Home Loan FAQ's
Our most frequently asked home loan questions below:
Am I eligible for a Home Loan?
You may be eligible for a home loan depending on how much surplus income you have available for repayments. A mortgage is a big commitment so we will look at your income, expenses and other debt you may have before we can make a decision.
What can I afford?
To see how much you can afford, work out a budget for you and your family – this will give you an idea of how much you can afford to set aside towards the costs of owning your own home.
How do I apply?
What information will I need to provide?
We will need you to provide us with some extra information to help us assess your situation, in addition to your application form. Please use the checklist below to make sure you include everything needed with your application.
- A completed Home Loan Application form. If you don’t have an application form or you need assistance with it, give us a call or come in and see us to go over your application in person.
- Proof of Income. We’ll need to see 3 of your most recent payslips; or an original letter from your employer confirming your base annual salary and starting date. If you’re self-employed we’ll need to see signed final financial accounts for the last two years of self-employment (prepared by a chartered accountant).
- Last 3 months bank statements – for your main transactional account/s.
- Proof of outstanding balances on any personal loans, hire purchases and credit cards (including Farmers card, Warehouse card, Q-card etc).
Required on Pre-Approval
- Copy of Sale & Purchase Agreement.
- Registered valuation on the property you want to buy (if applicable).
- Statutory Declaration of Gift - Deposit (If applicable).
- Life and/or Loan Repayment insurance
- House insurance
How long will it take to repay?
This depends on how much you borrow and how much your repayments are.
How much and how often will the repayments be?
Your repayments will be calculated by how much you borrow and how long the term of the mortgage is, and they are usually made on a weekly, fortnightly or monthly basis.
Do I have to pay an application fee?
No. The great thing about all of our loans are the low fees!
What about insurance?
Insurance of the property you purchase is compulsory and we can make these arrangements for you (see House & Contents Insurance). However, if you so wish, you can arrange this yourself through another insurer.
Do I need a lawyer?
Yes – your lawyer will act on your behalf, regarding all legal requirements in refinancing or purchasing the property.
Can I get pre-approval?
Yes you can. Final approval is subject to your deposit and the property you are purchasing. We may also advise you that we require a registered valuation.
What is the interest rate?
Check out our interest rate table for the current home loan rate.
Do I require a property valuation first?
No, we will advise you if one is required.
Can I make extra payments to my mortgage without penalty?
Yes! Extra payments to your mortgage can be made without penalty costs.
What is the maximum term?
The maximum term of a First Credit Union home loan is 30 years.