Buying Your Next Home

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Your next move

You’ve weighed up the pros and cons and decided you’re ready for a move. Whether it’s more bedrooms for a growing family, a relocation with work, or you want to downsize to keep things simple - we can help you buy your next home.

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Step 1

How much can I borrow?

Although you may have bought a property before, it’s a good idea to get a refresh of your options and review your needs. Start by calculating how much you want to borrow and what you can afford in repayments.
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Important information Important information Show content

Results are based on a single, full time PAYG income with no dependants. Any upfront costs that may be associated with the loan are capitalised in the loan amount. The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. The actual amount you can borrow may vary depending on factors including your verifiable net income, other debts or liabilities you have and the number of dependents you have. Lending is to approved applicants only and all lending is subject to a detailed credit assessment.

Fees and charges are payable. The calculations do not take into account fees, charges or other amounts that may be charged to your loan (such as establishment or monthly service fees or stamp duty). If you are borrowing more than 80% of the value of the property, Lenders Mortgage Insurance may apply. Any of these additional amounts will increase repayments under the loan. .

Repayment is for principal and interest and is indicative only based on the stated information. Changes in interest rates, repayment frequency and loan term will affect the repayment amount.

Assumptions

Expense Details and Default Values
The calculator initially assumes that the borrower has a minimum set of annual expenses of $17,004.
Maximum percentage of income available - currently set at 100% of income

Month
All months are assumed to be equal. In reality, many loans accrue on a daily basis this can lead to varying interest in different months.

Number of Weeks & Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. Thus the assumption is for a 364 day year.

Rounding
The calculator uses the unrounded payment to derive the amount of interest accrued over the full term of the deposit, however, institutions round repayments to the nearest cent.


Important information Important information Show content

The calculations provided are estimates only and based upon the information entered into the calculator by the user. The calculations do not include upfront or continuing credit fees and charges. The resulting calculations do not constitute a loan application or variation to an existing CUA facility, loan offer or loan approval.

Rates current as at 17 Jan 2020 and subject to change.

Your needs and financial circumstances have not been taken into account. Terms, conditions and Lending critieria apply and are available on application. Other fees and charges may apply. A General Information , Terms & Conditions brochure and Schedule of Fees are available online or from your local CUA branch. You should read both these documents before deciding whether to purchase this product, issued by CUA.

Comparison rate calculated on a $150,000 secured loan over a term of 25 years based on monthly repayments. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Your deposit
If you’ve owned your home for a few years, you may have built up equity. This can be used as a deposit to buy your next home. Equity is the current market value of your property minus the amount you still owe on your loan. If your house is valued at $450,000 and you owe $350,000, you have $100,000 in equity. Keep in mind you may not be able to access the full amount, and also need to factor in your Loan to Valuation Ratio (LVR). For example, if your equity is $100,000 and the new property you want to buy is valued at $650,000, your LVR is 85%. Also factor in any extra repayments you’ve made.

Step 2

How much will I need upfront?

Buying and selling property can be expensive, so factor in any upfront costs you may have to pay. These can include:

  • Stamp duty and government charges
  • Loan establishment fee
  • Legal and conveyancing fees
  • Removal expenses
  • Real estate agent fees for your existing property
  • Building and pest inspection
  • Lenders’ Mortgage Insurance (LMI)
  • Costs to get your existing property looking its best for the market

Important information Important information Show content

The results from this calculator should be used as an indication only and is based on the accuracy of the information you provided.

Things to consider
If you want to borrow more than 80% of the current market value of the property, you may need Lenders’ Mortgage Insurance (LMI). Almost all financial institutions will require LMI to cover themselves in case you default, even if you’ve paid it already on your previously loan.

Step 3

What is the best loan for me?

Just as your life changes, so do the things you need in a home loan. This time around you may have different needs and require more flexibility and features. Here are some options to consider.
Fixed rate loans

  • Provide security because your repayments are set for a period of time.
  • Protect you against rate rises, but you won’t benefit from a rate fall.
  • If you change financial institutions, sell your home, or pay off your loan within the fixed period, you may be charged an early payout fee.

Variable rate loans

  • Give you more flexibility, but leave you open to changes in interest rates.
  • Often have access to more features – like an offset account, the ability to make extra repayments and pay off or move your loan without penalty (but they may have a discharge fee).

Split loans

  • Can’t decide between a fixed or variable rate? You can choose to split your home loan.
  • By placing a portion on a fixed rate and a portion on a variable rate, you can enjoy the benefits of both.
  • This allows you to manage some of the risk of an interest rate rise with the fixed rate loan, while still having the flexibility of the variable rate loan.

Offset accounts
  • Offset lets you use money in linked accounts to ‘offset’ your home loan. This means the balance in your accounts is offset daily against your loan.
  • Reducing the amount of interest you pay and your loan term.
  • For example; if you have a loan of $500,000 and a balance of $10,000 in your offset account/s, you’ll only pay interest on $490,000 instead of $500,000.
Before you start
Knowing how much you can borrow helps you to act quickly and confidently when you do find your perfect next home. To get pre-approval, your income, outgoings, savings and any equity in your existing property are considered to work out how much you can borrow. It’s usually valid for 90 days, is obligation free, and can be easily renewed.

Which home loan suits me?

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Will this be your primary place of residence?
Do you want a fixed or variable rate?
Do you require an offset facility?
Do you require a redraw facility?

Your results

Max LVRΔ
Fixed/variable
Interest rate
Comparison rate*

Still not sure?

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Important information Important information Show content

This is only intended as a general guide in relation to issues you may want to consider. It is not intended to be an exhaustive list of all relevant issues and you should take into account your own particular circumstances, and obtain independent expert legal advice where needed, before proceeding.

Rates current as at 17 Jan 2020 and subject to change.

Loans are issued by Credit Union Australia Ltd ABN 44 087 650 959 AFSL and Australian Credit License 238317 to approved applicants only. Lending criteria, terms, conditions, fees and charges apply. Ask us for details.

The "Choose your own CUA home loan" tool is an indication only. Results do not represent pre-qualification for a home loan.

* Comparison rate calculated on a $150,000 secured loan over a term of 25 years based on monthly repayments. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

# On expiration of the fixed period, loan reverts to the relevant Standard Variable Principal & Interest repayment rate.

Δ Maximum Loan to Value Ratio (LVR) is inclusive of Lenders Mortgage Insurance (LMI) where applicable. Maximums based on standard security. Lower LVR limits apply for non-standard security types.

>< Offset is not available on all home loan products. You must maintain a minimum balance of $500 in each offset account to obtain the benefit of the offset from that account. Your offset account will not earn any interest.

>| A $200 minimum withdrawal amount applies for redraws conducted in-branch.

>> A daily transfer will refund any amounts paid in advance in excess of the total advance repayments allowed during the fixed rate period (being $50,000 for Premium Fixed and $5,000 for Fixed) unless sufficient to pay out the loan in full (in which case an Early Payout Fee may apply). Excess funds will be transferred to the nominated deposit account, which must remain open for the fixed rate period.

>|> For Premium Fixed Home Loans, any amount in excess of $50,000 in offset accounts will not be taken into account when calculating interest.

1 Achieve Variable is available to new to CUA home loans only. Minimum loan amount $100,000. Not available for switching or restructuring of existing CUA home loans or to applicants for another CUA home loan fully approved prior to 7/11/2018. Maximum LVR limits apply based on standard security types. Published interest rates and discounts available and applicable to home loans submitted on or after 7/11/2018. Interest rates and discounts may vary by loan purpose (owner occupied and investment) and by repayment type (principal and interest, interest only and construction loans). The discounts specified in your loan contract will not change for the life of the loan provided you do not vary your loan contract. If you vary your loan (for example, changing the loan purpose or repayment type), the rates and discounts may change.

2 Available to new loans of $100,000 or more. Maximum LVR limits apply based on standard security types. New loans only. Offers not available for switching of existing CUA home loans or to applicants for another CUA home loan fully approved prior to 04/07/2018 . Rates vary by repayment type (principal and interest vs interest only) and construction loans.

3 You must maintain a minimum balance of $500 in each offset account to obtain an offset benefit. The maximum in your offset accounts that is able to be offset against your Achieve Variable home loan when calculating interest is $15,000. Offset account balances in excess of $15,000 will not be taken into account when calculating interest on your loan. You will also not receive any interest on the funds in your offset accounts.