Personal

 1: Why do we need Lenders Mortgage Insurance for our Home Loan?
Lenders Mortgage Insurance protects the lending institution from the risks associated with underwriting mortgages. It is often the case that a Lender's trustee (the body who "owns" the funds lent under a mortgage agreement) requires all mortgages to be covered by Lenders Mortgage Insurance. It is a form of protection that ensures the financial stability of the institution lending funds to you.

2: What happens if I have previous defaults on my credit report?
A bad credit rating in the past can have serious ramifications for applicants and can exclude them borrowing funds both now and in the future.

However, if you know you have a default recorded on your credit record, do not dispair!

The ramifications of a blister appearing on your record vary widely depending on several factors, including how many defaults are listed, the size of the defaults, whether you have since paid any monies outstanding, and whether you can make a suitable justification or explanation for default. In some situations we may be able to arrangement a non-conforming mortgage for you - a loan that typically features exemptions to overly stringent credit history requirements.

3: We have never owned property before. How do we arrange the First Home Owners Grant application?
Applying for the Commonwealth Government's First Home Owner Grant requires you to complete and lodge an application with the Office of State Revenue. It's a straight forward form that we can supply to you at the time of your application.

Your lending institution will take care of lodging the form on your behalf. We will supply you with a copy of the application form prior to arranging settlement of your loan.

4: Can I apply for a loan prior to finding a suitable property ?
In most cases, yes. We can arrange pre-approval for most of our loans products, but we normally require a general overview of the type, location, size and price range of the property you intend to buy. Please refer to the individual loan product information pages for more details on whether pre-approvals are available.

5: I don't get along with my existing Home Loan provider. Can I seek refinance and preserve my redraw facility?
Technically no, but depending on how far you are in advance of your repayments we can arrange a refinance of the amount minimum amount outstanding on your mortgage and have a cheque for your additional repayments to be forwarded to you. These funds can be recontributed to your mortgage repayments after settlement (effectively re-instating your redraw capacity).

6: I am approaching retirement and my Accountant recommends I invest some funds either in shares or income producing property. I own my home and have no debts at present. Can I borrow investment funds using my home as security?
Yes. Funding can be sought for any legal purpose. In this scenario, we could consider an investment loan, secured by the residence. The proceeds of the loan would then be utilised to acquire a share portfolio or any other investment strategy deemed appropriate by you in consultation with your investment advisor.

7: Can I borrow to pay for private school tuition for the kids ?
As a general rule, yes. Refinancing your existing mortgage on your home (owner-occupied residence) is possible provided the purpose is to raise funds for expenses of a personal or domestic nature (which would including private tuition fees).

8: I do all my bill paying and banking over the internet. Can I still do this if my loan facility is with Illawarra Home Loans?
All our mortgage products feature free online and phone banking facilities. However, you may still need an everyday transaction account with a bank depending on the nature of the transactions you make online. Our best advice would be to contact us for a free demostration of our online facilities.

9: If I repay more than the minimum requirement, can I have access to the additional funds?
Yes, any repayments you make in addition to your minimum month repayment are accessible to you by redraw. There is no limit on the size or numbers of redraws you can make during any month, but we do require three working days to process a redraw request.

Business
 
1: What is the difference between a Lease, a Commercial Hire Purchase (CHP)?
A CHP is deferred asset acquisition contract. That is, you acquire the asset and schedule the repayments to suit your specific circumstances ie an acceptable hire payment period at the end of which you make a balloon payment and take unencumbered ownership. The residual value maybe zero or the maximum expected market price of the asset under finance at the conlcusion of the term. The Australian Taxation Office (ATO) provides guidelines as to utilisation of residual values.

2: Do I have to provide any security for Lease or CHP facilities?
Usually the asset is the security. For certain types of equipment (those with poor resale values) financiers may require a small deposit. This is the exception rather than the norm. We work to limit the security or guarantees that are usually required.

3: Can I still get finance even if my business financial reports aren't up to date?
We do prefer have up to date financial statements available in order to provide you with the best rate possible. However, we do offer mortgage products specifically for self-employed applicants that can be used to raise funds for business invesment in cases where you may not be able to substantiate your income. If you are applying for a lease, commercial hire purchase or commercial mortgage it is imperative that we receive a copy of your latest financial records.

4: What information do I need to supply with my application?
In addition to a completed and signed application form, we usually require your last two year's financial statements, a signed privacy authority (as appropriate), and a supplier's invoice (for leases and CHPs) or property details (for mortgages). We usually require company directors to guarantee commercial facilities, so details of your personal Asset & Liability statement may be required. We will also need to verify the identity of company directors and require that all applicants and guarantors provide "100 points" of identification (a copy of both your drivers licence and your passport are sufficient for this purpose).

5: How long does approval take?
Under normal circumstances, and providing we have all the information we need to assess your application, we can provide a response within 48 hours.

6: Are interest rates fixed or variable for Lease & CHP facilities?
Both CHP and lease interest rates are fixed, providing you with certainty and protection against rate rises.

7: What types of equipment can I finance, and how do I organise it?
As a general rule, we can arrange finance for equipment with a demonstratable business purpose. Examples include cars, trucks, earth moving equipment, computer systems, shop & office fit-outs, printing presses, laser cutting equipment, restaurant equipment & aircraft.

8: What about equipment obsolescence - can I upgrade?
Yes, either at the conclusion of the term or upon payout of the facility. Depending on the type of facility

9: Can I borrow against the family home to buy a commercial property?
Yes. Funding can be sought for any legal purpose. In this scenario, we could consider an investment loan, secured by the residence. The proceeds of the loan would then be utilised to acquire either an income producing investment property, or a business asset (for example, business premises).

10: Can I finance rural or agricultural property?
Yes. The process of borrowing against rural and agricultural is very similar to any other commercial mortgage, with the exception that tighter Loan to Value Ratio (LVR) constraints are applied. Typically we can arrange a mortgage worth up to 40% of the property's value.