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Am
I Eligible?
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As a member of hmcstaff and if
you have your transaction account at another financial institution you are
eligible to apply for an hmcdirect Equity Line of Credit.
During the term of your loan you
will not be able to hold or operate a transaction account, VISA Card, Redicard
or cheque book at H.M.C. Staff Credit Union.
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How much can I borrow?
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With a hmcdirect Equity
Line of Credit you can apply for up to 95% of the value of your property
(providing that if the value is more than amount above 80% is covered by Lenders
Mortgage Insurance), subject to other normal lending criteria.
Borrowings over $260,000 in total
have to be sourced from the wholesale market ("off balance sheet")
under the provisions of the hmcdirect Integris
Mortgage (L3).
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What can I use my hmcdirect
Equity Line of Credit for?
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hmcdirect
Equity Line of Credit facilities provide flexible revolving credit.
You can choose to have the loan connected directly to your
hmcdirect High Rate Savers Account (S2) or hmcdirect Options Account (S27) both of which, in
turn, link to your transaction account at another financial
institution.
In either/any case, providing the minimum monthly payment (1% of the
outstanding balance) is made, you can repay the facility at the rate you choose. You can
redraw your loan, up to the approved limit or any part thereof.
In practical terms this means that your pay or
any investment funds you may have can be paid into your hmcdirect Equity
Line of Credit facility,
potentially reducing the term of your required finance and providing you with access to more effective
interest/taxation dynamics.
hmcdirect Equity Line of
Credit facilities may be used to pay out existing mortgage loan facilities.
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What type of security is
required for my hmcdirect Equity Line of Credit?
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A mortgage over real estate
property registered in the name of the borrower(s) can be used to secure your hmcdirect
Equity Line of Credit.
Other forms of security, including Motor Vehicle Bills of Sale, Personal
Guarantees, Third Party Property Guarantees and Script will not be considered.
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How do I make deposits
to my hmcdirect Equity Line of Credit?
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Deposits can be made to your
hmcdirect Equity Line
of Credit in any
of the following ways:
- Direct - have part, or all, of your pay deposited directly into your
account,
- Direct Credit - interest payments, dividends, rental income and
pensions,
Deposits can also be made to your
hmcdirect
Equity Line of Credit
by direct credit using Quickdebit from your linked transaction account at your other financial
institution.
With a hmcdirect Equity
Line of Credit account you
are not penalised for making extra or lump sum repayments putting you in control
of how quickly you will own your home.
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How
will my hmcdirect Equity Line of Credit be funded?
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Once the facility is approved and
loan/mortgage documentation has been completed your hmcdirect Equity Line
of Credit facility will be activated. You may draw against the facility by
transferring funds to your transaction account at another financial institution
from your hmcdirect High Rate Savers Account (S2) or hmcdirect
Options Account (S27). The resulting overdraft will be cleared using your
hmcdirect Equity Line
of Credit facility in the
Credit Union;s close of business procedures for that day.
If you are purchasing property or
consolidating other loans your Credit Union will transfer the funds on your
behalf making your hmcdirect Equity
Line of Credit an easy way
for you to finalise these accounts.
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How
do I apply?
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Application Form to print.
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What
is the current interest rate?
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The current rate is 5.55% pa.
and the rate will fluctuate from time to time depending upon prevailing interest
rate trends.
A penalty rate of interest will
be applied to the balance of the facility in the event that a payment is not
received by the due date.
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How
is interest calculated?
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Interest is calculated on the
daily balance and will be debited to your account on the last day of each month.
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What
is the Comparison Rate?
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The comparison rate is
identical to the annual percentage rate because your
Credit U3nion absorbs both the establishment fee and establishment costs
(other than insurance premiums, if applicable).
Special waiver provisions
apply for this concession.
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Can
I have any other accounts in conjunction with my hmcdirect Equity Line of
Credit?
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Yes, members with a hmcdirect
Equity Line of Credit account may hold Christmas Club, Targeted Savers, other hmcdirect
accounts, a Personal, Car or Mortgage Loan or Term Deposits with hmcstaff.
The only preclusion is to holding
a transaction account with hmcstaff and you will not be able to hold or operate
a transaction account, VISA Card, Redicard or cheque book at H.M.C. Staff Credit
Union whilst you have your hmcdirect Equity Line of Credit.
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Can
I split my loan using other hmcdirect loans? |
Yes,
members with a mortgage can split their options over the accounts L6, S79, L27
and/or L8. You will only pay one establishment fee ($300 subject to special
waiver provisions) and you can change the
split at any time in the future for a fee of $100. |
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What
fees and charges apply to my hmcdirect Equity Line of Credit?
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An establishment fee or $300
applies subject to special waiver provisions.
Other legal fees payable for
property valuation, mortgage preparation and state government stamp duty can be
obtained by phoning one of your Credit Union’s Member Relationship Officers or
by email contact@hmcstaff.com.au
A fee of $100 applies for an
application to increase the loan amount during the term of the loan or to alter
the balances split between other hmcdirect loans.
A monthly fee of $10 applies to
the hmcdirect Equity Line of Credit.
A ‘discharge administration’ fee of $200 applies at the time the loan is to
be discharged.
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Fee waiver Option |
The establishment fee and discharge
administration fee are waived and
will only be charged if the loan is paid out for any reason within five (5) years
of funding. |
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How
often will I receive information on my hmcdirect Equity Line of Credit?
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Account statements will be sent
to you monthly.
You can check the details of your
hmcdirect Equity Line of Credit account at any time using Online or Phone
Banking facility.
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