AFG AUSTRALIAN
“GOLD” AND
“SILVER” LENDER
ACHIEVEMENT
AWARDS
SINCE 2005
The Buyers’
& Borrowers’ Guide to
queensland home loan and investment finance
asic reg. no. 355458
including
guide to low cost conveyancing
Compliments of Choice Finance Cairns
in association with The Conveyance Shop
Home Loans
We have the lending
policies of ALL banks
to choose from - not
just one, or your usual
bank - we have many
options available. We
fix deals quickly call us.
Low Cost
Conveyance
plus free Wills for loan
clients. Conveyance
just $750 with a home
loan through Choice
Finance Cairns.
(Subject to change without notice).
Located conveniently under one roof
Choice Finance Cairns in association with the
Conveyance Shop at 40 Aplin Street, Cairns
(corner Sheridan Street, near Cairns Central Shopping Centre)
Ph 1800 515999
The Buyers’ and
Borrowers’ Guide to
Queensland Home Loan
and Investment Finance
and guide to
Low Cost Conveyancing
& Insurance protection
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
FIRB Information................................................................................17
5
In association with
Conveyancing..........................................................................................18
Basic Contract Terms:.........................................................................18
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 Genuine Savings ............................................................................20
2 Investment Home Loans.................................................................21
3 Professional Package......................................................................21
4 Low Documentation Home Loans..................................................22
5 Construction Loans.........................................................................22
6 Personal Loans/car Loans/credit Repair.........................................22
7 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:
As professional mortgage consultants, we arrange
for potential borrowers to apply to a lender 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. A
pre-approval will allow you to negotiate the purchase
of a property with confidence.
Tenant in Common: 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.
Joint tenancy:When one person dies the other person/persons
on the title automatically gets the interest of the
deceased.
Line of Credit:A loan arrangement with a specified credit ceiling.
LVR:Loan to valuation ratio
Mortgagor:The person borrowing.
LMI: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.
Variable Interest:
A rate that changes with the market
Standard Variable:
Offers comprehensive features. It is often the rate
that fixed loan rates roll over to at the end of a fixed
term
Basic Variable:
A variable home loan at a reduced rate with fewer
features than a standard variable
7
... in association with ....
Choice Finance Team
Toby Sciacca
0412 515 999
Qualified Practicing
Lawyer and Accredited
Mortgage Consultant
Neil MacIsaac
0437 515 999
Accredited Mortgage
Consultant
Rhonda Sciacca
0448 515999
Accredited Mortgage
Consultant
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.
We are licenced under ASIC - Registration No 355458. After more than 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.
*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.
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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 the major Australian lenders,
including the four big 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:
$750.00 all up! Save $$$
For loans in excess of $100,000. Includes: 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.
Super
special
legal fee
$750
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)
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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.
Adelaide Bank
Homeloans Australia
AFG MM
Homeside Lending
AMP Banking
ING Bank
ANZ Bank
Liberty Financial
Bank West
National Australia Bank
Citibank
Pepper Home Loans
Commonwealth Bank - CBA
The Rock Building Society
Deposit Power
Suncorp Bank
Heritage Building Society
Westpac Bank
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
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In association with
A SIMPLE GUIDE
THe basic steps foR buYing a Home oR pRopeRtY
At one time or another we all 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 DEPOSIT and EMPLOYMENT– to show
capacity to repay your loan. Serviceability of the debt is the key ingredient
to borrowing.
a.
Deposit
Some financiers will provide finance on deposits as low as 5% of loan-tovalue ratio (LVR). Most require between 5% and 10%. Unless you have a
good capacity to repay do not to be tempted to over-borrow. If you borrow
more than 80% of the LVR then you will pay Mortgage Insurance. This
is a one-off payment which can average approximately 1.5% of the loan.
(See our definitions.) Some lenders will provide loans including all or part
of this insurance cost. (Meaning LVR is capitalised on top of loan amount).
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.
Dont trust the web calculators - our calculators are directly connected to
each lender. We can access the repayment requirements of the lenders to
find the one to suit you.
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Credit History
If you have had a credit problem there are Lenders who may still help,
or sometimes credit problems can be repaired. 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
toby@choicefinancecairns.com.au
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In association with
Contract
Legal advice in this article is by Toby Sciacca, Solicitor
from the Conveyance Shop.
See back
page for The
Conveyance
Shop Scale of
Fees
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 only way to legally vary such
a contract is by doing it in writing. 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. The PAMDA
Act has an extensive rule as to how agents and lawyers should prepare and
deliver contracts. If they are not followed strictly thn the contract may be
terminated on technical grounds so you should get good legal advice.
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. Stay in touch with your conveyancer during
this time. 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. If not using us, 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. Some lawyers charge as soon as you send them the contract
whether you proceed or not. We don’t.
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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. Do not ever pay more
than 10% as it will change the normal rules.
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.
If you withdraw from the Contract The Conveyance Shop does not charge
15
In association with
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. Many loans today
have no fees.
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: Usually 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 non-bank financiers prepare their own mortgage documents or have
lawyers prepare their documents, Legal fees for preparation range to $350.
17
In association with
PLUS:
Searches, each approx
Registration of Mortgage Mortgage Duty
$ 17.70
$127.90
Nil
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 loanb or
more if you don’t have genuine savings. We can explain this to you.
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.
FIRB (Foregin Investment Review Board) Basics. Exemptions:
•
•
•
•
•
Australian Citizens
New Zealanders
Permanent residents
Ecetera.: call us
Note: Approval requirements. Temporary residents can now purchase existing and much more. Call us as some banks won’t lend.
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. The law is changing to
have the 5 days as including the day you sign.
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. Don’t do this, as it creates a different legal situation. 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. Keep in touch with us - be available during the week before
settlement.
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.
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
refinancing and investment loans. If you have a non-conforming loan with
20
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. GENUINE SAVINgs
Most banks require proof of genuine savings. You will need at least 5%.
First Home Buyers: If you are a first home buyer, call us for an
explanation as to how easy it is to buy. You can receive $10,500 First
Home Owners Grant for a new home in regional Queensland, and $7000
for existing home.
2.INVEsTMENT HOME LOANs
Investment home loans are an ideal way to assist with the growth of wealth
through property investment.
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
21
In association with
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
• Life of the loan 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
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 a reduced list of financial requirements. These change regularly
from lender to lencer so call us and we will set out the current rules. . This
considerably simplifies your application process. Lo-Doc policy guidelines
differ from each lender, so to find the best Lo-Doc Loan tailored to your
situation, contact Choice Finance Cairns.
5.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.
6.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.
7.
Motor Vehicle Loans
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.
23
In association with
Commercial Finance
Choice Finance Cairns has commercial accreditation with a number of
Australian banks and financiers, notably—
• ANZ
• SUNCORP
• CBA
• ING
• WESTPAC
Interest rates are competitive. Rates can vary generally depending on the
LVR (Loan to Value Ratio)- major banks limit the LVR to 70% but some of
our funders will go to 85% with the security of inner city properties.
Commercial rates vary quite considerably these days, so call us for
an update.
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 $10,500 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 $10,500).
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 purchase up to $500,000.
The concessional rate of duty for other Home Buyers is 1% and thereafter
the rate reverts to the normal duty rate which is an increasing sliding scale
up to 4.5% at $980,000. (See page 27).
Please call us and we can immediately calculate the rate for you.
Registration fees are $127.90 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
Interest Rate
$100,000
$125,000
$150,000
$175,000
6.50%
6.70%
7.00%
7.25%
7.50%
7.75%
$632
$645
$665
$682
$699
$716
$790
$806
$831
$852
$874
$895
$948
$967
$997
$1023
$1048
$1074
$1106
$1128
$1163
$1193
$1223
$1253
$200,000 $225,000 $250,000
$1264
$1290
$1330
$1364
$1398
$1432
$1422
$1451
$1496
$1534
$1573
$1611
$1580
$1612
$1662
$1705
$1748
$1791
* Note, we have rounded up the cents to the next dollar. Based on per calendar month. P&I over 30 years.
26
What Deposit Do You Need? - Finance
Generally a 5% deposit is required. There are a few lenders who will
accept a 5% deposit composed of a gift/tax refund/or sale of an asset. We
can arrange a separate Personal Loan. Call us to discuss.
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.
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”
27
In association with
Queensland Government Fees:
CONTRACT STAMP DUTY
(Or stamp duty on transfer, conveyance of land stamp duty)
Home Concession
Purchase price/
value
Duty rate
Up to $350,000
$350,001-$540,000
$540,001-$980,000
Over $980,000
$1.00 for each $100 or part of $100
$3,500 + $3.50 every $100 or part of $100 over $350K
$10,150 + $4.50 every $100 or part of $100 over $540K
$29,950 + $5.25 every $100 or part of $100 over $980K
First Home Concession:
Purchase price/value
Not more than $504,999.99
$505,000 to $509,999.99
$510,000 to $514,999.99
$515,000 to $519,999.99
$520,000 to $524,999.99
$525,000 to $529,999.99
$530,000 to $534,999.99
$535,000 to $539,999.99
$540,000 to $544,999.99
$545,000 to $549,999.99
$550,000 or more
Concession
$8,750
$7,875
$7,000
$6,125
$5,250
$4,375
$3,500
$2,625
$1,750
$875
Nil
28
Dutiable value of the first home vacant
land
Concession
Up to $250,000
$250,000 to $259,999.99
$260,000 to $269,999.99
$270,000 to $279,999.99
$280,000 to $289,999.99
$290,000 to $299,999.99
$300,000 to $309,999.99
$310,000 to $319,999.99
$320,000 to $329,999.99
$330,000 to $339,999.99
$340,000 to $349,999.99
$350,000 to $359,999.99
$360,000 to $369,999.99
$370,000 to $379,999.99
$380,000 to $389,999.99
$390,000 to $399,999.99
$400,000 or more
100 % of transfer duty
$7,175
$6,700
$6,225
$5,750
$5,275
$4,800
$4,325
$3,850
$3,375
$2,900
$2,425
$1,950
$1,475
$1,000
$525
No concession
Security Stamp Duty
Or Mortgage Stamp Duty. Nil. There is no Stamp duty on mortgages.
Titles RegistRation Fees
Registration of Mortgage
Registration of Transfer
Discharge of Mortgage
$127.90
$127.90 up to $180,000
$127.90
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 heads­and for their upkeep and support: don’t leave their future
to chance.
When you get your loan through Choice Finance Cairns, with your
permission, Tower Insurance can contact you and discuss your personal
insurance options.
General Insurance for all client
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 if you have any queries.
30
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.
31
In association with
About Choice Finance Cairns
We are a locally owned organisation with Accredited Mortgage
Consultants accredited with all the major 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
:
:
0412 515 999 or 40515999
toby@choicefinancecairns.com.au
Neil MacIsaac
email
:
:
0437 515 999 or 40515999
neil@choicefinancecairns.com.au
Rhonda Sciacca
email
:
:
0448 515 999 or 40515999
rhonda@choicefinancecairns.com.au
Visit our website
:
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 August 2010. 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.
32
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)
$600.00
BUYING LAND: (GST Inclusive)
Legal Fees
$714.30
Searches:
Titles (x2)
$35.40
Setlement Notice
$26.30
Plan
$17.70
Cairns City Council
$70.00
Land Tax
$41.95
Further Fees:
Legal processing
$106.00
$297.35
USUAL TOTAL
$1011.65
BUT, IF FINANCING WITH CHOICE FINANCE CAIRNS JUST:$750.00
BUYING HOUSE: Resident or Investment under $500,000 (GST Inclusive)
Legal Fees $748.00 Searches:
Titles (x2)
$35.40
Setlement Notice
$26.30
Plan
$17.70
Cairns City Council
$104.20
Land Tax
$41.95
Further Fees:
Legal processing
$106.00
$331.55
USUAL TOTAL
$1079.55
BUT, IF FINANCING WITH CHOICE FINANCE CAIRNS JUST: $
750.00
BUYING UNIT: (GST Inclusive)
Legal Fees
$759.00
Searches
Titles (x2)
$35.40
Setlement Notice
$26.30
Plan
$17.70
Cairns City Council
$104.20
Body Corporate
$53.90
Land Tax
$41.95
Further Fees:
Legal processing
$106.00
$385.45
USUAL TOTAL
$1144.45
BUT, IF FINANCING WITH CHOICE FINANCE CAIRNS JUST: $
750.00
____________________________________________________________
NOTE: If your bank requires a settlement notice, add $23 to above totals.
Figures correct at time of printing (August 2010, but subject to change without notice)