Home Loan FAQ
Is my property suitable security for a home loan?
How soon can I pay off the loan?
How can I make my loan repayments?
Are there any fees if I repay my loan early?
How soon can I get a home loan approval?
How can I avoid paying ATM Operator Fees?
How are interest rates set?
With most lenders, the fixed interest rate that applies to your loan is determined at the time of settlement.
With ME Bank we go the extra step. If fixed interest rates increase before your loan is settled, we will apply the fixed interest rate prevailing at the time we receive your application, subject to the following conditions:
- We receive a signed application form that is completed fully and correctly and accompanied by sufficient documentation for us to complete our credit assessment;
- We are able to issue a letter of offer immediately after we have assessed your application (in some situations, for example property subdivision, we cannot do this);
- You accept, sign and return our letter of offer to us within 14 days of the date of the letter of offer; and
- Settlement occurs within 3 months of the date of the letter of offer.
Where a settlement is delayed beyond 3 months from the date of your application, or a letter of offer cannot be issued immediately, then the fixed interest rate that applies to your loan will be determined on the day of settlement.
Is my property suitable security for a home loan?
All residential properties must be valued by an approved valuer, appointed by ME Bank, as being suitable to secure the loan. But don't worry, we arrange all of this.
Properties under qualified title or old law may involve additional costs ie. conversion to Torrens title.
ME Bank cannot provide finance for all types of residential properties. To check whether your property is suitable security, contact one of our lending consultants on 13 15 63.
How much can I borrow?
You can borrow up to 95% of the purchase price or ME Bank valuation of the property, whichever is the lesser.
Minimum loan amounts start from $40,000 ($20,000 in Tasmania) and are subject to credit approval.
We don't want you to commit to something that could make your situation untenable, so the amount of your loan will depend on your income, financial commitments and ability to repay the loan.
Please note restrictions apply to amounts lent for some properties.
How soon can I pay off the loan?
You can set up a loan for any period from 5 years up to 30 years. Over that period, your repayments are calculated so that in addition to meeting your monthly interest payment, you will be reducing the principal amount outstanding.
How can I make my loan repayments?
Your loan repayments must be made by direct debit from a nominated account held with either ME Bank, or any other financial institution. To set up a direct debit you can download and print the direct debit form and return it by mail to the address shown.
Can I make extra repayments?
If you choose a variable interest rate, you can elect to make lump sum payments at any time or make extra repayments.
Are there any fees if I repay my loan early?
There are no additional costs for repaying your variable rate loan early after five years. If your loan was settled prior to 1 July 2011 and you repay your loan within five years, we will charge $600 to recover loan set up costs.
Fixed interest rate loans that are repaid before the end of the fixed rate period may incur a prepayment cost if ME Bank incurs a loss due to the early termination of the fixed interest rate period. In this situation, the amount is no greater than the actual cost incurred by ME Bank.
What are the costs?
ME Bank charges no application fees for home loans.
Solicitor fees, valuation fees and agent fees apply. For more information on these fees and when they are charged see home loan fees and charges.
Lenders Mortgage Insurance: ME Bank will pay the lenders mortgage insurance up to 80% of the valuation of the property (LVR). Should you require a loan for more than 80% of the property value, you will need to make up the difference with a one-off lenders mortgage insurance premium. Our consultants can assist you to calculate this premium.
Property Insurance: Prior to the settlement of your loan, you will be required to arrange for general purpose property insurance. You will be notified of the minimum insurance coverage required after your property has been valued.
Other: When purchasing a property, you may incur external costs and charges such as your own legal advice, stamp duty and statutory government fees and charges. If you would like some assistance in calculating these costs, contact one of our lending consultants on 13 15 63.
How soon can I get a home loan approval?
As soon as we receive your application for a ME Bank home loan, we can process it and provided you have given us all the information required, we will endeavour to notify you of a conditional approval over the phone within 48 hours.
Final approval of the loan will be confirmed following receipt of a satisfactory valuation and all other criteria being met.
How can I avoid paying ATM Operator Fees?
These four tips can help you avoid paying ATM Operator Fees:
- Withdraw cash or check your account balance at ME Bank, Westpac, St.George and BankSA ATMs (except St.George and BankSA ATMs at BP Petrol Stations). There are over 2,800 ATMs to choose from nationally.
- Take out extra cash when using EFTPOS to make your purchases. These transactions are excluded from the ATM operator fee.
- Check your account balance using ME Bank's fee free Phone and Internet Banking Service.
- Use ME Bank's Internet Banking to transfer money and pay your bills.
Fees and charges apply. Terms and conditions available on request. Applications are subject to credit approval.
Related Links
Home Loan Tools
Repayment Calculators
Other Tools
Contact ME
- Product Enquiries
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Personal Ph 13 15 63 ME Contact Centre open
Mon - Fri: 8am - 8pm,
Sat: 9am - 5pm (EST)Business Ph 1300 658 108 ME Business Contact Centre open
Mon - Fri: 9am - 5pm (EST) - Existing Customers
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Personal Ph 1300 654 998 ME Contact Centre open
Mon - Fri: 8am - 8pm,
Sat: 9am - 5pm (EST)Business Ph 1300 658 108 ME Business Contact Centre open
Mon - Fri: 9am - 5pm (EST) - Phone Banking
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Personal Ph 1300 654 998 Business Ph 1300 658 108