Your Home Loan and Your Family
When obtaining a home loan, each borrower (mortgagor), will be provided by their lender (mortgagee), a set of loan documents with their terms and conditions setting out, among other details, a list of the mortgagee’s fees and charges.
Residential property loans are regulated by the National Consumer Credit Act (NCCP) and under this code mortgagees are required to disclose in full all relevant information about your loan, including interest rates, fees and charges, before entering into any loan agreement with you.
The mortgagee may vary certain conditions of the loan agreement, eg interest rates, without your consent, before and after the loan has been advanced. However, these changes can only be made in accordance with the NCCP and other relevant legislation and regulations.
You must be notified of any changes made to your loan contract either directly in writing, via the lender’s website or by media advertisement. The change will take effect from the time specified in their notice.
In all cases the mortgagee will not make the loan advance until all the settlement requirements are met. These may vary between banks and lenders a few of these requirements to consider are:
- Your ability to repay the loan
- The title to each security property is satisfactory
- Has your financial situation changed since you applied for the loan
- All searches, valuations and certificates relating to the security property have been provided and are satisfactory
Your mortgage broker is the best person to speak to about your home loan features and benefits, fees and charges and which loan will best suit you.
To ensure you are fully aware and informed of your home loan terms and conditions talk to your Loan Market mortgage broker today before entering into your next home loan agreement.