Home Loan FAQs

Although you don't have to be a member to apply for a loan, you must become a member if the loan is approved. Learn more about becoming a member.

Would you like to calculate how much you may be able to borrow? Use our Loan Calculator.

An offset facility is a separate account linked to the mortgage, where the balance is offset daily against the loan amount.

For example: Jack and Mary owe $120,000 on their mortgage and have $20,000 in an offset account

This means the mortgage of $120,000 is reduced by the $20,000 in the offset account leaving a balance of $100,000. As a result interest is only calculated on $100,000. However repayments continue to be made on the entire $120,000. Therefore over a number of years, your loan is paid off faster, and you save interest.

Deposit

This could range from a minimum of 5% of the value of the property.

Registration fees

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.

Searches and inspections

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.

You can arrange to make your loan repayments either by payroll deduction, direct debit from your savings or transaction account, internet banking transfer, at any of our branches or using Bank@Post. Learn more about these repayment methods from the Savings > Access menu.

Statements are produced six monthly or more frequently on request and duplicate statements can be requested at any time from our office (fees may apply). Account information is also available through our Internet banking.

Your home loan must be secured by a registered mortgage over a residential owner occupied property.

Building insurance is required to be taken out equal to the amount stated in the recommendation on the property valuation.

Our Bank 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. Terms and conditions are available on application.

Lenders Mortgage Insurance, if applicable, covers the Bank against a loss in the unlikely event that we have to exercise our right to sell the property due to ongoing defaults in loan repayments. It must not be confused with Loan Repayment Insurance which is designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment.

LVR is the percentage of money you borrow for a home loan compared to the value of the property. It is used to assess your risk factor as a borrower; the Bank will calculate your LVR before deciding whether to approve your home loan application. The higher your LVR is, the more of a risk you may be to your lender.