Buying Another Property
If you are looking to sell your existing home
and buy another, as well as changing your lender, we will assist you with
the switch over. If you are unhappy with your existing lender or if you
are simply looking for a better deal we have a number of home loan
products that may save you money in terms of interest rates and fees. If
you are looking to consolidate a few debts or access some of the equity in
your home we can assist you by refinancing your existing debt.
How can we assist?
We can help you with the changeover by contacting your
existing lender to arrange a payout figure and preparation of a discharge
of your existing mortgage. We will require your written consent to do
this, as well as signing any documents required by your existing lender.
We will need you to provide the last six
months statements from your existing lender as proof of your existing debt
and demonstration of your repayment ability. Don't worry if you have had a
few minor defaults in the past, we may still have a home loan product to
assist you.
We will require a valuation of the property
you are purchasing, the cost of which you will be required to meet.
However, if you proceed to settlement the cost will be refunded to you. An
Application Fee will be waived.
If you are buying and selling at the same
time and are able to arrange a simultaneous settlement i.e., you are able
to settle the sale of your existing property at the same time as the
purchase of your new property, we will assist you to co-ordinate the
settlement process.
If you have to settle the purchase of the new
property before settling the sale of your existing property, you may need
a loan to cover both properties. In this case, we may be able to provide a
bridging loan, subject to you being able to meet equity requirements and
have sufficient income to meet the interim repayments.
Miscellaneous Costs
You might have to pay early
discharge fees or exit penalties to your existing lender. The level of
fees may depend on the amount of your loan and the length of time you have
had your existing loan. In the overall scheme of things, these extra costs
may be more than covered in the longer term by a more favourable interest
rate and/or reduced fees we are able to offer.
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When calculating the amount of money
you need to complete the purchase of the new home there are a number
of costs you will need to allow for: |
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Government Fees - including stamp duty
on transfer and on the mortgage. |
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Legal Fees - including conveyancing and
property search fees |
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Property related costs - including
council and water rates and in the case of a unit purchase you will
have strata fees. |
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You may also have to allow
for other costs such as building and pest inspections.
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Mortgage Stamp Duty
You will be required to pay
mortgage stamp duty on the amount of the new loan. We will assist you to
determine the amount.
Accrued Interest
When you obtain a payout from
your existing lender it will include all their costs to clear the existing
loan, including accrued interest to the date of settlement. You will need
to allow for the total amount when determining the amount of money you
need to borrow.
Lenders Mortgage
Insurance (LMI)
The LMI fee
applies only when you borrow more than 80% of the property's value (on a
fully documentation loan), this covers the lender if for some reason you
cannot repay your loan and the property is sold for less than the amount
of the loan. We will add the cost of LMI to the loan.
Building
Insurance
Prior to settlement of your loan you will
need to provide evidence that your new property is suitably insured. In
the case of a unit this will usually be insurance taken out by the Strata
Plan.
| What
to do now |
| 1. |
If you are ready to
proceed, check out our home loan products and select one that best
suits you. |
| 2. |
Work out the amount you
need to borrow and use our calculator to work out your repayments.
You may need to contact your existing lender to determine the full
amount required to refinance your debt, including any penalties you
may have to pay. |
| 3. |
Apply for your loan online
or ring us and talk to one of our home loan Consultants to see if
you qualify for a loan. |
| 4. |
If you do qualify for a
loan we can arrange for one of our home loan Mobile Managers to
visit you, at a time and place to suit you, to assist you to
complete your application. |
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What you will need when
our Mobile Manager calls. |
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When you apply, make sure you have the
following items (we may ask for a few other things depending on your
individual circumstances): |
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current six-month loan statements from
your existing lender (if a loan is to be refinanced).
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details of your current employment
income information |
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details about your assets - their value
and any income you get |
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details about your ongoing expenses and
regular payments |
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information about the type of loan (our
home loan consultants will help you if you are not sure)
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the amount you want to borrow.
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copies of your identification eg.
drivers licence etc |
