FAQs Regarding Home Loans

To apply for a home loan, what documentation do I need?

To make the process as quick and efficient as possible, you’ll need the following:

  • A copy of your Driver’s Licence, Passport and/or Birth Certificate and Medicare Number
  • A copy of your two most recent payslips (your last two years Group Certificates – now called Payment Summary or PAYG Summary may be required)

If you are self employed, you will need two years of full financials for all entities

  • A copy of your savings account statement covering the past 6 months, which will confirm how much you plan to contribute
  • For refinancing an existing loan, a copy of your current loan statements for the past 6 months (additional documentation may be required depending on your circumstances)

Further information may be required depending on your personal circumstances. An Ink Wealth Manager can let you know what’s required in your specific situation.

I’m self-employed. Can I apply for a home loan and if yes, what documentation will I need?

Yes, if you are self-employed, you can still apply for a home loan.

You can choose to apply for a Full Doc (full documentation) loan or a Low Doc (low documentation) loan.

For a Full Doc loan, you will need full financial information for the past two years. This includes Personal and Company Tax Returns, Profit & Loss Statements, Balance Sheets, ATO Assessments and Tax Portals.

For a Low Doc loan, at least one borrower must be self employed with a registered ABN for a minimum of 12 months. You will also need an Executed Declaration from all Borrowers, and possibly an executed declaration from your accountant. BAS statement and/or bank statements may also be needed.

Should I find a property or get approved for a home loan first?

We believe it’s a good idea to obtain a pre-approval before you go looking for a property. This way, you have a clear idea of what your budget is beforehand and it also gives you the confidence of knowing you are in a good position to proceed if you find something you like that you can afford.

How long will it take for my home loan to be approved?

Here are some general timeframes:

  • A pre-approval is usually given within two to three business days. This gives you the chance to shop around for a property.
  • A conditional approval is usually available within two to three business days.
  • Depending on the valuation of the property, a formal (unconditional) approval is usually given within two to seven business days.

How long does my pre-approved home loan last for?

Generally it will last for three months. Beyond this, you will most likely need to re-confirm with the lender.

I am an Australian resident living overseas. Can I apply for a home loan?

Yes you can. We’ll be able to identify and recommend the best possible product and interest rate for you. Restrictions apply on the maximum amount you can borrow against the property value, and this depends on which country you’re living/working in. However it’s a bit trickier if you are self employed.

I’m not an Australian resident or citizen, can I apply for a home loan?

Providing you obtain a Foreign Investment Review Board approval, you can apply for a home loan. Visit the Foreign Investments Review Board website at: www.firb.gov.au for more details.

Can I buy a property with someone who I’m not related to?

Yes, you can.

Can I use a guarantor to help get my loan approved?

Yes, you can use a guarantor, provided they’re a spouse or family member. They can assist you with a Guarantee over Security or act as an income Guarantor. The rules for this do tend to vary according to the situation and the lender, it is best to check with a your Ink Wealth Manager before making any decisions

What is mortgage insurance?

Mortgage insurance is cover for the lender, not the borrower. Lenders will typically insist on it if you are borrowing more than 80% of the value of the property.

Will I need mortgage insurance?

It depends on your lender, but you will usually need it if you borrow more than 80% of the property’s value.

I have previously defaulted on a loan. Will I get approved for a home loan?

Depending on what the default is, who lodged it and how much it is for, you may be considered for home loan approval.

How much do I need to have saved to get approved for a home loan?

In general terms, you’ll need a minimum of 5% of the purchase price. However, other options may be available if you’ve not yet saved this much. Have a chat with your Ink Wealth Manager to discuss what’s possible in your situation.

What’s Stamp Duty?

Stamp Duty is a tax that’s payable on purchases of properties. There are two different types of Stamp Duty:

  • Stamp Duty on the Transfer of Title (a tax charged by state governments and paid by the purchaser)
  • Stamp Duty on the Mortgage (this tax no longer applies to most owner occupied and investment property loans, however you may be required to pay it on other types of loans such as Business Finance)

Stamp Duty varies by state and you can find out more here:

NSW – www.osr.nsw.gov.au
VIC – www.sro.vic.gov.au
QLD – www.osr.qld.gov.au
SA – www.revenuesa.sa.gov.au
WA – www.finance.wa.gov.au
TAS – www.sro.tas.gov.au
NT – www.revenue.nt.gov.au

Can I borrow 100% of the value of the property?

You may be able to borrow 100% of the property value (plus the costs involved in the purchase) provided you have a second property that can be used as security.

Another way to access 100% finance may be through a family guarantee.

Outside of these options, and in most other circumstances, a minimum 5% of the purchase price is required as a deposit.

Can I lock in a fixed rate?

Yes, provided you complete a Rate Lock Application and pay a small fee, it’s possible to lock in a fixed rate. Unless advised differently, the fee is normally 0.15% of the loan amount but this can vary according to different lenders.

How long does a locked-in rate last for?

Generally 90 days from the time your lender approves your loan, or 90 days from when you request a rate lock on an existing loan.

Can I make lump sum repayments if I take a fixed rate loan?

Yes you can, and generally it is about $30,000 per maximum per fixed term. But each bank has a different limit per year or per fixed term so it’s best to check.

Which loans include an offset account?

Generally speaking, loans with a standard variable rate of interest do offer offset accounts – however, some lending institutions will allow an offset account on their fixed rate products. If in doubt, ask Your Ink Wealth Advisor to clarify this for you.

Will I be penalised if I make extra repayments?

No, you will not be penalised for making extra repayments on any variable rate home loans.

Can I have a combination of a fixed and variable home loan?

Yes, you can have a combination of variable and fixed rates in your home loan.

Can I have ATM access to my home loan account?

ATM access is usually only available to directly access funds in an offset account or a line of credit.

Will I be penalised if I only have this loan for a short period?

For Home Loans taken out since 1 July 2011, early termination fees no longer apply. If you took out your loan before this, check your loan documentation or contact your current lender.

What fees apply to my home loan?

It depends on what type of loan that you take out.

Some common fees include:

  • An establishment fee
  • An Annual Package Fee which is paid when the loan is established and at each anniversary.
  • A Settlement fee
  • Government Charges which vary from State to State

Which is better, redraw or offset?

This depends on your purchase strategy:

  1. If you wish to purchase a property to live for the next two to three years and then convert it into an investment property loan, we would recommend an Interest Only loan with an offset account.
  2. If you plan to live in the property long term and aren’t looking to purchase another owner-occupied property, then either redraw or offset would be suitable.

Speak with your Ink Wealth Advisor first to discuss what’s best in your specific circumstances.

Can I access my loan account online?


How do I make loan repayments?

You can make repayments to your loan via:

  • Direct salary crediting
  • Direct debit facility
  • Internet transfer

Will I need a solicitor?

You can choose to engage a Solicitor to assist you with the purchase of a property, or alternatively, you can use the services of a Conveyancer who can complete the same work (often at a lower cost).

If your home loan question isn’t answered here, please contact us. We’ll be very happy to help.