Employment

Full Time

Usually a minimum of 3-6 months is required, providing any probationary periods are completed. If you have a history of similar employment, and no Lenders Mortgage Insurance is required (ie <20% deposit), the minimum term may be waived.

Part Time

Usually a minimum of 3-6 months is required, providing any probationary periods are completed.

Casual

Usually 12 months with the same employer, or continual employment in the same field, is required.

Self Employed

A minimum of 2 years is required ie you must be able to provide Financials for the previous 2 years. This must be in the form of a Tax Return and must include the Profit & Loss Statement and Depreciation Schedule (if applicable). Some Lenders may require only the previous Financial Year Returns.

For Self Employed applicants who do not wish to provide Financials, you may obtain finance under a Lo/No Doc policy. Minimum deposit for these products is 20%. (See Lo/No Doc Products)

Overtime

Overtime can be included at 50-100% however it must be a condition of employment or continual for the previous 12 months. This will usually be supported by your previous Financial Years Group Certificate.

Commission

Commission can be included at 50-100% however it must be consistent for the previous 12 - 24 months. This will usually be supported by your previous Financial Years Tax Return.

Rental Income

70 - 100% of the gross rental may be considered as income. This will have to be supported by a current Tenancy Agreement or a letter from a Letting Agent stating the proposed rental income.

Family Payment

Selective Lenders will allow Family Payment as income however dependants must be 12yo or less.

Maintenance

Selective Lenders will allow Maintenance as income, however, dependants must be 12yo or less and payments received via the Child Support Agency.

Commitments

A satisfactory repayment history of all current commitments is required.

Home Loans

The previous 6 months statements must be provided.

Car/Personal Loans

The previous 6 months statements must be provided.

Credit/Store Cards

The latest statements must be provided. These must not show any overdue amounts or be in excess of the card limits.

Credit Checks

Lenders will perform Credit Checks on every application. Any issues arising from this check will have to be resolved and a written explanation provided.

Products are available for applicants with credit issues. (See Credit Impairment Products)

Application Fees

Application Fees range from $0 - $750 depending on the Lender and Product/s chosen. The Valuation Fee (for 1 property) is usually included in the Application Fee but you may incur additional Valuation Fees if the application involves 2 properties or more.

Professional Packages may have a nil Application Fee however an Annual Fee may apply.

In addition to the Application Fee, you may also incur fees for Document Preparation, Title Search, Settlement, and the Banks Legal"s.

A Registration of Transfer Fee (Government charge) is also payable dependant on the purchase price of the property and the Lender usually collects this amount.

For Construction loans, Drawdown/Progress Payment Fees may be charged.

Discharge fees or Deferred Establishment Fees may apply where you discharge a loan within a certain period of settlement ie the 1st 3 - 5 years. This is particularly common where the Application Fee is nil or the Interest Rate has been discounted.

Account Keeping Fees

Some Lenders charge a Monthly Account Keeping Fee on Home Loans and the amount charged can depend on the Product chosen. Some Products such as Professional Packages carry an Annual Fee in lieu of Monthly Fees.

Mortgage Insurance

Lenders Mortgage Insurance (LMI) is payable when you have less than 20% deposit. The LMI is to protect the Lender from any losses incurred should they repossess the property. Where the Lender claims MI, the Mortgage Insurance Company will seek the reimbursement of the claim from you.

The premium payable is dependant upon the deposit you contribute, the loan amount, and whether the loan is Principle & Interest or Interest Only.

Some Lenders will allow you to add the premium to your loan.

Stamp Duties

Transfer Stamp Duty

Transfer (Purchase) Stamp Duty is payable on all property purchases and will depend on the purchase price. Exemptions may apply for first home owners and owner-occupiers.

For the estimates of the various stamp duty amounts that may be applicable please visit the the calculators section of the Office of State Revenue web site.

Conveyancing

We recommend you utilise the services of a Conveyancer/Solicitor. They will usually have a set fee for their services. In addition to their fee, you will pay for any Searches that are required.

Other Costs

There are a number of other costs associated with the purchase of property that you may need to consider. These include:

• Building & Pest Inspections
• House Insurance
• Rates Adjustments
• Removal Costs