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Frequently Asked Questions
- Am I eligible for a home loan?
- How much deposit do I need?
- How much can I borrow?
- For what purpose can I borrow?
- Do we lend for business purposes?
- Can I borrow If I am Self Employed?
- What types of home loans does LoanAustralia offer?
- What is the source of the funds for LoanAustralia?
- Do you have Interest Only loans?
- What will my repayments be?
- How is interest calculated?
- Am I able to make extra repayments?
- What happens if interest rates increase or decrease?
- Can I redraw the additional payments I've made?
- Does LoanAustralia offer Fixed Rates?
- Can I split my home loan between fixed and variable rates?
- Can I split my home loan between different loan accounts?
- When will I receive statements?
- Do I have to have life insurance?
- What is mortgage insurance?
- What is a deposit bond?
- How can I contact LoanAustralia
- What documentation do I need to provide?
- What other costs are involved?
- How long does it take to get approval?
- Can I repay my loan early?
- Am I eligible for a home loan?
If you are over 18 and you can meet the lending guidelines, any Australian Resident can apply for a LoanAustralia home loan.
- How much deposit do I need?
A minimum deposit of 5% of the purchase price or property valuation is normally required. However, some of the home loans have a lower deposit. LoDoc loans, have a minimum deposit requirement of 20%.
- How much can I borrow?
The minimum loan which can be arranged through LoanAustralia is $50,000, however there is no set maximum loan amount. The actual amount depends on your individual financial position and the LoanAustralia product you choose.
- For what purpose can I borrow?
LoanAustralia can arrange loans for the following:
- The purchase of a residential property in which you plan to live
- The refinance of an existing home loan
- The purchase of a residential property for investment purposes
- For investment purposes
- To refinance an existing home loan together with debt consolidation
- For the purchase of an investment property
- For some business purposes, provided a residential property is offered as security
- Can LoanAustralia arrange loans for business purposes?
Yes, in certain circumstances.
- Can I borrow If I am Self Employed?
Yes. A LoDoc home loan is designed for the self employed. All you need in support of your application for a LoDoc loan arranged through LoanAustralia is a signed declaration stating your income and your ability to make required repayments. The LoDoc products all have favourable rates, which means you are not penalised for not providing full financials.
- What types of home loans are available through LoanAustralia?
A full range of home loan products are available to suit most borrower requirements. The range of home loans includes: Basic home loans, 100% home loans, flexible & fully-featured home loans, A range of LoDoc loans for the self-employed & Line of Credit home loans.
- What is the source of the funds for LoanAustralia?
LoanAustralia is funded by ANZ Banking Group (through Trust Company Fiduciary Services Limited).
- Can LoanAustralia arrange interest only loans?
LoanAustralia can arrange Interest Only loans to a maximum of ten years on most loans (please refer to home loan matrix to see where it is applicable). With a Line of Credit Loan you can have Interest Only repayments for the full term of the loan.
- What will my repayments be?
Your minimum repayment is calculated by working out the amount needed to be paid to reduce your loan balance to zero over the term of your loan. This amount may vary if you decide to make extra repayments.
- How is interest calculated?
Interest is calculated on the closing daily balance. So if your home loan allows you to make additional repayments, any additional payments save you interest.
- Am I able to make extra repayments?
This depends on the loan product you choose. See individual product features for full details.
- What happens if interest rates increase or decrease?
If you have a variable rate loan and interest rates go up or down, your minimum repayment will be recalculated based on the new rate. We will write to you to advise your new minimum repayment and the date it becomes effective. If you have a fixed rate loan your rate and repayments will not change during the period of the fixed rate agreement.
- Can I redraw the additional payments I've made?
Yes. All variable rate products have a redraw facility. See individual product features for full details and any applicable fees and conditions.
- Can LoanAustralia arrange fixed rate loans?
Yes. Fixed rates from 1,2,3,4 5, 7 or 10 year terms can be arranged for most products. See home loan matrix to see which products offer a fixed rate facility option.
- Can I split my home loan between fixed and variable rates?
Yes, available in most products. See home loan matrix to see which products offer split facility option.
- Can I split my home loan between different loan accounts?
Yes, available in most products. See home loan matrix to see which products offer split facility option.
- When will I receive my loan statements?
You will receive statements semi-annually detailing all the transactions on your loan during the statement period.
- Do I have to have life insurance?
No, you don't. However, Insurance is an option you should consider independently.
- What is LMI (lenders mortgage insurance)?
Lenders Mortgage Insurance (LMI) is usually required if the loan required is more than 80% of the value of the property, or the loan is more than 60% of the value of the property for LoDoc loans. LMI is paid by the borrower and covers the lender in the event of loan default or if the house is sold for less than the amount owed under the mortgage.
- What is a deposit bond?
A deposit bond is a way to cover the deposit on a property purchase when you do not have immediate access to the necessary cash deposit. The value of the bond is equal to the required deposit.
- How can I contact LoanAustralia
If you want to apply for a home loan through LoanAustralia, contact us on 1300 886 611. If you are an existing customer you can contact us by:
Telephone - 02 9223 4499 Monday to Friday 9 am to 5:30 pm (AEST)
Email - ian.graham@loanaustralia.com.au
Facsimile - 02 9223 4487
Postal Address - Level 2, Suite 204, 84 Pitt St, Sydney NSW 2000.
- What documentation do I need to provide?
Depending on your circumstances and the home loan product you have applied for, you will need to supply the following:
- Completed and signed LoanAustralia Application Form
- 100 Point Check FTRA Form per applicant.
- First Home Owners Grant application (if 1st home buyer).
- Signed copy of Contract of Sale (required for purchase only).
- 6 Months Home Loan Statements (required for refinance only).
- Rates Notice for existing property used as security (required for refinance/equity releases only).
- Copy of last 6 months' loan statements for any loan to be paid out (required for loan consolidation only).
- Evidence of income - most recent payslip or letter from employer detailing conditions and most recent group certificate (for PAYG applicants). Last and Previous Year tax returns and financials (for self-employed, if not available please refer to Low Doc self-certified section).
If you are applying for a LoDoc loan you will need to supply the following: Self Certification Form and if you have additional PAYG income as well, then we will require - Group Certificate or Tax Assessment or last year's Tax Return plus one of the following:- Current payslip Or- Letter of employment detailing employment conditions.
If you are Self Employed - Signed Last Financial Year tax return including tax assessment notice - Previous Financial Year tax return including tax assessment notice.
- What other costs are involved?
Costs vary depending on the value of the loan. You will need to allow for an application fee of $350 which covers one property valuation up to a property value of $500,000. In addition to this you may need to allow for mortgage insurance, stamp duty and solicitors fees and disbursements.
- How long does it take to get approval?
In most cases your home lending consultants will be able to give you a pre-qualified approval straight away over the telephone. How quickly you get full approval depends on you providing the signed application and the necessary documentation to support your application and LoanAustralia obtaining a valuation of the property.
- Can I repay my loan early?
Yes. However, fees and charges may also apply, depending on the details contained in your loan agreement.
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