- Do I have to be a member to take out a loan?
- How much can I borrow?
- What costs do I need to consider?
- How do I make repayments on the loan?
- How often will I receive information on my account?
- What security is required?
- What happens if I get sick, have an accident or lose my job?
- Do I need to take out Home insurance?
- Do I need to take out Loan Repayment Insurance?
- Is a redraw facility available?
- What is Lenders Mortgage Insurance?
- What is Loan Repayment Insurance?
Horizon is a mutual financial services organisation and as such is owned by its members, each one of whom is a shareholder. Therefore you must be a member of Horizon to take out a loan. However, you don't need to become a member before you can apply for a loan - anyone can apply for a loan with Horizon.
The biggest initial cost is the deposit. This could range from 5% and above of the value of the property.
Stamp duty is a tax on written documents and on certain transactions including:
- Motor vehicle registrations and transfers
- Insurance policies
- Transfers of property such as businesses, real estate and certain shares
Stamp duty is imposed by state and territory governments and the rate of stamp duty varies according to the type and value of the transaction involved.
Registration fees are payable on a property purchase and on a mortgage.
Whenever a property changes hands, the change of ownership must be recorded with the appropriate State Titles Office. A document known as a Transfer of Land must be lodged, the cost of which varies in each State/Territory. Please contact your solicitor/conveyancer who should perform this task on your behalf.
There is also a government charge to register your mortgage document. We will pay the applicable state authority on your behalf. You will be charged at cost.
Legal expenses for the average home purchase include:
- Solicitors fees (between $500-$2000)
- Survey and building certificate ($450)
- Building inspection and pest report ($400-$500)
Contracts should never be exchanged until the necessary searches and inspections have been completed. Searches and inspections may include the following:
A Certificate of Title obtained from the Titles Office by your solicitor/conveyancer provides details of who owns the property and who else has an interest in it. This is a good way to research if there are any mortgages, caveats, restrictive covenants etc on the property which would affect the transfer of title.
Building inspection and pest report
The report completed by your building inspector will detail any building flaws, e.g. structural issues with the building or roof, damp etc. The pest report should detail any evidence of pest infestation. It will enable you to assess the cost of any required treatment. ^
You can arrange to make your loan repayments either by payroll deduction, direct debit from your savings or transaction account, internet or telephone banking transfer. ^
Statements are produced monthly or six monthly. Duplicate statements can be requested at any time from our office. Account information is also available through our Internet and Phone banking services. ^
Your loan must be secured by a registered mortgage over a residential property. ^
The best way to obtain peace of mind that your repayment obligations will be met in the case of accident, illness or involuntary unemployment is to take out insurance. Learn more about our Loan Repayment Insurance.
In the event you are facing financial hardship we encourage you to contact your local branch and we can work with you through the hardship. ^
Building insurance is required to be taken out equal to the amount stated in the recommendation on the property valuation. ^
It is recommended that you take out insurance on your loan, although not compulsory, it is designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. Although you do not have to purchase your insurance through us, we do offer a range of insurance policies. Learn more about our Loan Repayment Insurance. ^
Horizon gives you the option of making extra repayments on your loan and then having the flexibility of being able to redraw on these extra repayments. Terms and conditions are available on application. ^
Lenders mortgage insurance if applicable, covers the Credit Union against a loss in the unlikely event that we have to exercise our right to sell the property due to ongoing default of loan repayments. It must not be confused with Insurance designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. ^
Loan Repayment Insurance provides you with the peace of mind that if an unfortunate event, such as your death, disability, involuntary unemployment or trauma occurs, your assets will be safe and your loan repayments will be taken care of. ^