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Loan FAQs

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Q: Am I eligible for a loan?
A: You will need to be over 18 years of age, be an Australian resident, apply in personal names, and have a permanent monthly income and/or a stable job. To take out a SERVICE ONE Alliance Bank home loan, you will need to become a SERVICE ONE Member. Joining is easy - find out about becoming a SERVICE ONE Member.

Q: How much can I borrow?
A: The maximum amount you can borrow is dependent upon your application, your individual circumstances and the loan product you select (for instance our personal loans have maximum borrowing limits based on whether the loan is secured or not. For home loans, Lenders Mortgage Insurance will be required if the amount of your loan exceeds 80% of the valuation or purchase price, whichever the lesser - this is dependent on current lending practices and can vary from time-to-time.

Q: What is Lenders Mortgage Insurance?
A: Mortgage Insurance covers lenders against a loss in the unlikely event that they have to exercise their right to sell the property due to ongoing default of loan repayments. You may be required to take out Mortgage Insurance for loans greater than 80% of the property value or purchase price. This insurance is not the same as loan repayment insurance which is are designed to cover your lending repayment obligations in the case of sickness, accident or involuntary unemployment.

Q: What costs do I need to consider?
A: Generally, there are a few costs to factor in to get an understanding of the total cost of a loan. These include:

  • a deposit - this is the biggest initial cost and will range from 5% to 20% of the total cost of the loan
  • property transfer stamp duty and registration fees, and
  • property transfer 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)
  • registration fees - there are government charges to register your mortgage document and the applicable state's authorities will be paid on your behalf (you will be charged at cost).
  • legal fees - legal expenses for the average home purchase include solicitor fees (approximately $750 - $2000)
  • survey and building certificate (approximately $400 - $600), and
  • building inspection and pest report (approximately $400 - $600).

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

Q: How do I make repayments on the loan?
A: You can arrange to make your loan repayments either by payroll deduction, transfer from your savings or transaction account, Internet or telephone banking transfer, at any one of our Branches, or by a direct credit from another financial institution.

Q; How often will I receive information on my account?
A: Statements on loans are issued monthly. A transaction list can be requested at any time from a Branch, however a fee may apply for duplicate statements. This information is also available through eLink Internet banking.

Q: What security is required to take out a home loan?
A: Your home loan must be secured by a registered mortgage over a property. 

Q: Do I need to take out insurance on my property?
A: If you take out a SERVICE ONE Alliance Bank home loan, you will be required to have your property comprehensivley insured. Building insurance is required to be taken out equal to the amount stated in the recommendation on the property valuation. In addition, if we hold security over your personal loan, insurance must be maintained on this security.

Q; Is a redraw facility available?
A: Yes, on selected loans. You may make extra repayments on your loan and therefore save money in interest charges and you also have the flexibility of being able to redraw on these extra repayments. There is no minimum to withdraw using the redraw facility but you need to be aware of the $30 staff assist fee when redraw is accessed in-Branch (there is no fee for using redraw through Internet banking).

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