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Buying a home is an exciting milestone, but the process can feel overwhelming if you're not sure what to expect. From preparing your finances and securing pre-approval to making an offer, settling, and moving in, this guide outlines the key steps to help you navigate your home buying journey with confidence. Prepare and understand your finances Find out how much you can borrow You can use one of Unity Bank’s calculators found here. Work out how much you can put down as a deposit You’ll typically be required to have a minimum 20% deposit of the purchase price of the home. The larger your deposit, the smaller your home loan will be and the less interest you will pay over the long run. For deposits less than 20%, you’ll incur Lenders’ Mortgage Insurance (LMI), which can generally form part of the overall loan. Appreciate all other costs involved Apart from establishing a home loan and paying regular interest, other supplementary costs are involved when buying a home. Some of these extra costs may include stamp duty, LMI, insurance premiums, legal and conveyancing fees, agent fees, valuation fees and even pest control expenses. Explore any government grants / schemes / concessions that you might be eligible for You may be able to save money and buy a home sooner than expected with assistance from the government. In particular, many government programs are developed with the aim of helping first home buyers. These may reduce costs or boost your deposit. Unity Bank is a proud supporter and participant of many of these grants / schemes / concessions, including: Australian Government 5% Deposit Scheme First Home Owner Grant First Home Super Saver Scheme Queensland’s Boost to Buy Shared Equity Scheme State-based stamp duty concessions for first home buyers Set up a budget / Save for a deposit It is wise to start making a budget early, and build your deposit regularly over time. This may mean you will have to make some lifestyle changes. Unity Bank’s Budget Planner Calculator may help with this.   Do your research & apply for conditional home loan pre-approval You need to become familiar with the various features, costs and conditions of home loans. Some important home loan characteristics include: The interest rate and how it is calculated Whether you’d like to make loan repayments monthly, fortnightly or weekly The difference between fixed rate and variable rate loans Loan attributes such as extra repayment limits, splits, redraw and offset facilities Any upfront or ongoing loan fees, such as strata or council rates Find out your creditworthiness Before you are approved for a home loan, banks typically assess your repayment capabilities, i.e. serviceability. They do this by reviewing your income, expenses, assets and liabilities. It's a way for lenders to determine if you're able to manage ongoing repayments and pay back what you have borrowed. Apply for a conditional pre-approval If all goes well, banks can then give you a conditional pre-approval (or approval in principle) so that you can attend auctions / make purchase offers with greater peace of mind. This is basically an estimate of how much money you can borrow from your lender.   Attend inspections and discover your future home Write down the ideal suburbs where you would like to live Liveability means different things to different people. Some factors to consider include: Schools and hospitals Public transport and parking Cafes, shops and local restaurants Green space and parks Noise levels and proximity to roads Flood-prone areas and bushfire-prone land Neighbourhood culture and upcoming developments Understand what type of property you are looking for Many property types are available including houses, townhouses, villas and apartments. You can also buy new, established or off the plan. Other aspects you might consider are what number of rooms you would like, if a backyard essential, what the natural lighting is like, are there large trees nearby, and what is the property orientation. Leverage property platforms Online property websites such as realestate.com.au and domain.com.au are valuable tools that provide insight into property trends, recent sales and comparable properties currently on the market. Attend property inspections / open homes By attending different homes, you will gradually get an understanding of what you like and don’t like, and also what the market pricing is. Also check online listings regularly and engage with real estate agents.   Make an offer Review the contract of sale, then make an offer After reviewing the necessary documentation (preferably with your solicitor or conveyancer), make your offer to the seller. Success! Now settlement starts Sign and date the contract of sale and pay the deposit (usually 10% of the property price). Settlement begins after the contract is signed, and can generally take up to 90 days. Settlement refers to the legal procedures where property ownership is transferred to you (the buyer), and the remaining purchase price is paid. During this period, you will need to apply to have your conditionally pre-approved loan formally changed to an ‘unconditional approval’. This may involve the bank requiring more documentation from you, and a property valuation taking place. Conduct a final inspection Remember to complete a final inspection just before settlement. This ensures that the property is in good condition. For example, you may check: Heating, cooling and hot water are functioning Everything electrical and plumbing-related is in working order Fixtures, lighting and surfaces are undamaged Any agreed repairs have been completed Rubbish has been taken away, and there are no pest infestations You may hire a professional defect / building inspector if desired. Protect your new home We’re only human, and the unexpected can always happen in life. Cover yourself against potential risks by arranging any insurance products such as home and contents insurance from the purchase date.   Time to settle, and then move in Provide the remaining funds to complete the purchase, and pick up the keys Congratulations, you are now a homeowner!   Meet with one of our Unity Bank home loan experts Buying a home can be an overwhelming experience, but help is always available.Click here to speak to one of our home loan specialists at Unity Bank at any time – whether online, over the phone or in person.

Our Retirees Access Home Loan is a variable rate reverse mortgage, a type of loan that allows Australians in their retirement years access to the equity in their homes or investment properties for their living expenses and other worthwhile purposes. Despite the growing popularity of reverse mortgages, there are still many misconceptions around how the loan works. To help you better understand what a reverse mortgage is and isn’t, we’re debunking five of the most common reverse mortgage myths. Myth one: You no longer own your home No longer owning your home is the most common myth regarding reverse mortgages. With our Retirees Access Home Loan, you will retain ownership of your home or investment property. You simply grant us a mortgage over the property. Myth two: You are required to make regular repayments With our Retirees Access Home Loan, the money is paid as a lump sum and you are not required to make regular repayments. However, you are free to make voluntary repayments or repay the loan via lump sum at any time and at no extra cost or penalty. Or, the balance of the loan will be repaid by your estate or when the property is vacated or sold. Myth three: You could end up owing more than the home is worth Under the “no negative equity guarantee”, lenders must guarantee that when your reverse mortgage contract ends, you will not have to pay back more than the value of your home. Read more about the no negative equity guarantee on the Australian Securities and Investments Commission’s (ASIC) MoneySmart website. Myth four: You will leave debt to your children Your Retirees Access Home Loan will be paid by your estate, meaning there is no residual debt. You can still leave your property to your children in your estate. However, you will only be leaving the remaining equity in the home. We recommend that you discuss your intentions with your family and also investigate how the Retirees Access Home Loan may impact any Government support payments, entitlements or other benefits that you receive. Myth five: You can only use a reverse mortgage for certain expenses One of the benefits of our Retirees Access Home Loan is its flexibility. Funds are released as a lump sum and may be used for any suitable purpose, including everyday living expenses or things such as home renovations, an overseas holiday or a new car. You may also wish to use the loan to consolidate any existing debts. Our Retirees Access Home Loan cannot be used for business purposes or to fund the purchase of a property in a retirement village. We're ready to help you Over the years, Unity Bank has helped many members enjoy their retirement in their own homes with our Retirees Access Home Loan. Contact us to find out more. To find out more about reverse mortgages, including a reverse mortgage calculator to help you work out how much equity you may have in the future, visit the ASIC’s MoneySmart website.

Australian life expectancy is among the world’s highest at 83.5 years, according to United Nations projections*. However, will your retirement funds enable you to make the most of your golden years? According to the Australian Bureau of Statistics, our population at retirement age has increased significantly since 2011, when the first of the baby boomer generation turned 65, while the percentage of our population at working age has begun to fall. The rapid rise in the old-age dependency ratio over the next decade is expected to place increasing demands on public finances, which is likely to affect future Age Pension spending. Most retirees will rely on a combination of superannuation savings, personal savings and the Age Pension. However, many are likely to have a ‘retirement savings shortfall’ where they just do not have enough assets to cover a comfortable standard of living, once they have stopped working. Homeowners have the advantage of freeing up equity Your home is likely to be your greatest asset, and if you are ‘asset rich’ but ‘cash poor’ you can borrow money using the equity in your home as security.  This is called a reverse mortgage and it can be a great way to boost your finances for retirement, depending on your circumstances. Our Retirees Access Home Loan is a variable rate reverse mortgage loan that has been designed especially for those who have reached, or are nearing, retirement. The balance of this loan will be paid by your estate or when your property is vacated or sold.    The benefits include: Being able to boost your retirement funds by utilising the equity in your home. Borrowing up to 40 percent of the value of your property, or $400,000 (whichever is lesser) depending on your age and the value of the property. Refer to FAQ for more information. Receiving the funds in one lump sum to use for any suitable purpose. Enjoying your retirement your way in your own home.   We’re ready to help you Unity Bank has over 50 years’ experience in helping Australians reach their financial goals, from saving and buying their first home to maximising funds for their retirement. We recommend that you obtain financial advice before applying for this product. Independent legal advice must be obtained before settlement of the loan will proceed. We also recommend that you discuss your interest in a reverse mortgage with your family as the loan may affect your estate planning, including inheritance for your loved ones.  You should also investigate whether the loan could impact any government support payments, entitlements or other benefits that you currently receive. You may need to discuss your situation with Centrelink or the Department of Veteran Affairs if applicable. Please note that the Retirees Access Home Loan cannot be used for business purposes or against a property in a retirement village.   *United Nations projections do not include any impacts of the COVID-19 pandemic, source https://www.macrotrends.net/countries/AUS/australia/life-expectancy  

Australians love investing in property and it’s easy to understand why. Property investment may offer both steady returns and tax benefits in the right conditions, without facing the same level of volatility as some other asset classes. If becoming a property investor appeals to you, there are a number of things to consider, including where to buy, what costs you’ll face, what your goals are and what sort of returns you’re seeking (capital growth vs. rental yield). Once you’ve answered those questions, there are several steps to take to secure your investment. Assess how much you can borrow To determine how much you can borrow, our lenders will look at your income, your deposit, your financial obligations, how much you spend and your credit report. Use our Borrowing Power Calculator to give you an idea of how much you may be able to borrow. It’s worth getting some guidance though – from one of our lenders or a financial adviser – to ensure the numbers are correct. Look into initial and ongoing costs While property investment may have tax benefits, there are also upfront and ongoing costs to consider. It’s important to factor in these costs to establish how much you’ll need to borrow or set aside. These include: Stamp duty Lenders Mortgage Insurance – To protect the lender, if you have a deposit of less than 20 per cent Legal fees Pest and building reports Land tax Strata fees Ongoing property maintenance costs Agency costs, if you plan to rent out the property Apply for loan pre-approval Once you’ve established how much you can safely borrow, you can seek pre-approval to finance your loan. Pre-approval means we have agreed – in principle – to lend you a certain amount of money to fund your investment purchase.  Find the right property for you Buyers often have an idea of what they’re looking for before they begin the search process, but once you know how much you can borrow, it can narrow the scope and help you search with more confidence. Everyone has their own criteria for what they’re seeking in an investment property, but buyers often look for low suburb vacancy rates, proximity to transport, schools and dining options, and strong suburb capital growth. Get the reports When you start getting serious about a property, it’s important to make sure there are no hidden flaws, such as pests or building defects. Obtaining reports from reputable inspectors – and getting a valuation of the property – can answer these questions and give you the information and peace of mind you’ll want before you make an offer. Make an offer If everything looks alright, you can proceed to making an offer to the agent. If your offer is accepted, it’s time to go back to our team to get the final loan approval. Settle on the property Our team will perform a valuation of the property. Then, before the property becomes your own, you usually have to engage lawyers or conveyancers to go through the contract and ensure everything lines up. Generally, they will negotiate a settlement period – which is the time during which your deposit and the loan funds are released to the seller in exchange for the Certificate of Sale, and the sale is finalised. After settlement, the property is handed from the seller to you. From that day, you’re a property investor. Read our Buying your home guide, it sets out home buying in three phases and defines key terms to eliminate confusing jargon.

Did you know you may be eligible for a Repayment Holiday on your variable home loan? A Repayment Holiday is when you’ve built up enough buffer with your funds (available redraw) from making extra repayments on your home loan. This buffer allows you to stop or reduce the amount of loan repayments as the available redraw can cover your scheduled home loan payments. Our Repayment Holiday option enables you to take a break from your mortgage loan repayments for up to six months and gives you more flexibility to suit changes to your lifestyle, whether they're planned or unplanned. It allows you to free up funds to use as you wish - to take a holiday or purchase a large item. By drawing down on the advanced status of your loan for the holiday period at its completion you will simply return to your scheduled repayments. Case Study Graham and Belinda took out a home loan three years ago to purchase their home. Over the last two years they have been paying more than their required repayment amount every fortnight. Consequently, the extra funds have built up over time and now they have a substantial amount of advanced funds (over repayments) sitting in their home loan. Belinda is now pregnant and plans to take nine months maternity leave, however her job will only pay her for three months. Graham and Belinda want to maintain a similar level of income after Belinda has the baby, so they contact us and arrange to put their home loan repayments on hold for six months once the baby is born. During that time we'll use the extra amount in their advances to deduct the home loan repayments. So, after the six months, the total pool of available advances will be less. It's important that during the six month Repayment Holiday period Graham and Belinda don't make any significant redraws. If they do it may mean that they'll need to increase their fortnightly repayments when the Repayment Holiday is over, in order to repay the loan within the agreed term. View All Home Loans

  Dear Members, It gives me great pleasure to announce some incredibly exciting news. Starting from the 1st of July, Unity Bank will become a participating lender in NSW’s Shared Equity Home Buyer Helper. Shared Equity Home Buyer Helper is an initiative to help lower-income single parents, older singles, and first-home buyers who are key workers realise the dream of owning their own home. Under this program, the government will contribute a proportion of the purchase price in exchange for an equivalent interest in the property. Smaller deposits, no lenders mortgage insurance, and no interest on the Government’s equity share means this initiative is a great option for eligible singles and key workers who no longer want to rent and prefer the security of home ownership. Unity Bank was founded on the principle of supporting everyday Australians. As such, being in a position where we can help those who are struggling to break into the housing market is something we don’t take lightly. For Unity Bank to be selected for Shared Equity Home Buyer Helper from an extensive list of candidates is an amazing achievement and something we should all be very proud of. For me, this acknowledgement is a reflection of Unity Bank’s continual drive and dedication to our members. If you would like further information on NSW’s Shared Equity Home Buyer Helper, or to find out if you are eligible for the initiative, please visit https://www.unitybank.com.au/home-loans/home-pathways-schemes/shared-equity-home-buyer-helper/ With all this in motion and much more to come, 2023 is shaping up to be another stellar year for Unity Bank. We look forward to servicing new and existing members through Shared Equity from the 1st of July. Yours faithfully,Danny PavisicChief Executive Officer