BSB 806 015

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BSB 806 015

Frequently Asked Questions

Home Loans

Questions...

  • Can I skip the next loan repayment that's due?

    As long as you have previously made additional payments to your loan account and the loan is sufficiently in advance, you may be able to skip a repayment. Call us on 13 25 77 or visit a branch if you would like us to check the advance status of your loan repayments.

  • What happens if I get sick, have an accident or lose my job and I can't pay my loan?

    When you took out your loan or credit card with us, you would have been offered optional insurance to cover unforeseen events like accidents and unemployment. 

    Please call 13 25 77 or visit your local branch so we can check whether you have insurance on your loan.

    In the instance that you do not have the appropriate level of cover, please contact us to discuss your situation further.

    Further reading on Financial Hardship.

  • I'm interested in refinancing my loan, what should I do?

    When looking to refinance your home loan you can request an appointment online, visit your local branch or call us on 13 25 77 to speak with one of our home loan specialists. Alternatively, one of our mobile lenders can come to you, even on weekends, and talk you through the best option for your home lending needs.

  • Can I pay off my home loan faster?

    Most of our loans can be repaid at a faster rate which can reduce the cost of the loan to you. However, some loans contracts do not allow the loan to be paid out earlier.

    Use our loan calculators to explore ways to pay off your loan sooner and learn how much money you could save in future interest payments. Our home loan calculator can help you get a better understanding on what your current loan will cost over its life, then see the results of making hypothetical changes.

    To find out if your loan allows early payout, please call us on 13 25 77 or visit your local branch and one of our friendly team will be happy to assist.

    You may also be interested in our article on why you should make extra home loan repayments.

  • How long will it take to approve my home loan?

    Typically home loan applications take around 5 - 7 days for approval, depending on the complexity of the loan. This allows for a valuation of the property if required and confirmation of all required documentation.

  • What should I do if I sell or refinance my property?

    If you sell or refinance your property you will need to request discharge papers. To request these, please call us on 13 25 77 or visit your local branch and one of our friendly team will be happy to assist.

    The processing time for your request will vary depending on the complexity. Once P&N Bank has received all required documents (including variations if applicable) and signed authorities, it will take between 2 - 5 working days.

    Should you wish to discuss your options further, please call us on 13 25 77 or visit your local branch to speak with one of our home loan specialists. Our team can review your current situation and guide you through the process. 

  • What is a loan redraw facility?

    A redraw facility allows you to access additional repayments that you have made on your loan in addition to the required minimum repayments. Not all loans offer redraw and there is usually a minimum redraw amount of $1,000. To access this facility, you will need to ensure that your loan product allows redraw of extra funds and that you are far enough in advance to cover the minimum amount. If you do hold an eligible product, you will need to complete the appropriate form prior to gaining access to this feature.

    If you wish to make a once off redraw funds from your loan without setting up ongoing access, please complete the Loan Redraw Request form. To have access to the facility via your Internet Banking and redraw funds at your own convenience, please complete the Redraw Authority Nomination form. You can return the completed form in a branch or via the Secure Mail service on your Internet Banking. Please note that we do not accept digital signatures.

  • Am I on the best home loan interest rate?

    Our home loan specialists will be happy to review your current loan to ensure you are on the best rate possible for your situation, please call 13 25 77 or visit your local branch and one of our friendly team will be happy to assist.

    Alternatively, one of our mobile lenders can come to you, even on weekends.

  • Are there any penalties for paying out my home loan early?

    There is an industry standard discharge fee applicable to all home loans. Depending on your home loan type, a break cost may also apply. Please review our fees & charges or your loan contract for more details. 

    If you need more information, please call 13 25 77 or visit your local branch and one of our friendly team will be happy to assist.

  • What does LVR stand for?

    LVR stands for Loan to Value Ratio. It relates to the amount of the loan against the value of the property you are buying.

    For example, if the property you intend to purchase is valued at $600,000 and the loan you apply for is $480,000, your LVR would be 80%. 

    It's good to know your LVR when exploring your home loan options as discounted interest rates can sometimes be offered on a lower LVR. Also, if your LVR is higher than 80% you can be charged Lenders Mortgage Insurance (LMI).

    If you need more information, one of our mobile lenders can come to you, even on weekends, and talk you through the best option for your home lending needs. Alternatively, please call 13 25 77 or visit your local branch and one of our friendly team will be happy to assist.

  • What is the maximum interest only period for a home loan?

    The maximum fixed rate period for a home loan at P&N Bank is 5 years.

  • Can I make additional payments to my fixed rate home loan?

    This will depend on your loan. You will need to check your loan contract or home loan key fact sheet to ensure extra repayments are allowed on your fixed rate loan. Alternatively you can contact one of our Home Lending Specialists on 13 25 77.

  • How is interest calculated on home loans and personal loans?

    Interest on P&N Bank home loans and personal loans is calculated daily and charged in arrears.

    Use our loan calculators to explore ways to pay off your loan sooner and learn how much money you could save in future interest payments. Our home loan calculator can help you get a better understanding on what your current loan will cost over its life, and then see the results of making hypothetical changes. 

    Please refer to the interest rates on our website for all current interest rates on our products.

  • What are the current fees associated with my home loan?

    The fees and charges applicable to your particular home loan will be listed in your loan contract.

    You may also incur a late payment fee if your home loan repayments are not paid by the monthly repayment due date.

    Please refer to our home loan fees and charges or contact us on 13 25 77 for more information.

  • Which home loan is right for me?

    When choosing any type of loan, it's important to work out the features you need from your loan and how much it will cost over the life of the loan. The type of loan will also depend on the purpose of your application and your personal circumstances.

    Whether you're buying your first home, your next home or your forever home we have a range of home loans and calculators that will help you with your home ownership journey.

    To find out how to apply for a home loan, you can request an appointment online or call us on 13 25 77 to speak with one of our home loan specialists. Alternatively, one of our mobile lenders can come to you, even on weekends, and talk you through the best option for your home lending needs.

  • What's the downside of split rate loans?

    Split rate home loans are not for everyone and it entirely depends on your own financial circumstances. If you choose to fix all or part of your loan, you can incur penalties if you wish to break the contract similar to mobile phone contracts.

    Likewise, if you fix all or part of your loan, and rates go down, you will be paying more for your fixed rate but will benefit on the variable part of your loan.  That’s why fixed rate loans are popular when interest rates are low.

  • How much can I afford to borrow?

    Our home loan borrowing calculator helps you work out how much you can borrow and what your repayments would be so that you buy your home with confidence. Go to the Home Loan Borrowing Calculator.

  • Can I split my home loan?

    Splitting your home loan lets you divide your debt into multiple loans (e.g. a fixed rate loan and a variable rate loan). This may help you to reduce the impact of interest rate fluctuations while retaining the features and benefits you want. For example a fixed rate loan gives you the confidence of knowing how much your repayments will be and protects you against rate rises. In comparison, a standard variable rate loan allows you to make extra repayments and gives you the flexibility to redraw them at any time, providing you meet the relevant requirements to do so.

  • What is a discharge/refinance authority?

    A discharge or refinance authority is used to release the security (e.g. property or cash security) you’ve provided for a home loan. You may use this authority if you’ve sold your property and wish to pay off your loan in full.

  • Where can I find my minimum loan repayment?

    You can check your minimum monthly loan repayment and when your payment is due via our Mobile App or Internet Banking. 

    Mobile App
    Go to your loan account and reveal the information 'i' icon. Extra loan information will display including your next payment due date and payment amount. 

    Internet Banking
    Go to your account and expand the more details section (tip: click on the ellipsis …). Your next payment date and amount due will display. 

    If you need more help, please call 13 25 77 or visit your local branch and one of our friendly team will be happy to assist.

  • What is Lenders Mortgage Insurance (LMI)?

    Lenders Mortgage Insurance or LMI is an insurance policy a borrower pays to protect the lender against a loss in the event of a forced sale. LMI is usually only required where the loan value ratio (LVR) exceeds 80%.

  • What's an offset account?

    An offset account is a savings account linked to a home loan that reduces the amount of interest payable for the home loan. Every dollar in this account is interest free for the home loan. For example, if you have $5,000 in your offset savings account this will result in $5,000 of your home loan being interest free.

  • Where can I find a mortgage calculator?

    You can use our Loan and Repayment Calculators to work out how much you can borrow, what your repayments will be and even compare loan options. Go to calculators.
     

  • How do I find the cheapest home loan?

    Shopping around using online comparison tools and calculators as well as speaking with home lenders or mortgage brokers can help you find the best home loan option. Call us on 13 25 77 to speak to a lending specialist or one of our mobile lenders can come to you.

  • How can I compare home loan rates?

    Our home loan comparison calculator can be used to show a side by side comparison of our home loan products.

    We have a range of different home loan options depending on your deposit, whether you want a fixed or variable rate and whether you are an owner occupier or investor.

    To find out more, please contact us on 13 25 77 to speak to a lending specialist or alternatively, you can arrange for one of our mobile lenders to come to you and discuss your needs.

  • Will my home loan repayments automatically change when interest rate changes are announced?

    This depends on the type of home loan that you have and how it's structured. If your loan is on a variable rate, by its nature the rate will change, whereas fixed rate loans will not change for the fixed period of the loan.

    If your monthly home loan repayment does change, recurring transfers may not update automatically. Should you wish to find out if you need to make changes to yours, please contact us on 13 25 77.
     

  • What is a mortgage?

    Home loans are often also referred to as mortgages. A mortgage refers to the legal contract that usually accompanies a home loan in that the bank takes security over your property and holds the property title. If you default on repayments as set out in the contract, (i.e. fail to make your minimum monthly repayments) your lender can sell the property to recoup costs.

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