Home loans Archives • Well Home Loans

Q: What can I use money borrowed through my home loan for?

You can use the loan to: purchase a property (to live in or to rent out for investment); to repay an existing mortgage loan over the property (refinance); to construct a dwelling or make improvements to the property; or to access the equity in the property; or for other purposes, e.g. business use or payment of other debts.

Q: What is a mortgage or home loan?

A mortgage is a loan made by a mortgage lender to a borrower. The lender obtains security for the loan through the mortgage, under which the borrower provides the mortgaged property as security for repayment of the loan. If the borrower defaults on loan payments, the lender has a right to take possession of the property and sell it to repay the outstanding loan. The mortgage loan takes the form of a contract between the borrower and the lender, which specifies terms and conditions of the mortgage loan, including details of interest payments and principal repayments due.

Q: What is a certificate of title?

This is a State issued document for each individual property allotment showing unique identification, current and former owners, mortgages, liens, caveats or any other encumbrances. The original document is retained by the relevant State Department for recording of all transactions and a copy Certificate of Title is issued to the current owner. What happens to the Certificate of Title when my propert is mortgaged? The copy Certificate of Title is held by the lender as security for your loan and a registration of the mortgage is recorded on the original document held by the State Department. Who hold my Title? Property title refers to the legal document that indicates the true owner of the property. Where the property acts as security for a mortgage loan, the lender holds title over the property. The document is called a Certificate of Title, and indicates if the property is security for an outstanding mortgage loan. The Certificate of Title will also indicate any other limitations that may be in place in relation to the property (e.g. an easement, whereby others have a right to use the property). The Certificate of Title references all legal transfers of the property from the date the title of the property was first established. A property can only be sold once clear title has been established (i.e. no outstanding mortgages or certain other restrictions on the property). The borrower and/or the lender can purchase title insurance which protects them against loss if problems with title or other issues such as illegal structures on the property arise subsequent to purchase.

Q: Can I still get a home loan if I have been bankrupt in the past?

You might be eligible to get a home loan, with some caveats of course. Well might be able to help if you've been bankrupt in the past. Our product, the Well Restore , has options available for those with bad credit, including ex-bankrupt customers.

Q: How can I make my loan repayments?

As with every home loan, there comes the time when you have to start making your repayments. Each lender will have slightly different methods of allowing you to make your scheduled repayments, but making additional repayments can vary. Making your scheduled repayments Direct Debit is one of the most common ways that your loan repayments are made. Your loan will have a scheduled amount that you have to pay each period (that could be monthly, weekly, fortnightly etc) and your lender will take this from your bank account. The Direct Debit Authority form that you sign when you settle your loan, authorises the lender to take the money from the account that you specify. If there's not enough money in there, then you could be up for some penalty fees like a dishonour fee. ALWAYS make sure you've got enough money in your account to pay for the minimum repayment that you have to make. Can I pay more than my minimum repayments? Paying more with additional repayments Each lender will have different methods of allowing additional repayments. The most common method is for you to ask the lender to take out a little bit extra when they run their direct debit. You can also elect to pay some lenders by sending money into the bank account that the nominate for you. This can be a way to make up missed repayments or make additional once off payments into your home loan account. No matter which way you want to pay off your home loan, always check with your lender first so they can make sure that nothing will go wrong.