Browse Forums Home Finance 1 Jun 08, 2013 9:33 pm Hi all, We have received our mortgage documents in the mail ready for us to sign. We have a home loan, line of credit and a visa card all linked up in our arrangement for our house build that will commence approx October 2013. I was very overwhelmed when looking at the thick documents and didn't quite understand the bank lingo so I have asked to meet up with our finance broker to go over them with us on Monday. Does anyone have any suggestions about things I should check or ask? What is the main reason people get legal advice? Any help would be greatly appreciated! Build Permit-17/12/13 Earthworks-13/1/14 Slab-30/1/14 Frame-10/2/14 Lock Up-7/3/14 Fixing Stage Complete-20/3/14 New Home Presentation-6/5/14 Moved in 17/5/14! Blog: http://dandesbuild.blogspot.com.au Re: What to look out for in mortgage documents? 2Jun 29, 2013 11:43 pm Hi Pooks83 Look for the following 1. Early Payout Costs/refinance costs - Most banks have removed these now. For example if you take out a annual package fee (which waives the est fee and monthly service fee) and you clear or transfer the loan within a certain time period you may have penalties 2. Switch costs, I have seen so many get these honeymoon rates (for example 1 year fixed at a super low rate) and then you have to keep the loan variable for a number of years after this …. Or pay a switching cost. This can be a pain in rates are rising and your looking at fixing. 3. Make sure the loan suits your needs; don’t get a loan which has basic features, when you need more. Some banks have a basic loan, but it costs more for redraw, top up options, substitute options. 4. Check out the annual package fees … what do you get? Free Account, No est fee, No monthly fee, free credit cards, discounts on home insurance and life insurance. 5. On fixed rate loan docs look for Break Costs, Extra Payment Costs, is redraw available? 6. If you funded the loan via a broker …. I’d go to the bank directly and talk to the home loans manager about your documents. This way you get the info from the horse mouth (hopefully) and not via a third party. I have seen time and time again where the broker wipes his hands of any problems once the deal is settled … and then he just blames the bank! * This doesn’t apply to every broker.. just some* 7. What is being used for security? If you have multiple assets, what loans are secured by what assets? Never sign anything if you are unsure … if in doubt get it from the bank in writing where the loan will be settled. This gives you ammo later on if a problem arises . cheers Stig No the fireplace doesn’t work. It’s been enclosed. I’m not sure what was removed, as it was done quite some time ago - well before what I can see with photos online… 2 11589 Interested in getting either the Polytec Boston Oak or Palace Peak for kitchen cabinets. Looking at the Boston Oak ones, it appears that the colour varies significantly… 0 9174 4 14306 |