The Buyers & Borrowers Guide to. including. Compliments of Choice Finance Cairns in association with The Conveyance Shop. a s i c r e g. n o.

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1 AFG AUSTRALIAN GOLD AND SILVER LENDER ACHIEVEMENT AWARDS SINCE 2005 The Buyers & Borrowers Guide to queensland home loan and investment finance a s i c r e g. n o including guide to low cost conveyancing Compliments of Choice Finance Cairns in association with The Conveyance Shop

2 Low Cost Conveyance plus free Wills for loan clients. Conveyance just $750 with a home loan through Choice Finance Cairns. (Subject to change without notice). Home Loans We have the lending policies of ALL banks to choose from - not just one, or your usual bank - we have many options available. We fix deals quickly - call us. Located conveniently under one roof Choice Finance Cairns in association with the Conveyance Shop at 40 Aplin Street, Cairns (corner Sheridan Street, near Cairns Central Shopping Centre) Ph

3 The Buyers and Borrowers Guide to Qu e e n s l a n d Ho m e Lo a n and Investment Finance and guide to Low Cost Conveyancing & In s u r a n c e p r ot e c t i o n 1st Floor: 40 Aplin Street, Cairns Fax Em a i l: admin@choicefinancecairns.com.au Visit our website:

4 4 Contents Glossary of Terms...6 About Us...7 Our Service...8 Financing Through Us Saves You Money...8 New Age Conveyancing...9 Our List Of Lenders...10 A Simple Guide : Basic Steps For Buying A Home Or Property...11 Pre-contract Steps: Deposit, Employment...11 Repayment...11 Credit History...12 Finance Pre-approval...12 The Agent...12 Contract...13 Post Signing Of Contract...13 Essential Terms Of Contract...14 Units...14 Deposit...14 Finance Clause...14 Building And Pest Inspection See Definitions Finance Approval And Mortgage Documents...15 Settlement...15 Seller Or Refinancing...15 Some Basic Fees And Charges Definitions...16 Loan Application Fee...16 Broker Fees...16 Account Keeping Fees...16 Valuation Fees...16 Legal Fees Or Document Fees...16 Deferred Establishment Fee...17 Mortgage Insurance...17 Other Fees...17 FIRB Information...17

5 5 In association with Conveyancing...18 Basic Contract Terms:...18 Cooling Off...18 Disclosure Statement...18 Deposit...18 Subject To Finance...18 Building And Pest Inspection...18 Settlement Date...19 Settlement Statement...19 The Settlement Process...19 Refinancing Your Home...19 Pre-approvals...20 Products Genuine Savings Investment Home Loans Professional Package Low Documentation Home Loans Construction Loans Personal Loans/car Loans/credit Repair Motor Vehicle Loans...23 Commercial Finance...23 First Home Owners Grant...24 Stamp Duty Principal Place Of Residence And First Home Buyers...25 Loan Repayments...25 What Deposit Do You Need?...26 Queensland Government Fees...27 Insurance: Sample of Premiums...28 Your Most Valuable Asset: YOU...30 List of Insurers...31 Web Connections and Calculators...32 About Choice Finance Cairns...33 Standard Conveyancing Fees and Outlays...36

6 Pre Approval: Short Glossary of Terms As professional mortgage consultants, we arrange for potential borrowers to apply to a lender for a Pre-Approval for finance. It is almost like a full loan application without the specific property set out in the application. It will be subject to valuation of the property. It can be renewed, e.g. if it is for 3 months or 6 months simply request an extension of time. A pre-approval will allow you to negotiate the purchase of a property with confidence. Tenant in Common: Where each party on the title have a separate and distinct share and his or her share becomes part of his or her estate when he/she dies. Joint tenancy: Line of Credit: LVR: Mortgagor: LMI: Variable Interest: Standard Variable: Basic Variable: When one person dies the other person/persons on the title automatically gets the interest of the deceased. A loan arrangement with a specified credit ceiling. Loan to valuation ratio The person borrowing. Lenders Mortgage Insurance. Usually when the loan is over 80% in value or, in LO DOC loans, this is taken out to pay the Lenders if after a default the property sale does not pay out the mortgage in full. A rate that changes with the market Offers comprehensive features. It is often the rate that fixed loan rates roll over to at the end of a fixed term A variable home loan at a reduced rate with fewer features than a standard variable

7 ... in association with... 7 Choice Finance Team Toby Sciacca Qualified Practicing Lawyer and Accredited Mortgage Consultant Neil MacIsaac Accredited Mortgage Consultant Rhonda Sciacca Accredited Mortgage Consultant Contact with your Lender We at Choice Finance Cairns are a team of very active and experienced mortgage brokers. Though our membership of AFG, we have direct access to all of the best finance products in Australia. As Mortgage Brokers accredited directly to these banks and financiers, YOU DO NOT PAY US we earn our brokerage only from the lenders after settlement, and you get a full range of loans. We are licenced under ASIC - Registration No After more than 30 years in legal commercial work in Cairns I have acquired a skill for choosing good people. We have the banking experience and the right loan for you. We can walk you through your problems if you have any and we all know how difficult it can be with banks at times. *NOTE: The Conveyance Shop is a legal practice and is a completely separate business to Choice Finance Cairns. Toby Sciacca is a solicitor with the Conveyance Shop and an Accredited Mortgage Consultant with Choice Finance Cairns.

8 8 We offer you - contact with the Lender No broker fees no broker agreement (the lender pays us) Electronic Lodgement contact with your lender Choice Finance Cairns and The Conveyance Shop provide a ONE STOP SHOP Finance and Conveyancing service from two separate organisations Access to the best deals from the major Australian lenders, including the four big banks We can arrange free, no obligation pre-approval We can visit you at any time that suits you (evenings and weekends most welcome) State-of-the art software to identify the best loan for you Consolidating your liabilities and debts Personal loans and Motor vehicle loans Loan Protection Insurance Financing through us saves you money Do you know the advantages and the cost savings of using our organisation? In association with The Conveyance Shop you will pay the following legal fees: Super special legal fee : $ all up! Save $$$ For loans in excess of $100,000. Includes: Full legal fees plus all searches and cost of Mortgage Sign Up excluding Stamp Duty and Transfer Fees. Note: The Conveyance Shop is a separate organisation to Choice Finance Cairns. Super special legal fee $750

9 9 New age conveyancing In association with The Conveyance Shop operates with a state of the art Conveyancing program. It is the forerunner to electronic settlements which will be in place within a couple of years. BUT all the basics of conveyancing is always personal service. We try to give that service at all times. Your file will be allocated to a personal file manager who will assist you through the process. If there are any issues you wish to discuss you can always call Toby on Basic Essential Documents for Finance Applications Have these at your first appointment: point I.D. (Passport, driver s licence, etc.) 2. Last credit card statement/statements. 3. Personal loan statement. 4. Rates notice (if refinancing). 5. Current home loan statements - six months (if applicable)

10 10 Our List of Lenders Please note that on-line loan calculators do not give you an accurate answer - they are meant as a guide only. Adelaide Bank AFG MM AMP Banking ANZ Bank Bank West Citibank Commonwealth Bank - CBA Deposit Power Heritage Building Society Homeloans Australia Homeside Lending ING Bank Liberty Financial National Australia Bank Pepper Home Loans The Rock Building Society Suncorp Bank Westpac Bank No Broker Fee Do you know that we do not charge you a broker fee by using us as your broker you have access to all the loans of all the major banks and lenders in Australia

11 11 In association with A SIMPLE GUIDE THe basic steps for buying a Home or property At one time or another we all take the first step to buying a home or property. Even if you have already brought property before, I believe that this summary may be of some help: please call us for free assistance and advice if you are still unsure. Get a pre-approval of finance before you go shopping for your home call us to see how simple and fast this is. Pre-Contract Steps: The first two necessities are DEPOSIT and EMPLOYMENT to show capacity to repay your loan. Serviceability of the debt is the key ingredient to borrowing. a. Deposit Some financiers will provide finance on deposits as low as 5% of loan-tovalue ratio (LVR). Most require between 5% and 10%. Unless you have a good capacity to repay do not to be tempted to over-borrow. If you borrow more than 80% of the LVR then you will pay Mortgage Insurance. This is a one-off payment which can average approximately 1.5% of the loan. (See our definitions.) Some lenders will provide loans including all or part of this insurance cost. (Meaning LVR is capitalised on top of loan amount). b. Employment Different lenders have different requirements on employment history. Call any of our team for free advice if you are concerned about this. Repayment Different lenders have different formulae to calculate your ability to repay. Dont trust the web calculators - our calculators are directly connected to each lender. We can access the repayment requirements of the lenders to find the one to suit you.

12 12 Credit History If you have had a credit problem there are Lenders who may still help, or sometimes credit problems can be repaired. We often find that credit issues can be resolved if they are addressed before the Loan Application. This can often save you disappointment and a lot of interest. Finance Pre-Approval It is important and smart now to go to your Broker and obtain a preapproval of finance. This is subject to you producing a contract to buy your house or land it usually lasts for 6 months and will have an upper limit. Our experienced staff can help you get your pre-approval for no fee to us. This service is free no obligation, but allows you to go house shopping with confidence. The Agent By now you will probably start to see Real Estate Agents to inspect properties to find one you like. The Real Estate Agent you visit normally is the Agent for the Seller and is paid by the Seller. You will find most Agents will quickly access your needs and show you a range of land or houses to suit. Help the Agent and make it easy to decide by having a preapproval of finance. Find an Agent you feel comfortable with and he or she will work with you to find the best property for you. Visit Our website toby@choicefinancecairns.com.au

13 Contract In association with Legal advice in this article is by Toby Sciacca, Solicitor from the Conveyance Shop. The only way to legally buy land or property and home or investment is by a Contract in writing signed by the Seller and Buyer. The only way to legally vary such a contract is by doing it in writing. The Contract is usually prepared by the Agent. Often the Agent will ask you to submit an offer at a certain price to see if the Seller will accept. This is okay but you should understand what that means. The contract can only be changed in writing. Initial all the relevant pages. If you are concerned at all, please call your Conveyancer BEFORE you sign you do have a cooling-off period (see definitions) but that only allows you to withdraw not change the Contract once it is signed by both parties. Toby Sciacca, a Lawyer at The Conveyance Shop (Phone: ) can give you free, no-obligation advice. The PAMDA Act has an extensive rule as to how agents and lawyers should prepare and deliver contracts. If they are not followed strictly thn the contract may be terminated on technical grounds so you should get good legal advice. Post Signing of Contract You should nominate your Conveyancer to the Agent as soon as possible. The Conveyance Shop does not charge a fee if the Contract does not go ahead but sometimes it is necessary for you to have conveyancing and legal help during the period of finance and building and pest inspection as will be discussed later. Stay in touch with your conveyancer during this time. Be sure to have the Agent send a copy of the Contract to your Conveyancer ASAP after signing so that he/she is aware of issues that will arise. If not using us, ask your Conveyancer first if there will be a fee if the Contract does not proceed. The Conveyance Shop does not charge a fee in this case. Some lawyers charge as soon as you send them the contract whether you proceed or not. We don t. 13 See back page for The Conveyance Shop Scale of Fees

14 14 Essential Terms of Contract Units Before you sign a Contract to buy a unit it is the law that the Seller must give you a signed Disclosure Statement. The Agent arranges this. Ask your Conveyancer about this. Deposit It is most common that a reasonable deposit is paid. Some Agents call for deposits ranging from 5% to 10%. There is no legal rule to this so you can usually negotiate the amount of the deposit. Do not ever pay more than 10% as it will change the normal rules. Finance Clause If you are getting finance you should give yourself enough time to get an approval. Almost all contracts prepared with only 14 days to arrange finance require your Conveyancer to ask for an extension these days because of the delays with the Banks and Financiers. We like to see a 21 day subject to finance clause so ask the Seller s Agent for this. You should keep in touch with your Conveyancer about finance. The good thing about using Choice Finance Cairns is that the team at Choice Finance Cairns keep in daily contact with the team at The Conveyance Shop and together they can work to best look after your interests without you having to do any running around. Remember some banks can take up to two weeks to prepare Mortgage documents. Be sure to tell your Conveyancer as soon as possible who your financier is. Building and Pest Inspection see Definitions. If any issue arises keep in touch with your Conveyancer. The Conveyance Shop does not charge any extra for helping you negotiate and resolve these issues. You can withdraw from the contract if the report is not acceptable. If you withdraw from the Contract The Conveyance Shop does not charge

15 15 In association with you a fee on the Contract despite the work done Call Toby on if you need any clarification on any issue about this matter. Please try to have the agent make the inspection date after the finance date so that you don t have to outlay the cost of the report if finance is not approved. Finance Approval and Mortgage Documents Most Banks will send you their Mortgage Documents direct and not through the Broker. You then have to have the Mortgage signed and witnessed before a solicitor or JP. Under the Consumer Credit Code the financier must advise you of all fees payable AND also provide documents in simple, easy-to-read terms. Choice Finance Cairns clients will get free legal help to explain and witness the documents by The Conveyance Shop if you nominate them as your Conveyancer. This can save you up to $300. Settlement Before settlement your Conveyancer will agree with the Seller or the Seller s solicitors on the settlement figures. Adjustments to the purchase price are calculated for rates and other charges e.g. water rates, body corporate fees, rent (if applicable). The Conveyancer arranges settlement with your Bank and the Seller s Bank. You will see therefore it is necessary to keep in touch with the person handling your matter. Toby is always available to help on but remember that your matter is governed by TIME on the Contract and TIME for the Seller s Bank and TIME for the Buyer s Bank. Conveyancing staff do all they can to help but they do really appreciate it when the client helps by communicating with them on any relevant matter. Seller or Refinancing If you are a Seller or if you are refinancing it is absolutely imperative that you notify your existing Bank as soon as possible about the sale or

16 16 refinancing. You will need to arrange a Release of the existing mortgage over the property. Any failure here can lead to delay on settlement. To us the whole process is easy but please call Toby at The Conveyance Shop on for no-obligation, no-fee advice at any time preferably before you sign. WHen You BoRRow: Some Basic Fees and Charges Definitions Loan Application Fee These vary from financier to financier. $300 -$600 is average but they can rise to $1100 for non-conforming lenders (or up to 1% of the loan amount). Many banks and conforming lenders often have deals where they have nil application fees. Be prompt as these deals do not last. Many loans today have no fees. Broker Fees we do not charge you Most Accredited Mortgage Brokers do not charge you a fee. Our fees are paid by the financier. If you go to see a non-accredited broker you could pay up to $3000 extra. There is no reason to pay a broker an upfront fee there is no additional service given by brokers who charge a fee. That broker will receive the same fee that we receive from the financier, in addition to your fee. Account Keeping Fees: Usually from $0 to $10 per month. Valuation Fees Some financiers charge an up-front valuation fee. It is generally included in the loan application fee. Valuation fees are $150 to $300. Legal Fees or Document Fees Some non-bank financiers prepare their own mortgage documents or have lawyers prepare their documents, Legal fees for preparation range to $350.

17 17 In association with PLUS: Searches, each approx $ Registration of Mortgage $ Mortgage Duty Nil Deferred Establishment Fee ask your Broker If you repay the loan early you will pay this fee generally when you repay three years or less from the date of the loan. The fee varies from financier to financier. Mortgage Insurance If you borrow more than 80% of the value of the security you will pay mortgage insurance. This can range from 1.36% to 2% of the loanb or more if you don t have genuine savings. We can explain this to you. Other Fees Other fees do apply under certain circumstances. If you require any assistance call your broker or call us for clarification. It is the obligation of all financiers under the Consumer Credit Code to fully set out the fees and charges for each loan at the time of documentation. You should give these figures to your conveyancer as soon as possible so that final figures can be prepared for the settlement. FIRB (Foregin Investment Review Board) Basics. Exemptions: Australian Citizens New Zealanders Permanent residents Ecetera.: call us Note: Approval requirements. Temporary residents can now purchase existing and much more. Call us as some banks won t lend.

18 18 Conveyancing Basic ContRact TeRms: Cooling Off A five day cooling off period is available to you to enable you to get independent legal advice and an independent valuation. You have five clear days from the day the contract is formed but excluding Saturdays, Sundays or public holidays to withdraw in writing. You may waive this right. If you withdraw you will lose 0.25% of the purchase price. Call the Conveyance Shop first for free legal advice on this. The law is changing to have the 5 days as including the day you sign. Disclosure Statement Units When buying a unit you should receive a signed disclosure statement setting out all of the financial details of the Body Corporate and the unit before you sign. Deposit Most deposits are around 5% of the purchase price. To pay more than 10% makes the contract an installment contract under the Property Law Act. Don t do this, as it creates a different legal situation. Balance of the purchase price is paid at settlement from your own funds and or your bank. Subject to Finance You should allow enough time to apply for finance. At least 21 days is wise. If you do not obtain finance you can terminate the contract and the deposit is returned to you. Unless you have all the cash, be sure to insist on this condition in your contract. Building and Pest Inspection Every contract for a building should have this clause. You must decide if you accept the report by the due date or extended date. If you do not accept the report you can terminate and obtain a refund of deposit. Please give yourself enough time in the contract.

19 In association with Settlement Date This is the date that you and/or your bank pay the balance. Your lawyer will settle and the title will be transferred to you and you will obtain the keys and possession. You should always conduct a pre-settlement inspection of the property and advise your lawyer of any problems if they exist. Settlement Statement Your lawyer will provide a settlement statement prior to settlement. Often this cannot occur until the day before as final adjustments, e.g. rates and body corporate fees will need adjustment as soon as the settlement date is definite. Keep in touch with us - be available during the week before settlement. The Settlement Process You will need to inform your lawyer when you have signed your mortgage documents. At Choice Finance Cairns we also have easy access to the Conveyance Shop to overcome many of the difficulties of coordinating settlements. We also cut down on the costs involved in having your mortgage documents signed and available to your financier. Refinancing Your Home Many people find different reasons to refinance. You will find that there may not be as much cost in refinancing as you think particularly if you have been in the same loan for three years or more. You may be entitled to a credit of the duty previously paid. Come and speak to us if you have any doubt. You may wish to use your equity in your house to buy an investment property, and with the good deals being offered by the banks now you should not be too afraid of asking how you can search around for the best refinancing and investment loans. If you have a non-conforming loan with 19

20 20 a high interest rate and you have a proven record of payment it may be time to refinance into a low interest loan with a regular bank or financier. Pre-Approvals know before you shop Do you want the peace of mind and feeling of security when you are out shopping for a home or land to buy? Come to us and get pre-approval finance. We can help you select the best lender and loan to suit your needs and set a limit to suit your budget. These pre-approvals generally last for three months. Once you have selected your property the bank or financier will only need a valuation, a contract and a verification that there has been no material change in your circumstances. See us for a detailed explanation of this process. Products We have immediate computer access to over 700 loan products with all major banks and financiers in Australia. Here is a sample of some of our current loan packages. 1. GENUINE SA V I Ng s Most banks require proof of genuine savings. You will need at least 5%. First Home Buyers: If you are a first home buyer, call us for an explanation as to how easy it is to buy. You can receive $10,500 First Home Owners Grant for a new home in regional Queensland, and $7000 for existing home. 2. INVEsTMENT HOME LOANs Investment home loans are an ideal way to assist with the growth of wealth through property investment. Clients who already have a property are able to use the equity they have built up in their existing property to buy another property for investment

21 21 In association with purposes. Where there is sufficient equity available it is possible to purchase the new investment without any cash outlay. A large number of lending institutions are prepared to lend their investor sufficient funds to cover the purchase price of the property plus all government legal and bank fees. 3. PROFEssIONAl PACKAgE DIFFERENT BANKs/DIFFERENT NAMEs A fantastic option to make your banking easier and save you money. A professional package allows you to have your mortgage, savings account and credit card linked. Most professional packages work by paying an annual fee (generally $300 p.a. but this varies between lenders, but can include the following: Nil establishment fee for mortgages Nil monthly account-keeping fee Life of the loan discount on variable rate (from 0.1% to 0.7% discount) More discount for more borrowings Nil valuation fees Discounted home and contents insurance eligibility criteria may apply such as minimum loan amount, mandatory Gold Credit Card and minimum number of accounts. 4. LOW DOCUMENTATION HOME LOANs More and more often these days an individual s income sources will vary. Some lenders realise the difficulties in verifying such different sources of income, so have developed the Low Documentation (Lo-Doc) Loan with this in mind. You need an ABN and generally the LVR is 80%. Especially in the case of self-employed people, it can also be difficult to verify all the different sources of income. If you are self-employed, a subcontractor or even a PAYG employee with a variety of different income sources, then the Lo-Doc Loan could be for you.

22 22 Instead of providing financial statements, tax-returns, etc., you will only need a reduced list of financial requirements. These change regularly from lender to lencer so call us and we will set out the current rules.. This considerably simplifies your application process. Lo-Doc policy guidelines differ from each lender, so to find the best Lo-Doc Loan tailored to your situation, contact Choice Finance Cairns. 5. Construction Loans Our team can source the best current construction loans available on the market. Remember that sometimes your current lender may not have the best loan for you and it may be to your financial advantage to change: it may not be worth the change but we can give you advice for NO fee to find the best deal available. Often a talk to us can help you get a better deal from your lender with no obligation to us. FHOG is available at the time of construction of your first home. 6. Personal Loans/Car Loans/Credit Repair Choice Finance Cairns can arrange personal loans. We have a number of panel lenders to whom we can refer for Personal Loans from $3000 to $50,000 unsecured. Interest rates vary from approximately 8% to 13% depending on the loan. Fees and charges range from $290 to $650 depending upon the amount. Debt Consolidation - OR - Balance of Deposit - OR - Motor Vehicle, Boat or Holiday. 7. Motor Vehicle Loans Motor Vehicle Loans are available from three major banks and financiers in the same way. We can get you a pre-approval on vehicles up to nine years old. We have finance up to $50,000 on motor vehicles up to nine years old. We have finance up to $150,000 for new cars. Finance is generally on the security of the vehicle. Call Choice Finance Cairns on (07) to find out how.

23 23 Commercial Finance In association with Choice Finance Cairns has commercial accreditation with a number of Australian banks and financiers, notably ANZ SUNCORP CBA ING WESTPAC Interest rates are competitive. Rates can vary generally depending on the LVR (Loan to Value Ratio)- major banks limit the LVR to 70% but some of our funders will go to 85% with the security of inner city properties. Commercial rates vary quite considerably these days, so call us for an update.

24 24 First Home Owners Grant FHOG is administered by the Queensland Office of State Revenue. We can help you obtain the grant if you are eligible. To be eligible: You must be 18 or more. It must be your first home - existing, or to be built. At least one applicant must be an Australian citizen or a permanent resident. You and your spouse have not previously owned an interest in land in Australia that had a residence on it prior to 1 July This includes investment homes. You or your spouse have not, on or after 1 July 2000, owned an interest in residential property in Australia and lived on that property. (Note: Having owned an investment property after 1 July 2000 does not affect eligibility) Neither you nor your spouse can have owned a home, individually or with any other person. You must occupy the home as your principal place of residence continuously for 6 months within one year of the purchase or construction of the home. Call Toby for particular circumstances. Most of our lenders are agents for FHOG. This means they deal directly with the Office of State Revenue and ensure that the $10,500 is available at settlement. We submit your FHOG application with your loan application. If you deal with a lender that is not a FHOG agent (e.g. some building societies), you may not receive the proceeds until several weeks after settlement (meaning that you need to borrow an extra $10,500). Note: This information was correct at time of printing (Jan. 08) but is subject to change. For more information phone Toby on

25 25 In association with Stamp Duty for Principal Place of Residence and First Home Buyers Concessional rates of duty apply for Home Buyers and First Home buyers. For first home buyers there is no duty for the first purchase up to $500,000. The concessional rate of duty for other Home Buyers is 1% and thereafter the rate reverts to the normal duty rate which is an increasing sliding scale up to 4.5% at $980,000. (See page 27). Please call us and we can immediately calculate the rate for you. Registration fees are $ up to $180,000 and then increase accordingly see the enclosed rate chart. Loan Repayments The table below will give you a rough idea of your loan repayments at different interest rates. The figures are based on: A 30 year loan term Interest and principal repayments (but not including the ongoing fees that are charged on some loans) Monthly Repayments Interest Rate $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 $250, % $632 $790 $948 $1106 $1264 $1422 $ % $645 $806 $967 $1128 $1290 $1451 $ % $665 $831 $997 $1163 $1330 $1496 $ % $682 $852 $1023 $1193 $1364 $1534 $ % $699 $874 $1048 $1223 $1398 $1573 $ % $716 $895 $1074 $1253 $1432 $1611 $1791 * Note, we have rounded up the cents to the next dollar. Based on per calendar month. P&I over 30 years.

26 26 What Deposit Do You Need? - Finance Generally a 5% deposit is required. There are a few lenders who will accept a 5% deposit composed of a gift/tax refund/or sale of an asset. We can arrange a separate Personal Loan. Call us to discuss. Most lenders now will accept a deposit made up of funds that have been borrowed or given as a gift from the sale of an asset etc. If you have equity in a property this can also be used as a deposit. House Land Packages Full duty without concession is payable on the land contract if the house contract is separate call Toby on (07) for a full explanation. Do you know that you don t get a better deal by going to the bank direct together we work out the best choice for you. Best rates Best bank Best deal

27 27 Queensland Government Fees: CONTRACT STAMP DUTY In association with (Or stamp duty on transfer, conveyance of land stamp duty) Home Concession Purchase price/ Duty rate value Up to $350,000 $1.00 for each $100 or part of $100 $350,001-$540,000 $3,500 + $3.50 every $100 or part of $100 over $350K $540,001-$980,000 $10,150 + $4.50 every $100 or part of $100 over $540K Over $980,000 $29,950 + $5.25 every $100 or part of $100 over $980K First Home Concession: Purchase price/value Concession Not more than $504, $8,750 $505,000 to $509, $7,875 $510,000 to $514, $7,000 $515,000 to $519, $6,125 $520,000 to $524, $5,250 $525,000 to $529, $4,375 $530,000 to $534, $3,500 $535,000 to $539, $2,625 $540,000 to $544, $1,750 $545,000 to $549, $875 $550,000 or more Nil

28 28 Dutiable value of the first home vacant land Security Stamp Duty Concession Up to $250, % of transfer duty $250,000 to $259, $7,175 $260,000 to $269, $6,700 $270,000 to $279, $6,225 $280,000 to $289, $5,750 $290,000 to $299, $5,275 $300,000 to $309, $4,800 $310,000 to $319, $4,325 $320,000 to $329, $3,850 $330,000 to $339, $3,375 $340,000 to $349, $2,900 $350,000 to $359, $2,425 $360,000 to $369, $1,950 $370,000 to $379, $1,475 $380,000 to $389, $1,000 $390,000 to $399, $525 $400,000 or more No concession Or Mortgage Stamp Duty. Nil. There is no Stamp duty on mortgages. Titles RegistRation Fees Registration of Mortgage $ Registration of Transfer $ up to $180,000 Discharge of Mortgage $127.90

29 29 In association with Debt Goes Hand in Hand with Insurance What is your most valuable asset? We need to be reminded just what our most valuable asset is. Not just valuable to us, but to those most important to us: our family. When you have a mortgage debt, your family is generally relying on you for the roof over their heads and for their upkeep and support: don t leave their future to chance. When you get your loan through Choice Finance Cairns, with your permission, Tower Insurance can contact you and discuss your personal insurance options. General Insurance for all client Remember that most Queensland contracts make the property you contract to buy at your risk from 5.00pm on the day after the contract is signed. Call us on if you have any queries.

30 30 Important Websites and Calculators Choice Finance and the Conveyance Shop: includes a Stamp duty and Registration Fee Calculators - online enquiry and access to Bankers and financierrs. Stamp Duty Click calculators/transfer duty. Fill in all applicable boxes as explained in the calculator - e.g. one or a half. Registration Fees Click Property Titles and Valuations/Land Titles Fee Calculator/click transfer. First Home Owners Grant Click first home owner grant/eligibility. For general information, click frequently asked questions/disqualifying arrangements etc. Foreign Investment Review Board Click real estate/residential real estate/application forms. Note R3 and Form 26(A) is the usual.

31 31 In association with About Choice Finance Cairns We are a locally owned organisation with Accredited Mortgage Consultants accredited with all the major Australian lenders. We operate for our clients but are paid by the banks and financiers at NO additional cost to the client. Our organisation consists of local professional people including a lawyer experienced in mortgage and commercial work. We help our clients through all their Home Loans and Investment Loans and provide the lowest cost legals to all our mortgage clients and provide professional insurance advice. Contact: Toby Sciacca : or toby@choicefinancecairns.com.au Neil MacIsaac : or neil@choicefinancecairns.com.au Rhonda Sciacca : or rhonda@choicefinancecairns.com.au Visit our website : Legal advice in this book is by Toby Sciacca, Solicitor, The Conveyance Shop which is a separately owned and operated business The information in this booklet is current as at August Please check with us for any changes in the law or fees and Stamp Duty. Staff photos courtesy of Brad Newton, Brad Newton Photography, Cairns.

32 32 Standard Conveyancing Fees and Outlays of the Conveyance Shop (gst inclusive) If we are not your mortgage broker the Conveyance Shop still provides low cost conveyancing services located in the same building, on the Ground Floor. The Conveyance Shop is a separately owned business to Choice Finance Cairns. SELLING: (GST Inclusive) $ BUYING LAND: (GST Inclusive) Legal Fees $ Searches: Titles (x2) $35.40 Setlement Notice $26.30 Plan $17.70 Cairns City Council $70.00 Land Tax $41.95 Further Fees: Legal processing $ $ USUAL TOTAL $ BUT, IF FINANCING WITH CHOICE FINANCE CAIRNS JUST: $ BUYING HOUSE: Resident or Investment under $500,000 (GST Inclusive) Legal Fees $ Searches: Titles (x2) $35.40 Setlement Notice $26.30 Plan $17.70 Cairns City Council $ Land Tax $41.95 Further Fees: Legal processing $ $ USUAL TOTAL $ BUT, IF FINANCING WITH CHOICE FINANCE CAIRNS JUST: $ BUYING UNIT: (GST Inclusive) Legal Fees $ Searches Titles (x2) $35.40 Setlement Notice $26.30 Plan $17.70 Cairns City Council $ Body Corporate $53.90 Land Tax $41.95 Further Fees: Legal processing $ $ USUAL TOTAL $ BUT, IF FINANCING WITH CHOICE FINANCE CAIRNS JUST: $ NOTE: If your bank requires a settlement notice, add $23 to above totals. Figures correct at time of printing (August 2010, but subject to change without notice)