Can I have both fixed and variable rates on my home loan?
Yes, you can split your home loan to have both variable and fixed interest rate payments. Please call or email our friendly team at Finance Circle Group (info@financecirclegroup.com.au) to discuss your options to meet your requirements and objectives.
Do you always require valuation of property?
Yes this is a compulsory part of the application process. It is important for both us as a lender and also our customers, as the security value needs to be accurate and correct. Some lenders may reply on a valuation that is know as a desktop valuation that a valuer will provide from their research without inspecting a property. This may be convenient for properties that have a tenant.
Do you have calculators available on the Finance Circle Group website?
Yes we have calculators available that you can use on our website. Please click the Calculators button located in the top menu of the website or you may choose to go directly the calculators.
How do I know if I’m eligible to get a FHOG?
You are eligible if you are an Australian citizen or permanent resident, building your first home in Australia, with the intention of living in the property as your principal place of residence within 12 months of settlement and for at least 6 months. It is important to refer to each state website for the grant eligibility as the state conditions vary.
Here is a useful website for Victoria.
Applying for the First Home Owner Grant
We can lodge your first home owner’s application on your behalf so that the grant is available for you at settlement. You must complete the state specific application form, and provide the original application and required documentation before this can be lodged.
How is my borrowing capacity calculated?
Your borrowing capacity is a calculation of your total income less your monthly expenses, which include living expenses, other loans, credit cards and dependents.
To calculate your borrowing capacity, the following information is needed:
• Marital status, number of children and their ages up to the ages of 18
• Gross Taxable Income for each applicant (not including any Superannuation)
• Advise of all credit card limits, and any other monthly repayments for any other personal loans, car loans or any HECS/HELP debts.
Our resources section has more information.
Understanding your borrowing capacity
How is my repayment calculated?
A monthly principal and interest payment is calculated on the number of years, the interest rate and the loan limit (i.e. the loan balance plus any surplus funds available for redraw).
Each monthly principal and interest repayment is calculated to cover the interest amount charged and the remainder will reduce the principal/balance of the loan.
Fortnightly and weekly loan repayments are based half or quarter of the monthly repayment amount.
Repayment Calculator may assist you to workout different repayments for different loan amounts and interest rates.
How is the Lenders Mortgage Insurance (LMI) premium calculated?
To provide an indicative lenders mortgage insurance premium, the following information is needed:
• Loan amount
• The property value
• The state the property is located in, and
• If the property is owner occupied or an investment property.
How often do I make loan repayments?
You can select weekly, fortnightly or monthly if you have a Principal & Interest loan. If you have an Interest Only loan you can select monthly loan repayments only
Is there a way for me to know which loan is suited to my needs?
Our website provides information on a variety of our products including fixed and variable loans so you can make an informed decision before submitting a loan application. Should you have additional questions about our products please call us or email us – Finance Circle Group.
What are the supporting documents for Purchase of Property?
Various lenders require different information. As a starting point, we will require the following:
• Identification documents (Drivers Licence, Passport and Medicare card)
- Two (2) most recent consecutive payslips for each applicant
• Three (3) months bank statements showing regular salary credits, including most recent salary credits with the name of the employer evident
• Full copy of Contract of Sale signed and dated by all parties, including annexures/attachments where applicable.
• Three (3) months bank statements showing regular savings pattern or funds held for at least three (3) months prior to application
What are the supporting documents for Refinance?
We will require the following:
- Identification documents (Drivers Licence, Passport and Medicare card)
• Two (2) most recent consecutive payslips for each applicant
• Three (3) months bank statements showing regular salary credits, including most recent salary credits with the name of the employer evident
• Six (6) consecutive months of home loan statements showing consistent repayment history
What if part of my deposit is gifted funds?
For gifted funds, we will require a statutory declaration from the family member providing the gift, including the full name of the person receiving the gift, amount of the gift and confirming the gift is non repayable. Different lenders may require in a format acceptable to the lender.
What is the difference between variable and fixed rates?
The interest rate on a variable loan may go up and down over the duration of the loan. You can make additional repayments at any time with no penalties or extra costs. You also can access any additional repayments. The interest rate on a fixed rate loan doesn’t change over the fixed period you have selected so you will know how much you need to pay each month and not affected by any interest rate increases. There are limits to the amount of extra repayments you can make, and you cannot access additional repayments until the fixed term has ended.
What will I pay as discharge fees?
The full discharge fees will be shown on your loan agreement. Typically, there will be $300 – $400 discharge fee depending on the lender. If you have a fixed rate loan, there may be a fixed rate break cost applicable as well.
