Homeloans frequently asked questions

Unlike a bank, Homeloans specialises in home loans. We source funds from a range of secure institutions, offering our customers a range of products to suit all types of borrowers.

At Homeloans we believe in providing exceptional personalised service throughout the life of the loan to ensure that obtaining and having a mortgage is a positive and rewarding experience.

Homeloans sources its funds through various wholesale lenders, including large financial institutions.

Homeloans offers competitive products and interest rates and will always strive to provide a positive and rewarding experience.  Unlike a bank, we provide a personalised service where you can ask for someone by name.  We won’t cross-sell alternative means of credit as we specialise in Homeloans.

Yes. Homeloans is one of Australia’s most trusted mortgage companies with a pedigree stretching back to 1985.
We were the winner of the Mortgage and Finance Association of Australia (MFAA) Mortgage Manager of the Year Excellence Award in both 2009 and 2010 which is an unbiased recognition of the best of the best in the mortgage and finance industry.

We also pride ourselves on:

• an Australia-wide presence
• Established for 25 years
• Over 20,000 customers
• A loan book of $6 billion
• Winner of Mortgage Business magazine’s Best Mortgage Originator Award
• A fantastic customer benefits program
• Our Carbon Conscious™ initiative
• Publically listed on Australian Stock Exchange (ticker: HOM) since 2001

Overview of the home loan application and settlement process:  

1. You’ve found your dream home or you’ve decided to refinance
2. You meet with a Homeloans consultant or an accredited broker to discuss your needs
3. You complete the Homeloans application form and submit all necessary documents require for approval
4. Your loan is assessed by our credit team and the property valuation is ordered
5. When all conditions of approval are received your loan can be formally approved
6. Our solicitors prepare your letter of offer and mortgage documents
7. You sign and return the letter of offer and mortgage documents
8. Homeloans prepares your loan for settlement
9. Congratulations! Your loan is settled

Once the loan is settled, you manage your loan by making repayments (weekly, fortnightly or monthly) for the life of the loan.  Your repayments are based on the annual interest rate, loan term, repayment frequency and loan amount.  These repayments can be set up to occur electronically from your nominated bank account.  If you require any assistance in relation to your repayments please call one of our consultants on 1300 78 78 74.

If you ever wish to make an enquiry into your options, or make a change to one of the features of your loan (e.g.  rate change, refinance, offset account) please call us.  We have trained consultants who will guide you in the right direction.

As our customer research has told us that once their loan has been set up the vast majority of our customers would prefer to deal with their home loan provider remotely (by internet, email or telephone), we do not have a network of branches.  Our focus is therefore on being able to offer excellent service via our call centre, by email and by providing internet banking.

However, as many of our customers do prefer to deal face-to-face to select a loan and carry out the application process, we have a network of satellite offices and mobile loans consultants in many locations Australia-wide, enabling you to visit us, or we can visit you!

A fixed interest rate will not change during the fixed period. During the fixed period the borrower knows their repayments will remain unchanged. A fixed rate loan is advantageous if variable interest rates rise. When variable interest rates rise, a borrower with a fixed interest rate is relatively better off because their rate will remain unchanged.

A variable home loan interest rate moves up and down with market interest rates. One of the determinants of variable home loan interest rates is the cash rate set by the Reserve Bank of Australia. When the Reserve Bank alters the official cash rate, most variable home loan interest rates change by a similar amount, however it is important to note that there are a number of other factors that affect your interest rate.

Conversely if interest rates fall a borrower with a fixed interest rate is relatively worse off because they do not benefit from the fall in variable rates.

One of the major choices you’ll make when choosing a home loan is whether you’ll go with a fixed or variable loan. Which one you choose depends on your personal situation, that is; your finances, the features you need in a loan, how long you plan to own the property and whether you believe interest rates will rise or fall.

Our consultants are trained and highly experienced in this area and will help you make a decision based on your personal situation and needs.

Make an appointment today.

A split loan or combination loan brings together the benefits of variable and fixed interest rates into a single home loan. This can be an attractive feature for some customers as it allows you to customise the loan and reduce the effect of interest rate changes.

The loan can be split in many ways however 60% variable/ 40% fixed or 50/50 splits are the most common. If you need the security of a fixed rate home loan but want the flexibility of a variable rate loan, then a split loan may be the answer.

Use the split rate calculator to calculate your repayments under different fixed and variable rate scenarios or otherwise speak to a consultant about this feature.

We will send you a letter in the mail approximately one month before your loan is due to expire notifying you that your loan is coming up for expiry.  The letter will outline the new fixed rates Homeloans can offer you, also the new variable rates applicable to your loan.

You repay your home loan through weekly, fortnightly or monthly repayments for the life of the loan. Your repayments will essentially take into account the annual interest rate, loan term, repayment frequency and loan amount. Loan repayments can be organised through bpay, direct debit or in the case of offset accounts, EFT.

Please refer to our repayments calculator to get an idea of your repayments.

Redraw is a feature which allows you to withdraw the extra money you've paid into your home loan.  That is, the extra money you have paid in addition to your scheduled repayments.

You can redraw as often as you like, as long as you have made additional repayments over and above your scheduled repayments.

If you have the option of a redraw facility on your home loan, you will be provided with an ATM card.  You can use your ATM card to make withdrawals from your redraw account as long as you have made additional repayments over and above your scheduled repayments.

ATM cards are only available to customers who have a redraw facility with Advantedge.

Yes, some of our loans offer a credit card as part of the home loan package.  They work much like a normal credit card and are paid back monthly from your line of credit. 

Credit card packages vary depending on the home loan product.  For more information on the specifics of the credit cards available, please contact us on 13 38 39.

Running your own business is stressful enough, that’s why Homeloans has easy options for self-employed borrowers wanting to purchase a new home or refinance their existing debts.

Our loans for self-employed borrowers require little or no documentation or financial paperwork and include all the features of a standard home loan.

Instead of providing tax returns and financial statements to verify your income, you simply sign an income declaration stating how much you earn.  You may borrow up to 80% of the property’s value.

Lo doc loans are available for borrowers with a good credit history and a current ABN. Options are available for borrowers who wish to borrow more than 80%, who may be credit impaired or do not fit within traditional lending requirements.

More about Lo Doc loans

A line of credit is a flexible transactional mortgage that allows you to access your funds through a variety of methods including credit card, cheque or EFTPOS.

A line of credit is a great option for those wishing to access the equity in their existing home for investment or other purposes such as a holiday or buying a car. These types of loans are also a great idea for renovators who are able to access their funds as they need them and in retail stores.

Lines of credit can also be great for debt minimisation. If you are responsible with your money you can have your salary directly deposited into the loan and use your credit card for day to day purchases. This card can then be swept to your line of credit before your interest free days expire.

More about a Line of Credit

If you can't achieve simultaneous settlement, bridging loans are often used to cover a finance gap between the purchase of a new property and the sale of an old property.  For the purchase of established property, you are not required to make any repayments for the first six months or until the sale of your existing property (whichever occurs first).
 
For construction, repayments are not required for the first twelve months.  The interest repayments during this time are capitalised.  However you can make regular or one off payments at any time if you choose.  A 100% offset facility is available during the Go Between period.

It depends on your individual circumstances. There are a myriad of loans to choose from and the best way to figure out the most suitable loan for you is to speak to one of our specialist, accredited consultants. It is important to deal with a trusted professional organisation as it is one of the biggest decisions you’ll ever make.

Please call us on 13 38 39 to arrange a time to discuss your options.

See our range of home loans.

To view Homeloans current competitive interest rates please click here.

If you are ready to stop renting and get into your own home, Homeloans can help cut through the mortgage jargon and find the loan that best suits your needs. 

Buying your first home is a major milestone in your life but does not need to be stressful or confusing.  We have several options for first home buyers which can make the purchasing process easy and affordable.

Click here to book an appointment with an accredited mortgage consultant or call 13 38 39.

Click here for more information about getting yourself in a position to obtain finance.

LVR stands for Loan to valuation Ratio.  This is the measure of the amount of the loan compared to the value of the property. For example, if you have borrowed $160,000 and your property is valued at $200,000, the LVR would be 80%

Selecting the right loan from the thousands out there can be confusing. Make an obligation free appointment with your local Homeloans consultant to discuss your needs click or call 13 38 39.

By making an appointment:

1. Your details will be sent to your local consultant
2. Your consultant will call you within 24 hours
3. Your consultant will come to you to discuss your needs

Most of our home loans allow you to borrow up to 95% of the value of your property but you may have to pay Lenders Mortgage Insurance if your loan amount is more than 80% of the value of your property.

To get a better idea of how much you can borrow, use our 'How much can I borrow' Calculator, or make an appointment with one of our consultants.

Lenders Mortgage Insurance (LMI) covers the lender in the event of the borrower defaulting on their loan. If the property is subsequently sold, and the amount from the sale is insufficient to pay off the loan in full, this insurance will cover the lender for the shortfall. 

As a rule of thumb, this insurance is required if you are borrowing 80% or more of the valuation of the property.

Your relationship is with Homeloans.  You can contact one of our consultants at any time to discuss any queries you may have with your home loan on 1300 78 78 74.

As our customer research has told us that once their loan has been set up the vast majority of our customers would prefer to deal with their home loan provider remotely (by internet, email or telephone), we do not have a network of branches.  Our focus is therefore on being able to offer excellent service via our call centre, by email and by providing internet banking.

However, as many of our customers do prefer to deal face-to-face to select a loan and carry out the application process, we have a network of satellite offices and mobile loans consultants in many locations Australia-wide, enabling you to visit us, or we can visit you!

Generally speaking, you will be eligible for the first home owners grant of $7,000 if neither you or your spouse have owned a home nor claimed the grant previously.

For more information on the first homeowners grant visit www.firsthome.gov.au or speak to one of our consultants on 13 38 39.

We will send you a letter in the mail approximately one month before your loan is due to expire notifying you that your loan is coming up for expiry.  The letter will outline the new fixed rates Homeloans can offer you, also the new variable rates applicable to your loan.

Simply submit an online enquiry. One of our consultants will call you within 24 hours and organise everything for you.

Alternatively, call 13 38 39 to speak with one of our consultants.

We can offer loans for people with small defaults or those with paid defaults over a certain period of time.  We understand people may incur short term difficulties from time to time and we maintain an ability to review on a case by case basis. 

If we find you do not meet our credit criteria the first time, we will be happy to assist you get into a financial position in which we are able to provide finance.

We understand people’s situations change and that’s why we will always see you as someone we can assist even if it is sometime in the future.

Click here for more information about getting yourself in a position to obtain finance.

Contact Homeloans Client Services on 1300 78 78 74.

By phone on 13 38 39 for new customers or existing customers can call 1300 78 78 74 or making an enquiry online. 

Click here to access our online banking.

Phone banking is offered by each of our individual lenders. See below phone numbers for our different products:

• Homeloans MoniPower, Balanced Special, and Hassle Free  - 1300 300 893
• RMT - 1300 551 088
• Homeloans ProSmart and Smart Saver - 131 455
• Homeloans Ultra and Premium - 1300 300 988

As our customer research has told us that once their loan has been set up the vast majority of our customers would prefer to deal with their home loan provider remotely (by internet, email or telephone), we do not have a network of branches.  Our focus is therefore on being able to offer excellent service via our call centre, by email and by providing internet banking.

However, as many of our customers do prefer to deal face-to-face to select a loan and carry out the application process, we have a network of satellite offices and mobile loans consultants in many locations Australia-wide, enabling you to visit us, or we can visit you!

Absolutely. If anything changes, or if you have difficulties meeting your repayments please call 1300 78 78 74 and we will talk you through your circumstances and the options available to you.

Interest is charged daily and calculated for the month. As each month can have different amount of days, the interest charged each month can change.

The fixed rate will take effect from your next monthly repayment due date.

We will send you a letter in the mail approximately one month before your loan's fixed-rate term is due to expire. The letter will outline the new fixed rates Homeloans can offer you and the new variable rate applicable to your loan should you not choose to fix your rate again.

Loans contracted on or after 1 July 2011 are not subject to Deferred Establishment Fees (DEFs). Prior to this time most lenders, including Homeloans Ltd, included DEFs in mortgage products. These fees would only be levied in the event that the loan was discharged within a specified period. If your loan contract is dated prior to 1 July 2011, it may be subject to a DEF, and this will be outlined in your loan contract.

Simply submit an online enquiry. One of our consultants will call you within 24 hours and organise everything for you.

Alternatively, call 13 38 39 to speak with one of our consultants.