Frequently Answered Questions
We have compiled a list of the most common questions our customer service team gets asked. If you have a question that is not on our list then click here to send your enquiry through to us or alternatively give us a call on 1300 78 78 74 and one of our friendly staff can help.
Who is Homeloans Ltd? Homeloans Ltd was originally founded in 1985 by Tim Holmes and Rob Salmon, as International Financing and Investment Pty Ltd (IF & I).
In March 2001 the company was renamed Homeloans Ltd and was listed on the Australian Stock Exchange operating under six state based brand names of Homeloans NSW, Homeloans VIC, Homeloans QLD, Homeloans SA, Homeloans Canberra and WA Homeloans..
In October 2002 the group united its various state based companies to operate under the one brand of Homeloans Ltd. While the name changed it was still business as usual and Homeloans today continues to pride themselves on providing a varied and flexible product range designed to suit all borrowers needs.
Homeloans has been at the forefront of personal service for many years. Recognising the strong public demand for increased personal interaction. The company has wisely invested in quality employees and excellent phone and computer systems to provide superior service to our customers.
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How much can I borrow for a home loan? The amount you can borrow is determined by certain lending criteria. If this criteria is met the minimum loan amount you can borrow can be as low as $10,000 and can go up to more than a $1 million against a single security. A general rule of thumb; usually you can borrow up to three and a half times your gross salary. Click here to find out how much you can borrow.
Can I switch from variable to fixed rate? You may be able to switch from a standard variable rate to a fixed rate depending on your loan product (Line of Credit products do not offer fixed rates). If fixed rates are available for your loan then at any time after settlement you have the option of fixing all or part of your loan. You need to remember that costs may apply if you break your fixed contract before the end of the fixed term and a fee may apply initially to convert your rate
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Can I make extra repayments on my loan? You may make extra repayments on your variable interest rate at no extra charge. In fact we encourage this, as the more you pay the sooner you will own your home. If you have a fixed loan you can still make extra repayments, however some products limit this to a certain amount before you are charged a nominal fee.
Does Homeloans have a redraw facility? Homeloans enables you to redraw any accelerated repayments whenever you require them if your loan has a redraw facility available. Different minimum redraw amounts apply to our various products and a nominal fee may apply. Our Customer Service Representatives can organise for the money to be in your account within 48 hours.
How can I get Interest Only on my current account? Homeloans Ltd allows you to change your loan to interest only without having to refinance your loan, terms and conditions may apply. Usually your interest only term cannot exceed 5 years but this may vary according to your loan. Call 1300 78 78 74 for further enquiries.
Can I pay out my home loan early? Yes you can. Depending on how long you have had your loan deferred establishment fees may apply, these are generally not charged after the initial 5 years. A discharge fee is applicable for variable rates and if you have a fixed loan you may also need to pay break costs. To obtain your pay out figure call Homeloans on 1300 78 78 74 and we will endeavour to finalise your payout figure within 24 hours.
Does Homeloans have a construction facility? Yes we do! Subject to you meeting our loan assessment criteria, we can advance up to 95% of the total cost of the construction (cost of the land, plus fixed price building contract) for owner- occupied purposes and 90% for investment purposes. For more information call 13 38 39.
Does Homeloans lend to investors as well as Owner Occupiers? Yes we do! Our rates are the same for all borrowers. You may have fixed, variable or interest only options for your loan. We also consider multiple securities when applying for a loan.
Do I have the ability to take my home loan with me to another property? Yes, you can replace the security for your loan with another security property approved by us. Portability fees will apply.
What is this $100 fee on my statement? If you have a Balanced Monipower Line of Credit product you will be charged an annual fee of $100. This is charged during your first month and then on the anniversary of your loan settling.
Why have I exceeded my limit on my Line of Credit in the first month? This is not uncommon with a fully drawn Line of Credit. Interest is calculated daily and debited monthly. Your statement will show that we require payment by a due date which is usually 28 days thereafter, which means if you have not had any salary credits into that account during that month, then your account will exceed its approved limit.
What is the $24 fee charged to my account? This is an annual fee charged for having a secured visa.
Are you able to give my information to a third party with my permission? No, the Privacy Act dictates that we can only provide information to those named on the loan agreement.
Is Homeloans Ltd on the share market, and can I buy shares? In March 2001 the company was renamed Homeloans Ltd and was listed on the Australian Stock Exchange. Shares are publicly traded. For more information on investor relations click here.
What is the connection between FAI First Mortgage Pty Ltd and Homeloans Ltd? Homeloans Ltd purchased FAI First Mortgage Pty Ltd in April 2001. Since the purchase, Homeloans Ltd manages all existing FAI Home Loans. Over time the name FAI Home Loans will gradually be phased out and the documentation you receive will also be amended to reflect this transition. However this will not affect the nature of your loan(s) in any way.
Homeloans Ltd is pleased to include FAI’s product range to its existing suite of loans and look to continue the development of the products to meet market needs.
What is the connection between Access Home Loans and Homeloans Ltd? Homeloans acquired the business of Access Home Loans in December 2001. While Access continues to trade under its own name, the core business functions, customer services, accounts and administration have been combined with Homeloans Ltd ultimately resulting in improved performance in our service to you.
Who do I contact to ask further questions about applying for a loan? Call 13 38 39 and we will organise for a Sales Consultant to meet with you at a time that suits you or click here to book a consultant.
Why am I constantly over my limit on my Line of Credit account? I don't use the account for anything and I pay my monthly due amount? When a Line of credit is fully drawn at settlement, the interest is debited after the first month. The interest will take the balance over the account limit. The repayment is not due until the next due day, 28-30 days after statement date, however any over limit amount must be cleared immediately.
Who are all the names on my settlement statement? (why did you send $10,000 to A N Other Co), I've never had any loans with that company? The vendor's settlement agent/solicitor instructs our solicitor as to how the funds should be disbursed at settlement. A loan is usually fully drawn at settlement and any surplus funds are usually deposited back into the account or a cheque is sent to the customer.
Why do you send statements to my parents? They are only guarantors and have nothing to do with the loan. We are obliged to provide all parties to the loan, including guarantors, information and/or statements UNLESS you all sign an Account Nomination Form instructing us to send to just one party.
Can you let me know what my repayments are if I lock my loan in for a fixed rate? We can provide you with an indicative amount if you are looking to fix your loan over a period of time.
Why is the interest amount on my account higher some months than others? Because interest is calculated on the daily balance and the number of days in some months differ, eg. 28 in February, 31 in December etc. Also, if you have a weekly Direct Debit for example, there may be 5 credits in a month thus reducing the balance compared to only 4 weekly repayments the following month. This will affect the interest amount.
Why do I owe as much as I did 2 years ago? If you have selected an interest only loan then you are only paying interest, not the principle. Similarly with a revolving line of credit where your initial account limit is available for the term of the loan, each month you are required to cover ONLY the interest charge. It is up to you to ensure that you deposit extra funds to reduce the balance and eventually repay the loan.
Are there any penalties if I pay a lump sum off my loan ? Only if your loan is a fixed rate loan. Most fixed rate loans allow lump sum payments of between $10,000 and $20,000 before a fee is charged.
Why didn't my visa sweep go through? Insufficient funds in the paying account on the due date. Sometimes internet/phone banking credits to the Visa account will prevent the next sweep if the total credits during the month are more than the sweep amount.
Why was I charged interest on my visa? Interest is charged for any cash advance. If the full closing balance for the previous month was not paid by the due date interest may be charged.
What does 55 interest fee days mean? Up to 55 days on some Visa cards. This means that when you purchase on day one of your statement period you will get 55 days interest free on that transaction(s), the second day the remaining interest free period will reduce to 54 days. If you purchase on the statement closing date of your statement period, you will only be entitled to 26 days interest free. However, if you withdraw cash and do not pay the full closing statement balance or do not pay on the due date, you will incur interest charges.
Why are the interest rates in the paper/internet, so much lower than what you charge me? We provide a large range of products with varying interest rates. Generally the lowest rate on offer is published to illustrate our competitive rates.
Why do I still keep getting visa statements when I sent a payment to close the account months ago? Because it takes 60 days for a visa account to close. This allows for any outstanding transactions to be presented. eg. Direct debit which would need to be cancelled via the merchant debiting your account. A direct debit will keep the visa open.