Resident Home Loans - FAQ: General Questions

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FAQ: General Questions

Who is Resident Home Loans?
Resident Home Loans is a mortgage originator that specialises in delivering a quality home loan at a fraction of the usual price. Offering both variable and fixed interest rates, Resident caters for those borrowers who want the flexibility of a variable product and/or those who want the comfort of a fixed rate.

Where does Resident Home Loans source their funds?
Resident Home Loans use a funding process known as mortgage securitisation where “mortgage backed” bonds are issued on the money market for investors to buy. These mortgage bonds are rated AAA by independent rating agencies – the highest rating available.

Why are your loans so cheap?
We are able to provide extremely cheap rates by cutting out the additional costs involved in running traditional branch networks. We are then able to forward this saving on to you – our valued clients!

Are your loans “honeymoon” rate loans?
No. We do not offer honeymoon rates. As you may know these honeymoon rates often revert to higher than normal standard variable rates once the “honeymoon” is over, but with Resident Home loans the “honeymoon” lasts for the life of the loan!

Can I release extra money for personal use?
Loans can be for any worthwhile cause.

What is Lender’s Mortgage Insurance?
Lenders Mortgage insurance is required for all loans taken over 80% of the security property value. It insures the lender against any shortfall in payment should the unlikely event that you dishonour your payments and the property is sold for less than the amount owed. Usually the borrower is still responsible for repaying the difference owed.

Can I still get a loan if I have bad credit history?
At this stage Resident Home Loans only offers loans for those applicants with a clean credit history.

What is the benefit of taking an interest only loan?
Interest only loans are usually taken out for investment loans to take advantage of tax benefits applied to these loans. Interest only loans can also be set up for home loans where the borrower pays over the minimum interest only repayment to create a redraw facility which can be accessed by the borrower at any time.

Do you provide personal loans?
We don’t offer personal loans but any worthwhile loan can be applied against an unencumbered property.

Do you offer loans for Country residence?
Yes – our loans are offered to applicants Australia wide*

*Please note LMI restrictions may apply to loan amounts in certain rural areas

Can I change my payment frequency at any time?
Yes. Our loans are set up in a way that lets you be in control of your loan. We understand your circumstances may change from time to time and these changes can be made simply by jumping onto your loan account on-line and following the easy steps.

Can I speak to someone if I need help?
Most certainly if you have a question you are unable to find an answer for one of our friendly Resident service representatives will provide you with information required or direct you to the right info on-line.

Can I obtain a pre-approval?
Pre-approvals can be obtained for new purchase applications where clients have not found a property to purchase but apply for a loan based on their servicing ability. Pre-approvals can sometimes give buyers the edge when competing for a property to purchase as they can be more confident knowing their finance is approved.

Pre-approvals or conditional approvals are based on borrower servicing only. Care should be taken when signing a contract of sale to note “subject to finance” in the unlikely event a property is valued under purchase price – it can save the purchaser a lot of heart ache.

How do I apply?
Applying for a loan has never been so hassle free! Simply request an Application Form from our website – post the form along with the required supporting documents to our office for processing.

Do I need a deposit for a new purchase?
We can offer up to 95%* of the property value for Home Loans. Please remember to consider Stamp Duty and other government fees when thinking of purchasing a property. Use the Charges Calculator to find out about the government charges that may apply to you.

* some conditions apply

What is the FHOG?(First Home Owners Grant)
The First Home Owner Grant (FHOG) scheme was established to offset the effect of the GST on home ownership by providing a grant to first homeowners.

The FHOG scheme came into effect on 1 July 2000 and is an on-going scheme with no end date yet specified. To find out if you are eligible for the grant visit the First Home Owner Grant website for more information.

Loan Application Process FAQ

To begin applying for a Resident loan all you need to do is request an Application Form

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