| Your Rights and Obligations |
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During the home loan process each party involved has certain obligations and rights.
The Lender must provide a credit contract which sets out the terms and conditions of the proposed transaction clearly. This often is referred to as the LETTER OF OFFER (LOO). It is important to check the LOO for correct details including interest rate, term of the loan and structure of the home loan to ensure they are in line with the original offer. Depending on the loan there will also be clauses noting any additional costs such as 'early termination fee's' or 'break down' costs. The lender must advise you of any interest rate rise either directly or via a newspaper advertisement before the new interest rate commences. This is not necessary for a interest rate reduction. A borrower must receive a statement at least every 6 months. A borrower can certainly dispute the home loan statement and if necessary you can use a tribunal to have unjust transactions varied or cancelled. A borrower can pay out the entire amount of the home loan at any time, but please note that by doing this you may be charged fee's and this should be outlined in your LOO. A borrower can terminate a credit contract before drawing down on the home loan. The borrower may have a the repayment date extended in financially hard times and there is in place national legislation aimed at protecting consumers if such unfortunate circumstances shouls arise. A lender must provide a payout figure within 7 days of a written request. THE BORROWERS OBLIGATIONS The lender expects certain obligations also: Must be truthful and factual in all details pertaining to the home loan application. Make all the home loan repayments on the due date stated in your LOO. Keep the property in good repair and do not undertake major alterations to the property without the lenders consent. Adequate insurance for the security property must be taken out for it's full value and do not do anything that might void the insurance policy. Do not sell, lease or mortgage the property without the lenders consent. |
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