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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

Deposit

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. Duplicate statements can be requested at any time from our office.
Account information is also available through our Internet and Phone banking services.

What security is required to take out a Home Loan?

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

What happens if I get sick, have an accident or lose my job?

The best way to obtain peace of mind that your repayment obligations will be met in the case of accident, illness or involuntary unemployment is to take out insurance. Learn more about our Loan Repayment Insurance.

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. Although you don't have to purchase your insurance through us, we do offer a range of CGU Home insurance policies.

Do I need to take out Loan Repayment Insurance?

It is recommended that you take out insurance on your loan, although not compulsory, it is designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. Although you do not have to purchase your insurance through us, we do offer a range of insurance policies. Learn more about our Loan Repayment Insurance.

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.

  Additional information

Questions?

If you have any questions, please contact us.

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