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Home Loan FAQs

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Do I have to be a credit union member to take out a loan?

The Credit Union is a mutual financial institution and as such is owned by its members, each one of whom is a shareholder. Yes, you must be a member of the Credit Union to have a loan. Learn more about becoming a member. ^

How much can I borrow?

Would you like to calculate how much you may be able to borrow? Use our Loan Calculator. ^

What costs do I need to consider?

The biggest initial cost is the deposit. This could range from 5% to 20% of the value of the property.

Registration fees
Registration fees are payable on a property purchase and on a mortgage.
Whenever a property changes hands, the change of ownership must be recorded with the appropriate State Titles Office. A document known as a Transfer of Land must be lodged, the cost of which varies in each State/Territory. Please contact your solicitor/conveyancer who 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:

  • Solicitors fees (between $500-$2000)
  • Survey and building certificate ($450)
  • Building inspection and pest report ($400-$500)

Searches and inspections
Contracts should never be exchanged until the necessary searches and inspections have been completed.

Title search
A Certificate of Title obtained from the Titles Office by your solicitor/conveyancer provides details of who owns the property and who else has an interest in it. This is a good way to research if there are any mortgages, caveats, restrictive covenants etc on the property which would affect the transfer of title.

Building inspection and pest report
The report completed by your building inspector will detail any building flaws, e.g. structural issues with the building or roof, damp etc. The pest report should detail any evidence of pest infestation. It will enable you to assess the cost of any required treatment. ^

How do I make repayments on the loan?

Our preferred method is via automatic payroll deduction. However, you can arrange to make your loan repayments by direct debit from your savings or transaction account with FCCS or another financial institution. Learn more about these repayment methods. ^

How does a Mortgage Offset account work?

By opening an FCCS Mortgage Offset Account and linking this account to your FCCS Home Loan, you can use your savings to help reduce the amount of interest payable on your home loan. The balance of your Mortgage Offset Account is 100% offset against your loan balance when interest is calculated.
Here’s an example of how it works;

FCCS Home Loan balance: $100,000
FCCS Mortgage Offset Account balance: $ 10,000
Loan interest calculated on: $ 90,000 (home loan balance less offset account balance)

As you can see, having an Offset Account reduces the amount of interest you pay. Your savings in the Mortgage Offset Account are accessible through Phone and Internet Banking.

If you are using the loan for investment purposes, an offset account can be a better option to using a redraw facility. An investor can reduce their loan’s tax deductibility if an amount is redrawn from the loan that isn’t for investment purposes. If your loan is for investment purposes, talk to a tax adviser to work out which option is best for you.

Please Note: The minimum transaction on the Mortgage Offset account is $250. ^

How often will I receive information on my account?

Statements are produced monthly. Duplicate statements can be requested at any time from our office.
Account information is also available through our Internet and Phone banking services. ^

What security is required to take out a Home Loan?

Your home loan must be secured by a registered mortgage over a residential owner occupied property. ^

What happens if I get sick, have an accident or lose my job?

The best way to obtain peace of mind that your repayment obligations will be met in the case of accident, illness or involuntary unemployment is to take out insurance. Learn more about our Loan Protection Insurance. ^

Do I need to take out Home insurance?

Building insurance is required to be taken out equal to the amount stated in the recommendation on the property valuation. ^

Do I need to take out Loan Protection Insurance?

It is recommended that you take out insurance on your loan, although not compulsory, it is designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. Although you do not have to purchase your insurance through us, we do offer a range of insurance policies. Learn more about our Loan Protection Insurance. ^

Is a redraw facility available?

The Credit Union gives you the option of making extra repayments on your loan and then having the flexibility of being able to redraw on these extra repayments. Terms and conditions are available on application. ^

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance if applicable, covers the Credit Union against a loss in the unlikely event that we have to exercise our right to sell the property due to ongoing default of loan repayments. It must not be confused with Insurance designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. To avoid LMI a deposit of 20% of the property's value is required. ^

What is Loan Protection Insurance?

Loan Protection Insurance provides you with the peace of mind that if an unfortunate event, such as your death, disability, involuntary unemployment or trauma occurs, your assets will be safe and your loan repayments will be taken care of. ^

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