Home Loan
Process Checklist
STEP 1
Mortgage broker receives all necessary information, documents and a signed application
STEP 2
Home loan application is prepared and submitted to lender by mortgage broker. Mortgage broker informs you that your home loan application is submitted
STEP 5
Mortgage broker informs you of conditional approval (or decline) of your home loan application. You may need to provide further information
STEP 3
Lender conducts credit check and other inquiries
STEP 4
Lender assesses application and provides conditional approval (assuming there are no issues/concerns)
STEP 6
Valuer organises to inspect property, then writes and submits report
STEP 7
Property valuation received/held. Mortgage broker informs you that a property valuation is held
STEP 8
If mortgage insurance is not required: lender issues unconditional home loan approval and issues contracts. Mortgage broker informs you of unconditional approval or if mortgage insurance is required, formal “sign-off ” is sought from mortgage insurer
STEP 9
If relevant, mortgage insurer “sign-off ” received and unconditional home loan approval issued. Mortgage broker informs you of unconditional home loan approval and you proceed to settlement
Document Checklist
Three recent computerised payslips
Letter from employer stating position, commencement date, if still on probation, gross income, year to date, regular overtime and allowances
Copy of employment contract
Last year’s group certificate or tax return
if you’re self employed:
Last 2-3 year’s tax returns (if company/family trust applicable, you will require company tax returns, memorandum and articles of association, copy of trust or deed)
Copy of tenancy agreement for all owned investment properties or a letter from a real estate office to confirm the estimated rental income
ASSETS
Copy of savings history (passbook, statements, certificates for six months)
Copy of sale contract on existing home or settlement letter from your solicitor if the deposit is to come from the sale of an existing home
Statutory declaration (if any part of the deposit is a gift), stating the amount of the gift and that it is non-repayable
Rates notice on any existing owned properties
INCOME
Copy of Superannuation statements, share certificates etc.
LIABILITIES
Copy of loans statements for 12 months on any existing mortgages
Copy of credit card and personal loans statements and statements from any other borrowings
OTHER
Copy of purchase contract
Copy of plans, specifications and fixed price contract (construction/renovations) Cheque for establishment fees - if required
PROOF OF IDENTITY
Drivers Licence - 40 points
Passport or birth certificate - 70 points
If these documents cannot be located other acceptable documents can be used such as Medicare Card, Bank Statements, etc.
Moving Checklist
You should be disconnected from your utilities. Notify relevant services at least 48 hours in advance. You may be able to redirect these services to your new address, so its all ready when you arrive.
Disconnect Utilities
Gas Electricity
Water Telephone
Bills Mail
Magazine Subscriptions Internet Connection
Phone Number (if applicable)
Enjoy your new home!
Redirect
Final Check
Getting ready to move
Plan ahead for your new home
Prepare to have the carpets cleaned
Prepare to clean cupboards and bathrooms
Prepare for utilities to be connected Arrange house and contents insurance
Turn off the water, gas, electricity
Check all cupboards, storerooms, sheds and under the house
Lock up securely, leaving some ventilation Hand over keys to agent or new owner Get quotes from removalists and book the
one most suited to your needs
Arrange insurance for goods in transit (your removalist may cover this)
Prepare floor plan of your new house and number rooms for boxes
Pack jewellery and valuables and take them yourself or arrange a special carrier
Pack fragile items yourself
Mark each carton with the room number it’s intended for
Mark items to be handled with special care Defrost the fridge and freezer
Throw out rubbish in sealed bags. Water the garden for one last time Don’t forget the pets
Advise friends, business & associates of your new address
Go through your address book and send out change of address cards. You can buy these from the post office or have them cheaply printed at your local instant printer. Alternatively, you can email your new address to people.
Friends Family Work
Sporting Groups Doctor Dentist
Banks Accountant / Solicitor Tax office Road Authority for Drivers Licence and Registration Credit cards
Repayments
Calculator
Estimate your monthly home loan repayments*
*Repayments calculated on a monthly basis over 30 years. This information is intended for general reference only.
Amount 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% 5.50% 5.75% 6.00%
$200K $898 $926 $955 $984 $1,013 $1,043 $1,074 $1,104 $1,136 $1,167 $1,199
$225K $1,010 $1,042 $1,074 $1,107 $1,140 $1,174 $1,208 $1,242 $1,278 $1,313 $1,349
$250K $1,123 $1,158 $1,194 $1,230 $1,267 $1,304 $1,342 $1,381 $1,419 $1,459 $1,499
$275K $1,235 $1,274 $1,313 $1,353 $1,393 $1,435 $1,476 $1,519 $1,561 $1,605 $1,649
$300K $1,347 $1,389 $1,432 $1,476 $1,520 $1,565 $1,610 $1,657 $1,703 $1,751 $1,799
$325K $1,459 $1,505 $1,552 $1,599 $1,647 $1,695 $1,745 $1,795 $1,845 $1,897 $1,949
$350K $1,572 $1,621 $1,671 $1,722 $1,773 $1,826 $1,879 $1,933 $1,987 $2,043 $2,098
$375K $1,684 $1,737 $1,790 $1,845 $1,900 $1,956 $2,013 $2,071 $2,129 $2,188 $2,248
$400K $1,796 $1,852 $1,910 $1,968 $2,027 $2,087 $2,147 $2,209 $2,271 $2,334 $2,398
$425K $1,908 $1,968 $2,029 $2,091 $2,153 $2,217 $2,281 $2,347 $2,413 $2,480 $2,548
$450K $2,021 $2,084 $2,148 $2,214 $2,280 $2,347 $2,416 $2,485 $2,555 $2,626 $2,698
$475K $2,133 $2,200 $2,268 $2,337 $2,407 $2,478 $2,550 $2,623 $2,697 $2,772 $2,848
$500K $2,245 $2,316 $2,387 $2,460 $2,533 $2,608 $2,684 $2,761 $2,839 $2,918 $2,998
$525K $2,357 $2,431 $2,506 $2,583 $2,660 $2,739 $2,818 $2,899 $2,981 $3,064 $3,148
$550K $2,470 $2,547 $2,626 $2,706 $2,787 $2,869 $2,953 $3,037 $3,123 $3,210 $3,298
$575K $2,582 $2,663 $2,745 $2,829 $2,913 $2,999 $3,087 $3,175 $3,265 $3,356 $3,447
$600K $2,694 $2,779 $2,864 $2,952 $3,040 $3,130 $3,221 $3,313 $3,407 $3,501 $3,597
$625K $2,807 $2,894 $2,984 $3,075 $3,167 $3,260 $3,355 $3,451 $3,549 $3,647 $3,747
$650K $2,919 $3,010 $3,103 $3,198 $3,293 $3,391 $3,489 $3,589 $3,691 $3,793 $3,897
$675K $3,031 $3,126 $3,223 $3,321 $3,420 $3,521 $3,624 $3,727 $3,833 $3,939 $4,047
$700K $3,143 $3,242 $3,342 $3,444 $3,547 $3,652 $3,758 $3,865 $3,975 $4,085 $4,197
$725K $3,256 $3,358 $3,461 $3,567 $3,673 $3,782 $3,892 $4,003 $4,116 $4,231 $4,347
$750K $3,368 $3,473 $3,581 $3,690 $3,800 $3,912 $4,026 $4,142 $4,258 $4,377 $4,497
$775K $3,480 $3,589 $3,700 $3,813 $3,927 $4,043 $4,160 $4,280 $4,400 $4,523 $4,647
$800K $3,592 $3,705 $3,819 $3,936 $4,053 $4,173 $4,295 $4,418 $4,542 $4,669 $4,796
$825K $3,705 $3,821 $3,939 $4,059 $4,180 $4,304 $4,429 $4,556 $4,684 $4,814 $4,946
$850 $3,817 $3,936 $4,058 $4,181 $4,307 $4,434 $4,563 $4,694 $4,826 $4,960 $5,096
$875K $3,929 $4,052 $4,177 $4,304 $4,433 $4,564 $4,697 $4,832 $4,968 $5,106 $5,246
$900K $4,041 $4,168 $4,297 $4,427 $4,560 $4,695 $4,831 $4,970 $5,110 $5,252 $5,396
$925K $4,154 $4,284 $4,416 $4,550 $4,687 $4,825 $4,966 $5,108 $5,252 $5,398 $5,546
$950K $4,266 $4,400 $4,535 $4,673 $4,814 $4,956 $5,100 $5,246 $5,394 $5,544 $5,696
$975K $4,378 $4,515 $4,655 $4,796 $4,940 $5,086 $5,234 $5,384 $5,536 $5,690 $5,846
$1M $4,490 $4,631 $4,774 $4,919 $5,067 $5,216 $5,368 $5,522 $5,678 $5,836 $5,996
$1.25M $5,613 $5,789 $5,968 $6,149 $6,334 $6,521 $6,710 $6,903 $7,097 $7,295 $7,494
$1.5M $6,736 $6,947 $7,161 $7,379 $7,600 $7,825 $8,052 $8,283 $8,517 $8,754 $8,993
$1.75M $7,858 $8,105 $8,355 $8,609 $8,867 $9,129 $9,394 $9,664 $9,936 $10,213 $10,492
Budget Planner
Plan to get you expenses under control by using this comprehensive budget.
Your after tax income
Partner/spouse after tax income Pension/benefit
Family payment Child support received Board money received Investment (after tax) Other income (after tax)
Rent 1st mortgage 2nd mortgage Land rates Water rates
House and contents insurance House repairs
Strata levies
Home contents replacements Housing
Education School fees Uniforms Self education School excursions Tutoring/books
Sports/out of school activities Pre-school
Child minding
Personal Clothing haircuts Grooming/cosmetics Entertainment Sport Club fees
Newspapers and magazines Holidays
Gifts
Pocket money – children Drinks alcoholic Cigarettes/tobacco Laundry/dry cleaning Gambling/other Donations/other DVDs/videos/movies Postage/films
Pool/gardening expenses
Section A – Income after tax
Convert all your income and expense details to monthly amounts.
Section B – Expenses
TOTAL INCOME FOR SECTION A
Budget Planner
Medical Health insurance Doctor Dentist Chemist
Eye care and optometrist Specialists/alternative therapies Pet and vet
Electricity Gas Water Mobile phone Internet and cable TV Utilities
Food Groceries Lunches Pet food
Take away food/restaurants
Maintenance Children
Transport Petrol Repairs Registration Fines Insurance License Fares
Other Superannuation
Life/term/income insurance Professional fees
Other expenditure Savings
Special projects
... ... ... ...
Section B – Expenses
Section C – Your loan expenses
Credit cards Personal loans Car loans/hire purchase Store cards/accounts Finance companies Home loans Other debts
TOTAL EXPENSES FOR SECTION B
TOTAL EXPENSES FOR SECTION C
Net Result Your after tax income
(from section A)
Less your living expenses (from section B)
Less your loan expenses (from section C)
Home Inspection
Checklist
Address
Exterior Poor Average Good
Landscaping/garden Fencing
Garage/undercover/off-street parking Security
Privacy
Condition of roof
Condition of exterior walls Condition of gutters/downpipes Condition of footings/timber stumps Exterior doors
Termite damage Sub-floor ventilation
Poor Average Good
Comments
Interior
Condition of floors/floor coverings Ceilings - cracks/leaks
Walls - cracks/leaks
Condition of paint/wallpaper Doors condition/ease of use
Windows - condition/ease of use Heating - central/fireplace Cooling
Poor Average Good
Storage/cupboards
Poor Average Good House Size
No of Bedrooms Price estimate
Selling agent Contact name Phone number
Construction - Roof
Walls
No. of Rooms
Water Pressure
Sketch Floor Plan
Land Size
No. of Bathrooms
Light fittings/switches
Home Inspection
Checklist
Bedrooms
Powerpoints Sufficient Adequate Size
Comments
Robe built-in/walk-in
overall rating
yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no
Bathrooms
Number of bathrooms Conditions of tiles - cracks/grout
Comments
Condition of walls - water damage, mould
overall rating
Plumbing/water pressure
Kitchen
Dishwasher/oven/cook top/rangehood Conditions of tiles - cracks/grout
Comments
Cupboards
overall rating
Plumbing/water pressure Bench space
Laundry
Bench space
Comments
Taps/basin
overall rating
Plumbing/water pressure
Location
Street traffic - light/heavy Public transport
Comments
Distance to shops
overall rating
Distance to schools Distance to medical facilities
Main
Recreation (parks, beach, gym, sports)
Poor Average Good
Poor Average Good Main
Poor Average Good
2
2 3
3 4
yes / no yes / no yes / no
yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no
6 Step Buyer Checklist
Six step buyer checklist
1. How much can I borrow?
2. What are the costs?
3. Which loan is right for me?
4. Get pre-approval
5. Search for a property
6. The buying process
how much can I borrow?
How much can I borrow is often referred to as your “borrowing power”, which is basically how much you can borrow to finance your house or property purchase.
Your borrowing power is assessed on a number of points: your income
your savings
current financial commitment credit history
living expenses guarantors
what are the costs?
In order to determine how much you can borrow, you will need to factor in all the charges such as: deposit
taxes
stamp duty (mortgage and property purchase) legal costs
insurance
registration fees on a mortgage
1
6 Step Buyer Checklist
which loan is right for me
There are heaps of loans available with different features and fees to be considered, such as home loan rates, mortgage offset, redraw and ongoing fees to name a few.
Mortgage Providers actually search for and organise the most suitable loan for you and the best thing is we don’t charge you a cent for this service!
You need to consider a few things when deciding what loan to take, including: can I make additional repayments without being charged extra?
can I make repayments via direct debit, ATMs, internet and phone banking services?
can I have a ‘mortgage offset facility’ – which allows me to offset funds in an account against my home loan?
can I redraw funds at any time, how do I do it, and is there a charge for it? will I be able to restructure my loan in the future?
are there home loan fees?
get a pre-approval
Pre-approval is a term that means your loan has been approved in principle (given that you have met lending prerequisites). It involves completing a loan application with all the relevant
supporting documents, such as pay slips, bank statements etc.
From here, we work with you to complete the relevant paperwork to move the loan through to the approved status. A pre-approval gives you an idea of how much you will be able to borrow. Therefore, how much you can comfortably pay for your new property.
search for a property
This is the exciting bit!
By now, you will have no doubt started thinking about where you want to buy.
With your pre-approval sorted, you now have a better idea of how much you can spend.
When going to view properties, you should take with you our property inspection checklist so that you can compare each house you view on similar points. Make sure you’re thorough when inspecting a house.
3
4
6 Step Buyer Checklist
Some things to compare when looking for your home include; Price averages for the area
Growth rate for that area Proximity to public transport
Proximity to shops, schools, major roads Are there any repairs needed?
Number of rooms, bathrooms, toilets Heating/ Air Conditioning: gas or electric
the buying process
The buying process is the final and most important step to home ownership. This process can be broken into 4 separate stages:
1. Making an offer
There are two different types of offers you can make:
a) Auction – if you are buying at an Auction, you are required to pay a deposit (usually 10% of the purchase price) immediately
b) Private – If you are buying privately, you are usually required to pay a holding deposit (can be anywhere between 0.25% and 10% of the purchase price)
2. Contract of sale
The contract of sale (which is prepared by the vendor’s legal representative or agent) outlines your offer, the date of settlement and any other conditions that must be met before the sale goes ahead
It is best you discuss the Contract of Sale with your legal representative before you sign it. There are two kinds of offers – unconditional and conditional.
Unconditional offers
This is an outright offer to purchase land or property. At this stage you should be absolutely certain that this is the land or property that you want and that you have access to finance for the purchase. Upon acceptance of your offer by the vendor, you are obliged (legally) to go through with the purchase.
6 Step Buyer Checklist
Conditional offers are similar to unconditional offer, in the fact that it is also a legally binding contract (providing that all of your conditions are satisfied). The only way that the Conditional contract can be broken is if one or more of the conditions are not met.
3. Finalise loan
Once you have pre-approval we can work your loan through to the finalised stage by completing all of the necessary paperwork and then on to settlement.
4. Settlement
After the contract becomes unconditional and all documentation has been finalised with the lender (if applicable) your purchase will proceed to the settlement stage. You or your legal representative will “book in” a date for settlement and on that day you can pick up the keys to your new place!
For any more information, or to request a quote please contact Mortgage Providers on
