Do I have to be an Reliance member to take out a loan?

Reliance is a mutual financial services organisation and as such is owned by its members, each one of whom is a shareholder. Therefore you must be a member of the credit union to have a loan.

Learn about the benefits of membership. ^

How much can I borrow?

The actual amount you can borrow is determined by your ability to meet the repayments of the loan. To calculate how much you can borrow simply use our loan calculator. ^

What costs do I need to consider?

Deposit
The biggest initial cost is the deposit. This will range from 5% to 20% minimum deposit required, depending on the type of loan you require.

Stamp duty & registration fees
Stamp duty and registration fees are payable on a property purchase and on a mortgage.

Property purchase stamp duty & registration fees
Property purchase stamp duty is a form of government tax and is calculated on the market value of the property or the purchase price, whichever is greater. You may be exempted or eligible for a concession, please contact your solicitor/conveyancer.

In addition, 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.

Mortgage stamp duty and registration fees
Stamp duty is incurred to make mortgage documents legal. The fee is determined by the amount you are borrowing. We will calculate your loan security stamp duty and will pay the applicable state authority on your behalf. You will be charged at cost.

There is also a government charge to register your mortgage document. We will pay the applicable state authority on your behalf.

Legal Fees
Legal expenses for the average home purchase include:

  • Solicitors fees
  • Survey and building certificate
  • Building inspection and pest report

Searches and inspections
Contracts should never be exchanged until the necessary searches and inspections have been completed. Searches and inspections may include a title search for the following:

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, dampness 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?

It is recommended you make loan repayments through payroll deduction into your Reliance account, although you can make payments through periodical payment debit from your savings or transaction account within Reliance, Internet or Ready Phone banking transfer, at any one of our Membership Centres or by using the Bank@Post service at most Australia Post Offices. ^

What security is required to take out a Home Loan?

Your home loan must be secured by a registered mortgage over a 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 loan protection. In the unfortunate event that you may pass away and you are covered by the death benefit, your loan debt will not be passed on to the next of kin. Learn more about our income protection insurance. ^

Do I need to take out insurance?

Lenders Mortgage Insurance will be required if the amount of your loan exceeds 80% of the valuation or purchase price, whichever the lesser. Building insurance is required to be taken out equal to the amount stated in the recommendation on the property valuation.

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

Is a redraw facility available?

Reliance 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. This facility allows you to park extra funds on your loan, thus saving you interest and then redrawing them as required. See our Fees and Charges for Redraw fees. ^

What is Lenders Mortgage Insurance?

Mortgage insurance 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 income protection insurance that is designed to cover your lending obligations in the case of sickness, accident or involuntary unemployment. ^

More Information

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