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Home loan FAQS

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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. If you would like to become an LCU member please fill out an LCU membership application form and send it back to us with the required ID.

How much can I borrow?

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

What costs do I need to consider?

  • Deposit
  • Registration fees
  • Legal fees
  • Searches and inspections
  • Stamp Duty
  • Other commitments


The biggest initial cost is the deposit. This could range from 5% to 20% of the value of the property.

Registration fees

Registration fees are payable on a property purchase and on a mortgage.
Whenever a property changes hands, the change of ownership must be recorded with the appropriate State Titles Office. A document known as a Transfer of Land must be lodged, the cost of which varies in each State/Territory. Please contact your solicitor/conveyancer who should perform this task on your behalf.
There may also be a government charge to register your mortgage document. We will pay the applicable state authority on your behalf. You will be charged at cost.

Legal Fees

Legal expenses for the average home purchase include:

  • Solicitors fees (between $500 and $2000)
  • Survey and building certificate ($450)
  • Building inspection and pest report (between $450 and $500)

Searches and inspections

Contracts should never be exchanged until the necessary searches and inspections have been completed.

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.

Building inspection and pest report

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 quarterley 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. 

  Additional information


If you have any questions, please contact us.

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