At Smartline Rockingham, we have been brokering home loans in the Rockingham, Kwinana and Baldivis areas since 1999. That works out to a lot of loans. One of our favourite situations is the first home buyer. It is rewarding for us to help someone with a dream to become a homeowner procure their first home loan.

We know that the process can be confusing, so we do our best to take all of the confusing aspects out of borrowing so that you can spend your time on all of the other factors surrounding your transition from renter to homeowner. We would like to cover the basics of the loan contract for you here.

The Basics

Your loan contract is a legal document. It says that the lender is loaning you money and you are agreeing to pay it back in a series of installments. The contract will include the amount borrowed, the interest and the amount you will be paying on a weekly, fortnightly or monthly basis. It will contain a start date and a projected finish date when the loan will be paid off.

There will also be a section on fees. Fees can cost borrowers a lot of money. It is very important to thoroughly understand all fees associated with a loan. These can include: dishonoured cheques, bank cheques received, administration fees, fees for requesting copies of any documents, requesting a restructure of the loan or discharging the mortgage.

Payment and redraw methods can also have fees associated with them. You may be charged for cheque or cash deposits coming into your account. You may also be charged for BPay transactions and for direct entry debits or credits. It is important to know what the contract says it will do with unpaid charges or fees, as many will deduct them from other accounts with no prior notice.

To learn more or for an obligation-free consultation, call Smartline Rockingham today: (08) 9527 1800.