Find answers to some of the most common questions from our members
The loan term is the duration of your loan. Most loan products offer terms of up to 30 years. People’s Choice Credit Union offers loan terms of up to 40 years for eligible first home buyers.
Lender’s Mortgage Insurance (known as LMI) is an insurance that protects the lender in the event of default by the borrower. LMI is a one-off payment that usually occurs when more than 80% of the property value is borrowed by a home buyer. You can pay the cost for LMI upfront at settlement of your loan or it can be capitalised into your home loan.
Some loans have monthly fees to cover costs or additional services available on the loan. Monthly fees are generally charged on the last day of each month. The value of the monthly fee and the charge date, are outlined in the loan conditions and your contract.
The loan to value ratio (LVR) is a calculation using the amount of your loan compared to the appraised value of your property. To calculate the LVR, simply divide the loan amount by the property value.
As an example, if you need to borrow $350,000 and your property is appraised at $420,000 the LVR is 83%.
The Freedom Home Loan is a Home Loan Package from People’s Choice Credit Union which offers interest rate and fee discounts for an annual fee for our members, not only on their home loan but on a wide range of our products and services.
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