Home Loan FAQs

Yes, you must be a member of The Mac to receive a loan. We’re a mutual financial institution and as such, are owned by our members. As we’re not owned by shareholders we can invest our profits back into delivering better rates, products and services for our members.

With The Mac’s Home Loans the possibilities are endless. Visit our Borrowing Power Calculator to determine how much you may be able to borrow. Remember, the amount you can borrow will be assessed and determined by your ability to meet your loan repayments. We pride ourselves on our transparent, honest lending and endeavour to help all members achieve their dreams without living above their means.

A comparison rate includes the interest rate and any fees payable over the life of the loan, giving you a true understanding of how much you’ll be paying. It’s always a good idea when comparing loans to compare based on the comparison rate.

A loan term is the period of time you decide to take a loan over. For example, if you decide to take a loan over 30 years, your loan term will appear as 30 years or 360 months.

A variable interest rate will change along with the market. A fixed rate will lock in your repayments for a set period of time. There are benefits to both of these options, it will depend on your individual circumstances as to which option is best for you.

Your deposit

The biggest (initial cost) of buying a home is your deposit. This could range from 5% - 20% of the value of the property.

Registration Fees

Registration fees are payable on a property purchase and on a mortgage. As a property changes hands, the change in ownership must be recorded, and a Transfer of Land document must be lodged. The cost of lodging this document varies for each different state/territory. Your solicitor/conveyancer should perform this task on your behalf. There may also be a government charge to register your mortgage document. We will pay the applicable state authority on your behalf, you will be charged at cost.

Legal Fees

Legal expenses for the average home purchase include (but aren’t limited to):

• Solicitors fees – usually between $500 - $2,000
• Survey and building certificate – usually $450
• Building inspection and pest report – usually $400 - $500

Searches and inspections

You should always ensure necessary searches and inspections have been completed prior to exchanging any contracts.

Title search

You can obtain a Certificate of Title from your solicitor/conveyancer. The certificate provides details of who owns the property, or who else has an interest in it. This is important to ensure there are no existing mortgages, caveats, restrictive covenants etc on the property which could affect the transfer of title.

Building inspection and pest report

These reports are completed by your building inspector and will detail any building flaws or evidence of pest infestation. This will enable you to assess the cost of treatments that may be required.

Establishment fees for Home Loans are $400. This does not include government charges, valuation or solicitor fees.

There are no ongoing or account keeping fees on our Home Loans.

We don’t charge early payout fees on our loans. There is however a Break Cost Fee when paying out a Fixed Rate Home Loan prior to its scheduled date.

An advantage of having your home loan with The Mac is that you can make additional repayments without being penalised. Note: Restrictions for additional repayments apply on The Mac’s Fixed Rate Home Loans.

There is an optional redraw facility available on most of The Mac’s home loans. Our Offset Mortgage does not allow redraw in order to save you in interest paid. Our redraw facility gives you the ability to make additional repayments to reduce the interest payable, whilst still having the flexibility to redraw on the additional amount should any unexpected expenses arise. This facility is free of charge and you have the option to remove this function if it isn’t desired. Minimum redraw amounts may apply.

You can tailor your loan to suit your income flow with the option of weekly, fortnightly or monthly loan repayments.

Repaying your loan is simple. We can organise to have automatic payroll deductions from your account or if you prefer simply transfer between your own accounts through Online Banking, The Mac App or in branch. You can set up automated Periodic Payments so you’ll never miss a repayment.

If you’re paying your loan from an external account, you’ll need to provide both the BSB (802-388) and alternate reference number. Remember, funds can take up to 2 business days to be processed.

Lenders Mortgage Insurance covers us in the unlikely event that you default on your loan. It’s not to be confused with Loan Protection Insurance which covers the borrower. To avoid the costs associated with LMI, a deposit of 20% of the property’s value is required.

As your house is used as security over your home loan you’ll need to insure the building greater or equal to the amount stated in the recommendation on your property valuation. You’ll need to provide copies of your policy to us when taking out your home loan, at the policy’s renewal and if changing insurers.