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Frequently Asked Questions
- Am I eligible
for a home loan?
- How much
deposit do I need?
- How much can I
borrow?
- For what
purpose can I borrow?
- Do we lend for
business purposes?
- Can I borrow
If I am Self Employed?
- What types of
home loans does Centra Finance offer?
- Do you have
Interest Only loans?
- What will my
repayments be?
- How is
interest calculated?
- Am I able to
make extra repayments?
- What happens
if interest rates increase or decrease?
- Can I redraw
the additional payments I've made?
- Does Centra
Finance offer Fixed Rates?
- Can I split my
home loan between fixed and variable rates?
- Can I split my
home loan between different loan accounts?
- When will I
receive statements?
- Can I get
access to my home loan on-line?
- Do I have to
have life insurance?
- What is
mortgage insurance?
- What is a
deposit bond?
- How can I
contact Centra Finance
- How do I apply
for a loan?
- What
documentation do I need to provide?
- What other
costs are involved?
- How long does
it take to get approval?
- Can I repay my
loan early?
- Am I eligible for a home loan?
If you are
over 18 and you can meet our lending guidelines, any Australian Resident
can apply for a Centra Finance home loan. TOP
- How much deposit do I need?
A minimum
deposit of 5% of the purchase price or property valuation is normally
required. However, some of our home loans accept a lower deposit. LoDoc
loans, have a minimum deposit requirement of 20%. TOP
- How much can I borrow?
Our minimum loan is
$50,000, however there is no set maximum loan amount. The actual amount
depends on your individual financial position and the Centra Finance
product you choose. TOP
- For what purpose can I
borrow?
Centra Finance will lend for the following:
- The purchase a residential property in which you plan to live
- The refinance an existing home loan.
- The purchase a residential property for investment purposes.
- For investment purposes.
- To refinance an existing home loan together with debt
consolidation.
- For the purchase of an investment property.
- For some business purposes, provided a residential property if
offered as security.
TOP
- Do we lend for business purposes?
Yes, in
certain circumstances. TOP
- Can I borrow If I am Self Employed?
Yes.
Our LoDoc product is designed for self employed people. All you need in
support of your application is a signed declaration stating your income
and your ability to make required repayments. Our LoDoc products all
have favourable rates, which means you are not penalised for not
providing full financials. TOP
- What types of home loans does Centra Finance
offer?
We offer a full range of home loan products to suit most
borrowers requirements. Our range includes: Basic home loans, 100% home
loans, flexible & fully-featured home loans. A range of LoDoc loans
for the self- employed & Line of Credit home loans. TOP
- Do you have Interest Only
loans?
Centra Finance offers Interest Only loans to a maximum of
ten years on most loans (please refer to product matrix to see where it
is applicable). With a Line of Credit Loan you can have Interest Only
repayments for the full term of the loan. TOP
- What will my repayments be?
Your minimum
repayment is calculated by working out the amount needed to be paid to
reduce your loan balance to zero over the term of your loan. This amount
may vary if you decide to make extra repayments. TOP
- How is interest calculated?
Interest is
calculated on the closing daily balance. So if your home loan allows you
to make additional repayments, any additional payments save you
interest. TOP
- Am I able to make extra repayments?
This
depends on the loan product you choose. See individual product features
for full details. TOP
- What happens if interest rates increase or
decrease?
If you have a variable rate loan and interest rates go
up or down, we will recalculate your minimum repayment based on the new
rate. We will write to you to advise your new minimum repayment and the
date it becomes effective. If you have a fixed rate loan your rate and
repayments will not change during the period of the fixed rate
agreement. TOP
- Can I redraw the additional payments I've
made?
Yes. All variable rate products have a redraw facility. See
individual product features for full details and any applicable fees and
conditions. TOP
- Does Centra Finance offer Fixed Rates?
Yes.
Fixed rates from 1,2,3,4 5, 7 or 10 year terms are available for most
products. See product matrix to see which products offer a fixed rate
facility option. TOP
- Can I split my home loan between fixed and
variable rates?
Yes, available in most products. See product
matrix to see which products offer split facility option. TOP
- Can I split my home loan between different loan
accounts?
Yes, available in most products. See product matrix to
see which products offer split facility option. TOP
- When will I receive my loan statements?
You
will receive statements semi-annually detailing all the transactions on
your loan during the statement period. TOP
- Can I get access to my home loan
on-line?
Yes, you can for most loan types. TOP
- Do I have to have life insurance?
No.
However, Insurance is an option you should consider independently. TOP
- What is LMI (lenders mortgage
insurance)?
Lenders Mortgage Insurance (LMI) is usually required
if the loan required is more than 80% of the value of the property, or
the loan is more than 60% of the value of the property for LoDoc loans.
LMI is paid by the borrower and covers the lender in the event of loan
default or if the house is sold for less than the amount owed under the
mortgage. TOP
- What is a deposit bond?
A deposit bond is a
way to cover the deposit on a property purchase when you do not have
immediate access to the necessary cash deposit. The value of the bond is
equal to the required deposit. TOP
- How can I contact Centra Finance
If
you want to apply for a home loan, contact us on 02 4385 5515. If you
are an existing customer you can contact us
by: Telephone - 02 4385 5515 Monday to Friday 9am to 6pm
(EST) Email -
info@centrafinance.com.au Facsimile
- 02 4385 5516 Postal Address - Level 1, 167 Willoughby Road
Terrigal NSW 2260. TOP
- How do I apply for a loan?
You can apply
for a Centra Finance home loan in a variety of ways: Call 02 4385 5515
and we will then arrange for a Home Loan Mobile Manager to call you to
make an appointment. TOP
- What documentation do I need to
provide?
Depending on your circumstances and the home loan
product you have applied for, you will need to supply the
following: - Completed and signed Centra Finance Application Form -
100 Point Check FTRA Form per applicant. - First Home Owners Grant
application (if 1st home buyer). - Signed copy of Contract of Sale
(required for purchase only). - 6 Months Home Loan Statements
(required for refinance only). - Rates Notice for existing property
used as security (required for refinance/equity releases only). -
Copy of last 6 months' loan statements for any loan to be paid out
(required for loan consolidation only). - Evidence of income - most
recent payslip or letter from employer detailing conditions and most
recent group certificate (for PAYG applicants).- Last and Previous Year
tax returns and financials (for self-employed, if not available please
refer to Low Doc self-certified section).
If you are applying for
a LoDoc loan you will need to supply the following: Self Certification
Form and if you have additional PAYG income aswell then we will require-
Group Certificate or Tax Assessment or last year's Tax Return plus one
of the following:- Current payslip Or- Letter of employment detailing
employment conditions.
If you are Self Employed- Signed Last
Financial Year tax return including tax assessment notice- Previous
Financial Year tax return including tax assessment notice. TOP
- What other costs are involved?
Costs vary
depending on the value of the loan. There is no application fee payable,
however, a valuation fee will be collected on indicative approval and
this varies depending on the security property. The valuation fee will
be refundable after settlement to all customers that proceed to settle
the loan. In addition to this, you may need to allow for Mortgage
Insurance, Stamp Duty and Solicitors fees. TOP
- How long does it take to get approval?
In
most cases your home lending consultants will be able to give you a
pre-qualify approval straight away over the telephone. How quickly you
get full approval depends on you providing the signed application and
the necessary documentation to support your application and
Centra Finance obtaining a valuation of the property. TOP
- Can I repay my loan early?
Yes. However,
there is an early repayment fee payable on all loans. Other fees and
charges may also apply, depending on information contained in your loan
agreement. TOP
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