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FAQs

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FAQs If you can't find the answer here please contact us.
  Do I have to be a credit union member to take out a loan?
The credit union is a mutual financial services organisation and as such is owned by its members, each one of whom is a shareholder. Therefore you must be a member of the credit union to have a loan. Learn about becoming a member.
  How much can I borrow?
The amount you can borrow is dependent on the type of loan you apply for. The actual amount you can borrow is, however, determined by your ability to meet the repayments of the loan and the value of the loan security. Want to calculate how much you could borrow? Use one of our loan calculators.
  What costs do I need to consider?

Deposit
The biggest initial cost is the deposit. This will range from 5% to 30% depending on the type of loan you require.

Stamp duty & registration fees
Stamp duty and registration fees are payable on a property purchase and on a mortgage.

Property purchase stamp duty & registration fees
Property purchase stamp duty is a form of government tax and is calculated on the market value of the property or the purchase price, whichever is greater. You may be exempted or eligible for a concession, please contact your solicitor/conveyancer.

In addition, 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.

Mortgage stamp duty and registration fees
Stamp duty is incurred to make mortgage documents legal. The fee is determined by the amount you are borrowing. We will calculate your loan security stamp duty and will pay the applicable state authority 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.

Legal Fees
Legal expenses for the average home purchase include:

  • Solicitors fees (between $500-$2000)
  • Survey and building certificate ($450)
  • Building inspection and pest report ($400-$500)

Searches and inspections
Contracts should never be exchanged until the necessary searches and inspections have been completed. Searches and inspections may include a title search 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. 

  How do I make repayments on the loan?
You can arrange to make your loan repayments either by payroll deduction, direct debit from your savings or transaction account, Internet or telephone banking transfer, at our branch, or by a direct debit from another financial institution. 
  How often will I receive information on my account?
Statements are issued at least quarterly. More frequent or duplicate statements can be requested at any time from our branch, however a fee may apply for duplicate statements.
Account Balances and Statements are also available through our Internet and telephone banking services. 
  What security is required to take out a Home Loan?
Your home loan must be secured by a registered mortgage over a property.
  What happens if I get sick, have an accident or lose my job?
The best way to obtain peace of mind that your repayment obligations will be met in the case of accident, illness or involuntary unemployment is to take out insurance. Learn more about our Loan Repayment Insurance.
  Do I need to take out insurance?

Lenders Mortgage Insurance will be required it the amount of your loan exceeds 80% of the valuation or purchase price, whichever the lesser. Building insurance is required to be taken out equal to the amount stated in the recommendation on the property valuation.

It is recommended that you take out insurance on your loan, although not compulsory, it is designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. Although you do not have to purchase your insurance through us, we do offer a range of insurance policies. Learn more about our Loan Repayment Insurance.

  Is a redraw facility available?
The credit union gives you the option of making extra repayments on your loan and therefore save money in interest changes and than having the flexibility of being able to redraw on these extra repayments. You need to have your loan in advance by at least your next agreed loan repayment plus $100 and the minimum redraw is $100. Redraws are Free!
  What is Lenders Mortgage Insurance?
Mortgage insurance covers the credit union against a loss in the unlikely event that we have to exercise our right to sell the property due to ongoing default of loan repayments. It must not be confused with Insurance designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. 

 

More Information

Use one of our loan calculators to work out what loan is right for you.

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