Get the answers to some of the most frequently asked questions we get about home finance.
FAQS
Frequently Asked Questions
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How long does it take to get a loan approval?
Approval time frames will depend upon any approval conditions stipulated by the bank and also bank workloads at the time of application.
As a guide, Keystart generally take 1-2 weeks for pre-approval and another 2 weeks for formal approval once the applicant has been able to meet all pre-approval conditions. All other banks will take approximately 1 week for pre-approval and another 1-2 weeks for formal approval once all property documentation is available.
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I have had my finance appointment with Maxon Finance, can I now change jobs?
No change of employment is preferred whilst applying for a home loan as all banks have minimum employment criteria when considering applications. Please check with your Credit Adviser prior to any resignation or acceptance of a new job.
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I have had my finance appointment with Maxon Finance, can I now touch my savings?
No reductions or changes to your savings regime are preferred whilst applying for a home loan as all banks have minimum deposit criteria when considering application. Please check with your Credit Adviser prior to spending or altering your savings regime.
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I can afford my own house as I pay rent, why do I have to save?
Whilst some banks will consider rent as evidence of your ability to repay a mortgage, banks will still like to see budgeting discipline and some savings to further support your application. Please check with your Credit Adviser for savings requirements for your application.
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Do I need to pay mortgage repayments whilst my house is being built?
All banks require regular repayments to the loan throughout construction. Bank policy at the time of application will determine the repayment amount required throughout construction. Your Credit Adviser will provide you with a guide to construction repayments during your initial finance appointment.
This repayment guide is located in your Loan Proposal which your Credit Adviser provided/will provide at your finance appointment. Once settlement on the land has taken place you can also register for internet banking with your home loan provider and monitor the repayment due date and repayment required online.
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Do I need to provide the bank with a copy of my building insurance?
Yes. All banks will require a copy of your insurance certificate of cover noting the bank as the interested party for full replacement value of the home.
This certificate will be required prior to settlement for all established purchases and prior to key handover for all construction purchases. Please note throughout construction the home is covered by the builders insurance.
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I am building my house and received an invoice from the builder, how do I pay it?
If your home loan is with Keystart, the first and second claim will be paid to the Builder automatically; it is only the final claim that Keystart will require you to sign an authority to enable the final payment to be made to the Builder so you can arrange collection of your keys. Upon receipt of this final claim Keystart will post you the paperwork for completion so please ensure you notify Keystart of any change of residential address to avoid delays.
If your home loan is with the Commonwealth Bank, you will need to sign and date the invoice and forward to your Credit Adviser for payment by the bank.
If your home loan is with any other bank, the bank would have provided you with the authority forms as part of your original loan pack for you to complete and sign for each invoice. Simply follow the instructions for payment on the form.
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I get paid weekly, can I make my mortgage repayments weekly?
Once your loan is approved, the bank will issue you with a direct debit request where you can nominate weekly, fortnightly or monthly frequency for your repayments. You can change this agreement at any time direct with the bank by contacting their relevant customer service team.
Please note, if you are building a home most banks will stipulate monthly repayments only whilst the house is being built with the option to amend to weekly or fortnightly once the house is completed. This is applicable to banks where interest only repayments are required as a minimum throughout construction.
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I am a first home owner, when do I receive the First Home Owners Grant (FHOG)?
For construction, the FHOG is credited to your home loan account upon completion of the slab stage. The reason it is credited to your home loan and not made available to the applicant is that the majority of lenders will actually advance the grant from the home loan at land settlement to assist the applicant with payment of fees and deposit.
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Do Maxon Finance charge a fee for their services?
By engaging Maxon Finance to secure a home loan on your behalf, we are remunerated directly by the bank enabling us to provide our professional services to you free of charge.
Should the client cancel their file with Maxon Finance post a finance appointment; or is deemed to have provided false or misleading information at the time of the finance appointment preventing Maxon Finance from being able to obtain finance for the client then a fee of $550 inclusive of GST is payable.
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When do I pay my deposit?
Your deposit is required to be paid to your settlement agent when requested prior to the scheduled settlement date of your property. Please refer to your settlement agent for confirmation of the amount and how to transfer your deposit to them.
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How long until I can refinance?
Refinance eligibility will depend on the bank, as well as individual financial position and value of property assets. Please contact our office to discuss your position and options available.