Home Loan FAQs and Benefits of a Home Loan

Geelong Bank 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 Geelong Bank to have a loan.

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

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-$2000)
• Survey and building certificate ($450)
• Building inspection and pest report ($400-$500)

Fixed Rate Lock Fee

Fixed Rates are subject to change up until loan settlement. Fixed Rate Lock is a feature of Geelong Bank’s Fixed Rate Home Loan Range that can guarantee your fixed interest rate for your chosen fixed rate term and protect you against rate rises between the time we receive your completed Fixed Rate Lock Request / Acknowledgement form and the date of your loan funding. Further information is available here.

There is a non-refundable fee charged for selecting the Fixed Rate Lock feature.

• The Fixed Rate Lock fee is 0.15% of the loan amount or $500, whichever is higher, capped at 1,000 for loans up to $2 million.
• For loans above $2 million, the fixed rate lock-in-fee is 0.15% of the loan amount.
• The fee will be refunded if the loan does not proceed to funding.

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

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.

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.

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 Geelong Bank or another financial institution.

By opening a Geelong Bank Mortgage Offset Account and linking this account to your Geelong Bank Home Loan, you can use your savings to help reduce the amount of interest payable on your home loan. The balance of your Mortgage Offset Account is 100% offset against your loan balance when interest is calculated.

Here’s an example of how it works;

Geelong Bank Home Loan balance: $100,000

Geelong Bank Mortgage Offset Account balance: $ 10,000

Loan interest calculated on: $ 90,000 (home loan balance less offset account balance)

As you can see, having an Offset Account reduces the amount of interest you pay. Your savings in the Mortgage Offset Account are accessible through Phone and Internet Banking.

If you are using the loan for investment purposes, an offset account can be a better option to using a redraw facility. An investor can reduce their loan’s tax deductibility if an amount is redrawn from the loan that isn’t for investment purposes. If your loan is for investment purposes, talk to a tax adviser to work out which option is best for you.

Please Note: The minimum transaction on the Mortgage Offset account is $250.

Statements are produced monthly. Duplicate statements can be requested at any time from our office.
Account information including balances and statements are available through our internet banking services.

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

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

Achieving the dream of home ownership is one of the most exciting times in your life. However, it also comes with a big challenge – the time it takes to save a substantial deposit that lenders often require (typically 20% of the home’s purchase price). If you do not have a substantial deposit saved, your lender may be prepared to provide you a home loan with a smaller deposit (as little as 5%), by taking out Lenders Mortgage Insurance (LMI).

Lenders Mortgage Insurance (LMI) is an insurance policy that your lender takes out to protect itself against the risk that you (the borrower) default on your loan repayments and your lender is unable to recover the full outstanding loan amount.

Lenders Mortgage Insurance is arranged by your lender and the premium is a one-off cost your lender pays to us (the insurer) upon settlement of your property purchase. This cost is passed on to you (the borrower) by your lender, as a fee.

We understand that buying a property is a very important decision and it can be both challenging and stressful. Geelong Bank uses Helia https://helia.com.au and to provide Lenders Mortgage Insurance.

To help you navigate through the home buying process refer to the following resource: https://helia.com.au/tools-resources/it-s-my-home provides you with professional insights and tips to get you started and guide you along the way.

By contributing any extra income to your loan, in addition to your usual repayments you are able to pay off your loan sooner and therefore potentially save thousands of dollars in interest charges.

(the earlier you pay your loan off the more money you save in interest charges)