FAQ

Most Frequent Questions

We’re totally Australian-owned Mortgage Lender acting independently of any of the Banks. We were established in 1997. Our Funds are accessed from money markets. Our packaged home loans have features today’s borrowers are looking for including low interest rate, early repayment options and redrew facility.

Just take a look around to see by how much Trustar Mortgage beat the banks with low interest home loans. Bank support thousands of expensive local branches, huge staff numbers ane exorbitant overheads due to their size.At Trustar Mortgage, we specialize in home loans, we operate more efficiently by keeping our overheads low and pass these savings on to you in the form of lower price home loans.

Our fund is raised from the Capital Markets through institutional investors like insurance companies, Government Fund and large super funds to provide the moneys for home loans on a high volume basis. Our Fund carries the covered “AAA” rating bonds (Also known as mortgage backed securities) from the prestigious Standard & Poor’s Rating Group.

This type of funding for Trustar Mortgage is the most economical and efficient way of delivering low interest rates to our borrowers with the added protection of a trustee to administer the program..

Also our an accredited mortgage broker through most of Australian banks and financial institute.

Perpetual Trustees Victoria Limited acts as Trustee to our Fund. It is one of the largest trustee companies in Australia. It is responsible for ensuring that our Fund operates in accordance with contractual obligations of the program. It is also responsible for contractual obligations as mortgagee (the lender) under your mortgage.

During the term of the mortgage you can switch at no cost from the variable interest rate to a fixed rate. All interest rates quoted to you by Trustar Mortgage will be indicative only. Actual interest rates will depend on the Trustee’s cost of funds at the relevant time. You will only be able to convert on the 15th of each month, and you must give 21 days written notice to Trustar Mortgage. We are unfortunately unable to accept verbal requests to switch rates.If you convert to a fixed rate, you should be aware that at the end of the fixed rate period, your rate will automatically convert to the prevailing residential variable rate which will be indicatively quoted to you by Trustar Mortgage. Alternatively, you can continue with another fixed rate period at the prevailing fixed rates.The opportunity to split your loan i.e. part fixed rate and part variable rate or two portions at variable rate or two portions at fixed rates, is only available at the commencement of your loan and should be discussed with your Loans Consultant when arranging your loan.

When the interest rate changes, you will always be formally advised by our writing notice and the new interest rate will always be published in the newspaper. You will be given at least 20 days notice of any revised minimum repayments following any variation to your rate. You will always be formally advised of any amendment to your minimum loan repayment arising from interest rate changes.

All regular repayments are made by a Direct Debit from your bank account.Whilst you have a variable rate loan you may elect to make your regular payments either monthly, Fortnightly or Weekly any date of each month. For loans on a fixed rate, repayments are only available on a monthly basis.The Direct Debit may only occur from bank or building society cheque or savings statement accounts. Some credit Union accounts may also be debited. Deductions cannot be made form Saving Passbook accounts.The account from which funds are debited to make loan repayments must be identical to the name of the loan.

Depending on your choice, the initial rate for your mortgage will either be variable or fixed.

If your rate is variable, it can rise or fall as determined by the Trustee based on the Trustee’s cost of funds, and there is no guarantee attaching to the Trustee’s rate. If your variable rate increases or decreases, your monthly instalments will increase or decrease. You do however, always have the ability to elect to maintain repayments at a higher level than the minium monthly instalment detailed in your loan contract.

Your mortgage must be repaid over a maximum term of 30 years. You can however repay your loan earlier if you wish simple electing to make a higher repayment, or by making lump sum payments. The term is subject to you maintaining your prescribed minimum repayment schedule and failure to do so will constitute default under the mortgage. In the event of default, your loan can become repayable at the Trustee’s request.

Yes. Additional payments can be made on variable rate, principal and interest repayment loans without costs. Additional payments on interest only loans are also permitted.Additional payments should be made by either personal or Bank cheque and clearly identified with the loan account name and number. Additional payments should be posted to Trustar Mortgage, P O Box K-82, Haymarket NSW 1240.You will receive interest benefit for any additional payments upon the moneys being received and credited to your loan account with the Trustee.Upon recept of your cheque, we will deposit the moneys directly to your loan account up until 12 noon on the day the moneys are received and if the day of recept is not a working day the deposit will be made on the next available working day.All cheques should be payable to Perpetual Trustees Victoria Limited and forwarded to the Trustar Mortgage office.Should a substantial principal reduction to your loan be made, you can elect to restructure your repayment schedule to reflect a reduced repayment, and this can be arranged by contacting the Trustar Client Service Department.

Yes, full repayment of your mortgage can be made at any time. Prior to prepaying your mortgage in full, 21 days notice should given in writing to the Trustee through Trustar Mortgage.

a) Variable Rate LoansNo early repayment fee is charged for partial repayments, and no early repayment fee is charged if your loan is paid out in full.However, there is a “Mortgage Discharge Fee” which is payable if your mortgage is discharged. Full details will be set out in your loan contract.For Land Loans and Construction Loans refer to separate annexure.

b) Fixed Rate LoansBreak costs (as set out in your loan contract) are always payable while your interest rate is fixed, on both partial repayments and if your loan is paid out in full. A mortgage discharge fee is payable if your mortgage discharged. Full details will be set out in your loan contract.Interest due on the prepayment amount up to the date the amount is credited to your loan must also be paid. Trustar Mortgage can advise you of the amount of these costs on request if you wish to repay your loan early.

Yes. If you sell one house and purchase another and the new property is also mortgaged to Perpetual Trustees Victoria Limited through Trustar Mortgage, you will not incur the mortgage discharge fee for discharging the first mortgage with Perpetual Trustees Victoria Limited. The transaction of course is subject to formal application, the new property being of no less value than the existing property and the simultaneous settlement of the sale and purchase of your property. There is however a cost involved in substituting security properties. Trustar Client Services Department can arrange this type of transaction and advise you of the costs involved.

  • We offer expertise and accurate advice on each loan situation.
  • We have a “Can Do” attitude and approach.
  • We ensure fast approvals and settlements.
  • We guarantee friendly and exceptional. service

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