Checklists & Tips
Home loan types
An asset based loan (ABL) is a type of business financing that is secured by the company assets. Most asset based loans are structured to work as revolving lines of credit which allows a company to borrow from assets on an ongoing basis to cover expenses or investments as needed.
A bona fide loan is a debt that the borrower has an obligation to repay and expresses their intention to repay. The bona fide nature of a loan must be verified and documented in the case file.
A short-term loan typically used when in the process of selling one property and purchasing the next, or when waiting for longer term finance to be arranged
A loan to build a new home; it generally involves draw down payments, where funds are received in instalments at the completion of each stage of construction work.
A fixed rate loan has a set interest rate for set period of time. When the fixed rate period ends, you have the choice of fixing the rate again or switching to a variable interest rate. Repayments remain constant during the fixed term, regardless of change to interest rates.
Interest only means that no principal repayments are required. You only pay the interest portion for a period of up to 10 years; after this time, the home loan will revert to a principal and interest loan, allowing the home loan to be paid in full.
A home loan to purchase a block of land that does not have a dwelling on it.
This requires you to make set repayments each month of both principal and interest. The principal is the amount borrowed or remaining unpaid, the interest is the fee charged for borrowing the money.
A split loan allows you to have a portion of your home loan with a fixed interest rate and the remaining portion with a variable interest rate. You can select the portion you would like fixed and variable, as long as the minimum fixed amount is covered, as per the individual home loan requirements.
This home loan is pegged to the prevailing interest rate and therefore subject to changes in interest rates. A change in interest rate will impact the amount of your home loan repayment.
Home loan features
Free home loan application, fees have been waive
Ability to make mortgage repayments at Australia Post.
Ability to make mortgage repayments from your existing bank account (that has Bpay set up) using Bpay.
Ability to make payments from your mortgage account to another financial institution using Bpay
This fee applies to fixed rate home loans that are terminated prior to the completion of the fixed period
This feature allows you to add your upfront purchasing costs to your home loan, to be paid off over the term of the loan.
The ability to skip one or more repayments if you have sufficient redraw funds available from which to deduct interest payments
You can provide your BSB and loan account number to another financial institution to debit funds periodically from your home loan account.
Loan Application Documentation
- Bank statements showing history of savings (usually 3 months).
- If using the settlement from another property as your deposit, you will need a letter form your solicitor confirming the net settlement amount.
- Should your deposit/part thereof, be a gift you will need a statutory declaration showing how much of the deposit is a gift and that the amount does not need to be repaid. Some lenders may need proof that the gift has been in your savings account for a 3 month period.
- Details of assets including superannuation and any shares held.
- If other investment properties are owned, you will need to provide copies of the rates notices on each property.
- Confirmation of other assets (eg. insurance statements which include sum insured for your motor vehicle assets and your home contents value).
- Details of your rent/board payments
- Council and water rates
- Electricity and gas bills
- Details of any extraordinary expenses (eg. private school fees or maintenance/child support payments).
- Copy of the contract
- Copy of the certificate of title
- If you are a builder, your broker will also need to see a copy of council approved plans, the building specifications and your fixed price contract (construction/renovations) from your builder.
- The loan statements on the property you are refinancing
- Details of the home to be refinanced (eg. number of bedrooms, bathrooms, garages and other inclusions)
- Two latest payslips or a letter from employer stating length of employment (if still on probation), gross and net income, regular overtime and allowances.
- If self employed, you will need your income tax returns from the last two financial years, and your most recent Assessment Notice. Some lenders may require profit and loss statements certified by a registered accountant.
- Confirmation of any Centrelink payments you receive (eg. Family Benefits).
- Details of any other income, bonuses, allowances or benefits.
- If buying an investment property, you will need to supply either a copy of the lease agreement with the current tenant, or a letter from your property manager confirming estimated rental income.
- Confirmation of net rental income received from any other investment properties.
- If you have a current mortgage, you will need to provide a minimum of 3 months loan statements.
- You will need to provide the most up to date statements for your car or personal loans and credit card/s or store cards.
You will need at lease one form of photo ID:
- Driver’s licence
- Proof of age card/Australian tertiary institution card, Department of Defence ID, Waterways/Boat licence
If you only have one form of photo ID, you will also need to supply secondary identification:
- Birth certificate (required if you will be applying for the FHOG)
- Citizenship certificate
- Centrelink pension card
- Medicare card
- Current/recent rates or utilities bill
- Tax assessment notice (most recent)