Property faq's

FAQs

Q. How do I apply for a Residential or Investment Home Loan?
A. Simply contact one of Mortgage Specialists and we will step you through the steps that is required.

Q. What is Stamp Duty?
A. Stamp Duty is a State Government tax payable by the purchaser of real estate based upon the purchase price of the property. Depending on individual State legislation this tax is generally paid prior to settlement. You can increase your loan to cover these costs and we will release funds prior to settlement (conditions apply). First time home buyers may be exempt from stamp duty or entitled to a rebate or concession such as the First Home Owner Grant Scheme.

Q. What is the First Home Owner’s Grant?
A. Eligible first home buyers can receive non-means tested government assistance and is governed by the local States and Territories. It covers only the purchase of your first home in Australia. If you're married or in a de facto relationship, you must make a joint application for the grant with your partner. You're eligible to apply if you are:

  • Buying your first home
  • An Australian citizen or permanent resident
  • Intending to make the home your principal place of residence

Q. What is the difference between a fixed rate loan and a variable rate loan?
A. A fixed rate loan is where the interest rate remains the same for a period of time, and at the end of the term, the loan reverts to a variable rate.  A variable rate loan is where the interest rate generally goes up and down according to the fluctuations in market rates.

Q. What is a redraw facility?
A. This allows you to access any additional repayments you have made on your loan. Any redraw amounts get added to the amount you still owe on the home loan.

Q. What is the difference between a Principal and Interest Home Loan and an Interest-only Home Loan?
A. A Principal and Interest Home Loan is where the principal and the interest are repaid together for the term of the loan. Whereas an Interest-Only Loan allows you to pay only the interest on the loan, rather than paying both principal and interest. This payment option may be useful for property investors because it maximises the investor’s tax deductions

Q. What is Loan to Valuation Ratio (LVR)?
A. When purchasing a new property or refinancing, lenders usually advance up to 80%. At the cost of paying a one-off cost mortgage insurance premium lenders will advance up to 95% and allow the cost of this premium to be added to the loan up to 97% of the valuation.

For further information please contact one of Mortgage Finance Specialist on +61 (2) 9212 0799.

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+61 (2) 9212 0799

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