Home loans - frequently asked questions

If you choose a variable rate home or investment loan, the interest rate can rise or fall depending upon the market and economic conditions. This can potentially impact your repayment amount. On a variable rate, you have the flexibility to make unlimited extra repayments without a fee applying, to pay down your loan sooner.
Choosing a fixed rate home or investment loan means you can lock your interest in at a set rate for one to five years. So if you think interest rates have hit rock bottom or that rates may rise, you can add certainty to your loan by fixing your repayments for a set period.
If you're still not sure about which option is right for you, we're happy to help you make the right decision. Call us on 13 11 82 or visit your nearest branch for more details.

If you want to speak to us about fixing your home loan interest rate, email us on fixmyhomeloan@peopleschoice.com.au with your name, member number and contact phone number and we endeavour to be in touch within 48 hours to talk through your options.

Yes, you can take advantage of this immediately. You'll be entitled to one free valuation each year when you increase your borrowings within your home loan package.

If you have registered for Internet Banking at People's Choice, you can set up a scheduled transfer to make recurring payments on your loan. Simply log in to Internet Banking, click on 'Transfer' under the 'Transfer/Pay' tab, click on the 'Schedule Payment' icon and follow the prompts.
Don't have Internet Banking? Call us on 13 11 82 or visit your nearest branch, so our friendly staff can ask you a few security questions to be sure we're talking to the account holder. We'll then be able to set up your Internet Banking and you can start checking in on your accounts online right away.
If transferring your payment from another financial institution, use the BSB 805 050, your loan account number and your surname for the account name.

• If you make Principal and Interest repayments, you’ll receive a letter from us with your new rate and repayment information, providing you with at least 20 days' notice for you to make any changes.
• If you make Interest Only repayments, you’ll receive a letter from us with your new rate.
• If you have a Line of Credit account, you’ll receive a notification of the rate change on your next statement.

Yes. Speak to a Home Loan Adviser to discuss your options. 

A split loan is where you can choose a fixed interest rate for part of your loan amount and a variable interest rate for the rest. The fixed portion helps to protect you from rate rises while the variable portion allows you to pay off some of your loan sooner, and benefit from any falls in interest rates. 

No. There are no additional fees for splitting your loan.

This will depend on the home loan you have. Speak to a Home Loan Adviser to discuss your options. 

The cost of LMI generally depends on the borrower's LVR (Loan to Value Ratio) and amount of money they need to borrow. The cost can vary depending on the lender. For more information on LMI when taking out a Home Loan at People’s Choice please speak to one of our Home Loan Advisers or call 13 11 82.

LMI is a once-off payment made by the borrower at the time of loan settlement, which protects the lender should the borrower no longer be able to meet their loan repayments.

Lenders Mortgage Insurance (LMI) is an insurance that protects the lender in the event of default by the borrower.

LMI may be required if the borrower doesn't have a minimum of 20% deposit to take out a home loan.

To avoid Lenders' Mortgage Insurance it is generally recommended the borrower keep their LVR (Loan to Value Ratio) below >80% plus any fees (conveyancer, stamp duty, building inspection, etc). If the borrower has a deposit of 20% or more of the property value, then they may not be required to pay LMI. For more information on whether you’ll need LMI please speak to one of our Home Loan Advisers or call 13 11 82.

If you choose a fixed rate home or investment loan you can make additional repayments, but if you make extra repayments of more than $10,000 in a year during a fixed rate period then a Break Cost fee will be payable. Redrawing the additional repayments is not permitted.

No, a redraw facility is not a feature of our Fixed Rate Home Loan. If redraw is a feature you would like in your Home Loan please consider either our Basic Variable or Standard Variable Home Loan. Alternatively, a split loan facility can provide you with the best of both loan types.

No, an offset account cannot be linked to our Fixed Rate Loan. Please consider either our Standard Variable or Home Loan Package Variable Loan if you would like an offset account feature. Alternatively, a split loan facility can provide you with the best of both loan types.

Yes, our Standard Variable Home Loan enables you to make unlimited extra repayments.

Yes, our Standard Variable Home Loan offers you the flexibility to redraw any extra repayments you have made if you need the money back again. Redraw can be accessed online or via one of our branches.

An offset facility is available on our Standard Variable or Home Loan Package Variable Home Loan for an $8 monthly administration fee. An offset facility may help you reduce the interest payable and time taken to pay off your loan.

Yes, our Basic Variable Home Loan enables you to make unlimited extra repayments.

Yes, our Basic Variable Home Loan offers you the flexibility to redraw any extra repayments you have made if you need the money back again. Redraw can be accessed online or via one of our branches.

An offset facility is not available for the Basic Variable Home Loan.

If an offset facility is a feature you would like in your home loan please consider either our Standard Variable or Home Loan Package Variable Loan. An offset facility may help you reduce the interest payable and time taken to pay off your loan.

Yes, our Variable Home Loan package offers you the flexibility to redraw any extra repayments you have made if you need the money back again. Redraw can be accessed online or via one of our branches.

Yes, our Variable Rate Package enables you to make unlimited extra repayments.

An offset facility is available on our Variable Home Loan Package. Linking an offset account to your loan may help you reduce the interest payable and time taken to pay off your loan.

Multiple loans can be incorporated under one $395 annual fee.

Our Home Loan Package offers variable, line of credit and fixed rate products.

At the end of the fixed period, the loan will revert to the variable rate package unless we agree otherwise, but you can talk to us if you’d like to re-fix your rate or review our other home loan options. If your loan reverts to the variable rate page, the interest rate applicable will be determined by your total loan balance at that time.

You can make additional repayments up to $10,000 per anniversary year. Break Costs may apply for repayments above the $10,000 limit. Redrawing the additional repayments is not permitted. Splitting your loan with a variable rate product can allow you to make unlimited extra repayments on the variable portion without incurring any Break Costs whilst still having the security of having a fixed interest rate on a portion of your loan.

Yes, you can take advantage of this immediately. You'll be entitled to one free valuation each year when you increase your borrowings within your home loan package.

This rate will be held for the 90 day ‘Approved Period’ from the date that the completed rate lock form is received by People’s Choice. This 90 day rate guarantee does not extend beyond the expiration date of the conditional loan approval.

If you choose a variable rate home or investment loan, the interest rate can rise or fall depending upon the market and economic conditions. This can potentially impact your repayment amount. On a variable rate, you have the flexibility to make unlimited extra repayments without a fee applying, to pay down your loan sooner.
Choosing a fixed rate home or investment loan means you can lock your interest in at a set rate for one to five years. So if you think interest rates have hit rock bottom or that rates may rise, you can add certainty to your loan by fixing your repayments for a set period.
If you're still not sure about which option is right for you, we're happy to help you make the right decision. Call us on 13 11 82 or visit your nearest branch for more details.

You can choose from a range of product options such as an Investment Loan Package, Basic Variable, Standard Variable, or Fixed Rate. You also have the option of selecting Principal and Interest or Interest Only repayment options.

Interest Only loans provide you with the option of making a repayment equal to the interest charge monthly. By selecting this product option and only paying the interest, you will not reduce the principal balance of your loan during your Interest Only period.

No, you cannot redraw during the construction period. If you choose a variable rate loan you will have a redraw facility available at the end of your construction period.

Your loan will be disbursed as the funds are required, so you'll only pay interest on the portion of the construction loan you have drawn down.

You can choose from a range of options including:

 - Home Loan Package (Variable or Fixed - 1 or 2 year term only)
 - Standard Variable
 - Basic Variable

The construction period of your loan will be interest only. You have the option of selecting whether you will have a further interest only period at the end of your construction period, or if the loan reverts to principal and interest repayments.

The construction period for your loan is up to 12 months from the date of settlement.

A construction loan is a type of loan for people who plan to build their own home, investment property or complete extensive renovations. It differs from a traditional home loan in that it allows you to progressively have payments made from your loan to pay your licenced builder in stages throughout the construction process. It gives you the flexibility of interest only payments during the construction period and only paying interest on the amount you use.

Yes, with our Variable Home Loan Package construction loan. By linking it to an offset account, you could save on interest. The money you have in your offset account will offset the amount you owe on your loan, and you'll only be charged interest on the difference.

Yes, there is an additional once-off upfront fee for progress draws of $400. This covers all required progress payments during your construction period. For full details refer to our Fees & Charges booklet.

Progress payments let you draw down on your construction loan progressively, so you can pay your builder at key stages during the construction period. You’ll only pay interest on the funds you’ve used. Before your final progress payment is made, a satisfactory valuation from one of our valuers must be completed. This confirms that the build has been carried out as per the original submitted plans.

Fixed price building contracts are most common for construction loans. Other types of contracts may be considered, but please reach out to us to confirm.

If you’ve chosen a registered builder, you may be asked to provide:

•A signed copy of the Industry Standard Fixed Price Contract
•A copy of building plans and council permits
•A copy of the builder’s licence
•The builder’s bank account details
•Copies of insurance policies, including Builders All Risk/Public Liability Insurance, Domestic/Home Warranty Insurance, and Public Liability Insurance

The standard stages of construction are:

1. Preparation – plans, permits, fees, insurance, etc.
2. Foundation – levelling the land, laying the slab, excavations, plumbing, etc.
3. Framing – constructing walls, roof trusses, windows, door frames, etc.
4. Lock-up – adding everything you need to turn your building into a house and locking it up.
5. Fix-up – plastering, sealing, adding your appliances, bathroom installed, etc.
6. Completion – site tidied, fences up, and builders receive final payment.

Yes. If you are buying land without a building contract, you can apply for a regular home loan. Then when you’re ready to build, reach out to us and we can help. If you are buying a house and land package, you can get a construction loan. The first drawdown would be for the purchase of the land, and progressive drawdowns would cover the building stages.

If you have enough equity in your property to cover the demolition costs and the new build, you may be able to borrow the funds. Otherwise, you will need to use your own savings to cover the cost of demolition before the construction can commence.

No. If you want to borrow money for more than just the build (for curtains, blinds, furniture, appliances and so on), you may need a separate loan. Talk to us about your options.

Make sure to get home insurance before the final payment stage. We’ll need to confirm the house is insured before making the final payment to your builder. To show this is complete, send in a copy of your home insurance certificate with your final drawdown request.

Yes. People’s Choice are a Housing Australia authorised Participating Lender and a construction loan is one of the options members can consider as part of this Australian Government initiative.

A Bridging Loan can be taken for a maximum of 12 months.

Once your existing property is sold, the balance of your loan will reduce as per your contract and your loan will be converted to another product chosen by you and described in your contract.

A Bridging Loan is a short-term loan to assist you to purchase a new property pending the sale of your existing property. A Bridging Loan can help limit your expenses by offering interest only repayments while you sell your existing home. Once you have sold your existing property the proceeds of the sale are used to reduce your overall debt.

Our Bridging Loan is interest only, meaning a repayment only equal to the interest amount is required. We also offer the option of capitalising interest on top of your loan balance. Bridging Finance can be complicated so it’s best to discuss your loan requirements with home loan specialist who will be able to explain the options available to you.