Personal
Frequently Asked Questions
How much deposit do I need?
What
costs are involved in setting up the loan?
Are there
any on-going fees or charges?
What is mortgage
insurance?
When is a
guarantee required?
Can I switch
interest rates?
Can I make
additional repayments?
Can I access
advance payments?
Can I prepay
interest?
Is my loan portable
if I move house?
I already have a loan
with another bank. Should I move it to The Rock?
Do I need a solicitor?
Do I have to take
out insurance through The Rock?
How can I pay
my insurance premiums?
What is Mortgage Repayment
Insurance?
What if I don't want
the insurance anymore?
How do I access my
accounts?
Can I have more than
one Mortgage Offset account?
Can I use the Offset
account for my business?
Are there any transaction
fees on the Offset account?
What is an AAPR or
Comparison Rate?
How much deposit do I need?
We usually require borrowers to contribute at least
5% of the purchase price of a property, or have at
least 10% equity in the property in the case of a refinance.
The 10% can be in the form of a deposit paid to the
vendor or builder, or in bank deposits or other realisable
investments.
In addition to the deposit, you should also have sufficient
funds to cover your loan setup costs.
What costs are involved in
setting up the loan?
The costs associated with purchasing a
property and/or taking out a loan can be substantial,
and it is important that you budget for them in determining
how much you can afford to pay for a property. The following
is a rough guide of the potential costs:
The following example is based on a loan of $270,000
to a Queensland borrower purchasing an owner-occupied property for $300,000.
|
| Deferred
Establishment Fee |
Up to $1500 |
Calculated on the approved loan amount and only payable if the loan is repaid within 4 years. If the amount of your loan as a percentage of the security property value is below 80% the deferred Mortgage Insurance premium will also be payable. (please see below).
|
| Mortgage Insurance |
Calculated on a sliding scale. |
Is applicable to all loans. Customer only pays at settlement when the amount of your loan as a percentage of the security property value exceeds 80%. Should this percentage be 80% or less the cost is deferred over a 4 year period (see above). |
| Application Fee |
$600 |
Includes the valuation of one security property (to the value of $1mil.) and the settlement fee. If the value of the security is more than $1 mil, any valuation cost in excess of $275 will be added to the Application Fee. |
| Stamp Duty on Purchase |
Calculated individually |
Varies depending on State, amount borrowed, and
whether or not exemptions apply.
|
| Stamp Duty on Mortgage |
Calculated individually |
Varies depending on State, amount borrowed, and
whether or not exemptions apply.
|
| Registration Fees |
$250 |
|
| Your Solicitors' |
Calculated individually |
Varies depending on the solicitor or conveyancing
agent you employ.
|
Are there any on-going fees
and charges?
Yes we do charge monthly administration fees on both our loan and some offset accounts depending on the loan product that you choose. For further information refer to Home Loan Solutions (Loans at a Glance).
With Rock Star Package loans, the monthly administration
fees for the loan and 2 linked offset accounts are incorporated into a $300 annual fee. Administration charges for additional offset accounts will be charged directly to the offset account.
Transaction fees apply on our 100% offset accounts
and Line of Credit facilities for cheque withdrawals,
ATM usage, etc. Click here to download our Schedule of Transaction Fees.
Internet banking transactions are
free when using our I-Bank
facility.
What is mortgage insurance?
Also known as Lenders Mortgage Insurance, this protects
the lender (e.g. The Rock) if you are unable to
meet your repayment obligations. It does not provide any
direct benefit to borrowers, but because it protects us
we are able to offer a better interest rate to our borrowers.
A once-only premium is paid at the start of the loan,
and the amount of the premium is dependent upon the amount
of the loan and the value of secured property.
When is a guarantee required?
The Rock requires a guarantee to be
given in the following circumstances:
- where the owner or co-owner of a secured property
is not a borrower, e.g. property owned by husband and
wife, but loan to be in wife's name only;
- personal guarantees from directors where borrowings
are made in the name of a company or trust;
- adult beneficiary of a trust who is not a borrower.
Can I switch interest rates?
You can change a variable interest rate to a fixed rate
at any time (a switch fee applies).
If you want to change from a fixed rate to a variable
rate before the end of the fixed period you may have to
pay "break costs" to cover any loss of revenue to The
Rock as a result of you changing rates early.
At the end of a fixed rate period your loan can either
switch to variable, or you can re-fix for another set
period. There is no charge for either of these options.
Can I make additional repayments?
Yes. Our only requirement is that you pay the minimum
monthly repayment by the due date. You can do this by
paying weekly, fortnightly, monthly or any other basis
that suits you. You can also make additional repayments
whenever you want, for any amount you choose. The interest
on your loan account is calculated based on the closing
balance at the end of each day, so any additional repayments
start working for you immediately.
Unlike many other lenders, we
even allow these additional repayments on fixed rate
loans!
Can I access advance payments?
Yes. This is commonly known as a redraw facility.
If you make repayments over and above the required monthly
repayment, we maintain a separate running total of these
payments, so that we can see at any time how much you
are in "advance" with your repayments. We will allow
you to redraw these funds (although we like to leave
the account in advance by sufficient funds to cover
the next monthly repayment) on request.
There is no fee for a redraw, but we do impose a minimum
amount of $1,000. If you are likely to want smaller
amounts on a frequent basis, it would be better for
you to deposit your extra repayments into your 100%
Mortgage Offset Account, and draw the funds back at
your convenience.
Can I pre-pay interest?
Some investors choose to pre-pay interest for up to 12
months in advance. In return for receiving the interest
up-front The Rock may negotiate a discounted rate
of interest. This may be particularly attractive to investors
wishing to maximise their tax deductible interest in the
current tax year.
As the interest is calculated up-front for a period of
up to 12 months, the ability to obtain offset benefits as well as make additional payments is removed until the prepayment period
ends.
The Rock recommends that borrowers obtain independent
advice from their accountant or tax advisor before requesting
a prepayment of interest.
Is my loan portable if I
move house?
Yes, provided sale of your existing house is settled at the same time as the settlement of
your new house. Alternatively, you may like to consider our Home-To-Home facility.
I already have a loan
with another bank. Should I move it to The Rock?
There are two circumstances in which you may wish to
change lender. Firstly, you may be dissatisfied with
the terms of your existing loan or the service provided
by the lender. Secondly, you may be seeking an additional
loan, and it may be advantageous
to combine it with your existing loan to get the best
overall deal.
You need to compare the costs of re-financing your loan
with the benefits you will obtain from the new loan
account. Benefits The Rock can provide include:
- A lower rate of interest;
- 100% benefit on its Mortgage
Offset Facility;
- Additional repayments
at any time without penalty.
Do I need a solicitor?
The decision whether to use a solicitor or not is up
to you.
Refinances: It is quite common for borrowers
not to use a solicitor if they are merely refinancing
an existing loan with another lender. In these circumstances
there is no transfer of property to attend to, and The
Rock's lawyers will prepare the Loan Agreement and
associated mortgage documentation.
You will need to comply with certain information requests
from our lawyers and will need to carefully read your
loan documentation. It is for this reason that we recommend
you seek your own legal advice.
Purchases: If you are purchasing a property
someone has to take care of the conveyancing (permits,
searches, title registration, etc.). Depending on which
state you live in, you have up to three choices in this regard:
- employ a solicitor to act for you;
- use a specialist conveyancer (not an option for
residents of Queensland or Tasmania); or
- do-it-yourself (you can buy conveyancing kits to
help with this).
As with most things you tend to get what you pay for,
and the cheapest option is not always the best. The
bottom line is that you need someone with the necessary
experience to do the job properly should problems arise.
Ideally you want a solicitor who works for a specialist
conveyancing firm, or a solicitor with considerable
conveyancing experience.
We don't recommend the do-it-yourself approach.
Do I have to take out
insurance with The Rock?
No. Whilst we require borrowers to take out sufficient
insurance over the mortgaged property, it is not compulsory
to insure through The Rock. However, there are
a number of advantages to you of arranging your home
insurance through us:
- The convenience of electronic pay-by-the month
premiums.
Most of our borrowers choose to have their
premiums debited to their Mortgage
Offset account on a monthly basis.
- Wide choice of insurer offered by our RockSure brokerage.
- No need to provide us with proof of insurance coverage
each year.
What if I don't want this
insurance anymore?
You can cancel your RockSure insurance policy at any time, however it is a condition of your loan that you ensure that the mortgaged property has current insurance at all times.
If you enjoy a discounted interest rate under a Protected
Loan facility and you cancel this policy, your interest rate will revert to our standard
pricing.
How can I pay my
insurance premiums?
You can pay your insurance monthly on most policies written
through RockSure.
Premiums can be debited directly from your Mortgage Offset
account with The Rock.
What is Mortgage Repayment
Insurance?
Mortgage Repayment Insurance assists you with your home loan
repayments in the event of:
- Disability - illness or injury (accident)
- Involuntary unemployment
How do I access my accounts?
Accounts can be accessed via Internet Banking, our RockDirect telephone banking service on 1300 130 677, ATMs, Eftpos,
chequebook, The Rock branches and agencies. The
following table summarises which services can be accessed
from each source:
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|
|
|
|
|
|
|
Savings
Loans
Term Deposit |
Y
Y
Y
|
Y
Y
Y
|
Y |
|
|
Y
Y
Y |
|
Savings
Loans
Term Deposit |
|
|
Y |
Y |
Y |
Y
Y
Y |
|
Savings
Loans
Term Deposit |
Y
Y*
Y |
Y
Y*
Y |
|
|
|
Y
Y
Y |
|
Savings
Loans
Term Deposit |
|
|
|
|
|
Y
Y
Y |
Y
Y |
* Credit transactions only.
Can I have more than one
Mortgage Offset account?
Depending on the product you choose, you can have up to six Mortgage
Offset accounts linked to one loan account. You and your partner
might have a joint loan but wish to keep your savings
accounts separate. You can each open your own offset
account with a chequebook and Cashcard and link them both
to your joint loan account. You maintain your financial
independence but share the interest savings.
Can I use the Offset account
for my business?
Yes, as The Rock's Mortgage Offset facility has
a chequebook facility that is suitable for small businesses.
However, it is important to note that the taxation laws
require that offset accounts must be held by the same
person(s) as the loan (e.g. an offset account could not
be in the name of a company if the loan is in the name
of Mr & Mrs Smith).
Are there any transaction
fees on the Offset account?
Except for the Rock Star Pack, normal transaction fees apply on Mortgage Offset
accounts for cheque withdrawals, ATM usage and EFTPOS
transactions. Our costs are directly linked to the number
of transactions undertaken by our customers, including
fees we have to pay to other banks and network providers. Click here to download our Schedule of Transaction Fees.
What is an AAPR or Comparison
Rate?
The Average Annualised Percentage Rate (sometimes referred
to as Comparison Rate) reflects the
composite rate over a specified period taking into account
any fees and charges.
It is usually based on the interest
and fees and charges expected to be paid over a period
of 7 years.
Whilst it can provide a useful comparison across products
it does not take into account all relevant factors.
For example, it does not:
- consider the benefit of any offset balances;
- cater for any additional lump sum repayments; or
- make any allowance for the convenience of additional
features and services such as redraws, insurances,
credit or debit cards.
We are happy to calculate an AAPR for you if you want. Contact us. |
