Home loan FAQS

Everything you need to know about open banking

Do I have to be a credit union member to take out a loan?

The Credit Union is a mutual financial institution and as such is owned by its members, each one of whom is a shareholder. Yes, you must be a member of the Credit Union to have a loan. We will happily process this as part of your loan application.

How much can I borrow?

Would you like to calculate how much you may be able to borrow? Use our Loan Calculator.

What is a deposit?

When you purchase a home and take out a loan, a deposit is typically required. The deposit is a percentage of the property's purchase price, and it is paid upfront as a commitment to the purchase. The amount of the deposit can vary, but it is commonly around 5% to 10% of the property's purchase price.

For most home loans, you will typically need to have an LVR (Loan to Valuation Ratio) of less than 80% meaning that you should contribute at least 20% of the purchase price of the property from your own funds.

What are the average legal fees for purchasing a home?

The legal fees associated with purchasing a home in Australia can vary based on several factors, including the complexity of the transaction, the location of the property, and the specific services provided by the solicitor or conveyancer. This is intended to provide you with a general idea, but it's important to note that fees may have changed, and it's recommended to consult with a local professional for the most accurate and up-to-date information.

In Australia, legal fees for conveyancing services typically range from around $800 to $2,500 or more. It's common for solicitors or conveyancers to offer fixed-fee packages that include various services, such as property searches, document preparation, and settlement assistance. Additional costs, such as government fees, disbursements, and title searches, may also apply.

It's crucial to obtain detailed quotes from potential legal representatives and clarify what services are included in the fee. Additionally, consider other potential costs associated with property transactions, such as stamp duty, inspection fees, and loan-related charges.

As real estate transactions and associated costs can vary, it's advisable to consult with a local legal professional or conveyancer who can provide accurate information based on your specific circumstances and the current market conditions.

What is a 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.

What are Building Inspection and Pest Reports?

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?

Our preferred method is via automatic payroll deduction. However, you can arrange to make your loan repayments by direct debit from your savings or transaction account with LCU or another financial institution.

How often will I receive information on my account?

Statements are produced quarterly or more frequently on request. Account information and electronic copies of your statements are also available through our Internet banking service or you can contact our office directly.

What security is required to take out a Home Loan?

Your home loan must be secured by a registered mortgage over a residential property.

Do I need to take out Home insurance?

Building insurance is required to be taken out equal to the amount stated in the recommendation on the property valuation.

Is a redraw facility available?

The Credit Union gives you the option of making extra repayments on your loan and then having the flexibility of being able to redraw on these extra repayments. Terms and conditions are available on application. The redraw facility is offered as a free service

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance if applicable, covers the Credit Union against a loss in the unlikely event that we have to exercise our right to sell the property due to on-going 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. To avoid LMI a deposit of 20% of the property's value is required.

What if my personal or financial circumstances change?

When you already have a home loan and your circumstances change, get in touch with us to discuss your available options. You might be eligible for a repayments pause or be able to otherwise alter your repayments. Contact us to discuss.