PCL Money - FAQ's - Residential Advice FAQ's

Questions:

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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 PCL Money?

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.

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