detail any evidence of pest infestation. It will enable you to assess the cost of any required treatment. ^
How do I make repayments on the loan?
You can arrange to make your loan repayments either by payroll deduction, direct debit from your savings or transaction account, Internet or telephone banking transfer or at any one of our branches. ^
How often will I receive information on my account?
Statements are produced six monthly or more frequently on request. Duplicate statements can be requested at any time from our office.
Account information is also available through our Internet and Phone banking services. ^
What security is required to take out a Home Loan?
Your loan must be secured by a registered mortgage over a residential property. ^
What happens if I get sick, have an accident or lose my job?
The best way to obtain peace of mind that your repayment obligations will be met in the case of accident, illness or involuntary unemployment is to take out loan repayment insurance. ^
Do I need to take out insurance?
Lenders Mortgage Insurance is generally required if the amount of your loan exceeds 80% of the valuation or purchase price. Building insurance is required to be taken out equal to the amount stated in the recommendation on the property valuation. ^
Is a redraw facility available?
The Credit Union gives you the option of making extra repayments on your loan and then having the flexibility of being able to redraw on these extra repayments. ^
What is Lenders Mortgage Insurance?
Lenders mortgage insurance if applicable covers the Credit Union against a loss in the unlikely event that we have to exercise our right to sell the property due to ongoing default of loan repayments. It must not be confused with Insurance designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. ^
What is Loan Repayment Insurance?
Loan Repayment Insurance provides you with the peace of mind that if an unfortunate event, such as your death, involuntary unemployment or trauma occurs, your loan repayments will be taken care of. ^
Additional Information
