HOME LOANS AND LINES OF CREDIT

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1 HOME LOANS AND LINES OF CREDIT GENUINE LOANS FOR REAL PEOPLE Product Information Brochure Effective from 1 November 2014

2 At Queensland Country we offer genuine home loans for real people. We understand that taking out a home loan can be one of the most important financial decisions you will ever have to make and that s why it s our goal to make it as simple and easy as possible for you. 2

3 CONTENTS INTRODUCTION... 5 THINGS YOU SHOULD KNOW...6 OVERVIEW OF LENDING PRODUCTS... 8 HOME LOANS...11 INVESTMENT HOME LOANS...21 LINE OF CREDIT...26 ULTIMATE HOME LOAN PACKAGE...28 HOME LOAN PRE-APPROVALS...33 OTHER OPTIONS FOR BORROWERS...34 UNDERSTANDING INTEREST RATES...39 PAY LESS INTEREST WITH A MORTGAGE OFFSET ACCOUNT...40 LOAN REPAYMENT METHOD...42 HOW TO APPLY FOR A HOME LOAN WITH QUEENSLAND COUNTRY...44 HOME LOAN KEY FACT SHEETS...45 FREQUENTLY ASKED QUESTIONS...46 WHAT ELSE CAN WE HELP YOU WITH?...49 BRANCH DETAILS

4 If you want to deal with genuine people who understand home loans, then speak to us about lending solutions packed with features and benefits. IF YOU ARE LOOKING TO: BUY A NEW HOME OR SIMPLY UPGRADE YOUR OLD ONE BUY A BLOCK OF LAND BUILD YOUR DREAM HOME INVEST IN THE PROPERTY MARKET OR BUY SHARES RENOVATE OR CARRY OUT HOME IMPROVEMENTS REFINANCE FROM YOUR CURRENT HOME LENDER CONSOLIDATE YOUR FINANCES TO IMPROVE YOUR BUDGET AND MAKE THINGS A LITTLE MORE AFFORDABLE USE EQUITY IN YOUR HOME TO FUND THAT WELL EARNED HOLIDAY, PAY FOR YOUR CHILDREN S EDUCATION OR HELP THEM BUY THEIR FIRST HOME, BUY OR UPGRADE YOUR CAR, BOAT OR ANYTHING ELSE THAT COMES TO MIND! 4

5 INTRODUCTION We encourage you to speak to one of our local home loan experts who will discuss your needs and talk to you about how Queensland Country can help you achieve your goals even sooner. Our loan experts will help you choose the right loan and ensure it has all the options and features that are important to you. We have a range of flexible and competitively priced home loan solutions for you to choose from. Our dedicated lenders will answer all of your questions and assist you through the whole process from start to finish. This brochure provides information about our range of home loans, investment home loans and our Line of Credit and will act as a guide to help you decide on the loan product that best suits your needs. It also provides you other information such as: The difference between fixed and variable rates How to reduce interest with our Mortgage Offset account The benefits of being an Ultimate Home Loan package holder; and How to apply for a Queensland Country home loan and the information which we may require to support your application. 5

6 THINGS YOU SHOULD KNOW 1. All loan products mentioned in this brochure are available to approved applicants only. Lending applications are subject to Queensland Country Credit Union Limited s standard lending criteria. Terms and conditions apply and are available upon request. Fees and charges apply. Lenders Mortgage Insurance Premium (if applicable) and Government charges may also apply. 2. This brochure should be read in conjunction with additional documents. Please also refer to our Fees and Charges brochure, Financial Services Guide and Loan Interest Rates Schedule before making decisions on any of our Home or Investment Home Loans and Line of Credit products. 3. The information in this brochure does not take into account your objectives, financial situation or needs. Before acting on this information you should consider whether it is right for you and seek your own advice. 4. All rates, discounts, fees and charges are subject to change. 5. Interest rates A copy of our latest Loan Interest Rates Schedule can be requested at any of our branch locations or is available on our website 6. Loan to Valuation Ratio (LVR) LVR restrictions apply to some loan types. Loan applications received where the main loan purpose is to refinance other financial institution debts, purchase vacant land or home improvements will be restricted to a maximum of 90% LVR. LVR may also vary depending on the location and type of any security property. A Lenders Mortgage Insurance premium is payable for loans where LVR is greater than 80%. 7. Mortgage Offset account Terms and conditions apply; please refer to our Fees and Charges brochure when considering this product. 8. Loan Redraw facility Terms and conditions apply including minimum redraw amounts. Please refer to our Fees and Charges brochure for further information. 9. Interest only loans Interest only repayments can only be made on a monthly basis from a nominated Queensland Country transaction account. 10. Early Repayment Fee An early repayment fee is applicable when extra payments (in addition to your contracted agreed monthly repayment) totalling $10,000 or more are made to a fixed rate home loan product in any one year period from the beginning of the fixed rate term. 6

7 11. Expiry of a fixed rate loan term A fixed rate loan reverts to the Standard Variable Rate Home Loan/Investment Home Loan after the fixed term expires. If you would like to discuss alternative arrangements at the expiry of a fixed rate term, contact your local branch to discuss further. 12. Switching loan types Switching fees may apply; please refer to our Fees and Charges brochure for further information. 13. Ultimate Home Loan Package To be eligible for the Ultimate Home Loan Package, the combined total borrowings at the time of taking out the Ultimate Home Loan Package must be at least $150,000. An annual package fee is payable; please refer to our Fees and Charges brochure. 14. Loan Repayment Insurance You may also wish to apply for Loan Repayment Insurance to protect you against certain unforeseen events which might affect your ability to meet your loan repayments. This insurance is provided by CGU Insurance Limited. 7

8 HERE IS AN OVERVIEW OF THE TYPES OF HOME LOANS AND INVESTME HOME LOANS Interest Type Includes Ultimate Home Loan Package (UHLP) Establishment Fee Discount Variable Rate Variable Standard Variable Rate Variable Fixed Rate Fixed terms from 1 3 years available Discounted Fixed Rate Fixed for first 12 months then reverts to standard variable rate Yes No No No Waived $250 $250 $250 Annual Fee $350 N/A N/A N/A Documentation Fee Waived $250 $250 $250 Monthly Service Fee Waived $5 $5 $5 Maximum Loan Term 30 Years 30 Years 30 Years 30 Years MAIN FEATURES Interest Types Principal and interest Principal and interest Principal and interest Principal and interest Minimum Loan Amount $10,000 $10,000 $10,000 $10,000 Maximum Loan Amount No Max No Max No Max No Max Split Loan option 100% Offset Account option Repayment options Weekly, fortnightly or monthly Weekly, fortnightly or monthly Weekly, fortnightly or monthly Weekly, fortnightly or monthly Ability to make additional repayments without fees and charges Yes Yes Up to a maximum of $10,000 p.a. Up to a maximum of $10,000 p.a. *Monthly Account Service Fee may be payable; refer to Fees and Charges brochure for further information. 8

9 NT HOME LOANS WE OFFER: Home Equity Discount Variable Rate INVESTMENT HOME LOANS Standard Variable Rate Variable Variable Variable Fixed Rate Fixed 1 3 years available Discounted Fixed Rate Fixed for 12 months then reverts to standard variable LINE OF CREDIT Line of Credit Variable No Yes No No No Optional $250 Waived $250 $250 $250 $250 Waived when part of our UHLP N/A $350 N/A N/A N/A $100 $250 Waived $250 $250 $250 $250 Waived when part of our UHLP $5 Waived $5 $5 $5 Waived* 10 Years 30 Years 30 Years 30 Years 30 Years No maximum term - ongoing Principal and interest Principal and interest or Interest only Principal and interest or Interest only Principal and interest or Interest only Principal and interest or Interest only Interest only $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 No Max No Max No Max No Max No Max No Max Weekly, fortnightly or monthly Weekly, fortnightly or monthly Weekly, fortnightly or monthly Weekly, fortnightly or monthly Weekly, fortnightly or monthly No set repayment Yes Yes Yes Up to a maximum of $10,000 p.a. Up to a maximum of $10,000 p.a. Yes 9

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11 OUR HOME LOANS 11

12 DISCOUNT VARIABLE RATE HOME LOAN This loan is the perfect choice if you are looking to pay less on your home loan, but still want all the bells and whistles. Our Discount Variable Rate Home Loan comes standard with our Ultimate Home Loan Package* benefits and offers great value. Our Discount Variable Rate Home Loan offers a competitive variable interest rate and provides borrowers with the flexibility, options and value they would expect to receive in a home loan package. This loan is only available to borrowers who meet the eligibility criteria for the Ultimate Home Loan Package. To be eligible, the combined total borrowings at the time of application must be at least $150,000 and an annual fee is payable. OTHER FEATURES & BENEFITS Redraw facility option* Ability to make extra payments Ability to have your wages paid directly into your home loan Weekly, fortnightly or monthly repayment options available Maximum 30 year loan term ADDITIONAL PACKAGE BENEFITS Ultimate Package transaction account available with no monthly service fee and unlimited free transactions conducted via our ATM network (including partner Westpac Group ATMs), EFTPOS, online banking, mobile banking, phone banking, Direct Debit, BPAY and at any Queensland Country branch* Annual fee waived on Queensland Country Visa Credit card and Rewarder card No establishment fee on Queensland Country personal loans (excluding Reno Loan) 10% discount on the first year s premium for CGU Home and Contents Insurance and 5% discount on the first year s premium for CGU Motor Vehicle Insurance arranged through Queensland Country. FEATURES & BENEFITS 0.5% OFF STANDARD VARIABLE INTEREST RATE* NO NO ESTABLISHMENT FEE NO FEES MORTGAGE DOCUMENT FEE MONTHLY MAINTENANCE ONE ANNUAL PACKAGE FEE BORROW 95% UP TO 100% MORTGAGE OFFSET ACCOUNT AVAILABLE* of the value of your property* * Please refer to page 6 Things You Should Know for terms and conditions referencing. 6 12

13 THIS LOAN IS SUITED TO BORROWERS WHO: Are wanting to PURCHASE OR BUILD A HOME Are LOOKING TO REFINANCE their existing home loan from another lender Prefer an INTEREST RATE THAT MOVES WITH MARKET CHANGES 13

14 STANDARD VARIABLE RATE HOME LOAN Our standard home loan that provides flexibility at a competitive price. Our Standard Variable Rate Home Loan offers all the flexibility and features you need in a standard home loan. Interest is variable meaning your interest rate will rise or fall at any time. This loan allows borrowers the opportunity to use the fluctuations to their advantage by allowing them to make extra payments when interest rates fall and offset the costs when rates rise. OTHER FEATURES & BENEFITS Competitive standard variable rate* Redraw facility option* Ability to make extra payments Ability to have your wages paid directly into your home loan Weekly, fortnightly or monthly repayment options available Maximum 30 year loan term FEATURES & BENEFITS 100% MORTGAGE OFFSET ACCOUNT BORROW 95% UP TO of the value of your property * REDRAW FACILITY OPTION* * THIS LOAN IS SUITED TO BORROWERS WHO: SWITCH TO A FIXED INTEREST RATE* Are looking to PURCHASE OR BUILD A HOME Are wanting to PURCHASE LAND with plans to construct a home within 12 months Want to complete MAJOR RENOVATIONS MAKE REPAYMENTS Weekly, fortnightly or monthly * Please refer to page 6 Things You Should Know for terms and conditions referencing. 14

15 FIXED RATE HOME LOAN A loan that can give you certainty and peace of mind in uncertain times. Our Fixed Rate Home Loan offers borrowers the ability to lock in an interest rate for an agreed period of time which can provide protection against future rate rises. Unlike many other fixed rate loans, Queensland Country offers the option of a 100% Mortgage Offset Account as well as a redraw facility. OTHER FEATURES & BENEFITS Ability to make additional repayments up to $10,000 per annum without incurring penalties or fees* Ability to have your wages paid directly into your home loan Weekly, fortnightly or monthly repayment options available FEATURES & BENEFITS FIXED TERMS AVAILABLE FROM 1-3 YEARS 100% MORTGAGE OFFSET ACCOUNT AVAILABLE* REDRAW FACILITY OPTION* RE-FIX RATES AFTER THEY EXPIRE* THIS LOAN IS SUITED TO BORROWERS WHO: Want CERTAINTY ON INTEREST RATES BORROW 95% UP TO of the value of your property * Are NOT LOOKING to pay their home loan out within a SHORT TERM PERIOD * Please refer to page 6 Things You Should Know for terms and conditions referencing. 15

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17 DISCOUNTED FIXED RATE HOME LOAN Our first home buyers loan. The Discounted Fixed Rate Home Loan offers a fixed rate for 12 months to help our first home buyers get off to a great start with their home loan. Although this loan is fixed, it still offers great flexibility with options like a 100% Mortgage Offset Account and redraw facility. OTHER FEATURES & BENEFITS Ability to make additional repayments up to $10,000 per annum without incurring penalties or fees* Weekly, fortnightly or monthly repayment options available FEATURES & BENEFITS COMPETITIVE FIXED INTEREST RATE FOR THE FIRST 12 MONTHS * 100% MORTGAGE OFFSET ACCOUNT AVAILABLE* REDRAW FACILITY OPTION* THIS LOAN IS SUITED TO BORROWERS WHO: Are FIRST HOME BUYERS looking to purchase or build their first home Would like a DISCOUNTED FIXED RATE for the first 12 months PAY DIRECTLY into your home loan BORROW 95% UP TO of the value of your property * * Please refer to page 6 Things You Should Know for terms and conditions referencing. 17

18 HOME EQUITY LOAN A loan that allows you easy access to the equity in your home. Our Home Equity Loan can be a great option when you need quick access to funds to carry out projects around the home or for any other worthwhile purpose. Home Equity Loan repayments are set up over a shorter term than a standard home loan, allowing you to pay off your additional borrowings much sooner. OTHER FEATURES & BENEFITS Quick and easy to establish Weekly, fortnightly or monthly repayment options available Ability to have your wages paid directly into your home loan FEATURES & BENEFITS MAXIMUM 10 YEAR LOAN TERM to help pay off your loan quicker BORROW 90% UP TO of the value of your property* MAKE REPAYMENTS Weekly, fortnightly or monthly THIS LOAN IS SUITED TO BORROWERS WHO: MAKE EXTRA payments and pay no fees Would like to complete SMALL RENOVATIONS OR PROJECTS around their home Want quick access to FUND THOSE SMALLER PURCHASES Want a SMALL LOAN that can be paid off quickly and kept separate from their main home loan. STANDARD VARIABLE INTEREST RATE* * Please refer to page 6 Things You Should Know for terms and conditions referencing. 18

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21 OUR INVESTMENT HOME LOANS 21

22 DISCOUNT VARIABLE RATE INVESTMENT HOME LOAN The ultimate investment loan for the savvy investor. This loan is for the serious property investor a complete loan package that ticks all the boxes; packed full of features, benefits and value for money. Our Discount Variable Rate Investment Home Loan comes standard with our Ultimate Home Loan Package benefits (UHLP)*. Our Discount Variable Rate Investment Home Loan offers a competitive variable interest rate and comes complete with all the bells and whistles. This loan is only available to investors who meet the eligibility criteria for the Ultimate Home Loan Package. To be eligible, the combined total borrowings at the time of application must be at least $150,000 and an annual fee is payable. OTHER FEATURES & BENEFITS Ability to make extra payments Ability to have your wages paid directly into your home loan Weekly, fortnightly or monthly repayment options available Maximum 30 year loan term ADDITIONAL PACKAGE BENEFITS Ultimate Package transaction account available with no monthly service fee and unlimited free transactions ADDITIONAL VALUE conducted via our ATM network (including partner Westpac Group ATMs), EFTPOS, online banking, mobile banking, phone banking, Direct Debit, BPAY and at any Queensland Country branch* Annual fee waived on Queensland Country Visa Credit card and Rewarder card No establishment fee on Queensland Country personal loans (excluding Reno Loan) 10% discount on the first year s premium for CGU Home and Contents Insurance and 5% discount on the first year s premium for CGU Motor Vehicle Insurance arranged through Queensland Country. FEATURES & BENEFITS 0.5% OFF STANDARD VARIABLE INTEREST RATE* NO NO ESTABLISHMENT FEE MORTGAGE DOCUMENT FEE MONTHLY MAINTENANCE NO 6* FEES ONE ANNUAL PACKAGE FEE BORROW 90% UP TO of the value of your property* ONLY (up to max 3 years) PRINCIPAL & INTEREST REPAYMENT OPTIONS AVAILABLE* * Please refer to page 6 Things You Should Know for terms and conditions referencing. 22

23 THIS LOAN IS SUITED TO INVESTORS WHO: Are looking to PURCHASE OR CONSTRUCT an investment home Would like to REFINANCE THEIR EXISTING INVESTMENT HOME LOAN from another lender Would like to INVEST IN SHARES OR MANAGED FUNDS 23

24 STANDARD VARIABLE RATE INVESTMENT HOME LOAN A versatile loan well suited to residential property investors. Our Standard Variable Rate Investment Home Loan offers investors a flexible loan solution for almost any property investment need. Although this loan is simple and easy to understand, it has a great range of features while the variable rate ensures plenty of flexibility. OTHER FEATURES & BENEFITS Competitive standard variable rate* Ability to make extra payments Maximum 30 year loan term FEATURES & BENEFITS PAY DIRECTLY into your investment home loan BORROW 90% UP TO of the value of your property* MAKE REPAYMENTS Weekly, fortnightly or monthly THIS LOAN IS SUITED TO INVESTORS WHO: SWITCH TO A FIXED INTEREST RATE* Are looking to PURCHASE OR BUILD an investment home Would like to purchase OTHER INVESTMENTS such as land ONLY (up to max 3 years) PRINCIPAL & INTEREST REPAYMENT OPTIONS AVAILABLE* * Please refer to page 6 Things You Should Know for terms and conditions referencing. 24

25 FIXED RATE INVESTMENT HOME LOAN FEATURES & BENEFITS COMPETITIVE FIXED TERMS 1 year to 3 years available* The Investment Home Loan guaranteeing your repayments for a set period of time. Our Standard Fixed Rate Investment Home Loan offers investors the ability to lock in an interest rate for an agreed period of time, providing security against future rate rises. Although this loan is fixed, it still offers flexible repayment options such as principal and interest or interest only payments. Interest in advance is also available and is aligned with financial year dates for simplicity. OTHER FEATURES & BENEFITS Ability to re-fix or switch to a variable rate at the expiry of your fixed rate period Repayment options including interest only (maximum 3 years), interest in advance (up to 12 months) or principal and interest payments* Ability to make additional repayments up to $10,000 per annum without incurring penalties or fees* MAKE EXTRA PAYMENTS UP TO $10,000 per annum and pay no fees* MAKE REPAYMENTS Weekly, fortnightly or monthly THIS LOAN IS SUITED TO INVESTORS WHO: Want the CERTAINTY AND SECURITY of fixed interest rates and loan repayments Have a medium to long term INVESTMENT STRATEGY PAY DIRECTLY into your investment home loan BORROW 90% UP TO of the value of your property * * Please refer to page 6 Things You Should Know for terms and conditions referencing. 25

26 9 LINE OF CREDIT 26 *Please refer to page 4 Things You Need To Know for terms and conditions referencing.

27 LINE OF CREDIT The all-in-one account. Our Line of Credit account is designed for home owners and investors who want to easily access the equity in their property whenever and wherever they like. The account operates as an overdraft facility, providing you with the ability to draw down and repay the loan as you choose. It allows you to withdraw funds at any time (up to a set credit limit) and can also be used as an everyday transaction account. Provided the balance of your Line of Credit remains under the approved credit limit, you can choose to pay off as much or as little as you like. This flexible account offers a continual source of credit without having to apply for additional loans every time the need arises. Our Line of Credit account can be used to purchase most types of property, from a family home to an investment property. You can also use this account to carry out renovations, take a holiday or even invest in shares. FEATURES & BENEFITS 20 FREE TRANSACTIONS PER MONTH* ACCESS YOUR MONEY AT OVER 3,000 ATMs Queensland Country, Westpac, St.George, BankSA and Bank of Melbourne WORLDWIDE OTHER FEATURES & BENEFITS Available for residential or investment purposes No maximum loan term Ability to make extra payments Visa Debit card, CueCard, online banking, mobile banking, phone banking and cheque book access Only pay interest on the debit balance of the account Ability to have your wages or investment income paid directly into the Line of Credit account ADDITIONAL VALUE WHEN TAKEN WITH THE ULTIMATE HOME LOAN PACKAGE 0.50% Discount off the Line of Credit interest rate** Annual fee waived on Queensland Country Visa Credit card and Rewarder card No establishment fee on Queensland Country personal loans (excluding Reno Loan) 10% discount on the first year s premium for CGU Home and Contents Insurance and 5% discount on the first year s premium for CGU Motor Vehicle Insurance arranged through Queensland Country ACCESS BORROW 80% UP TO of the value of your property** COMPETITIVE VARIABLE INTEREST RATE** * Transaction limits, fees and charges apply; please refer to the Fees and Charges brochure. ** Please refer to page 6 Things You Should Know for terms and conditions referencing. 27

28 28 ULTIMATE HOME LOAN PACKAGE

29 ULTIMATE HOME LOAN PACKAGE Our Ultimate Home Loan option. Our Ultimate Home Loan Package offers great interest rate and fee discounts as well as providing a range of other benefits on products and services offered by Queensland Country. If you re looking for ways to save money on your home loan or investment loan, then the Ultimate Home Loan Package may be the solution you have been looking for. UNDERSTANDING THE ULTIMATE HOME LOAN PACKAGE To be eligible for the Ultimate Home Loan Package, the combined total borrowings at the time of application must be at least $150,000. An annual package fee is payable and is debited to the primary linked loan account upon commencement date of the package and the anniversary date each year thereafter. The annual package fee is non-refundable. The Ultimate Home Loan Package can only be established under one Membership name and the package must be primarily linked to either a Discount Variable Rate Home/Investment Home Loan or a Line of Credit under the same Membership before eligible package benefits can be applied. A Discount Variable Rate Home/Investment Home Loan or a Line of Credit must remain linked to the package for all eligible benefits to continue to be received. Package benefits can be applied to eligible products under different Memberships (both individual and joint Memberships) providing a person attached to the different Memberships is attached to an Ultimate Home Loan Package on another Membership. 29

30 ULTIMATE HOME LOAN PACKAGE ULTIMATE HOME LOAN PACKAGE GIVES YOU ON THESE PRODUCTS AND SERVICES THE BENEFITS AND SAVINGS YOU GET Lower interest rates Discount Variable Rate Home/ Investment Home Loan Line of Credit 0.5% p.a. off the standard variable rate* 0.5% p.a. off the standard Line of Credit interest rate* Discount Variable Rate Home/ Investment Home Loan, Standard Variable Rate Home/Investment Home Loan, Home Equity Loan No loan establishment fee No mortgage documentation fee No monthly loan maintenance fee Lower fees on home and investment home loans Discounted Fixed Rate Home/ Investment Home Loan, Standard Fixed Rate Home / Investment Home Loan No loan establishment fee** No mortgage documentation fee** No monthly loan maintenance fee** Line of Credit No loan establishment fee No mortgage documentation fee No annual loan maintenance fee Lower fees on personal loans and credit cards Personal Loans (excludes Reno loan) Credit card No loan establishment fee No documentation fee No annual credit card fee No annual Rewarder card fee Savings on your everyday transaction accounts Savings on your insurance premium Ultimate Package account + CGU Home and/or Content Insurance CGU Motor Vehicle Insurance No monthly service fee on your nominated account*** 10% discount off the first 12 months ++ 5% discount off the first 12 months ++ *0.5% discount is available where the combined total borrowings (see combined total borrowings over page) at the time of application for the Ultimate Home Loan Package is at least $150,000. This discount applies to loans held under different memberships, as long as an owner of that loan is also an owner on the original mortgage initiated under the package. ** For a fixed rate loan product to receive package benefits the package must be linked to a Discount Variable Rate Home/Investment Home Loan or Line Of Credit. No interest rate discount is offered for Fixed Rate Home Loans/Investment Home Loans under the Ultimate Home Loan Package. *** The Membership number where the primary linked Discount Variable Rate Home/Investment Home Loan or Line of Credit is held under the package will be entitled to our Ultimate Package account. + Any Ultimate Package account held under an Ultimate Home Loan Package will revert to a All Access account upon cancellation of the package. Standard fees and charges apply to the All Access account; refer to our Fees and Charges brochure. ++ Discount applies where insurance policies are arranged through Queensland Country Credit Union Limited. Product issuer is CGU 30 Insurance Limited ABN

31 COMBINED TOTAL BORROWINGS The following loan facilities contribute towards the minimum combined total borrowings of $150,000 which is required in order to be eligible for the Ultimate Home Loan Package: Home/Investment home loan (current loan balance at the time application is approved) Personal loan (current loan balance at the time application is approved) Line of Credit (current approved limit of existing facility) Visa Credit card and Business Visa Credit card 1 (current approved limit of existing facility) Commercial loan balances 1 1 Business Visa Credit card and Commercial Loans are not eligible for discount or any fee waiver under the Ultimate Home Loan Package WHEN DO THE ULTIMATE HOME LOAN PACKAGE BENEFITS CEASE? The package discounts and benefits will apply for the life of the primary linked loan and will continue until the attached primary loan is either paid out in full or the package is cancelled. You can choose to cancel your package at any time by visiting any of our branches and requesting a cancellation form. Once the package has been cancelled, all benefits previously provided under the package will be forfeited. Package holders can also opt to transfer the package to another Membership which they are sole owner or joint owner providing the Membership has a Discount Variable Rate Home/ Investment Home Loan or Line of Credit which can be linked to the package as a primary loan. Any Ultimate Package account held under an Ultimate Home Loan Package will revert to a All Access account upon cancellation of the package. Standard fees and charges apply to the All Access account; refer to our Fees and Charges brochure. 31

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33 REGARDLESS OF WHETHER YOU RE CURRENTLY SAVING FOR YOUR FIRST HOME OR PLANNING TO BUY THE NEXT INVESTMENT PROPERTY IN YOUR PORTFOLIO, DISCUSSING A PRE-APPROVAL WITH QUEENSLAND COUNTRY IS A VERY WORTHWHILE EXERCISE. HOME LOAN PRE-APPROVALS CONDITIONAL PRE-APPROVAL Regardless of whether you re currently saving for your first home or planning to buy the next investment property in your portfolio, discussing a pre-approval with Queensland Country is a very worthwhile exercise. A home loan pre-approval will give you a much better understanding of your purchasing power as well as helping you to understand how much you need to save or contribute. By better understanding your borrowing capacity, you can then confidently negotiate your new home or investment property when the time comes. Additional benefits of discussing a pre-approval with us are: You can shop confidently knowing that you have the support of Queensland Country behind you Pre-approval ensures the purchase process is much quicker when you find the right property You ll be able to create a budget because we ll help you understand your approximate loan repayments after your home purchase Pre-approvals are free and obligation free Conditional pre-approval is valid for up to 3 months so you can take your time to find the right property 33

34 OTHER OPTIONS FOR BORROWERS FAMILY ASSIST Get your home sooner with Family Assist Do your parents or family members want to help you buy your first home? Queensland Country can discuss our Family Assist option which allows your parents or other family members to help you purchase your first home without them needing to provide upfront cash. HOW FAMILY ASSIST WORKS Your parents/family members can use their own home equity to provide additional security for a portion of your loan amount. Family Assist allows you to borrow up to 100% of the purchase price of the property you are buying without the need to pay Lenders Mortgage Insurance or save for a deposit. Family Assist works by allowing you to borrow 80% of the purchase price using your purchase property as security and then yourself and your family member/s borrow the remaining 20% of the purchase price using your family members property as security. Queensland Country needs to be able to take a first mortgage over both the purchase property and family member s property and your family members will need to ensure they have enough equity in their property in order to provide the additional security. BENEFITS OF FAMILY ASSIST: Save money by avoiding Lenders Mortgage Insurance fees Lenders Mortgage Insurance is generally payable on loans that exceed 80% of the value of the security property. Our Family Assist solution can help you avoid these fees. Get into the property market sooner Family Assist means you don t have to wait until you ve saved a large deposit which is normally required to buy a home. Your parents or family members can limit their risk Family Assist limits your parents or family members risk to a reduced amount due to the lending structure utilised (see over page). Take charge of your home sooner Your Family Assist loan is established over a shorter term which means you ll pay it off sooner. Queensland Country recommends that all parties involved obtain independent legal advice in order to ensure full understanding of rights and obligations. 34

35 HERE IS AN EXAMPLE OF HOW FAMILY ASSIST WORKS If you are a first home buyer purchasing a Queensland property for $400,000, have savings of $5,000 which will be used as a deposit and are seeking to borrow $397,000 to help cover additional property purchase expenses (Government charges, legal fees etc.), then your Family Assist loans would be structured as follows: PRIMARY LOAN - Primary Loan Calculations (loan in children s name only) 80% $320,000 $400,000 FAMILY ASSIST LOAN - Family Assist Loan Calculations (loan in family/children s name jointly) $400,000 20% LIMITED LIABILITY VALUE FAMILY ASSIST LOAN $80,000 $2,000 GOVERNMENT REGISTRATION, LEGALS ETC. $82,000 $5,000 DEPOSIT $77,000 FAMILY ASSIST LOAN AMOUNT Parents or family members providing support will be required to be co-borrowers on this loan application and the property they provide as additional security will be limited to this portion of borrowing only. 35

36 HERE IS ANOTHER EXAMPLE OF HOW FAMILY ASSIST WORKS USING A $300,000 PURCHASE PRICE TOTAL LOAN AMOUNT $300,000 PRIMARY LOAN $240,000 (80%) FAMILY ASSIST LOAN $60,000 (20%) PROPERTY BEING PURCHASED PURCHASE PRICE $300,000 LVR 80% FAMILY MEMBERS PROPERTY VALUE $400,000 LVR 75% (includes parents existing loan of $200,000 plus Family Assist loan of $60,000) FAMILY MEMBERS EXISTING QUEENSLAND COUNTRY HOME LOAN $200,000 36

37 HOW FAMILIES WORK OUT IF THEY HAVE ENOUGH EQUITY IN THEIR PROPERTY The total debt secured on the family members property including current home loans, undrawn funds and redraw plus the new loan must be less than 80% of the value of their property. For example, if your family members had an existing Queensland Country home loan of $200,000 and they wanted to assist with a $60,000 loan under Family Assist, then the total debt secured against their property would be $260,000. Their home must be valued at $325,000 or higher to be eligible to provide support for the $60,000. We encourage all parties involved in a loan application, including any family members offering security for a property purchase, seek independent legal and financial advice prior to entering into a loan contract. ELIGIBILITY Family members must be willing to provide security by way of a new or existing first mortgage over their property. In order to avoid Lenders Mortgage Insurance requirements, this security must provide a minimum of 20% equity towards the purchase property. The mortgage(s) held must be a first registered mortgage to Queensland Country. Family members include parents, grandparents, step-parents, step-grandparents and siblings. Children include natural, adopted or step-children and their spouse or defacto partner. LOAN TERMS The maximum term for the Family Assist Loan (family/children s joint loan) is 15 years. The maximum term for the Primary Loan (children s loan) is 30 years. Interest only repayment options are available on the Primary Loan up to a maximum of 5 years. This option would be provided upon request to allow the Primary Loan borrowers to make additional payments to the Family Assist Loan in order to pay it off sooner. 37

38 OTHER INFORMATION FOR BORROWERS GET YOUR HOME SOONER WITH FAMILY ASSIST Do your parents want to help you buy a home? Queensland Country can discuss our Family Assist option which allows your parents or other family members to help you purchase a home without them needing to provide upfront cash. LENDERS MORTGAGE INSURANCE (LMI) Lenders Mortgage Insurance is an insurance which lenders and financial institutions take to cover the additional risk of high Loan to Valuation Ratio (LVR) lending. Lenders Mortgage Insurance is required for Home and Investment Loans where the total loan amount is greater than 80% of the value of the property/properties being used as security to support the loan. This insurance covers the lender/financial institution against the borrower defaulting on the loan and the borrower pays the premium charged by the insurer. It is important to note that this type of insurance does not cover the borrower/s. SPLIT HOME LOANS A split home loan brings together the benefits of variable and fixed interest rates into a single mortgage. A split loan separates the total amount you are borrowing between a fixed and variable interest rate home loan. You can split your home loan into two or more portions (maximum split of up to six loans) and state what percentage of your home loan is allocated to the fixed and variable portions. The portions are assessed together as a single total loan amount for approval and serviceability, but each portion is treated as a separate loan for documentation purposes and repayments. 38

39 UNDERSTANDING INTEREST RATES FIXED RATE VS VARIABLE RATE Interest, which is largely responsible for determining the amount of your loan repayments, comes in two standard rate types, typically expressed as either fixed or variable. Quick summary of the two interest types: A FIXED RATE stays the same for the agreed fixed period term, giving you the security of knowing the rate at which you re interest is calculated on A VARIABLE RATE changes as the market does, allowing you the flexibility of adjusting your repayments to suit the rise and fall in interest rates. FIXED RATE VARIABLE RATE PROS Fixing your interest rate guarantees that your interest charges will remain the same for a set period of time and gives you protection against future rate rises during the fixed period. Fixing also allows you to budget more accurately while repayments are stable. Variable rates generally move as market factors change. If the cash rate falls, your variable rate is likely to decrease and so will the amount of interest you are charged on your home loan. This can be a great time to pay more on your home loan as you will pay more off the principal debt which helps to pay your loan off sooner. CONS If interest rates decline, you will miss out on the savings because your interest rate will not change. Early Repayment Fees can also apply if you break a loan during a fixed rate period. Please refer to the Early Repayment Fee section below for further information. If interest rates rise, then so will the interest charged to your home loan. This means that you may have to increase your minimum repayments to keep your loan on track. Variable rate loans are harder to budget for as your repayments may differ over time depending on whether your interest rate increases or decreases. EARLY REPAYMENT FEE FOR FIXED RATE LOANS Early Repayment Fees are payable when you break your fixed rate contract on a fixed rate home loan/ investment home loan. You can break a fixed rate period by: Repaying all of the balance owing on your loan; or Making unscheduled repayments totalling $10,000 or more in any one year period from the beginning of the fixed rate; or Switching from one fixed rate loan to another, or by switching from a fixed rate to a variable rate option; or Defaulting on your loan i.e. if the total amount owing becomes repayable because you are in default Early Repayment Fees can be considerable in cost and may increase the amount that you owe. A worked example of an Early Repayment Fee calculation is available on request. You can also obtain an estimate of an applicable Early Repayment Fee at any time by contacting your local branch. 39

40 PAY LESS INTEREST WITH A 100% MORTGAGE OFFSET ACCOUNT MORTGAGE OFFSET ACCOUNT If paying your loan down quickly and saving interest is important to you, then a Mortgage Offset account could be the solution An offset account allows you to offset the daily credit balance in a savings account against your home loan balance. Queensland Country offers a 100% Mortgage Offset Account which can be linked to any single residential variable or fixed rate home loan. In calculating the interest payable on your home loan, the credit balance of your Mortgage Offset account is offset daily against your outstanding loan balance. This has the effect of reducing the interest you pay each month and potentially cutting years off your home loan. Not only does our Mortgage Offset account save you interest on your home loan, it is also a tax effective way to save money. This is because our Mortgage Offset account does not earn interest - it saves you interest. HOW DOES THE MORTGAGE OFFSET ACCOUNT WORK? A simple way to further explain how our Mortgage Offset account works is with an example: HOME LOAN Balance $400,000 LINKED MORTGAGE OFFSET Account Balance $20,000 If you currently owed $400,000 on your home loan and held $20,000 in your Mortgage Offset account, we would calculate your daily home loan interest on the amount owing in the linked home loan less the balance held in your Mortgage Offset account. In the example above, the interest calculated would be on the net balance of $380,

41 HERE IS A QUICK SUMMARY OF OUR MORTGAGE OFFSET ACCOUNT: FEATURES AND BENEFITS 100% FULL OFFSET BENEFIT ON NOT AVAILABLE ON MONTHLY ACCOUNT SERVICE FEE NUMBER OF FREE TRANSACTIONS PER MONTH* ELIGIBLE HOME LOAN PRODUCTS Discount Variable Rate Home loan Standard Variable Rate Home loan Fixed Rate Home loan Discounted Fixed Rate Home loan Investment home loans Lines of Credit Commercial loan products Nil 5 MINIMUM OPENING BALANCE $0 MINIMUM WITHDRAWAL AMOUNT ACCESSIBILITY No minimum amount ATMs Queensland Country or our partner ATM network (Westpac Group) Secure online banking through CU Online (accessed via our website Mobile banking Phone banking Branch network throughout various locations in Queensland Bank@Post TM through participating Australia Post offices Visa Debit card BPAY and EFTPOS Direct credits and Direct debits Cheque book Available to all Queensland Country personal Members who: ELIGIBILITY Have an eligible Queensland Country home loan product and; The linked home loan is secured by the Member s principal place of residence *Some transactions are excluded from the free transaction limit. Refer to our Fees and Charges brochure for further information. 41

42 LOAN REPAYMENT METHOD CONSTANT REPAYMENT METHOD Unlike many lenders who adopt the variable repayment method when calculating loan repayments, Queensland Country has adopted the Constant Repayment Method. This method can benefit our Members by reducing the occurrence of fluctuations in loan repayments which can help to limit the impact on a household budget that changing loan repayments can have. Under the Constant Repayment Method, the minimum monthly loan repayment remains the same even when interest rates change. Instead, the term of the loan is varied to accommodate the interest rate change. This means that when interest rates increase, the term of the loan is extended and when interest rates decrease, the loan is paid off quicker. We will contact you to renegotiate your repayments if interest rate changes result in a loan term being extended beyond the maximum allowable 35 years

43 QUEENSLAND COUNTRY S LOAN REPAYMENT METHOD BENEFITS OUR MEMBERS BY REDUCING THE OCCURRENCE OF FLUCTUATIONS IN LOAN REPAYMENTS WHICH HELPS TO LIMIT THE IMPACT ON A HOUSEHOLD BUDGET THAT CHANGING LOAN REPAYMENTS CAN HAVE 43

44 HOW TO APPLY FOR A HOME LOAN WITH QUEENSLAND COUNTRY CREDIT UNION Queensland Country are committed to making your loan application as simple as possible; we don t make anything more complicated than it needs to be! The more information you can provide to us when you make your application, the faster we re able to approve your loan and we aim to give you an answer within 24 hours wherever possible. TO APPLY FOR A HOME LOAN WITH US, YOU CAN: Meet with one of our local Branch Managers or Lending Specialists Call our Contact Centre on Meet with our Townsville based Mobile Lender who is available seven days a week and at a place convenient to you. Just call or mobilelender@qccu.com.au INFORMATION WHICH MAY BE REQUIRED FOR YOUR HOME LOAN APPLICATION: PERSONAL IDENTIFICATION Birth Certificate (in English) Passport Australian Drivers Licence Rates notice Utility Bills (Telephone, Electricity, etc.) PROOF OF INCOME Pay slips for the last four weeks as well as your most recent group certificate If you are self-employed, we will need tax returns and financial statements for the past three years PROOF OF SAVINGS Recent bank statements for accounts held at other financial institutions RECORDS OF WHAT YOU OWE Recent statements of credit cards, store cards, or any current debts or loans. Note that where the purpose of the loan application is to refinance any of these debts, 6 months of statements will be required DETAILS OF WHAT YOU OWN Including any property, furniture, vehicles or other major assets And for those who may have already signed contracts to purchase or build a property: Copy of the Contract of Sale Copy of your receipt for any deposit paid Copy of plans and specifications (if building) Copy of building quotes and any related contracts 44

45 HOME LOAN KEY FACT SHEETS All lenders are required by law to have a fact sheet which sets out the interest rate, establishment fees, ongoing fees, monthly repayments and the total amount you will pay back for all home loan products. Our Home Loan Key Fact Sheets will help you to decide which home loan best suits your needs. You can request a Home Loan Key Fact Sheet from any of our Lending Specialists; or at any Queensland Country branch; or alternatively you can access our Home Loan Key Fact Sheet on our website 45

46 FREQUENTLY ASKED QUESTIONS Who is eligible to apply for a home loan? You are eligible to apply for a loan if you are at least 18 years of age, are a permanent resident of Australia and currently residing in Australia. If you are not an existing Queensland Country Member, it is necessary to become a Member before the loan is funded. What do I need to provide when applying for a home loan? In order to assess your loan application, we require: Income verification Savings history Recent bank statements for any current debts Contract of Sale (if purchasing a property) What additional information do I need to provide if I m self employed? We will need tax returns and financial statements for the past three years. How long does it take for a home loan application to be approved? Queensland Country aim to approve home loan applications within 24 hours of receipt of all supporting documentation wherever possible. If I want to refinance my home loan from another financial institution, how many statements am I required to provide? We require 6 months of your most recent home loan statements. Why do I need to show 6 months of statements when the payments come out of my Queensland Country account? We need to view your statements to verify that all payments are up to date and have been paid regularly and on time. If I am an employee on probation, can I get a loan approved? We can still assess your loan application as long as your position is in the same industry as your previous employment and/or you have letter from your employer stating your employment will be guaranteed after probation is completed. Why don t monthly loan repayments change when interest rates do? We calculate your repayments using a Constant Repayment method which means that when the interest rates go up or down, the length of the loan changes and not the repayment. This is a great benefit as it means your repayments will always stay the same unless your loan term exceeds 35 years. How much deposit will I need to purchase a home? Generally speaking, a minimum of 5% for home purchases and 10% for investment purchases plus fees and charges is required. This can vary at times depending on the property type and location. Your deposit also needs to be genuine savings. If you don t quite have the deposit required, it might be worth considering our Family Assist option or alternatively chatting with one of our Branch Managers or Lending Specialists who can help you to understand the deposit requirements further. 46

47 We re building/renovating and don t need all the funds at one time. Can we access money progressively to pay builders, plumbers and electricians when we need to? Yes. Queensland Country can provide funds progressively as long as the accounts to be paid are invoiced. Please talk to one of our Branch Managers or Lending Specialists regarding the timing of payments. We want to buy our land now and build later. Can I buy land and hold onto it for a couple of years and build on it later? Yes, you can buy the land now and begin to pay it off without building on it. How much can I borrow? We have some great loan calculators on our website which will give you an approximate indication of how much you might be able to borrow. If you d like more information on how much you can borrow, speak to us: Meet with one of our local Branch Managers or Lending Specialists Call our Contact Centre on Meet with our Townsville based Mobile Lender who is available seven days a week and at a place convenient to you. Just call or mobilelender@qccu.com.au What costs am I likely to incur when buying a home? Our website has a lot of useful information which will help you to understand approximate costs. Refer to The Cost of Buying a Home at or meet with one of our local Branch Managers or Lending Specialists who can talk you through everything you need to know. If we are looking to renovate or add an extra room later can we borrow more? Yes. We can lend extra for renovation provided you have sufficient equity in your property for the amount you are looking to borrow. Can I make my repayments weekly or fortnightly, or do I have to make monthly repayments? You can make repayments at any time including weekly, fortnightly or monthly, provided your minimum monthly repayment amount has been paid into the loan by the due date. Interest only home loans and investment home loans require repayments to be debited monthly from your nominated Queensland Country transaction account. Can I make extra repayments? Yes, you can make extra repayments as often as you like. However, lump sum and/or additional repayments on fixed rate home/investment home loans can only be made to a maximum of $10,000 per annum without additional charges being incurred. Total payments exceeding $10,000 (including early repayment or switching of your loan type) may be subject to an Early Repayment Fee. When do I need to insure the home I am purchasing? As soon as you sign a contract to purchase a home, you are potentially liable for any insurance claims on that property. We will require evidence of insurance taken on any property which is being used as security for borrowings through Queensland Country. Talk to us about our range of insurance options available on your new home. I m building a new home, when do I need to insure it? Your builder will maintain insurance during construction however you will need to insure your new home as soon as it is handed over to you. How long is my loan approval valid for? Your loan approval is valid for three months from the date the approval is provided, as long as the details provided on your original application have not changed significantly (e.g. you are still with the same employer). 47