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FAQ

  1. Am I eligible for a home loan?
  2. How much savings do I need?
  3. How much can I borrow?
  4. For what purpose can I borrow?
  5. Do we lend for business purposes?
  6. Can I borrow If I am self employed?
  7. What types of home loans does LoanAustralia offer?
  8. What is the source of the funds for LoanAustralia?
  9. Do you have interest only loans?
  10. What will my repayments be?
  11. How is interest calculated?
  12. Am I able to make extra repayments?
  13. What happens if interest rates increase or decrease?
  14. Can I redraw the additional payments I've made?
  15. Does LoanAustralia offer fixed rates?
  16. Can I split my home loan between fixed and variable rates?
  17. Can I split my home loan between different loan accounts?
  18. When will I receive statements?
  19. Do I have to have life insurance?
  20. What is mortgage insurance?
  21. What is a deposit bond?
  22. How can I contact LoanAustralia 
  23. What documentation do I need to provide?
  24. What other costs are involved?
  25. How long does it take to get approval?
  26. Can I repay my loan early?
  27. What property types are acceptable security?
  28. Who do I contact if I have a complaint?
  1. Am I eligible for a home loan?
    If you are over 18 and you can meet the lending guidelines, any Australian citizen or resident can apply for a home loan with LoanAustralia. If you are a non-resident (i.e. reside outside of Australia), but would like to buy residential property in Australia for investment purposes, we may be able to lend up to 80% of the property value. We would require satisfactory evidence of your overseas income. If you are a returning Australian citizen or migrant coming to live in Australia we would be unable to assist you until after you arrive in Australia, have an income and have passed any probationary employment period. Standard lending guidelines apply.

  2. How much savings do I need?
    A minimum evidence of 10% savings to meet the purchase price of the property valuation is normally required. Our low documentation loans have a minimum deposit requirement of 40%.

  3. How much can I borrow?
    The minimum loan which can be arranged through LoanAustralia is $100,000 or $50,000 for some loans. The actual amount depends on your individual financial position and the LoanAustralia product you choose.

  4. 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

  5. Can LoanAustralia arrange loans for business purposes?
    Yes, in certain circumstances.

  6. Can I borrow If I am Self Employed?
    Yes. A LoDoc loan is designed for the self employed. All you need in support of your application for a low documentation loan arranged through LoanAustralia is a signed declaration stating your income and your ability to make required repayments. The low documentation products all have favourable rates, which means you are not penalised for not providing full financials. If you wish to proceed on a full documentation basis we would require the last 2 years individual tax returns, and 2 years company, partnership or trust tax returns. We would also require 2 years financial statements and the last 2 individual ATO Notices of Assessment.

  7. 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, flexible & fully-featured home loans, low documentation loans for the self-employed & Lines of Credit.

  8. What is the source of the funds for LoanAustralia?
    LoanAustralia is funded by ANZ Banking Group (through Permanent Custodians Limited).

  9. Can LoanAustralia arrange interest only loans?
  10. LoanAustralia can arrange interest only loans to a maximum of ten years on most loans. With all of our line of credit products the interest only repayment is for the full term of the loan.

  11. 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.

  12. 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 repayments save you interest.

  13. Am I able to make extra repayments?
    This depends on the loan product you choose. See individual product features for full details.

  14. 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.

  15. 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.

  16. Can LoanAustralia arrange fixed rate loans?
    Yes. Fixed rates from 1 - 5 years can be arranged for most products. See our home loan matrix to see which products offer a fixed rate facility option.

  17. Can I split my home loan between fixed and variable rates?
    Yes, available on most products. See our home loan matrix to see which products offer split facility options.

  18. Can I split my home loan between different loan accounts?
    Yes, this is available on most products. See our home loan matrix to see which products offer this split facility option.

  19. When will I receive my loan statements?
    You will receive statements semi-annually detailing all the transactions on your loan during the statement period.

  20. Do I have to have life insurance?
    No, you don't. However, life insurance is an option you should consider independently.

  21. What is LMI (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 on low documentation loans. LMI is paid by the borrower and covers the lender in the event of a loan default and where the house is sold for less than the amount owed under the mortgage. LMI premiums can usually be capitalised on top of the loan amount, however serviceability must be evident for the full loan amount.

  22. 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, usually because of asynchronous property sale and purchase transactions. LoanAustralia do not currently offer deposit bonds.

  23. How can I contact LoanAustralia 
    If you want to apply for a home loan through LoanAustralia the easiest method is to apply online. Once your online application is received we will assess whether it meets our guidelines  and email and phone you back to advise if it has been conditionally qualifed. A conditional qualification is our offer of acceptance of the loan subject to you verfiying the information that you had provided in your online application (i.e. supplying pay advices, etc.). If you have questions or require help you may contact us on 1300 88 66 11. 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 - feedback@loanaustralia.com.au
    Facsimile - 02 9223 4487
    Postal Address - Level 2, Suite 204, 84 Pitt St, Sydney NSW 2000.

  24. What documentation do I need to provide?
    Depending on your circumstances and the home loan product that you have applied for, you will need to supply the following:
    - Your completed and signed LoanAustralia application form
    - A 100-point identification reference and supplying copies of 100-points of identification per applicant
    - Your completed First Home Owner Grant application (optional)
    - A signed and dated copy of the contract of sale (purchases only)
    - Current copies of 6 months statements for all facilities to be refinanced (refinance only)
    - A copy of your rates notice for existing properties used as security (refinance/equity releases only)
    - Evidence of income - your most recent pay advises and PAYG year end summaries. For self-employed applicants we require two years individual, company, partnership or trust tax returns and financial statements. For low documentation loans we require a signed declaration declaring your income or certification of your ability to meet loan repayments

  25. 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 on a property value of up to $500,000. In addition to this you may need to allow for mortgage insurance, stamp duty and solicitor fees and disbursements.

  26. How long does it take to get approval?
    In most cases you can get an obligation free pre-qualified approval after applying online, in some cases immediately or else after a Customer Service Representative has assessed it. How quickly you get full approval depends on you providing the signed application form and the necessary documentation to support your application and LoanAustralia obtaining a valuation on the property.

  27. Can I repay my loan early?
    Yes. However, fees and charges may also apply, depending on the details contained in your loan agreement.

  28. What property types are acceptable security?
    Your proposed security property must be for owner-occupied or investment residential use. The property may be designated residential either by its zoning or where permitted use is residential. Rural residential lifestyle properties are acceptable but not if income producing. Security properties must be used for domestic occupation (minimum 1 bedroom, kitchen with sink etc. and separate bathroom facilities). Vacant land is acceptable security if it up to 25 acres in size on Permanent Custodians Limited funded loans. Permanent Custodians Limited funded loans require a residential dwelling to be built on the vacant land within 12 months of the draw down of the loan and the construction must be completed within 12 months. Where the sale of property being purchased is not conducted at "arms length", proof of the borrower's equity including any deposit funds already paid will be required. We will use the lower of the purchase price or property valuation when determining the loan to value ratio (LVR). Rural residential properties, high density apartments (where there are more than 35 units in a complex) and studio apartments may have maximum LVRs less than the standard 90% for purchases or refinances. Indicatively the maximum LVR for these security types are 90%, 80% and 60% respectively if the property is in or near a metropolitan area.

  29. Who do I contact if I have a complaint?
    LoanAustralia takes complaints seriously. For more information on our Internal Disputes Resolution service please view our procedures here.
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