Home loans FAQ

We charge a settlement fee of $300 and in addition a security assessment fee. The security assessment fee for a standard property in a metropolitan area in a major city starts at $230 for properties valued up to $1million. The security assessment fee is not refundable and is payable when the security assessment is ordered. The remaining $300 settlement fee is deducted from the loan proceeds at settlement.

Once you have completed your application online we can generally get preliminary approval to you within 48 hours.

Borrowing capacity is the maximum amount of money a lender will loan you. It is also reflects your ability to fund ongoing loan repayments. It is calculated using your income, expenses and credit history, as well as the lender's risk appetite. To calculate your borrowing capacity, click here.

For gifted funds, we will require a statutory declaration from the family member providing the gift, including the full name of the person receiving the gift, amount of the gift and confirming the gift is non repayable.

A Target Market Determination is a document which sets out the target market for a financial product, as well as information regarding the distribution of that product. We're required to have Target Market Determinations for each of our products under the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019. Please contact us if you would like a copy of the Target Market Determination for any of our products.

Yes. HECS/HELP debt repayments limit your maximum borrowing capacity, but all is not lost. When you apply for a home loan the lender examines many things including your income, assets, (other) debts and expenses. Each lender has different methods to calculate how much you can borrow safely.

Every borrower, lender, and loan is unique, so loan approval times can vary widely. Generally speaking, for a basic scenario where the clients have prepared their supporting documents, a home loan approval can be sought in as little as 3 to 5 business days. To learn more, click here.

Once you have received your final approval we will then send you your loan contracts to be signed. This will include a discharge document for your current lender. Once we have received all of your signed documents back, we will then forward the discharge form to your current lender requesting suitable day and time to payout and close your home loan with them.

As of 1 January 2011, by law, any business or individual that is involved in credit activities must either hold an Australian Credit Licence, or be appointed as a credit representative under an ACL. "Credit Activity" under this regulation is defined as activity relating to credit contracts, consumer leases, related mortgage and guarantees and credit services.ACL's were made law to ensure that everyone who engages in credit activities adheres to industry standards: to create an industry that is more fair and transparent, so that you can be confident and informed when considering what credit is best for you.When you are considering credit, check that the people you are dealing with have an ACL. Anyone operating without an ACL is operating illegally, and should be reported to the Australia Securities & Investments Commission (ASIC).loans.com.au operate under the ACL 395219.To find out more information, or to search for an ACL, refer to the ASIC website.

If you're thinking about buying property, applying for a home loan can be seamless from start to settlement. One simple online application can tell you how much you can borrow, give you pre-approval and help you track your application progress all the way to ownership. To learn more, click here.

In order to apply for our construction home loan, you will need to either own your land outright, be refinancing a land loan or have a Contract of Sale for the Land as well as fixed price building contract, which includes all plans and specifications.

Yes this is a compulsory part of the application process. It is important for both us as a lender and also our customers, as the security value needs to be accurate and correct.

Property settlement is the transfer of property ownership from the seller to you, and the payment of money from you to the seller. It is a legal process that is typically facilitated by a lender and conveyancer. To learn more, visit here.

LVR stands for loan-to-value ratio. It's the amount you're borrowing, represented as a percentage of the property value. Having an LVR of 80% or less may help you secure a lower interest rate. If it's above, you may need to pay Lender's Mortgage Insurance or get a guarantor. To learn more, click here.

To take the stress out of applying for a home loan, it's important to have all of your required documentation organised and prepared in advance. If you're looking to apply for a loan with loans.com.au and you're unsure what documents you need, our home loan application checklist can help get you started.

Yes. You can split property costs between two people by submitting a joint loan application with another person, known as a co-borrower. They will own the loan and repayment responsibility with you. Having a co-borrower may increase your chances of securing a competitive home loan.

Yes. Stamp duty is one of the various upfront costs of buying a property. This cost, along with other upfront costs, may be added to the home loan application amount. Stamp duty fees vary by state. To learn more, visit here.

Your borrowing power is affected by various factors like your income, tax, expenses and credit score. To learn more, click here.

To track the status of your existing home loan application, login to onTrack.

Yes. Lenders typically provide up to 80% of your home value, minus any amount owed to a lender. Typically, equity is accessed through a mortgage refinance which can release any equity in your home to be used as a deposit in the purchase of another home. To learn more, visit here.

We combine data from external property data specialists, like independent property valuers, with our own to develop an estimate of a property's potential market price. This takes into consideration the property profile and condition, local area sales and broad property market characteristics. To learn more, visit here.

When applying for a home loan, simply having cash isn't enough. Often, you'll need 'genuine savings' to show a lender. These are savings that you have accumulated over a period of time. A house deposit usually needs to be between 10% and 20% of the value of the property. To learn more, click here.

There are many benefits to refinancing your home loan, such as:

• Paying less interest over the life of the loan, saving you thousands.
• Reducing your loan term by a matter of years
• Accessing new features, like an offset sub-account to save on interest repayments and get Visa debit card, online & EFTPOS access to your money.
• Accessing equity, which is the amount you've paid off on your current loan.

You can refinance with the equity you have in your existing home. However, if the value has changed significantly you may need to provide deposit up to 10% of the property’s value.

Some of the key documents you will need to refinance a loan include proof of income, list of existing loans and expenses, personal identity information and list of current assets. To learn more, click here.

There are no rules on how often you can refinance your home loan. However, just consider potential fees. If you're in a fixed-rate mortgage you may incur break costs and early exit fees. To learn more, click here.

You will need to supply documents to prove you can afford to repay the loan, including: PAYG Payers - last two payslips Self employed - last two years tax returns with an ATO Notice of Assessment Three months of bank statements Evidence of any rental income Six months of statements for your current home loan Three months of statements for any loans you are consolidating (ie. credit card debt) A copy of your current Rates Notice and evidence of payment On our end, we'll arrange a property valuation, credit assessment and all the paperwork with your current lender. Get more information on what documents you need to refinance your home loan.

Yes. While refinancing can save you thousands, there's a few upfront costs to consider like exit fees, break fees, application fees, security assessment fees and settlement fees. It's important to consider these when refinancing. To learn more, click here.

Consider refinancing when you're trying to save on expenses. Generally, it's a good idea to review your home loan at least annually and consider refinancing when the benefit of doing so outweighs the cost. To learn more, click here.

Refinancing refers to the process of replacing your current home loan with a new one in order to access additional benefits such as securing a lower interest rate, accessing home equity or consolidating debt. To learn more, click here.

Yes, refinancing can affect your credit score, as refinancing is considered to be a credit application. To learn more, click here.

The equity in your home is the difference between its market value and your remaining home loan balance. To put it simply, this is the value of what you currently own in your home. For example, the market value of your home is $350,000 and you still owe $200,000. When you subtract the loan balance from your property value, you have equity of $150,000. The best thing about building up your equity is that it can be accessed through home loan refinancing, allowing you to use your home as security and use these funds for other expenses. Refinancing can be a way to use the equity in your home to invest in home improvements, or in other real estate. However, keep in mind that increasing your loan will mean an increase in your loan repayments. Find out more about accessing equity to buy another house.

A fixed rate means your interest and repayments are fixed, typically for one to five years. During this time they won't change. A variable rate means your rate and repayments can change at any time with notice. To learn more, click here.

Variable interest rates can go up and down as they are affected by many factors, including the cash rate set by the Reserve Bank of Australia. A variable rate loan gives you options unavailable in fixed rate loans, like the ability to redraw from your loan or add an offset sub-account facility. To learn more, click here.

Yes, you can make extra repayments up to $10,000 per year on our fixed loans. Fixed loans do not have a redraw facility, meaning customers cannot access any additional payments until their fixed terms expire. To learn more, click here.

Australian lenders are legally required to show customers a comparison rate to help them compare loans. You can usually find it next to the advertised interest rate. A comparison rate indicates the true cost of a loan, enabling you to compare similar loans between lenders. To learn more, click here.

Home equity is the difference between the market value of a homeowner's property and the outstanding balance of the home loan. To learn more, click here.

A fixed rate home loan break cost is a fee charged by your lender if you break out of your fixed term prior to the fixed rate period expiring. Such fees can be complex to calculate so it's worth contacting your lender to ask for an estimate of how much it may be. To learn more, click here.

Yes. Splitting your home loan into variable and fixed portions lets you make extra repayments and access your offset sub-account on the variable portion, and minimise the risk of increased repayments on the fixed portion of your loan. To learn more, click here.

Our website provides information on a variety of our products including fixed and variable loans so you can make an informed decision before submitting an online application. Should you have additional questions about our products please call our Sales Team on 1300 908 671 AEST 7am to 7pm Monday to Friday.

All of our home loan and car loan products can be viewed on our website. Click here to compare our home loans. Click here to compare our car loans.

For a principal and interest home loan, part of each repayment reduces the principal, the borrowed amount, while the other part goes towards the interest, the cost of borrowing. For an interest-only home loan, repayments initially only cover the interest due for a set term, typically up to 5 years. To learn more, click here.

Stamp duty is a tax imposed by state governments in Australia on the purchase of assets such as real estate. There are many factors involved in determining the cost of stamp duty for a property. These include:

• The state you’re buying in – All states have different methods of calculating stamp duty so the amount will differ.
• The price of the property – In general, the cheaper the property is the less stamp duty you will pay.
• The type of home you’re buying – Vacant land will have less stamp duty compared to an established home.

Most state and territory governments provide stamp duty concessions to first home buyers and sometimes waive the need to pay stamp duty altogether. It’s best to research your individual state or territory to see what the maximum property value is so you can avoid paying stamp duty.

Lender's mortgage insurance (LMI) in a nutshell, is insurance that protects the lender in the event the borrower is unable to make repayments on their home loan. If you have borrowed more than 80% of the value of the property from a financial institution, you will need to pay LMI.

Lenders Mortgage Insurance (LMI) is calculated as a percentage of the loan amount. It will vary on factors including your loan-to-value ratio and the amount of money you intend to borrow. To learn more, click here.

A home loan pre-approval means that a lender has agreed, in principle, to lend you an amount of money towards the purchase of your home but hasn't proceeded to a full or final approval.

Buying a home doesn't have to be daunting. Proven steps to smooth the way include determining your budget and borrowing capacity, understanding costs, choosing the right home loan, getting approved, finding your home, inspections, negotiation and settlement. To learn more, click here.

One of the benefits of being a first time home buyer in Australia is the access to a First Home Owner Grant. A First Home Owner Grant or FHOG was introduced by the Australian government to help first time homebuyers purchase their home. The requirements aren't self-evident and every state and territory has different criteria and grant offers. To get more information about FHOG in your state, we suggest you visit the relevant website:ACT | NSW | NT | SA | QLD | TAS | VIC | WA

You are eligible if you are an Australian citizen or permanent resident, building your first home in Australia, with the intention of living in the property as your principal place of residence within 12 months of settlement and for at least 6 months. It is important to refer to each state website for the grant eligibility as the state conditions vary. We can lodge your first home owner's application on your behalf so that the grant is available for you at settlement. You must complete the state specific application form, and provide the original application and required documentation before this can be lodged.

You can use the First Home Owners Grant (FHOG) as part of your deposit, however, if you are borrowing more than 80% of the value of the property, mortgage insurers require that you have saved at least 5% of the purchase price as genuine savings.

Pre-qualification is a quick and easy step in a loan application that provides you with an estimate of your borrowing capacity. In other words, pre-qualification is only a general indication of how much you can borrow, that is usually obtained via a phone call or online application. To learn more, click here.

An auction is led by an auctioneer. To bid, register with the auctioneer who manages the bidding process. Buyers compete against each other by increasing their offers until the property gets sold to the highest bidder. To learn more, click here.

A construction loan is for anyone building or renovating a home, instead of buying an established property. They offer cashflow flexibility since they let you progressively drawdown money throughout the construction process, ensuring you only pay interest on the amount you use.

For the application and the finalisation of your construction loan, you’ll need Council-approved plans, a signed and dated building contract, a quantity surveyor report, builder risk insurance, and a copy of the builder’s public liability insurance.

With the completion of each stage of your renovation or build, we'll arrange an inspection of the property and then pay the builder directly for the completed work. Each progress payment is called a drawdown.The number of drawdowns will depend on the agreement between you, your builders, and your lender. Loan repayments in constructions loan are interest-only but once the entire renovation is completed, the construction loan will revert to principal & interest repayments, unless you request to extend the interest-only period.

When applying for the First Home Owner Grant, you need to:

• Check your eligibility.
• Collect the required documents.
• Complete your application online or lodge the application through an approved representative.

The First Home Owner Grant is typically provided after laying the slab for construction loans.

You could get a construction loan as an owner-builder, but the funds are still released during the stages of construction.

Building delays may affect when the builder gets paid but not the loan itself. If there is a delay during the frame-up stage, for example, the payment to the builder will also be delayed.

When construction is complete, your construction loan will become a standard home loan. You’ll begin paying off the principal loan amount plus interest until the loan term is finished.

Before construction begins, your builder will prepare a contract outlining each construction stage and associated costs. We then progressively drawdown your loan to pay the builders' costs at each stage. Generally, your construction loan will be interest-only repayments while your home is being built.

While the house is under construction, you’ll make interest-only payments on the amount paid to the builder. When the house is completely built, your construction loan becomes a standard home loan.

Yes. Whether it's a small property extension or a total knock-down and rebuild, a construction loan lets you draw funds from the loan progressively as your invoices arrive. This ensures you save money, as you only pay interest on the progress payments made until the loan is fully drawn.

There are typically five stages of building a house with a construction loan. We will finance the construction at each stage. Stages may differ from state to state, but the most common building stages are foundation, framing and brickwork, lockup, second fix, and completion.

The 6 construction stages are:

• Deposit
• Slab down
• Frame up complete
• Lock-up
• Fixing
• Practical completion

A progress inspection will be carried out by an independent valuer for each building stage. Once your builder sends the invoice to us, a progress inspection will be ordered.

Every house is different, but one thing is for sure, building a new home is exciting. Before you start, it's important to know how much it will cost so you know how much to borrow. Various guidelines exist to help you ask the right questions and calculate a construction budget.

Equity is the value of your home, less any money owed on it. For example, if your house is valued at $600,000 and the current debt is $250,000, the equity in the home would be $350,000.You can leverage the equity in your home to cover the deposit on a new property, using your existing property as collateral. It's great to make the first step to enter the property market because once you're in, using equity is generally much easier than saving for another deposit. Find out more about using equity to buy another home.

If you purchase an investment property, you are likely to come across the term "gearing". This means borrowing for the purpose of investing.If you borrow to make an investment it can be negatively geared - where interest repayments exceed net income, or positively geared where net income exceeds repayments.Negative gearing means that the cost of owning an investment property outweighs the rental income it generates. As an example, assuming your rental property earns $20,000 in one year and the expenses of owning the property (loan repayments, body corporate fees, maintenance, etc.) are $25,000. You will have a loss of $5,000 which you can claim as a tax deduction.One benefit of this is the ability to claim tax deductions and reduce your taxable income. Additionally, a negatively geared property investment may appreciate in value over time.It's important to note the risk involved in negative gearing because you are losing money, so you'll need to be aware of this so you can budget and prepare for the losses.

Buying an investment property is a popular choice of investment for many Australians. Compared to other forms of investment like shares, bonds and ETFs - investing in property is easy to understand. Plus, home loan rates are at record lows, and you can use your home's equity to fund your property investment.Some benefits of purchasing an investment property include:

• Potential tax benefits for property investors
• Potential capital growth
• Relatively stable investment
• Passive income

Use either the weekly or monthly rent to determine the annual rental income, then subtract annual costs. Divide this total by the property's purchase cost and multiply by 100, so you get a percentage. Rental yields help you calculate the profitability of an investment property. To learn more, click here.

If you're looking to invest in property, whether you're buying or building, you'll need to consider an investor home loan. There are two main options: Interest-only loans and Principal and Interest home loans. Each has its own pros and cons. To learn more, click here.

An investment loan can have interest-only repayments for up to 5 years from the settlement date. To learn more, click here.

The key difference is the property's purpose. Owner-occupier home loans are for applicants who will live in the property, whereas investment loans are for people that will instead rent the property to others. Lenders will offer different loan products depending on the purpose. To learn more, visit here.

You can avoid paying a cash deposit by leveraging your home equity to buy a second property. Accessing this equity is easy with a mortgage refinance, which also lets you potentially find a better interest rate. To learn more, click here.

Typically, you'll need around 20% deposit (an 80% loan-to-value ratio (LVR)), for an investor home loan if you want to avoid paying lenders mortgage insurance (LMI). At loans.com.au you could put down as little as a 10% deposit to buy an investment property. To learn more, visit here.

Yes. You need to tell us when you change the use of your home from an investment property to your principle place of residence. You may also need to notify others, such as the Australian Taxation Office (ATO), as property expenses like interest payments may no longer be tax deductible.

Yes. If your circumstances change and you decide to switch your owner-occupied home into a rental property, then you need to let us know. This ensures that you have the right financial product, and we have your most up to date personal data to maintain your loan compliance.

There are many costs associated with an investment property, not just the original purchase price and loan repayments. These include upfront costs like stamp duty, legal costs, council rates, property maintenance costs and so on, as well as ongoing maintenance costs. To learn more, visit here.

Yes, as long as you have available funds to redraw from. You can redraw on your variable home loan directly or your 100% offset sub-account.

An offset sub-account helps to reduce the interest on your home loan by the cash you hold in the account, like salary, against your home loan. This helps you pay off your mortgage faster with less interest, while giving you the ability to access your money any time. To learn more, click here.

You can confirm your current redraw balance using our online finance management tool- Smart Money, by clicking on the "Accounts" menu and selecting the account. If you are making weekly or fortnightly payments, the available redraw balance may include some payments that you need to leave in the account for you monthly repayment due amount. Alternatively, you can contact our Customer Care team on 1300 908 671 7am to 7pm AEST Monday to Friday. We'll be happy to help.

The more you have in your offset sub-account, the more you can reduce your home loan interest payments. The key to maximising your offset benefit is to maintain a high savings balance. The first step to achieving this is to have your salary paid directly into your offset sub-account. To learn more, click here.

To access your current interest rate please log into Smart Money. Select the "Accounts" tab, then click on "Account/ BSB Details" (written in small text on the right hand side of the screen, next to the available balance figure). A pop up will appear showing your current interest rate and other repayment details.

An offset sub-account is connected to your mortgage. Money in this account is used to offset the interest charged on your home loan. Your mortgage repayments will still be the same, but more of it will go to paying off your home loan principal rather than the interest. To learn more, click here.

A redraw facility lets you make extra repayments on your variable (not fixed) home loan above your minimum repayment, then access these additional payments as required to cover any unexpected expenses. To learn more, click here.

The full discharge fees will be shown on your loan agreement. Typically, there will be $300 discharge fee and $250 discharge documentation fee. If you have a fixed rate loan, there may be a fixed rate break cost applicable as well.

You can view your current interest rate using our online finance management service, Smart Money, by clicking on the "Accounts" menu and selecting the loan account. Alternatively, you can contact our Customer Care team on 1300 908 671 (7am-7pm Monday to Friday). We'll be happy to help.

You can easily redraw on your variable home loan by using our Smart Money online login or mobile application.

Break costs are typically associated with fixed-rate home loans. You may have to pay this fee under some circumstances, such as if you decide to switch your loan to a variable-rate loan before your fixed-rate period is over.

If you're making Interest Only repayments, then your repayments will be monthly. If you're making Principal and Interest repayments, then you have the option to choose between Weekly, Fortnightly, or Monthly payments. To discuss your repayment options further, please contact our Customer Care team on 1300 908 671 (7am-7pm Monday to Friday). We'll be happy to help.

Yes, please call Customer Care on 1300 908 671 between 7am to 7pm Monday to Friday AEST to arrange the payout of the Home Loan. Our Team will provide to you payout figures and guide you through the process.

The prequalification process is completely free.

After you’ve prequalified and have found a property you’d like to purchase, the next step is arranging your loan approval.

Applying as a couple doesn’t impact if you can prequalify for a loan. If there are more than two borrowers, please call us on 1300 471 786

Yes, you can prequalify for a loan if you’re self employed.

Getting prequalified does not impact your credit score.

Prequalification is a quick and easy online process that gives you an estimate of your borrowing capacity. Preapproval is a longer process that requires documentation and a credit check and tells you what you can actually borrow.