• Do I have to be a credit union member to take out a loan?
• How much can I borrow?
• What costs do I need to consider?
• How do I make repayments on the loan?
• How often will I receive information on my account?
• What security is required?
• Do I need to take out insurance?
• What is Lenders Mortgage Insurance?
• Can I make interest only repayments?

Do I have to be a credit union member to take out a loan?

The credit union is a mutual financial services organisation and as such is owned by its members, each one of whom is a shareholder. Therefore you must be a member of the credit union to have a loan.

Learn more about becoming a member. ^

How much can I borrow?

Would you like to calculate how much you may be able to borrow? Use our Loan Calculator. ^

What costs do I need to consider?

Deposit

If buying a home, the biggest initial cost is the deposit on your purchase. In most cases we are able to lend up to 80% of the value of your property.  You will be required to contribute the balance.  This could range from 20% and above of the value of the property.  The deposit can be contributed from your savings or equity built up in another property.  In some cases it may even be the contribution of a first home owners grant.

Costs can be broken up between borrowing costs and purchasing costs.

Borrowing Costs

Unlike some lenders, Phoenix Credit Union does not charge an application or establishment fee.  The Credit Union is required (like all lenders) to register a mortgage over your property to secure the debt.  The creation of a mortgage requires a valuation and legal process which is charged at cost to the borrower.

Valuation

The Credit Union is required to obtain an independent professional valuation on your property.  The Credit union will make this arrangement for you and is charged at cost from $200 or more depending on your location.  A quote for this service can be provided on request.

Legal Fees

The Credit Union requires a legal service to create and register a mortgage over your property.  This service includes a title search and a government charge for the registration of the mortgage document with the land titles office.  The cost of the service depends on the amount of work required and starts from $200.  A quote for this service can be provided on request.

Purchasing Costs

We have provided a comprehensive guide to purchasing a property in our publications Buying Property: a smart guide to buying property which will help you better understand the process of buying a property.  The following information is also provided to give you a guide to some of the costs incurred.

Registration fees

Registration fees are payable on a property purchase.

Whenever a property changes hands, the change of ownership must be recorded with the appropriate State Titles Office. A document known as a Transfer of Land must be lodged, the cost of which varies in each State/Territory. Please contact your solicitor/conveyancer who should perform this task on your behalf.

Legal Fees

You will require legal representation for the purchase transaction for your property. Legal expenses for the average home purchase include:

• Solicitors fees (between $500-$2000)
• Survey and building certificate ($450)
• Building inspection and pest report ($400-$500)

Searches and inspections

Contracts should never be exchanged until the necessary searches and inspections have been completed. Searches and inspections may include the following:

Title search

A Certificate of Title obtained from the Titles Office by your solicitor/conveyancer provides details of who owns the property and who else has an interest in it. This is a good way to research if there are any mortgages, caveats, restrictive covenants etc on the property which would affect the transfer of title.

Building inspection and pest report

The report completed by your building inspector will detail any building flaws, e.g. structural issues with the building or roof, damp etc. The pest report should detail any evidence of pest infestation. It will enable you to assess the cost of any required treatment. ^

How do I make repayments on the loan?

You can arrange to make your loan repayments either by payroll deduction, direct debit from your savings or transaction account, internet or telephone banking transfer or at our office. Learn more about these repayment methods. ^

How often will I receive information on my account?

Statements are produced tree monthly or six monthly if you are registered for Phoenix Internet Banking. Duplicate statements can be requested at any time from our office.

Account information is also available through our telephone and Internet banking services. ^

What security is required to take out a Home Loan?

Your home loan must be secured by a registered mortgage over a residential property. ^

Do I need to take out Home insurance?

Building insurance is required to be taken out equal to the amount stated in the recommendation on the property valuation.

What is Lenders Mortgage Insurance?

Lenders mortgage insurance is only required if you borrow more than 80% of the value of your property. It covers the credit union against a loss in the unlikely event that we have to exercise our right to sell the property due to ongoing default of loan repayments. It must not be confused with Insurance designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. ^

Can I make interest only repayments?

Yes, the HomeSaver Loan allows interest only repayments.  You will be given a credit limit and repayments are only enforced when you exceed this limit.  If the interest charged against the loan exceeds your credit limit you will be required pay the amount exceeding your limit ie the interest amount only.

More Information

• Read the benefits of our Home Loans.
• Use one of our Loan Calculators to work out what loan is right for you.

Apply

Apply for a Home Loan.

Questions?

If you have any questions, please contact us.