Guides, Tools, Tips & Links

Links & Resources

Property Related Websites

Australian Property Institute

Work out what you should be paying for the property of your choice. Click on Apti-Divisions for a list of valuers in your area.

Home Price Guide

Buy a price guide for the area you like. This guide provides a list of prices paid for specific houses or units in any postcode from the past 12 – 24 months.

Client Related Websites

My Credit Report

This will assist you to understand your credit file and what Credit Law can do to rectify any problems like defaults, bankruptcies or court judgments.

Building & Pest Inspections

Before you sign a contract, we recommend you hire a professional to complete a pest and/or building inspection.

Dispute Your Credit Report

A service which provides you with a written report of legal advice from $220 delivered within 14 days.

Credit Ombudsman

Make a complaint to the credit ombudsman about your mortgage broker or lender.

Government Related Websites

First Home Owner’s Grant & Stamp Duty Information

To determine your eligibility for the First Home Owner’s Grant, download the application form, and help calculate stamp duty on varying property prices for all states.

Consumer Affairs

Forms and publications on buying and selling property, building and renovating, motor cars and renting.

Australian Tax Office

Find your lost super, GST and employer essentials, information on BAS, tax returns, tax deductions, and tax withheld calculator.

Australian Business Register

Apply for an ABN, and conduct a search to obtain more information on businesses that have an ABN.

Frequently Asked Questions

Have a question? Below is a list of answers to the questions most commonly asked by our clients and past visitors to our site.

Simply click on a question below to see the answer.

If you have a question that is not answered below, please submit your question or enquiry and we will get back to you.

What costs are involved when purchasing a property?
How much money can I borrow?
What affects my borrowing capacity?
How can I improve my chances of obtaining finance?
I am self-employed and have not prepared my tax returns. Am I still eligible for a home loan?
I have credit impairment. Am I still eligible for a home loan?
What are some ways to reduce a mortgage quicker than 30 years?
Why would I take out an interest only loan?
How often can I make mortgage payments?
How much do I need to save for a deposit?
What is the First Home Owner’s Grant?
How do I know if I am eligible for a First Home Owner’s Grant?
What is lenders mortgage insurance?
What documentation will I need to supply for a home loan application?
What is your Complaints Procedure?
How do I calculate stamp duty if I were to purchase an established home in Victoria?

Q: What costs are involved when purchasing a property?
A: As a rough guide, it is recommended that you budget 5 – 7% of the purchase price to cover fees and charges. These fees and charges may include (but are not limited to):

Stamp duty.
Transfer of land.
Building/pest inspection.
Valuation fees.
Lender’s mortgage insurance (LMI).
Solicitor fees.
Insurances.
Connection fees – phone/gas/electricity.
Rates.
Removal fees.

Q: How much money can I borrow?
A: The amount you can borrow, commonly known as your borrowing capacity, will differ from lender to lender. To get an indication of how much you can borrow, use our borrowing capacity calculator. You should then make an appointment with us to get a complete individual assessment of your situation.

Q: What affects my borrowing capacity?
A: Your borrowing capacity will be affected by how many dependent children you have, your current income and your total current debt commitments. These variables play a major part in how much a lender will lend you. Mind you, there is a large range with borrowing capacity between lenders.

Q: How can I improve my chances of obtaining finance?
A: To improve your chances of obtaining finance through a mainstream lender, reduce the number of credit cards or card limits you have. Lenders look at your maximum limit, not what you owe – the bigger the limits the less you can borrow.

Secondly, review your credit history. If you are suspicious of any defaults or mistakes, you can order your own credit file for free by visiting http://www.mycreditfile.com.au/ or by phoning Baycorp Advantage on 02 9464 6000.

Finally, if you have fallen behind in repaying existing debts, make sure you pay the arrears immediately.

Q: I am self-employed and have not prepared my tax returns, am I still eligible for a home loan?
A: Self employed people now have access to ‘low-document’ or ‘no-document loans’ which means no proof of income required and no declaration of assets or liabilities needed either.

Q: I have credit impairment. Am I still eligible for a home loan?
A: People with poor credit histories now have access to non-conforming loans. They begin with slightly higher interest rates yet with a good repayment record you can move on to a conforming or regular loan, with a lower interest rate.

Q: What are some ways to reduce a mortgage quicker than 30 years?
A:

Pay more frequently than monthly – with fortnightly repayments you will
actually be making one additional repayment a year. However, for this to
be effective it is important that you ask your lender to halve your monthly
repayments rather than recalculating them.
Make extra repayments above the minimum – even $80 a month on a $200,000 loan at 7.32% will save you 3 years and 3 months off your loan term.
Extra money like inheritance, a good tax return, a bonus from work should be credited into your home loan. If you have a redraw facility you still have access to this extra repayment when needed.
Make your first repayment at settlement.
Consider a 100% offset feature.
Salary crediting: you can use a credit card with a good interest free period to pay for your regular living expenses and at the end of the month have the card ‘swiped’ (or paid off) against the home loan.
If interest rates fall ask your lender to leave your repayments as is.
Do a regular stocktake on your home loan. A loan may start off as good but have its competitiveness eroded by increased fees or rates, or by the introduction of better priced products on the market.
Interest repayments on an owner occupied home loan are non tax-deductible, which means it makes good sense to give priority to paying off your home loan quickly instead of directing funds towards paying off investment loans or having them sit in low interest-bearing deposit accounts (where any interest received will also be taxed).

Q: Why would I take out an interest only loan?
A: This is a loan used mainly by property investors. It allows the borrower to pay only interest for an agreed period instead of principal and interest (i.e. the principal balance remains the same during the interest only period). This maximizes the investor’s tax deductions whilst also freeing up cash flow for other investing opportunities.

Q: How often can I make mortgage payments?
A: Most lenders these days offer flexible regular repayment plans. You can choose to pay weekly, fortnightly or monthly. Your repayments can therefore be matched to your pay cycle.

Q: How much do I need to save for a deposit?
A: The deposit required depends largely on the type of the home loan and, of course, the lender you select. As a general rule, you will require a total of 5 – 7% of the purchase price as a deposit.

Q: What is the First Home Owner’s Grant?
A: The First Home Owner’s Grant is a lump sum benefit provided to first home owners. You may be eligible for the ‘First Home Owner’s Grant’ – a one off payment of $7,000 when you buy or build a home.

Visit http://www.firsthome.gov.au/ for eligibility criteria and to download the application form.

In addition, you may also be eligible for the Victorian State Government’s ‘First Home Bonus’ (FHB) OF $3,000 if a contract is signed pre 30/06/2009. The FHB is applicable only to contracts < $500,000.

Q: How do I know if I am eligible for the First Home Owner’s Grant?
A: As a basic rule, you are eligible if you are an Australian citizen or permanent resident, buying or building your first home in Australia, with the intention of occupying it as your principal place of residence within 12 months of the settlement. It is important to note that if you are buying the property in conjunction with others, they must also meet the same criteria for the grant to be applicable.

Q: What is Lender’s Mortgage Insurance?
A: Lender’s Mortgage Insurance (LMI) covers your lender in the event of you defaulting on your loan. You are not protected by LMI.

If your property is subsequently sold and the amount from the sale is not enough to pay off the loan in full, this insurance will cover the lender for the shortfall. However, you will then be liable to pay for the shortfall to the mortgage insurer.

LMI is obtained by your lender. This insurance should not be confused with Mortgage Protection Insurance which covers your mortgage installment in the event of such things as death, disablement, unemployment etc.

LMI premiums are a once only fee payable by the borrower at loan settlement when the amount borrowed is above a certain percentage, usually 80%, of the lender’s valuation of the property, or for low doc loans usually more than 60% of the property’s value. Some lenders will allow you to add the LMI premium to your home loan; others require you to pay it up front.

Q: What documentation will I need to supply for a home loan application?
A: In conjunction with submitting your home loan application, you will need supporting documentation confirming your identity, financial position and to substantiate your income. Documents can include:

100 points of identification (a passport and drivers licence will suffice).
Annual rates notice on all properties that you own.
Last 3 months of credit card statements for each credit card.
2 recent pay slips and latest Payment Summary or Tax Return.
Last 6 months original savings statements plus an internet printout of savings transactions from the end date on your last statement up to today’s date.
If you have a personal loan your last 6 months personal loan statement.
If you are self employed:
- Last 2 years business tax returns and financial statements and last
  2 years full personal tax returns. However, if you are applying for one of our Low Doc home loans, you don’t need to provide proof of income.
- Your ABN.
- Current business account statement.
- Accountant’s full contact details.

We will be able to provide an accurate overview of what is required for your individual situation.

Q: What is your Complaints Procedure?
A: If you have a complaint about a credit related product or service that has been provided to you, the Credit Ombudsman Service can help. Should you have a dispute with us then we will work with you to resolve the matter. If an agreement cannot be reached, you can refer the matter to COSL who can resolve the issue at no cost to you.

Q: How do I calculate stamp duty if I were to purchase an established home in Victoria?
A: The first $115,000 of the Victorian property’s purchase price will incur $2,560 of stamp duty. The value of the Victorian property from $115,000 to $870,000 is charged at an additional 6% of stamp duty.

For example: If you wanted to calculate stamp duty on a Victorian property valued at $315,000 then you would do this in three steps.

Step 1: $2,560 will be charged for the first $115,000 of value.

Step 2: Calculate 6% of the difference between $115,001 and $315,000. This equates to $12,000 of stamp duty.

Step 3: Add Step 1 and Step 2 together to give you a total stamp duty of $14,560 in this example.

NB: Since January 1st 2007, the Victorian Government introduced a stamp duty concession. The concession now cuts the rate of stamp duty for Victorian homes priced above $115,000 and up to $400,000 purchased as a principal place of residence (PPR) from 6% to just 5%. This equates to a maximum savings of $2,850. If you buy a home valued between $400,000 and $500,000 you are still eligible for the concession but capped at $2,850. If you were to buy a home valued at more than $500,000 then you will not receive this concession. More importantly, those eligible for the First Home Owner’s Bonus of $3,000 (FHB) must choose either the concession from stamp duty or the FHB. You cannot receive both.

So, using the same example above, if you were buying a home to live in and are not eligible for the FHOG then to calculate the stamp duty you would repeat steps 1 – 3 above but replace the 6% rate in step 2 with a 5% rate. Total stamp duty would therefore equate to $12,560.