Borrowers Guide to

in association with a separate business Borrowers Guide to including AustrAliAn Home loAn And investment FinAnce insurAnce Protection And guide to low cost conveyAncing AFG AUSTRALIAN “GOLD” LENDER ACHIEVEMENT AWARD 2007 AND “SILVER” 2006 “SILVER” 2005 Home Loans Electronic loan lodgement with the major banks and financiers Mortgage Protection Insurance Low Cost Conveyance Just $650 with a home loan through Choice Finance Cairns All conveniently under one roof at 40 Aplin Street, Cairns Ph 1800 515999 AustrAliAn Home loAn And investment FinAnce low cost conveyAncing & insurAnce Protection Borrowers Guide to and guide to 1st Floor: 40 Aplin Street, Cairns 1800 515999 • Fax 07 4051 8844 Email: admin@choicefinancecairns.com.au Visit our wEbsitE: www.choicefinancecairns.com.au 4 Contents Glossary of Terms .....................................................................................6 About Us ...................................................................................................7 Our Service ...............................................................................................8 Financing Through Us Saves You Money ................................................8 New Age Conveyancing ..........................................................................9 Our List Of Lenders ................................................................................10 A Simple Guide : Basic Steps For Buying A Home Or Property........... 11 Pre-contract Steps: Deposit, Employment .............................................. 11 Repayment ......................................................................................... 11 Credit History ....................................................................................12 Finance Pre-approval .........................................................................12 The Agent ...........................................................................................12 Contract ..............................................................................................13 Post Signing Of Contract ...................................................................13 Essential Terms Of Contract ...................................................................14 Units .................................................................................................14 Deposit ..............................................................................................14 Finance Clause ...................................................................................14 Building And Pest Inspection – See Definitions. ............................14 Finance Approval And Mortgage Documents.........................................15 Settlement ...............................................................................................15 Seller Or Refinancing..............................................................................15 Some Basic Fees And Charges—Definitions ..........................................16 Loan Application Fee .........................................................................16 Broker Fees ........................................................................................16 Account Keeping Fees .......................................................................16 Valuation Fees ....................................................................................16 Legal Fees — Or Document Fees ......................................................16 Deferred Establishment Fee ...............................................................17 Mortgage Insurance ...........................................................................17 Other Fees ..........................................................................................17 Conveyancing .........................................................................................18 Basic Contract Terms: ........................................................................18 5 In association with Cooling Off ........................................................................................18 Disclosure Statement .........................................................................18 Deposit ...............................................................................................18 Subject To Finance .............................................................................18 Building And Pest Inspection.............................................................18 Settlement Date ..................................................................................19 Settlement Statement .........................................................................19 The Settlement Process ......................................................................19 Refinancing Your Home ..........................................................................19 Pre-approvals ..........................................................................................20 Products...................................................................................................20 1 No Deposit Finance........................................................................20 2 Investment Home Loans ................................................................21 3 Professional Package .....................................................................21 4 Low Documentation Home Loans .................................................22 5 Senior’s Loans ...............................................................................22 6 Construction Loans ........................................................................22 7 Personal Loans/car Loans/credit Repair ........................................22 8 Motor Vehicle Loans ......................................................................23 Commercial Finance ...............................................................................23 First Home Owners Grant .......................................................................24 Stamp Duty Principal Place Of Residence And First Home Buyers ......25 Loan Repayments....................................................................................25 What Deposit Do You Need? ..................................................................26 Queensland Government Fees ................................................................27 Insurance: Sample of Premiums .............................................................28 Your Most Valuable Asset: YOU ............................................................30 List of Insurers ........................................................................................31 Web Connections and Calculators ..........................................................32 About Choice Finance Cairns .................................................................33 Standard Conveyancing Fees and Outlays..............................................36 Short Glossary of Terms Pre Approval: Potential borrowers can apply to most lenders for a Pre Approval for finance. It is almost like a full loan application without the specific property set out in the application. It will be subject to valuation of the property. It can be renewed, e.g. if it is for 3 months or 6 months—simply request an extension of time. Where each party on the title have a separate and distinct share and his or her share becomes part of his or her estate when he/she dies. When one person dies the other person/persons on the title get the interest of the deceased. A loan arrangement with a specified credit ceiling. Loan to valuation ratio The person borrowing. Lenders Mortgage Insurance. Usually when the loan is over 80% in value—or, in LO DOC loans, this is taken out to pay the Lenders if after a default the property sale does not pay out the mortgage in full. A rate that changes with the market Offers comprehensive features. It is often the rate that fixed loan rates roll over to at the end of a fixed term A variable home loan at a reduced rate with fewer features than a standard variable Tenant in Common Joint tenancy Line of Credit LVR Mortgagor LMI Variable Interest Standard Variable: Basic Variable: 7 ... in association with .... The Choice Team Nicole MacIsaac Toby Sciacca Qualified Practicing Lawyer and Accredited Mortgage Consultant 1800 515999 Broker Support Administrator Neil MacIsaac Accredited Mortgage Consultant Rhonda Sciacca Accredited Mortgage Consultant /Mortgage Protection Insurance 0412 515 999 0437 515 999 0448 515999 Contact with your Lender We at Choice Finance Cairns are a team of very active and experienced mortgage brokers. Though our membership of AFG, we have direct access to all of the best finance products in Australia. As Mortgage Brokers accredited directly to these banks and financiers, YOU DO NOT PAY US—we earn our brokerage only from the lenders after settlement, and you get a full range of loans. I have a fantastic team of dedicated professional brokers. After 30 years in legal commercial work in Cairns I have acquired a skill for choosing good people. We have the banking experience and the right loan for you. We can walk you through your problems if you have any—and we all know how difficult it can be with banks at times. We have loan protection insurance available from “Lifestyle”- see page 28. *NOTE: The Conveyance Shop is a legal practice and is a completely separate business to Choice Finance Cairns. TOBY SCIACCA is a Solicitor with the Conveyance Shop and an Accredited Mortgage Consultant with Choice Finance Cairns. 8 We offer you - contact with the Lender No broker fees—no broker agreement (the lender pays us) Electronic Lodgement—contact with your lender Choice Finance Cairns and The Conveyance Shop provide a ONE STOP SHOP Finance and Conveyancing service from two separate organisations Access to the best deals from 40 lenders, including the big four banks We can arrange free, no obligation pre-approval We can visit you at any time that suits you (evenings and weekends most welcome) State-of-the art software to identify the best loan for you Consolidating your liabilities and debts Personal loans and Motor vehicle loans Loan Protection Insurance Financing through us saves you money Do you know the advantages and the cost savings of using our organisation? In association with The Conveyance Shop you will pay the following legal fees. Super special legal fee: $650.00 all up! Save $$$ (For loans in excess of $100,000) Super special legal fee (Full legal fees plus all searches and cost of Mortgage Sign Up — excluding Stamp Duty and Transfer Fees) Note: The Conveyance Shop is a separate organisation to Choice Finance Cairns. $650 9 In association with New age conveyancing The Conveyance Shop operates with a state of the art Conveyancing program. It is the forerunner to electronic settlements which will be in place within a couple of years. BUT all the basics of conveyancing is always personal service. We try to give that service at all times. Your file will be allocated to a personal file manager who will assist you through the process. If there are any issues you wish to discuss you can always call Toby on 40515999. Basic Essential Documents for Finance Applications— Have these at your first appointment: 1. 100 point I.D. (Passport, driver’s licence, etc.) 2. Last credit card statement/statements. 3. Personal loan statement. 4. Rates notice (if refinancing). 5. Current home loan statements - six months (if applicable) 10 Our List of Lenders Please note that On-line Loan Calculators do not give you an accurate answer - they are meant as a guide only. Homeside Lending HSBC Bank IMB Building Society ING Bank Integris Home Loans Latrobe Home Loans Liberty Financial Macquarie Bank Maxis Home Loans National Australia Bank NMMC Pepper Home Loans One Port Orix RAMS The Rock Building Society St George Bank Suncorp Bank Westpac Bank Adelaide Bank/Great Pacific AFG Elite (ABL) AFG MM AMP Banking ANZ Bank AXA Home Loans Bank SA Bank West Bluestone Mortgages Challenger Financial Services Citibank Commonwealth Bank Colonial Deposit Bond Australia Deposit Power Deposit Underwriters Electricity Credit Union GE Mortgage Solutions Heritage Building Society Homeloans Queensland no Broker Fee Do you know that we do not charge you a broker fee—by using us as your broker you have access to ALL the loans of ALL the major banks and lenders in Australia gh 11 In association with A SIMPLE GUIDE THE BASIC STEPS FOR BUYING A HOME OR PROPERTY We all at one time or another take the first step to buying a home or property. Even if you have already brought property before, I believe that this summary may be of some help: please call us for free assistance and advice if you are still unsure. Get a pre-approval of finance before you go shopping for your home–call us to see how simple and fast this is. Pre-Contract Steps: The first two necessities are: a. deposit b. employment – to show capacity to repay your loan. a. Deposit Some financiers will provide finance on deposits as low as 2½% of loanto-value ratio. But most require between 5% and 10%. Unless you have a good capacity to repay be careful not to be tempted to over-borrow. If you borrow more than 80% of the loan-to-value then you will pay Mortgage Insurance. This is a one-off payment which can average approximately 1.5% of the loan. (See our definitions) b. Employment Different Lenders have different requirements on employment history. Call any of our team for free advice if you are concerned about this. Repayment Different lenders have different formulae to calculate your ability to repay. We have over 35 Lenders so if one Lender does not allow you to qualify, we can possibly find another – we can access the repayment requirements of the lenders to find the one to suit you. 12 Credit History If you have had a credit problem there are Lenders who may still help. We often find that credit issues can be resolved if they are addressed before the Loan Application. This can often save you disappointment and a lot of interest. Finance Pre-Approval It is important and smart now to go to your Broker and obtain a preapproval of finance. This is subject to you producing a contract to buy your house or land—it usually lasts for 6 months and will have an upper limit. Our experienced staff can help you get your pre-approval for no fee to us. This service is free—no obligation, but allows you to go house shopping with confidence. The Agent By now you will probably start to see Real Estate Agents to inspect properties to find one you like. The Real Estate Agent you visit normally is the Agent for the Seller and is paid by the Seller. You will find most Agents will quickly access your needs and show you a range of land or houses to suit. Help the Agent and make it easy to decide by having a preapproval of finance. Find an Agent you feel comfortable with and he or she will work with you to find the best property for you. Visit our wEbsitE www.choicefinancecairns.com.au admin@choicefinancecairns.com.au gh 13 In association with Contract Legal advice in this article is by Toby Sciacca, Solicitor from the Conveyance Shop. The only way to legally buy land or property and home or investment is by a Contract in writing signed by the Seller and Buyer. The Contract is usually prepared by the Agent. Often the Agent will ask you to submit an offer at a certain price to see if the Seller will accept. This is okay but you should understand what that means. The contract can only be changed in writing. Initial all the relevant pages. If you are concerned at all, please call your Conveyancer BEFORE you sign – you do have a cooling-off period (see definitions) but that only allows you to withdraw – not change the Contract once it is signed by both parties. Toby Sciacca, a Lawyer at The Conveyance Shop (Phone: 4051 5999) can give you free, no-obligation advice. See the back page for The Conveyance Shop Scale of Fees gh Post Signing of Contract You should nominate your Conveyancer to the Agent as soon as possible. The Conveyance Shop does not charge a fee if the Contract does not go ahead but sometimes it is necessary for you to have conveyancing and legal help during the period of finance and building and pest inspection as will be discussed later. Be sure to have the Agent send a copy of the Contract to your Conveyancer ASAP after signing so that he/she is aware of issues that will arise. Ask your Conveyancer first if there will be a fee if the Contract does not proceed. The Conveyance Shop does not charge a fee in this case. 14 Essential Terms of Contract UNITS Before you sign a Contract to buy a unit it is the law that the Seller must give you a signed Disclosure Statement. The Agent arranges this. Ask your Conveyancer about this. DEPOSIT It is most common that a reasonable deposit is paid. Some Agents call for deposits ranging from 5% to 10%. There is no legal rule to this so you can usually negotiate the amount of the deposit. FINANCE CLAUSE If you are getting finance you should give yourself enough time to get an approval. Almost all contracts prepared with only 14 days to arrange finance require your Conveyancer to ask for an extension these days because of the delays with the Banks and Financiers. We like to see a 21 day subject to finance clause so ask the Seller’s Agent for this. You should keep in touch with your Conveyancer about finance. The good thing about using Choice Finance Cairns is that the team at Choice Finance Cairns keep in daily contact with the team at The Conveyance Shop and together they can work to best look after your interests without you having to do any running around. Remember – some banks can take up to two weeks to prepare Mortgage documents. Be sure to tell your Conveyancer as soon as possible who your financier is. BUILDING AND PEST INSPECTION – SEE DEFINITIONS. If any issue arises keep in touch with your Conveyancer. The Conveyance Shop does not charge any extra for helping you negotiate and resolve these issues. You can withdraw from the contract if the report is not acceptable. 15 In association with If you withdraw from the Contract The Conveyance Shop does not charge you a fee on the Contract despite the work done – Call Toby on 4051 5999 if you need any clarification on any issue about this matter. Please try to have the agent make the inspection date after the finance date so that you don’t have to outlay the cost of the report if finance is not approved. Finance Approval and Mortgage Documents Most Banks will send you their Mortgage Documents direct and not through the Broker. You then have to have the Mortgage signed and witnessed before a solicitor or JP. Under the Consumer Credit Code the financier must advise you of all fees payable AND also provide documents in simple, easy-to-read terms. Choice Finance Cairns clients will get free legal help to explain and witness the documents by The Conveyance Shop if you nominate them as your Conveyancer. This can save you up to $300. Settlement Before settlement your Conveyancer will agree with the Seller or the Seller’s solicitors on the settlement figures. Adjustments to the purchase price are calculated for rates and other charges e.g.. Water rates, body corporate fees, rent (if applicable). The Conveyancer arranges settlement with your Bank and the Seller’s Bank. You will see therefore it is necessary to keep in touch with the person handling your matter. Toby is always available to help on 4051 5999 – but remember that your matter is governed by TIME – on the Contract and TIME for the Seller’s Bank and TIME for the Buyer’s Bank. Conveyancing staff do all they can to help but they do really appreciate it when the client helps by communicating with them on any relevant matter. Seller or Refinancing If you are a Seller or if you are refinancing it is absolutely imperative that you notify your existing Bank as soon as possible about the sale or 16 refinancing. You will need to arrange a Release of the existing mortgage over the property. Any failure here can lead to delay on settlement. To us the whole process is easy but please call Toby at The Conveyance Shop on 4051 5999 for no-obligation, no-fee advice at any time—preferably before you sign. WHEN YOU BORROW: Some Basic Fees and Charges—Definitions Loan Application Fee These vary from financier to financier. $300-$600 is average but they can rise to $1100 for non-conforming lenders (or up to 1% of the loan amount). Many banks and conforming lenders often have deals where they have nil application fees. Be prompt as these deals do not last. Broker Fees—we do not charge you Most Accredited Mortgage Brokers do not charge you a fee. Our fees are paid by the financier. If you go to see a non-accredited broker you could pay up to $3000 extra. There is no reason to pay a broker an upfront fee—there is no additional service given by brokers who charge a fee. That broker will receive the same fee that we receive from the financier, in addition to your fee. Account Keeping Fees: From $0 to $10 per month. Valuation Fees Some financiers charge an up-front valuation fee. It is generally included in the loan application fee. Valuation fees are $150 to $300. Legal Fees — or Document Fees Some financiers prepare their own mortgage documents. Some have lawyers prepare their documents, Legal fees for preparation range to $350. 17 In association with PLUS: Searches Registration of Mortgage Mortgage Duty $115.30 0 .4%. (Note: As at 1 January 2007 there is no duty up to a loan of $320,000 for first home buyers) Deferred Establishment Fee—ask your Broker If you repay the loan early you will pay this fee generally when you repay three years or less from the date of the loan. The fee varies from financier to financier. Mortgage Insurance If you borrow more than 80% of the value of the security you will pay mortgage insurance. This can range from 1.36% to 2% of the loan. Other Fees Other fees do apply under certain circumstances. If you require any assistance call your broker or call us for clarification. It is the obligation of all financiers under the Consumer Credit Code to fully set out the fees and charges for each loan at the time of documentation. You should give these figures to your conveyancer as soon as possible so that final figures can be prepared for the settlement. Call Toby on 1800 515999 for any explanation of any matter of which you may be unsure. gh 18 Conveyancing–BASIC CONTRACT TERMS: Cooling Off A five day cooling off period is available to you to enable you to get independent legal advice and an independent valuation. You have five clear days from the day the contract is formed but excluding Saturdays, Sundays or public holidays to withdraw in writing. You may waive this right. If you withdraw you will lose 0.25% of the purchase price. Call the Conveyance Shop first for free legal advice on this. Disclosure Statement–Units When buying a unit you should receive a signed disclosure statement setting out all of the financial details of the Body Corporate and the unit before you sign. Deposit Most deposits are around 5% of the purchase price. To pay more than 10% makes the contract an installment contract under the Property Law Act. The balance of the purchase price is paid at settlement from your own funds and or your bank. Subject to Finance You should allow enough time to apply for finance. At least 21 days is wise. If you do not obtain finance you can terminate the contract and the deposit is returned to you. Unless you have all the cash, be sure to insist on this condition in your contract. Building and Pest Inspection Every contract for a building should have this clause. You must decide if you accept the report by the due date or extended date. If you do not accept the report you can terminate and obtain a refund of deposit. Please give yourself enough time in the contract. 19 Settlement Date In association with This is the date that you and/or your bank pay the balance. Your lawyer will settle and the title will be transferred to you and you will obtain the keys and possession. You should always conduct a pre-settlement inspection of the property and advise your lawyer of any problems if they exist. Settlement Statement Your lawyer will provide a settlement statement prior to settlement. Often this cannot occur until the day before as final adjustments, e.g. rates and body corporate fees will need adjustment as soon as the settlement date is definite. The Settlement Process You will need to inform your lawyer when you have signed your mortgage documents. At Choice Finance Cairns we also have easy access to the Conveyance Shop to overcome many of the difficulties of coordinating settlements. We also cut down on the costs involved in having your mortgage documents signed and available to your financier. hhOgg Refinancing Your Home Many people find different reasons to refinance. You will find that there may not be as much cost in refinancing as you think particularly if you have been in the same loan for three years or more. You may be entitled to a credit of the duty previously paid. Come and speak to us if you have any doubt. You may wish to use your equity in your house to buy an investment property, and with the good deals being offered by the banks now you should not be too afraid of asking how you can search around for the best 20 refinancing and investment loans. If you have a nonconforming loan with a high interest rate and you have a proven record of payment it may be time to refinance into a low interest loan with a regular bank or financier. Pre-Approvals–know before you shop Do you want the peace of mind and feeling of security when you are out shopping for a home or land to buy? Come to us and get pre-approval finance. We can help you select the best lender and loan to suit your needs and set a limit to suit your budget. These pre-approvals generally last for three months. Once you have selected your property the bank or financier will only need a valuation, a contract and a verification that there has been no material change in your circumstances. See us for a detailed explanation of this process. Products We have immediate computer access to over 700 loan products with all major banks and financiers in Australia. Here is a sample of some of our current loan packages. 1. NON GENUINE SAVINGS Most banks no longer require proof of genuine savings. There are 100% loan products available BUT BE VERY CAREFUL – it is normally better to arrange a 5% deposit and get a better interest rate and terms. Call any of our team for an explanation. First Home Buyer: If you are a home buyer/first home buyer, call us for an explanation as to how easy it is to buy. 2. INVESTMENT HOME LOANS Investment home loans are an ideal way to assist with the growth of wealth through property investment. 21 In association with Clients who already have a property are able to use the equity they have built up in their existing property to buy another property for investment purposes. Where there is sufficient equity available it is possible to purchase the new investment without any cash outlay. A large number of lending institutions are prepared to lend their investor sufficient funds to cover the purchase price of the property plus all government legal and bank fees. 3. PROFESSIONAL PACKAGE—DIFFERENT BANKS/DIFFERENT NAMES A fantastic option to make your banking easier and save you money. A professional package allows you to have your mortgage, savings account and credit card linked. Most professional packages work by paying an annual fee (generally $300 p.a. but this varies between lenders, but can include the following: • • • • • • Nil establishment fee for mortgages Nil monthly account-keeping fee Lifetime discount on variable rate (from 0.1% to 0.7% discount) More discount for more borrowings Nil valuation fees Discounted home and contents insurance eligibility criteria may apply such as minimum loan amount, mandatory Gold Credit Card and minimum number of accounts. 4. LOW DOCUMENTATION HOME LOANS—LO DOC OR NO DOC More and more often these days an individual’s income sources will vary. Some lenders realise the difficulties in verifying such different sources of income, so have developed the Low Documentation (Lo-Doc) Loan with this in mind. You need an ABN–and generally the LVR is 80%. Especially in the case of self-employed people, it can also be difficult to verify all the different sources of income. If you are self-employed, a subcontractor or even a PAYG employee with a variety of different income sources, then the Lo-Doc Loan could be for you. 22 Instead of providing financial statements, tax-returns, etc., you will only need to complete an income declaration stating your average annual income. This considerably simplifies your application process. Lo-Doc policy guidelines differ from each lender, so to find the best LoDoc Loan tailored to your situation, contact Choice Finance Cairns. NO DOC Loans are even easier. Interest rates do vary on these loans so call us for the best rates. 5. SENIOR’S LOANS Did you know that if you are over 65 and own your own home, but your cashflow is not too great, you can still borrow, from a traditional lender, those extra funds for that holiday or new car? 6. Construction Loans Our team can source the best current construction loans available on the market. Remember that sometimes your current lender may not have the best loan for you and it may be to your financial advantage to change: it may not be worth the change but we can give you advice for NO fee to find the best deal available. Often a talk to us can help you get a better deal from your lender with no obligation to us. FHOG is available at the time of construction of your first home. 7 Personal Loans/Car Loans/Credit Repair Choice Finance Cairns can arrange personal loans. We have a number of panel lenders to whom we can refer for Personal Loans from $3000 to $50,000 unsecured. Interest rates vary from approximately 8% to 13% depending on the loan. Fees and charges range from $290 to $650 depending upon the amount. Debt Consolidation - OR - Balance of Deposit - OR - Motor Vehicle, Boat or Holiday. 23 In association with 8. Motor Vehicle Loans are available from three major banks and financiers in the same way. We can get you a pre-approval on vehicles up to nine years old. We have finance up to $50,000 on motor vehicles up to nine years old. We have finance up to $150,000 for new cars. Finance is generally on the security of the vehicle. Call Choice Finance Cairns on (07) 40 515999 to find out how... _______________ Motor Vehicle Loans Commercial Finance Choice Finance Cairns has commercial accreditation with a number of Australian banks and financiers, notably— • ANZ • BANK OF SA • CBA • ING • MACQUARIE • SUNCORP • CHALLENGER Interest rates are competitive. Rates can vary generally depending on the LVR- major banks limit the LVR to 70% but some of our funders will go to 85% with the security of inner city properties. Rates vary but can range from the 30-day Bill Rate plus a margin of 1.15% to the 90 day rate plus 1.75% depending on the deal. Interest only 5 years is common. 24 First Home Owners Grant FHOG is administered by the Queensland Office of State Revenue. We can help you obtain the grant if you are eligible. To be eligible: • • • • You must be 18 or more. It must be your first home - existing, or to be built. At least one applicant must be an Australian citizen or a permanent resident. You and your spouse have not previously owned an interest in land in Australia that had a residence on it prior to 1 July 2000. This includes investment homes. You or your spouse have not, on or after 1 July 2000, owned an interest in residential property in Australia and lived on that property. (Note: Having owned an investment property after 1 July 2000 does not affect eligibility) Neither you nor your spouse can have owned a home, individually or with any other person. You must occupy the home as your principal place of residence continuously for 6 months within one year of the purchase or construction of the home. • • • Call Toby for particular circumstances. Most of our lenders are agents for FHOG. This means they deal directly with the Office of State Revenue and ensure that the $7,000 is available at settlement. We submit your FHOG application with your loan application. If you deal with a lender that is not a FHOG agent (e.g. some building societies), you may not receive the proceeds until several weeks after settlement (meaning that you need to borrow an extra $7,000). Note: This information was correct at time of printing (Jan. 08) but is subject to change. For more information phone Toby on 07 4051 5999. 25 In association with Stamp Duty for Principal Place of Residence and First Home Buyers Concessional rates of duty apply for Home Buyers and First Home buyers. For first home buyers there is no duty for the first $320,000 of a purchase and loan. The concessional rate of duty for Home Buyers is 1% up to $320,000 and thereafter the rate reverts to the normal duty rate which is an increasing sliding scale up to 3.75% at $700,000. (See page 27). Please call us and we can immediately calculate the rate for you. Registration fees are $108.60 up to $180,000 and then increase accordingly — see the enclosed rate chart. Loan Repayments The table below will give you a rough idea of your loan repayments at different interest rates. The figures are based on: • • • A 30 year loan term Interest and principal repayments (but not including the ongoing fees that are charged on some loans) Monthly Repayments 7.25% 7.50% 7.75% 8.57% $100,000 Interest Rate $682 $699 $716 $773 $125,000 $852 $874 $895 $967 $150,000 $1023 $1048 $1074 $1160 $175,000 $1193 $1223 $1253 $1354 $200,000 $1364 $1398 $1432 $1547 $225,000 $250,000 $1534 $1573 $1611 $1741 $1705 $1748 $1791 $1934 * Note, we have rounded up the cents to the next dollar. Based on per calendar month. Principal and Interest over 30 years 26 What Deposit Do You Need? - Finance Generally a 5% deposit is required. (Note: genuine savings no longer necessary). There are a few lenders who will accept a 5% deposit composed of 3% savings plus the other 2% made up from a gift or sale of an asset. We can arrange a separate Personal Loan. Most lenders now will accept a deposit made up of funds that have been borrowed or given as a gift from the sale of an asset etc. If you have equity in a property this can also be used as a deposit. 100% loans are available - call us for the full details. Note that we recommend care in these loans. House Land Packages — Full duty without concession is payable on the land contract if the house contract is separate– call Toby on (07) 4051 5999 for a full explanation. “Do you know that you don’t get a better deal by going to the bank direct—together we work out the best choice for you.” “Best rates • Best bank • Best deal” gh 27 In association with Queensland Government Fees: CONTRACT STAMP DUTY (Or stamp duty on transfer, conveyance of land stamp duty) PRINCIPAL PLACE OF RESIDENCE Up to $320,000 $320,000 to $500,000 Over $500,000 : 1% of purchase price : $3200+3.5% of amount over $320,000 : $9500+3.75% of amount over $500,000 INVESTMENT OR LAND (SEE LAND FOR 1ST HOME AS SEPARATE) Up to $20,000 $20,001 to $50,000 $50,001 to $100,000 $100,000 to $250,000 $250,000 to $500,000 $500,000 to $700,000 Over $700,000 : 1.5% of purchase price : $300+2.25% of amount over $20,000 : $975+2.75% of amount over $50,000 : $2350+3.25% of amount over $100,000 : $7225+3.50% of amount over $250,000 : $15,975+4% of amount over $500,000 : $23,975+4% of amount over $700,000 * Collected by Solicitor prior to settlement. The contract/transfer must be stamped before settlement. REBATE FOR FIRST PRINCIPAL PLACE OF RESIDENCE (1/1/07) Purchase Price: No duty up to $320,000 VACANT LAND — FIRST HOME BUYERS Note: For vacant land to be used for 1st home the nil duty is up to $150,000 then rebate up to $320,000 - call Toby at the Conveyance Shop on 40 515999. From 1 January 2007 – no Stamp duty for First Home Buyers up to $320,000. 28 Security Stamp Duty CONCESSIONS • • (or Mortgage Stamp Duty) $0.20 per $100 or part thereof but use the web calculator for accuracy 0.03% of full loan amount On first principal place of residence, exemption up to $250,000 Refinance of an owner-occupied property with no change to debtors or mortgagors, exempt up to $100,000 of refinance amount. TITLES REGISTRATION FEES Registration of Mortgage Registration of Transfer Discharge of Mortgage $115.30 $115.30 (If purchase price exceeds $180,000 add $21.50 per $10,000 or part thereof for amount over $180,000) $115.30 General Insurance - up to 90 days free Want up to 90 days free building insurance during your settlement period? Just phone Lifestyle on 1300 360 574 and they can will give you a quote and offer up to 90 days FREE building insurance during your settlement period. You will need to quote Broker Reference number 8 V 4 J T L (Rhonda Sciacca). gh 29 In association with Debt Goes Hand in Hand with Insurance What is your most valuable asset? We need to be reminded just what our most valuable asset is. Not just valuable to us, but to those most important to us: our family. When you have a Mortgage Debt, your family is generally relying on you for the roof over their heads and for their upkeep and support: don’t leave their future to chance. We can offer you Lifestyle Mortgage Protection Insurance whereby you can factor the cost of insurance into the loan and pay for three years cover upfront - set and forget - or pay monthly by direct debit instalments. Call Rhonda on 1800 515999 or make a time to see her when you come in for your loan. She can give you an indication in of what you will pay for this valuable insurance protection - it takes just a few moments. General Insurance for all clients Call us if you have not arranged General Insurance on the property you have contracted to buy. “Lifestyle” will provide you with free building insurance during your settlement period of up to 90 days to help protect your investment and your Lifestyle. Remember that most Queensland contracts make the property you contract to buy at your risk from 5.00pm on the day after the contract is signed. Call us on 1800 515999 and Rhonda will help you. Alternatively just phone Lifestyle on 1300 360 574 and they will give you a quote and offer up to 90 days FREE building insurance during your settlement period. You will need to quote broker reference number 8 V 4 J T L (Rhonda Sciacca). 30 How would you survive if you had to retire early due to ill health or injury? • • • • • Could you continue repayments on your mortgage? What about other debts - credit cards - car loans? Who would pay the bills - electricity, food, gas, telephone, etc. What about additional expenses - medical, houskeeping, childcare, education? If you own a business, could you keep it operating? List of Available Risk Products Lifestyle Life Cover Lifestyle Disability Cover Choose each separately or choose a combination of both. Instant quote is available - call Rhonda 40515999. Please note that to qualify for Lifestyle Life Cover or Disability Cover you must be aged between 16 and 54 and not have certain pre-existing conditions. If you do not qualify, we can refer you for full life insurance advice through a qualified Financial Planner. At Choice Finance Cairns we believe that the debt should not outlast its creator gh 31 In association with Insurance The following pages show briefly: The need for mortgage debt protection. The need for Life Insurance – especially if you could leave your family with a big mortgage debt. The need for Disability Insurance – how do you maintain your repayments if you have no income? Typical example of Insurance – showing the affordability of protection. See below. NOTE: This is not a quote Assume the following: Non Manual occupations. Yearly premiums Standard rateS 35 NExT bIRTHDAy $200.000 Life Insurance $3000 per month Disability Insurance Standard rateS 35 NExT bIRTHDAy $200.000 Life Insurance MALE NON SMOkER $288.00 approx p.a. $450.00 approx p.a. FEMALE NON SMOkER $204.00 approx p.a. $792.00 approx p.a. MALE SMOkER $540.00 approx p.a. $558.00 approx p.a. FEMALE SMOkER $312.00 approx p.a. $990.00 approx p.a. $3000 per month Disability Insurance (Rates apply as at January 2008 and are subject to change at any time and are indicative only) 32 Important Websites and Calculators Choice Finance and the Conveyance Shop: www.choicefinancecairns.com.au includes a Stamp duty and Registration Fee Calculators - online enquiry and access to Bankers and financierrs. Stamp Duty www.osr.qld.gov.au Click calculators/transfer duty. Fill in all applicable boxes as explained in the calculator - e.g. one or a half. Registration Fees www.nrw.qld.gov Click Property Titles and Valuations/Land Titles Fee Calculator/click transfer. First Home Owners Grant www.osr.qld.gov.au Click first home owner grant/eligibility. For general information, click frequently asked questions/disqualifying arrangements etc. Foreign Investment Review Board www.firb.gov.au Click real estate/residential real estate/application forms. Note R3 and Form 26(A) is the usual. 33 In association with About Choice Finance Cairns We are a locally owned organisation which is an Accredited Mortgage Broker with all the banks and in total—35 Australian Lenders. We operate for our clients but are paid by the banks and financiers at NO additional cost to the client. Our organisation consists of local professional people including a lawyer experienced in mortgage and commercial work. We help our clients through all their Home Loans and Investment Loans and provide the lowest cost legals to all our mortgage clients and provide professional insurance advice. Contact: Toby Sciacca email Neil MacIsaac email Rhonda Sciacca email Nikki MacIsaac email Visit our website : : : : : : : : : 0412 515 999 or 40515999 toby@choicefinancecairns.com.au 0437 515 999 or 40515999 neil@choicefinancecairns.com.au 0448 515 999 or 40515999 rhonda@choicefinancecairns.com.au (07) 40515999 or 40477806 Direct nikki@choicefinancecairns.com.au www.choicefinancecairns.com.au Legal advice in this book is by Toby Sciacca, Solicitor, The Conveyance Shop –which is a separately owned and operated business The information in this booklet is current as at January 2008. Please check with us for any changes in the law or fees and Stamp Duty. Staff photos courtesy of Brad Newton, Brad Newton Photography, Cairns. ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... ....................................................................................................................... Your Notes 34 36 Standard Conveyancing Fees and Outlays of the Conveyance Shop (gst inclusive) If we are not your mortgage broker the Conveyance Shop still provides low cost conveyancing services located in the same building, on the Ground Floor. The Conveyance Shop is a separately owned business to Choice Finance Cairns. SELLING: (GST Inclusive) BUYING LAND: (GST Inclusive) Legal Fees Searches: titles (x2) Plan Cairns City Council Land tax Legal processing $31.80 $15.90 $55.00 $36.00 $105.00 $540.00 $594.00 Further Fees: USUAL TOTAL $243.70 $837.70 BUT, IF FINANCING WITH CHOICE FINANCE CAIRNS JUST: $650.00 BUYING HOUSE: Resident or Investment under $500,000 (GST Inclusive) Legal Fees $638.00 Searches: titles (x2) $31.80 Plan $15.90 Cairns City Council $85.40 Land tax $36.00 Further Fees: Legal processing $105.00 $274.10 USUaL tOtaL $912.10 BUT, IF FINANCING WITH CHOICE FINANCE CAIRNS JUST: $650.00 BUYING UNIT: (GST Inclusive) Legal Fees $638.00 Searches titles (x2) $31.80 Plan $15.90 Cairns City Council $85.40 Land tax $36.00 Body Corporate $49.06 Further Fees: Legal processing $105.00 $323.16 USUaL tOtaL $961.16 BUT, IF FINANCING WITH CHOICE FINANCE CAIRNS JUST: $650.00 ____________________________________________________________ nOte: If your bank requires a settlement notice, add $23 to above totals. Figures correct at time of printing (Jan 2008, but subject to change)