A redraw loan enables you to make extra regular or one-off payments above your minimum monthly repayment. The redraw facility allows you to access those extra payments when you need them.

LMI is a one-off, upfront insurance premium that is generally payable when you borrow more than 80% of the property value. It does not protect you as a borrower. It protects the lender in the event that you default on the loan, and they have a shortfall in funds after selling the property.

A prospective buyer makes an offer to buy a property by signing a contract of sale. The offer is accepted when the seller signs the contract. A property is sold when both buyer and seller have signed the contract of sale.

When you borrow money to buy a property, the lender will take a mortgage over that property to secure the loan – one loan and one security property.

Construction Loans Insurance Examples

OK, we know it’s no fun, but it’s really important to determine what you are planning in the years ahead, and what home loan repayments you can afford.

Is this property one that you would consider further? Ask me for my Property question checklist

A glossary of terms you may encounter when purchasing property or obtaining a mortgage.

Life events such as unemployment, health issues, relationship separation and natural disasters can impact your ability to meet your home loan commitments. In such events you can ask your home loan provider for a hardship variation to change the terms of your loan.

Once you have building insurance in place, ask your insurer to provide you with a building insurance certificate of currency. You will need to send this certificate of currency back to your lender, together with your completed mortgage offer documents.