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Top 10 FAQs

Can I borrow money for stamp duty?
Generally, yes. You can add the stamp duty expense on to the principal amount of your loan. The stamp duty will be paid out of the cash you use as a down-payment on your loan. The amount of stamp duty you owe varies by state and by the value of your home.
Can I use the equity in my home as a deposit?
Yes. You can use the equity in your current property to help you purchase an investment property. Even if you have a mortgage on the property, you will likely have enough equity to purchase an investment property. Equity is the value of the difference between what your property is worth and what your mortgage loan is. For example, if you have a property valued at $900,000 with a mortgage of $700,000, you have $200,000 worth of equity. You may be able to borrow up to a certain percent of the equity to use toward investing in another property. Your home equity and anticipated rental income can help you buy another investment property sooner. Below is an example of how an equity home loan with an interest-only line of credit facility uses capitalised interest as an investment strategy: If you currently have a home loan for $300,000 and your house is worth $550,000 you will have equity of $250,000 which you can use toward the purchase of your investment property. To avoid Lenders Mortgage Insurance (LMI) you will want to keep your Loan to Value Ratio below 80%. Therefore 80% of $550,000 equates to $440,000, less the $300,000 you currently owe leaves you with $140,000 to put toward your investment property.
How much deposit do I need?
Generally speaking, a deposit of 20% of the value of the property will save you from incurring additional fees such as Lenders Mortgage Insurance. Some lenders will let you borrow up to 95% of the purchase price and then let you borrow the cost of the Lenders Mortgage Insurance on top of that. Alternatively, if you don't have a deposit, you can borrow up to 100% of the property's purchase price, in two ways:
  • Family Pledge: which means that a family member offers their property as security for you to purchase your property.
  • 100% House and Land packages: allow you to borrow up to 100% of the price of the brand new home and land.
How much is the mortgage registration fee?
The mortgage registration fee varies from state to state. Generally, mortgage registration fees can be found on each state's or territory's website.  If I am unemployed but have rental income is there any way to get a home loan? If rental income is your only source of income, it is likely that a lender will require an additional source of income. Simply being unemployed does not disqualify you from obtaining a mortgage. Having income from rental property will help make qualifying for a mortgage a bit easier.
I have been pre-approved – what does this mean?
This means that a quick check on your serviceability of a loan has been done and it is calculated that you should be able to make mortgage repayments on the amount you have been pre approved for. However, it is not binding and cannot be used to make an offer on a property. It is important to get a full or unconditional approval before proceeding with any property purchase. This involves completing a home loan application and providing all the necessary supporting documentation. (See our home loan application checklist)
If I am behind on my current loan payments, can I refinance my home loan?
Mortgage House will review your situation and talk with you about why you've missed making payments. Generally, having one or two missed payments won't prevent you from getting refinancing. It will likely keep you from qualifying for the most favourable rates and terms though.
What documents do I need to gather to apply for a loan?
You can view and print off your Loan Application Documentation Checklist here.
What is a bridging loan?
A bridging loan is a shorter-term loan. It is typically needed when you are selling one property and purchasing another one. It is also used when you are waiting for the arrangement of longer term financing.
What is Lender’s Mortgage Insurance?
Lender's Mortgage Insurance, as the name states, protects the Lender not you as the borrower. Lender's Mortgage Insurance (LMI) is a once off fee that normally applies to loans where the customer is borrowing more than 80% of the purchase price. LMI is scaled depending on the percentage you need to borrow (between 80 - 100%) and the amount of the loan (ie, $650,000). LMI can start from $800 and range up to nearly 4% of the loan amount. You have two options to pay this fee.
  1. You can pay it upfront on settlement of the loan.
  2. Some lenders allow you to capitalise the cost of your LMI, meaning that they will add this figure to your loan amount. For example, if you are borrowing $650,000, your LMI may work out to be $7000. You would actually increase your loan amount to now borrow $657,000 ($650,000 + $7,000).
What is the difference between offset and redraw?
A mortgage offset account can reduce interest on your loan. Your mortgage is linked to an account into which your salary and other cash can be deposited. You can then withdraw the funds to pay your bills. For example, if you have a loan of $300,000 and have $10,000 in your offset account, the amount of interest you pay will be calculated on only $290,000 ($300,000 - $10,000). Use these savings for another deposit instead of paying off your current mortgage. Extra Repayments/Redraw Facility You can make extra repayments and create a 'kitty' for times when you have unexpected expenses such as plumbing or electrical repairs or for when you're not receiving a rental income. Some loans with this feature allow you to skip a mortgage repayment as long as you have enough funds in credit to cover that mortgage repayment.

Accessing Online Statements

Are online statements legal documents?
Your online statement is the same as what is printed and posted to you, and are equally important. Access your statements all in one place and print out the ones you need at any time and submit them as supporting documents with confidence.
How will I know when I have a new online statement?
You will receive an email notification when your next statement is available to view through Internet Banking.
What if my email address changes?
All electronic communication will be sent to the email address we have on your personal file. Please ensure this is current so that you never miss out on any email notifications and keep us updated of any change in email address.
Where can I view my online statements?
Just log on to Internet Banking and select your Account and in the menu bar on the left click on ‘View Statements’. While you’re here, you can also view past statements, save a copy to your desktop or take a print out when you need one.

Applications

Can you get multiple pre-approvals or conditional approvals?
Applying for multiple conditional or pre-approvals can harm your credit score. One enquiry in itself is not a bad thing, but numerous enquiries over a short period can be - multiple hard enquiries may suggest financial stress to a lender. Conditional approvals should not form part of your research and comparison. Instead, you should only apply for a home loan conditional or pre-approval once you have done your research and decided on a suitable lender.
How is pre-approval different from conditional approval?
Conditional approvals are offered before you begin looking for a property, giving you a good idea of how much you can afford. You can then put a conditional offer on a property to secure it, before moving forward with your application with credit checks, valuations and other assessments. To be offered pre-approval, you will have already found the property you want to purchase, and have had it valued. Pre-approval is based on both your finances and the property itself, showing the lender is happy to finance the loan amount on the particular property.
What happens during the settlement process?
As soon as you have correctly signed all legal documents and send them back, we can begin your settlement process. During the settlement process, your legal representatives will ensure all clauses in your contracts are being met and get all required documents ready to close the sale. On your agreed settlement date, your legal representative and the legal representative of the seller will take care of all matters relating to settlement, such as registering the title of the property and paying stamp duty. After this is taken care of, you are now able to move into your new home, start your new build process, cash out equity from your loan, or benefit from a lower rate home loan - whatever your reason for your home loan, it’s now complete and ready to enjoy.
What is conditional approval?
Conditional approval is a confirmation from Mortgage House that, on the basis that all required information provided is factually correct, you will be given approval subject to various conditions like successful credit checks. With conditional approval, you’ll be ready to put an offer on a property as soon as you find the perfect match.
What is pre-approval?
Pre-approval is the confirmation from Mortgage House that, now that you have had a valuation on the property you wish to purchase, and we have all required information from you, provided final checks are successful, you can proceed with making an offer with our financial backing.
What legal documents will I have to sign to start the settlement process?
We send your loan contract, mortgage document, repayment form, certificate of witness form, borrower certificate and warranty. To learn more about the documentation required for settlement, click here.
What stages are there between applying for a home loan and settlement?
  1. Once you apply online, you will have a chat with your dedicated Lending Specialist, where you will discuss what home loan will be best-suited to you.
  2. Your Lending Specialist will submit your application for approval, where you will be required to pay the relevant application fee.
  3. Our Lending Team makes various assessments and orders, including (where needed) a credit assessment, LMI order, valuation and a loan assessment.
  4. If your home loan and credit are approved, our legal representatives will compile the relevant legal documents and send them to you to sign.
  5. You will need to read through and sign all legal documentation, then return it to our legal representatives to review.
  6. Once the legal team are happy that all documents are signed correctly, they’ll notify us to start the settlement process
  7. The settlement date will be booked, and we will ensure everything is ready for the big day!

Applying Online

Can I save my application and finish it later?
Yes! With our 'save and come back later' button on each page of your application, you don't have to complete it all in one go.
Do I need to upload all information before submitting my online application?
You need to provide all required information, which is shown with a red asterisk (*). It's recommended to upload as much information in your online application as you can to fast-track your application and help your Lending Specialist to find the perfect loan for your needs.
How long will applying online take?
If you have all the information you need ready to go, you can apply for your home loan in just 15 minutes - or less!
I don’t know what type of loan or features will be best for me. Do I need to know before applying online?
No! Once you've applied, you will discuss your options with your Lending Specialist, who will review your requirements and explore every avenue open to you. If you want to familiarise yourself with the types of loans we offer, click here.
Is applying online the best way to apply for a Mortgage House home loan?
Yes. Applying online has never been easier! You can apply online anytime, anywhere, in as little as 15 minutes.
Is applying to refinance the same process as applying for a home loan?
Whether you're refinancing to find a better deal, buy more real estate or free up equity in your home for other reasons, you will need to go through the process of getting another mortgage - that means applying online. It can take less than 15 minutes! Click on our Documentation Checklist for a list of all documents and information required to apply. Once you've applied, you'll speak with your dedicated Lending Specialist who will go over your requirements and find the perfect loan for you.
What information and documentation do I need before I apply online?
  • Passport (colour photocopy)
  • Driver's Licence (colour photocopy)
  • Details of the home you wish to purchase (if you have not yet found the right property, you can choose this option in your application)
  • Contact details of all applicants
  • Details of income (salary, self-employed information if applicable, and all other forms of income such as government assistance, compensation or rental income)
  • Details of expenses (alternatively you can securely link your bank account to save time entering the information manually)
  • Details of assets (such as property, motor vehicles, home contents, shares, savings or superannuation)
What stages are there between applying online and settlement?
  1. Once you apply online, you'll speak with your dedicated Lending Specialist and review what home loan will be best suited to you
  2. Your Lending Specialist will submit your application for approval, where you will be required to pay an application fee (depending on your loan, this may be refunded to you!)
  3. We make various assessments and orders, including a credit assessment, LMI order, valuation and loan assessment
  4. If your home loan and credit are approved, our legal representatives will compile the relevant legal documents and send them to you to sign
  5. You will read through and sign all legal documentation, then return it to our legal representatives to review
  6. Once the legal team is happy all documents are correctly signed, they'll notify us to begin the settlement process
  7. The settlement day will be booked and we will ensure everything is prepared for the big day!

Bridging Loans

Are there different types of bridging loans?
Bridging loans can fall into two categories: open and closed. We will explain which is best for your financial and housing situation. Basically, the difference between the two is whether you have financing arranged for when the bridge loan payment is due. The rates, fees and costs will vary depending upon which option you use.
How is my monthly payment calculated?
While you are waiting for your existing home to sell, you will be required to make interest-only payments on the bridging loan. If you are able to make payments toward reducing the principal balance in addition to making the interest payments, you will help lower the amount that will be added to your mortgage on the new home. We can help you calculate what your interest payments will be and help you budget principal payments. Bridging loans are typically more expensive than conventional financing, which offsets the increased risk of the home loan. Additional fees and costs can occur with a bridging loan which may increase the monthly payments.
How long are bridging loans given for?
Ideally, you will be able to sell your current property close to the time when you purchase a second home. Bridging loans are intended to be short term solutions to get you through that period in between buying and selling. Typically, bridging loans are six-month loans. For new construction, loans may extend to twelve months.
I’ve found the next property I want to buy. If I haven’t sold my existing property yet, is a bridging loan a good option?
Bridging loans can, generally, be arranged in a short period of time. They also require relatively little documentation to set up. This is the perfect solution when you are in the process of purchasing your next home whilst waiting for your current home to sell or settle. Bridging loans generally carry higher fees and costs than conventional financing. These loans are a bit riskier so the costs offset this increased risk. Additionally, the loan fees and costs are amortised over a shorter period of time and can increase the monthly payment obligation.
What amount do I need to reserve to cover stamp duty?
Stamp duty charges upon which state or territory you live in.
What is a bridging loan?
A bridging loan is a shorter-term loan. It is typically needed when you are selling one property and purchasing another one. It is also used when you are waiting for the arrangement of longer term financing.

Construction Loan FAQs

Can I get a construction loan as an owner-builder?
In some circumstances we can assist you with a Construction Loan if you an owner builder. To see if you qualify, please contact our office on 133 144.
Can I get a construction loan if I am self-employed?
Yes, we have a number of Low Doc Construction Loans available. Click here for our Construction Loans.
Can I get an interest-only construction loan?
You are able to make Interest Only mortgage repayments during the construction process (up to 24 months). After this time, your loan will revert to a standard variable rate home loan with principal and interest repayments.
Can I use a construction loan to make major renovations to my house?
Yes, you can use a Construction Loan to make major renovations to your home or investment property. You will require a fixed price contract from a builder.
How do I pay the contractors?
Mortgage House will arrange to pay the builder directly, upon confirmation that one of the five predetermined stages of construction (such as slab down) has been completed.
How does a construction loan work?
The Construction loan allows interest only mortgage repayments for the land portion prior to construction and interest only repayments during the construction process
  • The funds will be paid to your builder in draw downs, after a body of work has been completed, ensuring you only pay interest on the portion of the construction loan you have drawn down rather than on the entire loan amount
  • Upon completion of construction, your construction loan will automatically revert to a standard variable rate home loan with repayments based on both principal and interest
  • You have up to 24 months to complete construction and draw down all funds from the loan.
  • The total construction loan may be split between two accounts after construction is complete to assist in managing both personal and investment debt.
How much time do I have to build my house?
Construction Loans normally allow up to 2 years to complete the construction of the dwelling after the purchase of the land has settled.
What happens if my construction costs increase?
As part of your agreement with the builder and a term of accepting a Construction Loan, you are required to get a Fixed Price Contract with your builder; therefore any changes in construction will need to be borne by the builder.
What if my builder goes bust?
Builders are required to have insurance. You will be able to appoint another builder subject to your lender's approval to complete the work. In normal circumstances, the insurance company normally pays any difference in costs.
What is draw down?
Your construction project is normally divided into 5 stages from slab down to lock up stage. A draw down is a payment made to the builder after each predetermined stage of construction is complete. This will be outlined in your contract with the builder. The advantage of having a draw down payment is that you will only be charged interest on the amount that you have drawn down (paid out to the builder), rather than the full loan amount.
What is the maximum percentage of construction cost I can borrow?
Mortgage House has construction loans allow you to borrow up to 95% of the value of the property plus additional funds to cover the total cost of Lender's Mortgage Insurance, if required.

Family Pledge Loans

Can I borrow more than the price of a property with a Family Pledge loan?
Depending on how much your guarantor is prepared to pledge, you may be able to borrow 100% of the purchase price of your property, or even 110% to help you cover the associated costs of buying a home.
Can I purchase my first home without a deposit?
Yes, with a guarantor to back you, you won't need to save for a deposit, something most banks or lenders require with modern mortgages.
How does the Family Pledge loan work?
A close relative with enough equity in their home can pledge a percentage of the value of your new home to act as your deposit. While this means you don't need to save for the initial lump sum or pay LMI if the guarantee is above 20%, it does mean your relative's home is put up as collateral should you default on your loan.
How much can I borrow with a Family Pledge loan?
Our borrowing calculator allows you to get an indication of how much you may be able to borrow if your home loan is approved. All you need to do is enter all the information as accurately as you can and include the amount your family member is prepared to guarantee.
What is a Family Pledge loan?
Family Pledge mortgages allow you to borrow the full value of your desired property, using a percentage of the value of the residential real estate of an immediate family member.
Who can be my guarantor?
There are a few restrictions on who can be your guarantor. To help you in buying your first home, your guarantor must be:
  • An Australian resident aged between 18-65
  • Have strong equity in their property and a good credit rating
  • Be a close family member e.g. siblings, parents or children
Will my guarantor be linked to my home loan until it’s paid off?
Once you have paid at least 20% of your loan, you are able to refinance your home loan and remove your relative from your loan.

First Home Buyers FAQs

Can I borrow money for stamp duty?
Generally, yes. You can add the stamp duty expense on to the principal amount of your loan. The stamp duty will be paid out of the cash you use as a down-payment on your loan. The amount of stamp duty you owe varies by state and by the value of your home.
Can I take out a home loan while on a disability pension?
A disability pension is a valid income source for the purpose of making a loan application. As with any loan application the amount of income from a disability pension, or from any other source, factors into the amount you can borrow and affects eventual the terms of the loan.
Does Mortgage House offer home loans for properties in rural areas?
Yes. We can help you choose the right loan product for the kind of property you are looking to buy. There are different options available for hobby farms, rural farms or vineyards with homes. Purchasing a rural home is no more difficult that purchasing a city home. We are here to support you. We offer innovative financing to help make your dream of owning a home in the countryside a reality.
How do I apply for the FHOG?
Your friendly Mortgage House Lending Specialist can assist you with this at the time of your home loan application. Call 133 144 or fill in the form at the bottom of this page.
How much are the fees for establishing a loan?
Below is a list of typical fees that may apply to a home loan of $350K. However, there are No Fee Home Loans that eliminates a large number of these fees.
Mortgage House NO FEE Home Loan
  • LMI Recovery Fee - NIL
  • Title Insurance Fee - NIL
  • Delayed Settlement Fee - NIL
  • Lender's Legal Costs - NIL
  • Application or Establishment Fee - NIL
  • Valuation Fee - NIL Settlement Fee - NIL
  • Guarantee Fee - NIL Variation Fee - NIL
  • Monthly or Annual Fees - NIL
Savings based on a $350K loan
  • LMI Recovery Fee - $2485
  • Title Insurance Fee - $100
  • Delayed Settlement Fee - $200
  • Lender's Legal Costs - $370
  • Application or Establishment Fee - $300
  • Valuation Fee - $200
  • Settlement Fee - $299.95
  • Guarantee Fee - $200
  • Variation Fee - $295
  • Monthly or Annual Fees - $6000 ($200 p.a. x 30 yrs)
How much deposit do I need?
Generally speaking, a deposit of 20% of the value of the property will save you from incurring additional fees such as Lenders Mortgage Insurance. Some lenders will let you borrow up to 95% of the purchase price and then let you borrow the cost of the Lenders Mortgage Insurance on top of that. Alternatively, if you don't have a deposit, you can borrow up to 100% of the property's purchase price, in two ways:
  • Family Pledge: which means that a family member offers their property as security for you to purchase your property.
  • 100% House and Land packages: allow you to borrow up to 100% of the price of the brand new home and land.
How much is the mortgage registration fee?
The mortgage registration fee varies from state to state. Generally, mortgage registration fees can be found on each state's or territory's website.  If I am unemployed but have rental income is there any way to get a home loan? If rental income is your only source of income, it is likely that a lender will require an additional source of income. Simply being unemployed does not disqualify you from obtaining a mortgage. Having income from rental property will help make qualifying for a mortgage a bit easier.
How soon can I change my mortgage?
While you are free to search for better loan terms any time youÕd like, you may not be able to switch without paying a penalty or potential termination fees. Assess your current mortgage Is your current mortgage the best on offer for your circumstances? Could you get a better deal and lower interest rate with another lender? Before making a move to another lender, check the terms and conditions of your present mortgage to see what exit fees might apply if you discharge or break your existing mortgage before its term is up. It is a good idea to look at what features your mortgage has and which of them you really use. Refinancing can be very expensive, but can work in your favour and provide you with many benefits if you do your sums correctly. Research types of mortgages and home loan features It is good to understand what type of home loans are on offer and which features you are really looking for in a mortgage. Applying for a home loan full of features that you don't need or won't use could end up costing you more, as these types of mortgages normally have a higher interest rate. Use our handy checklist sheets to help you decide which features you are looking for in a home loan. This will help your Mortgage House Home Loan Specialist find a mortgage to meet your needs. [this might be good link to include here: https://www.mortgagehouse.com.au/mortgages/calculators/switching-mortgage-calculator/] Fees Exit Fees are also known as break fees, discharge costs, deferred establishment fees, early repayment fees, termination fees, documentation costs or administration costs. Any of these are standard clauses in today's mortgage contracts. Exit fees can apply if you decide to refinance with a new lender, swap from a fixed to variable loan or repay your mortgage before it is due. These early repayment fees vary widely according to the lender. It is a good idea to read your loan contract terms and conditions carefully to understand which fees will apply. If the mortgage you are exiting has no break costs, then you will recoup the cost of refinancing much quicker. Some loans (with very low rates of interest) still carry substantial and hidden discharge fees. In these cases, the borrower may see a lower mortgage payments by switching to a loan with a lower interest rate. But if hidden fees and costs are built into the refinance contract, it can take months or years to recoup the discharge cost. The exit fees can be calculated in two ways; either as a percentage-based fee or a flat fee. Percentage based fees are either equivalent to 1-2 months interest charges or a percentage of the original loan amount or loan top-up amount (whichever is greater). The flat fee is a straight dollar figure applied to the mortgage loan amount.
I have been pre-approved – what does this mean?
This means that a quick check on your serviceability of a loan has been done and it is calculated that you should be able to make mortgage repayments on the amount you have been pre approved for. However, it is not binding and cannot be used to make an offer on a property. It is important to get a full or unconditional approval before proceeding with any property purchase. This involves completing a home loan application and providing all the necessary supporting documentation. (See our home loan application checklist)
If I am behind on my current loan payments, can I refinance my home loan?
Mortgage House will review your situation and talk with you about why you've missed making payments. Generally, having one or two missed payments won't prevent you from getting refinancing. It will likely keep you from qualifying for the most favourable rates and terms though.
Is there a difference between a land loan and a regular home loan?
You purchase the land before the house is built When buying the land first you will generally have to pay a deposit of 10% of the purchase price, with the balance being payable on settlement. This way you will only pay stamp duty on the land, rather than on the construction cost of the house. In this situation, you will need two home loans - one for the land and one for the construction. Progress payments on the mortgage will need to be made at different stages of construction. You buy the house already completed on the developer's land If you decide on this option, all you need to do is give a 5% deposit, with the rest being payable once the home is completed. There are no progress payments with this option, which you can use to your advantage for either renting whilst the home is being built, or saving a larger deposit for the home loan. Research your location and developer Getting an idea of the following will help: _ What experience have they got and how long have they been in business? _ How many packaged homes have they sold? _ Get referrals, and ask the owners if they were satisfied with the workmanship. _ Check on appropriate builder's warranty and insurance cover. _ Check if they offer a fixed price building contract, so you aren't left with unexpected fees.
What are my options in raising the deposit?
The most obvious, tried and test method is write a budget and stick to it. Using a Budget Planner is a great place to start.
  • Family Pledge: where an immediate family members puts up their property as security against your home loan. Note: if you default on your loan, you could put their property at risk of being repossessed.
  • 100% House and Land Packages: this allows you to borrow up to 100% of the purchase price of a brand new home located at a selected residential estate.
What do the terms ‘comparison rate’ and AAPR mean?
A comparison rate is a rate that all lenders by law must display next to their advertised interest rates. It is a rate which takes into account some of the fees and charges of a home loan to give you a more accurate representation of a loan's interest rate once the costs are taken into account. A comparison rate is usually worked out using the example loan of $150,000 over 25 years. This is an overt attempt to stop lenders from advertising incredibly low interest rates that lure unsuspecting borrowers into home loans that actually cost them far more than they expected. AAPR stands for 'Average Annual Percentage Rate'. This is very similar to a Comparison Rate and provides the true cost of your loan over time.
What documents do I need to gather to apply for a loan?
You can view and print off your Loan Application Documentation Checklist here.
What entitlements am I eligible for as a first home buyer?
Your entitlements will vary depending on:
  • Which state or territory you live in
  • Whether you are buying a an existing dwelling or will be building your home
Under the First Home Owner Grant (FHOG), a once-off payment of up to $7000 is payable to first home owners that satisfy all the eligibility criteria. Note: some states/territories have introduced a cap where first home buyers purchasing a property above this will not qualify to receive the grant. In NSW, this is currently $835,000. The government has established a website with all the relevant grants and schemes http://www.firsthome.gov.au/
What is Lender’s Mortgage Insurance?
Lender's Mortgage Insurance, as the name states, protects the Lender not you as the borrower. Lender's Mortgage Insurance (LMI) is a once off fee that normally applies to loans where the customer is borrowing more than 80% of the purchase price. LMI is scaled depending on the percentage you need to borrow (between 80 - 100%) and the amount of the loan (ie, $650,000). LMI can start from $800 and range up to nearly 4% of the loan amount. You have two options to pay this fee.
  1. You can pay it upfront on settlement of the loan.
  2. Some lenders allow you to capitalise the cost of your LMI, meaning that they will add this figure to your loan amount. For example, if you are borrowing $650,000, your LMI may work out to be $7000. You would actually increase your loan amount to now borrow $657,000 ($650,000 + $7,000).
What is the difference between offset and redraw?
A mortgage offset account can reduce interest on your loan. Your mortgage is linked to an account into which your salary and other cash can be deposited. You can then withdraw the funds to pay your bills. For example, if you have a loan of $300,000 and have $10,000 in your offset account, the amount of interest you pay will be calculated on only $290,000 ($300,000 - $10,000). Use these savings for another deposit instead of paying off your current mortgage. Extra Repayments/Redraw Facility You can make extra repayments and create a 'kitty' for times when you have unexpected expenses such as plumbing or electrical repairs or for when you're not receiving a rental income. Some loans with this feature allow you to skip a mortgage repayment as long as you have enough funds in credit to cover that mortgage repayment.
What is the difference between pre-approval and conditional approval?
Pre-approval is the confirmation from Mortgage House that, now that the property you wish to purchase has been valued and we have all required information from you, provided final checks are completed successfully, you can proceed with our financial backing. Conditional approval means a lender has assessed your financial situation and the estimated loan amount they propose for you could be formally approved once you find a property.
What other costs should I account for when purchasing a property?
  • Registration of the mortgage
  • Stamp Duty on the mortgage
  • Registration of transfer
  • Stamp Duty on the property purchase
  • Land tax

Home Loan Process

Does every loan include application fees?
We require every applicant to pay their application fee, but some of our loans include a refund of this fee upon settlement.
How much can I borrow when refinancing?
Finding the loan amount you want when you are refinancing can come down to the equity you have in your existing home. If you are looking to refinance to find a lower rate or better features, then the process is relatively simple. If you are looking to borrow more money, there are a few other things to think about, most importantly, the equity in your property.
What stages are there between applying online and settlement?
  1. Once you apply online, you'll speak with your dedicated Lending Specialist and review what home loan will be best suited to you
  2. Your Lending Specialist will submit your application for approval, where you will be required to pay an application fee (depending on your loan, this may be refunded to you!)
  3. We make various assessments and orders, including a credit assessment, LMI order, valuation and loan assessment
  4. If your home loan and credit are approved, our legal representatives will compile the relevant legal documents and send them to you to sign
  5. You will read through and sign all legal documentation, then return it to our legal representatives to review
  6. Once the legal team is happy all documents are correctly signed, they'll notify us to begin the settlement process
  7. The settlement day will be booked and we will ensure everything is prepared for the big day!
When is the best time to refinance?
As always, doing research is important: by keeping an eye on current market loans, the economic environment and your family's needs, you can determine whether your current loan is doing right by you. You could always request a free home loan health check to see if we can offer you a better loan.

Investment Properties

Can I use the equity in my home as a deposit?
Yes. You can use the equity in your current property to help you purchase an investment property. Even if you have a mortgage on the property, you will likely have enough equity to purchase an investment property. Equity is the value of the difference between what your property is worth and what your mortgage loan is. For example, if you have a property valued at $900,000 with a mortgage of $700,000, you have $200,000 worth of equity. You may be able to borrow up to a certain percent of the equity to use toward investing in another property. Your home equity and anticipated rental income can help you buy another investment property sooner. Below is an example of how an equity home loan with an interest-only line of credit facility uses capitalised interest as an investment strategy: If you currently have a home loan for $300,000 and your house is worth $550,000 you will have equity of $250,000 which you can use toward the purchase of your investment property. To avoid Lenders Mortgage Insurance (LMI) you will want to keep your Loan to Value Ratio below 80%. Therefore 80% of $550,000 equates to $440,000, less the $300,000 you currently owe leaves you with $140,000 to put toward your investment property.
How can a split loan help?
A split loan facility lets you combine your home loan and investment loan under one umbrella facility. These arrangements allow for direct loan repayments to be made towards your home loan while allowing interest to capitalise on your investment loan. You can separate the non-deductible debt portion of your home loan from the deductible portion and you will receive separate loan statements for each split.
What fees and charges should I consider?
We offer loans that have no monthly fee, no package fee and no Ôrate lockÕ fee. YouÕll pay a competitive fee for the application, settlement and discharge phases. There is no fee for the valuation process.
What’s negative gearing? What’s positive gearing?
Positive gearing means that the income generated from the investment property is higher than the expenses. Negative gearing is the reverse: where the cost of ownership is higher than the income generated. However, in this situation, you will look for appreciation in the property's value over time.
Positive Gearing Negative Gearing
Advantages:
  • Positive effect on your cash flow
  • No out of pocket expenses in owning an investment property.
  • Claiming a tax benefit on your tax return, especially beneficial if you are in a high income tax bracket.
  • You may claim items such as property maintenance, land tax, depreciation etc.
Disadvantages:
  • Additional tax incurred as a result of your increased income.
  • Possible Capital Gains Tax you have to pay if you sell the property
.
  • Negative impact on your month-to-month cash flow.
  • Having to service the extra debt.
Why invest in property?
Real estate is something you can see and control, unlike the stocks traded on the worldÕs exchanges. And, property, can certainly be less volatile. You can earn rental income from property right away and watch its value increase over time. Most of the expenses you incur can offset the income you earn from other sources.
Will an investment loan be any different to my existing loan?
Investment loans usually have different terms from home loans. The interest rates may be somewhat higher and the loan terms, a bit shorter. There are many variables that youÕll need to consider, including whether combining many investment or commercial loans into one may be a cost-effective option.

Low Doc Home Loans

Can I get a home loan if I am self-employed?
Of course. We offer a broad range of home loans that cater to many different needs, including those who are self-employed.
What information and documentation do I need to provide when applying for a home loan?
If you are self-employed, you will need to provide the following information when you apply online:
  • The name of your business
  • How long you have been self-employed in this business
  • Whether your business is your current income
  • Your net profit for the last two financial years
You may also be required to provide:
  • Bank statements
  • Personal Declaration stating how much you earn and whether you believe you can repay the loan
  • Accountant's letter confirming the validity of your Personal Declaration
  • Business details, such as ABN number
  • Business Activity Statements (BAS). If you are a small business owner, freelancer or contractor, lenders may ask for up to 12 months of BAS information, or two years of tax returns
  • Guarantor - you may need to think about seeking a guarantor, or someone who will give your bank or lender a guarantee that the home loan will be repaid
What is a low doc home loan?
Low Doc stands for Low Documentation, and these loans can benefit those who don't have access to the typical level of information banks and lenders require. If you are a business owner, freelancer or contractor, you may not be able to provide the proof of income or employment history requested. Your income may be irregular, but it may still be high and stable enough to make the required repayments. Find out more about Low Doc home loans here.
What is the interest rate on a low doc home loan?
Low doc loans can sometimes attract higher interest rates, given the potentially higher risks to banks and lenders. While interest rates can be higher at the beginning, banks and lenders may reduce the rate once you have shown over a certain period that you are able to successfully and consistently make repayments.

Mortgage House Lending Specialist Services

Do I have to pay for this service?
No, there is no charge to you to find the home loan. This is a free service.
Do I need to prepare anything before my meeting with a Mortgage House Lending Specialist?
Generally no, however completing the Home Loans Feature Checklist prior to meeting with your Mortgage House Lending Specialist saves a lot of time and provides us with an idea of what type of mortgage product you are looking for. For customers requiring a home loan without delay, our Lending Specialist can provide you with all the technology tools to be able to process your home loan application in real time. Use our handy Home Loan Application Documentation Checklist for a full list of items required when applying for a loan.
Does the Mortgage House Lending Specialist come to my premises?
Yes, we can arrange to come to your premises at a time that is convenient to you. We operate most days of the week.
How do I arrange a meeting with a Mortgage House Lending Specialist?
It's easy, call 133 144 or click Book An Appointment with using the form at the bottom of this page.
How long does the meeting take?
The initial meeting normally takes less than twenty minutes after completing our online application.
I already have a mortgage with a bank, can a Mortgage House Lending Specialist help me get a better deal with them?
No, but we have successful saved thousands of dollars by showing customers other options that could potentially save you money and reduce your loan term.
Why use a Mortgage House Lending Specialist?
A Mortgage House Lending Specialist saves you time and lets you provide all your mortgage requirements, personal and financial details once to a single person rather than to multiple people multiple times. We provide you with handy tools to help you identify what is important to you in a home loan and demystify a lot of the finance jargon. At the meeting with your Mortgage House Lending Specialist you can discuss what features you are looking for in a home loan, what your special circumstances are and ask them any questions you may have. Once we have all the information, we can come up with options for us to discuss further with you.
Will the Mortgage House Lending Specialist be able to help me with all my first home buyer requirements?
Yes, our Mortgage House Lending Specialist have been trained to be able to assist you with completing the necessary forms to claim benefits as a First Home Buyer

Pay your home loan off in 7-10 years

Do I have to find the investment properties myself?
No, we offer assisted property investment solutions where we find the investment properties for you and perform the necessary due diligence on your behalf. As part of the service you are provided with a detailed report on the chosen property which includes:
  • Population Growth and Movements
  • Economics and Employment
  • Infrastructure
  • Supply and Demand of Dwellings
  • Rental Market
Do I need to already own a property to create wealth?
No, we can assist you in the purchase of your first property and along the path to wealth creation.
Do I need to be on a high income?
No, as long as you have a combined household income of $60,000 we can work with you on a path to wealth creation and to paying off your home loan in 7-10 years.
How do I make an appointment with the Private Clients division?
You can call us on 133 144 or leave your details in the Get in Touch box at the bottom of the page and have one of the friendly Private Clients team contact you
How does it work?
Call us on 133 144 for a detailed and tailor made property investment strategy.
Is there a fee for this service?
A nice cup of coffee and two biscuits normally settles the bill. Actually, we do not charge a fee for our service.

Refinancing

Do I have to refinance to unlock the equity in my home?
Yes, but this doesn't mean you have to switch lender. You can refinance to another home loan that allows equity release, and ensure you get a great deal in the current market!
How much can I borrow when refinancing?
If you are looking to borrow more money, the amount of equity in your home will play a big part in achieving that goal.
What are the costs of refinancing?
Our switching mortgage calculator can indicate what you may be able to save by refinancing. For accuracy, you should be aware of any ongoing fees and charges over the life of your loan - take a look at your loan's comparison rate compared to your interest rate to get an idea of how much you pay. There can be application and legal fees associated with taking out a new loan.
What is equity and how can refinancing unlock it?
Equity is the difference between the market value of your home and the balance of your loan. For example, if your home is valued at $600,000 and your loan balance is $300,000, then you have $300,000 in equity. This equity can be freed up by refinancing your home loan to do a number of things, including investing in more real estate, helping someone you love become a homeowner, or renovating your property. You can only unlock equity by refinancing to another home loan.

Renovation

Avoiding renovation mistakes
Mistakes during the renovation process can be very costly. ThatÕs why it pays to consult with and hire professionals to help you devise a plan. You have probably heard that renovation almost always produces a few surprises along the way. Most people who decide to renovate, will put aside an extra 10-15% of the estimated cost of their project just to address the unexpected. Few people consider how to handle mistakes, even the small ones. Think about what it would be like if you simply chose the wrong colour of paint. It is annoying enough to have to get more supply, but bringing the painter back and then having to move out and then back into the rooms. And that was an easy fix. What will you do if the bargain plumber installs the wrong size waste pipes? An architect or professional builder can ensure that the proper materials are used and permits are pulled, including supervising the work while it is happening.
Funding your renovation
Our Construction loan allows you to make interest-only mortgage payments for your land purchase before construction. You will also make interest-only payments during your construction. Here is how the rest of the process will look with our loan:
  • We will pay your builder in draw downs, after a certain milestone of work is completed. This ensures you pay interest only on the portion of the construction loan you have advanced, not the entire loan amount.
  • When your construction is complete, your construction loan will automatically become a standard variable-rate home loan. Going forward you will make one payment, which will cover both principal and interest.
  • You'll have up to 12 months to complete your construction project and draw down all funds from the loan.
  • The total amount of your construction loan can be split between two accounts after construction is complete. This will assist you in managing your personal and investment debt more easily.
How do you estimate the costs of renovation?
This is best left to the professionals. Depending upon the extent of the changes you'd like to make to your home, you should consult with an architect, a reputable builder and your lender. Most importantly, determine what your budget will be before doing anything else. We can help you estimate the renovation cost per square meter for homes in your area.
Is your house suitable for renovation?
This might be the first question you should ask yourself. Despite your desire to stay where you are, your current home may not lend itself to renovation even if you had an endless supply of money. You may not be granted the building permit you need to enlarge the kitchen. You may find that the wall you want to blast through, is a supporting wall. Your costs have now just tripled because youÕll need to install a steel beam. You may live in an historic district, requiring approval of a committee before you can make any improvements. An architect or builder can help you determine if you can make the changes youÕve been dreaming about.
Renovate or move?
Your decision will usually depend on which option is more cost effective. You may wish to renovate because you love your neighbourhood and your school district. Yet, you donÕt want to put so much money into a refit that youÕll price your home out of the market later on. Moving to a new location brings its own set of issues. We can help you balance the pros and cons of each option.

Toggle Offset Home Loan FAQs

Can I make extra repayments on the fixed portion as well as the variable portion of the home loan, without incurring additional fees?
Yes.
Do I have to reapply for another fixed rate period after the initial fixed rate expires?
No you don't. You can continue your loan with both portions reverting back to a variable interest rate, however you may not receive the same benefits that are available through Toggle.
Does it cost to Toggle (move funds between the two Offset Accounts)?
No, it is free if you choose to do it online or over the phone.
Does the Toggle Offset home loan range have ongoing fees?
No.
How long do I have to fix part of the home loan?
You have the option to fix for 1 year, 2 years, 3 years, 4 years or 5 years initially, and then reapply for another fixed loan term later.
If I don’t reapply for a fixed period immediately, can I do this further down the track?
Yes.
Is it hard to Toggle my funds between the two Offset Accounts?
No, it can be done online through internet banking or through phone banking.
Is the Mortgage House Toggle Offset suitable if I am self employed?
Yes, this home loan is available to self employed and PAYG customers. Note: normal credit lending criteria applies.

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