After your home loan options have been discussed with your Savannah Consultant, you can then apply for the loan that will suit your individual needs. Your application will be filled out with your Savannah Consultant and then sent to your preferred lender, who will advise their decision within 1 – 5 working days.

If your application is successful your preferred lender will issue their Conditional Approval, which may be subject to such factors as a valuation of the property from a third party or mortgage insurance acceptance. After these conditions have been satisfied your lender will then issue their Formal Unconditional Approval, usually within a further 3 – 5 working days. Your loan documents will then be forwarded to you.

Once you have received your loan documents it is important that you check them thoroughly before signing. We recommend that you also have your solicitor or conveyancer go through the documents to be certain everything is in order. After the documents have been checked and signed you will need to return them as soon as is convenient, to get the process of ownership underway.

Do I need pre-approval?

It is often beneficial to get pre-approval for your home loan during the early stages of house-hunting, because then you will know exactly how much you qualify for. You will be able to ensure that you are looking at homes within your price range, and you will also be looked upon favourably by both vendors and real estate agents, because they will know that you have the finance to back up your interest in the property.

What is contained in the contract?

The Contract of Sale is prepared by the vendor’s agent or solicitor. Before you agree to purchase the property you should get a copy of the contract and read through its intricacies to ensure you are comfortable. Many people also choose to have their solicitor or conveyancer read over the contract, The contract will outline all conditions of sale, including factors such as:

• The price of the property
• Settlement date
• Outgoing costs such as rates, water and body corporate fees if relevant
• Planning information and past/current building permits
• Existing mortgage details
• Chattels (items that are included in the sale, such as light fittings)
• Any additional agreements you may have made regarding the property

How does the settlement process work?

1. After you have received approval from your lender you will need to notify your conveyancer or solicitor, to inform them that the loan has been formally and unconditionally approved. They will then prepare the necessary documents to enable the property to be legally transferred to you, and will contact your lender to arrange a specific time for settlement.

2. Your conveyancer or solicitor will contact you a few days prior to settlement to advise you how much you will need to contribute for the balance of your deposit and for all applicable government fees and charges. Usually you will need to provide these amounts in the form of bank cheques to your conveyancer or solicitor one day prior to settlement.

3. Your conveyancer or solicitor will then attend the settlement on your behalf, and will notify you once the settlement has taken place.

4. After you have been advised by your conveyancer or solicitor that the settlement has taken place, you will be able to collect the keys to your new property from the real estate agent’s office.

5. Within a couple of weeks of settlement you should receive a letter from your lender, confirming the settlement of your home loan. The letter will detail how the funds were disbursed at settlement, and will state when the first repayment of your home loan is due.

If my home loan is with another bank can I move to another lender?

Yes. Provided you meet with the lender’s application criteria you are able to change your loan.

How is interest calculated on home loans?

Interest on home loans is calculated daily and charged monthly. However, one way to pay your home off more quickly is to split the monthly payment in half and pay fortnightly, effectively making 13 payments each year instead of 12. This could save thousands of dollars and shave years off your home loan. For more information on how you could pay off your home sooner, just ask your Savannah consultant.