What is mortgage insurance?

When you borrow more than 80% of the property value, the lender will seek mortgage insurance to protect the lender from losses. Mortgage insurance provides coverage to the lender rather than the borrower. It is a one-off payment, which can be included in your home loan.

What documentation do I need to apply for a home loan?

To obtain a quick, easy and hassle free approval you will need to supply the following:

  • A copy of your Driver’s License, Passport and/or Birth Certificate and Medicare Number
  • A copy of your two most recent pay slips (your last two years Group Certificates – now called Payment Summary or PAYG Summary may be required).

For Purchases:

  • A copy of your savings account statement covering a 6-month period. This will confirm how much you wish to contribute.
  • For refinancing an existing loan a copy of your current loan statements for the past 6 months, and additional documentation may be required depending on your circumstances.

Further information will generally be required which depends on your personal circumstances.

I'm self-employed; can I apply for a home loan? / What documentation do I need?

If you are self-employed, you can still apply for a home loan:

  • To a full financial documentation loan, a self-employed person will need to supply the following to verify their income:
    • Full financial information for the past two years including Personal and Company Tax Returns, Profit & Loss Statements, Balance Sheets, ATO Assessments and Tax Portals.
  • A Low financial documentation loan, self-employed person will need to supply the following to verify their income:
  • At least one Borrower must be self -Employed.
  • An Executed Declaration from all Borrowers.
  • BAS statement and/or bank statements may also be required.

Can I buy a property with someone I am not related to?

Yes, you can purchase a property with another person.

I have a default on my record; will I get approved for a home loan?

Depending on what the default is, who lodged it and how much it is for, you may be considered for home loan approval.

Should I find a property or get approved for a home loan first?

We recommend that you obtain a Pre-Approval before looking for a property. This will give you peace of mind that you have a loan approved as well as knowing how much you need to spend without exceeding your budget.

Will I need mortgage insurance?

You will only need mortgage insurance if you borrow more than 80% of the property value. Whether Mortgage insurance is required depends on your lender.

What is stamp duty?

Stamp Duty is payable on purchases of properties. There are two different types of Stamp Duty:

  • Stamp Duty on the Transfer of Title, which is charged by state governments and paid by the purchaser.
  • Stamp Duty on the Mortgage – this duty has been abolished for most owner occupied and investment property loans but you may be required to pay it on other types of loans e.g. Business Finance.

Stamp Duty varies by state.

Can I lock in a fixed-rate?

Yes, you can lock in a fixed rate providing you complete a Rate Lock Application and pay a small fee.

How long does a locked-in rate last for?

Generally 90 days from the time the financial institution approves your loan or 90 days from the time you request a rate lock on an existing loan.

Can I use a guarantor to help get my loan approved?

You can use a guarantor provided they’re a Spouse or a Family Member.

They can assist you with a Guarantee over Security or act as an income Guarantor. The rules for this do tend to vary according to the situation and the lender; it is best to check with Lux Finance before making any decisions.

Will I need a solicitor?

You can choose to employ a Solicitor to assist you with the purchase of a property. Alternatively, you can employ a Conveyancer who can complete the same work at a lower cost.