I'm looking to buy my first home. What should I know?
Have a look at our Buying your first home section for helpful information for first home buyers, including details of our Family Guarantee and 40 year loan term.
What fees are associated with a home or investment loan?
When you apply for a home or investment locan you may incur fees for the following:
People's Choice Credit Union costs
There may be other People's Choice Credit Union costs associated with your home loan, please review our full Fees & Charges.
* Only applies if purchasing a new property, construction of a new property or where the property is changing ownership.
What is a line of credit?
A line of credit facility allows you to deposit and withdraw funds up to an approved limit as often as you like. You can even have your payroll credited to the account.
By regularly depositing into the account (via payroll or savings) you can reduce the amount of interest paid, therefore reducing the term of your loan and allowing you to pay it off sooner.
Variable or fixed rate. Which is right for me?
If you choose a variable rate loan or investment loan the interest rate can rise or fall depending upon the market and economic conditions. Therefore, your repayments will rise or fall in line with these changes. One of the benefits or a variable rate loan is that you can make unlimited extra repayments and have the option of redrawing the amount you are in advance.
Choosing a fixed rate home or investment loan means you can lock your interest in at a set rate for one to five years. So if you think interest rates have hit rock bottom or that rates may rise, you can add certainty to your loan by fixing your repayments for a set period. With fixed rate home or investment loans you can pay an additional $10,000 per year on top of your normal repayments without any charges being incurred.
If you're still not sure about which option is right for you, we're happy to help you make the right decision. Call us on 13 11 82 or visit your nearest branch for more details.
Can I make extra repayments on my loan?
If you have a variable rate home or investment loan you can make unlimited extra payments at any time. An extra benefit is the option to redraw funds in advance.
If you choose a fixed rate home or investment loan you can make additional repayments up to a maximium of $10,000 per year during the fixed period. However, redrawing the additional repayments is not permitted.
How can I apply for a home or investment loan?
You can apply for a loan by calling 13 11 82 or visiting your nearest branch abnd speaking with one of our Home Loan Advisers.
Do I have to pay Lenders Mortgage Insurance (LMI)?
You will need to pay Lenders Mortgage Insurance if your total loan amount exceeds 80% of the value of the property that is to be used as security (subject to property parameters and security location).
How much can I borrow to buy a property?
The amount you can borrow is limited by the amount you are able to repay and the value of the property you would like to purchase. As a general guide, you can borrow up to 90% of the property's value; however there are some cases in which you may be able to borrow up to 95% of the property's value.
If you want a more accurate guide you can contact us, or if you want to get an idea of what your repayments could be, you can use one of our loan calculators.
I have a home loan with People's Choice Credit Union and wish to consolidate my debts, can I?
Providing you meet our lending guidelines, you can consolidate any personal loans, credit cards, store accounts, and any other mortgages that you may have into your home loan.
I have my home loan elsewhere, can I switch it to People's Choice Credit Union?
Yes, it's easy and we do all the paperwork for you. Contact us on 13 11 82 or visit your nearest branch for more details.
What do I need to do to apply for a home or investment loan?
To apply for a People's Choice Credit Union home or investment loan you will need to provide us with the following:
How much deposit do I need to have to get a home loan?
While there are home loans that allow you to borrow up to 95% of your purchase price, you'll feel the benefits if you can save about 10% of the purchase price, plus extra for the fees and charges that are required when buying any property.
What if I've found my new home but haven't sold my current home?
This is where a Bridging Loan could be the answer.
A Bridging Loan can help limit your expenses by offering interest only repayments while you sell your existing home, then you can use the sale proceeds to reduce your overall debt.
How can I own my home sooner?
Many of our home loans can assist by allowing extra repayments which reduce the interest costs and can help you to pay off your loan sooner.
Some of our home loans also offer an offset facility which acts in a similar way - by depositing your payroll into your offset account, this reduces the amount of interest you pay on your home loan. The less interest you need to pay, the more you can pay directly off your home loan to pay it off sooner.
We pride ourselves on our personalised advice to help you meet your goals, so feel free to contact us to talk about how we can assist you. Contact us on 13 11 82 or visit your nearest branch for more details.
Can I redraw on my home loan?
You can redraw additional repayments from our Variable Rate Home Loans, just be sure that sufficient funds are left to cover your next repayment.
What should I do if my personal or financial circumstances change?
We encourage you to contact us if your circumstances change. We are available to offer advice when you need it and can review your current accounts to assist you with any changes you need to make.
How long does the home loan application take?
This will depend on your personal circumstances and how much information you wish to discuss. Generally, the application won't take longer than an hour.
How do I check the status of my home application?
You can request an update on your application by calling 13 11 82 or by visiting your nearest branch.
What do I do if I can not make a repayment?
It is best to get in touch with us immediately so that we can discuss the matter with you and come to an arrangement.
Depending on the circumstances we may be able to change your contract to delay payments for a set time, extend the term of your contract to reduce payments or a combination of the two options.
Do I have to be an People's Choice Credit Union member to apply for a loan?
No, anyone can apply. If you're not currently a member, you'll need to become a member before the loan can be finalised.
What can I borrow money for?
You can borrow money for any worthwhile purpose, including household goods, a car or a holiday.
How often can I make repayments?
You can choose to make your repayments weekly, fortnightly or monthly.
You can even make additional payments at any time via Phone Banking, Internet Banking, or at any of our branches and agencies.
How much can I borrow?
People's Choice Credit Union personal loans start from as little as $2,000.
The maximum loan is based on the amount that you can afford to repay.
Once I apply, how long does it take to get the money?
Providing the loan is approved, contracts can usually be signed and your money available within one or two business days.
How can I apply for a Personal Loan?
You can apply for a Personal Loan online, by calling 13 11 82, or by visiting your nearest branch.
What do I need to do to appy for a Personal Loan?
To apply for a People's Choice Credit Union Personal Loan you will need to provide us with the following:
If I'm looking for a car, can I get a loan approved before I find the car I want?
Yes, we can conditionally approve a Personal Loan for you before you buy. You just need to submit an application form and let us know how much you want to borrow.
Can I redraw on my Personal Loan?
Yes. If you make additional payments to pay off your personal loan sooner, you can redraw these funds at any time if you need them.
What do I do if I can't make a repayment?
Depending on the circumstances, we may be able to change your contract to delay payments for a set time, extend the term of your contract to reduce repayments, or a combination of the two options.
What is a Home Loan Key Facts Sheet?
A Home Loan Key Facts Sheet offers consumers information about our standard home loans. As all credit providers are required to provide this information in a consistent format it enables consumers to compare these products in a more transparent way. Some of the information they contain includes establishment and ongoing fees for your loan, repayment amounts per month and per year, and how much in total you will be required to pay back on your loan.
As a credit provider covered by the consumer credit legislation we are required to provide a Home Loan Key Facts Sheet for all of the standard home loan products we offer from 1 January 2012.
How do I generate a Home Loan Key Facts Sheet?
Generating a Home Loan Key Facts Sheet is easy. Just visit our Home Loan Key Facts Sheet Tool and complete the information relevant for the loan you are interested in. This will create a Key Facts Sheet that you can view, email or print for your records.
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