# 1-How is interest calculated on my home loan?

Interest is calculated daily on your home loan according to the outstanding loan balance at the close of business each day. We use the outstanding balance at the close of business each day and multiply this balance by your current interest rate and dividing by 365 days. We then add the total of the daily interest charges across the month and charge this amount to your loan

Where can I find out my interest rate? Example calculation Why does my interest amount vary in some months? Talk to us

Where can I find out my interest rate? You can find the interest rate applicable to your loan on the first page of your home loan statement. Alternatively you can locate the interest rate in NetBank by selecting “Account Information” under the “View accounts” tab.

Example calculation Below is an example scenario of how we calculate and charge interest to a home loan.

Bob and Sally have a home loan with an outstanding balance of \$321,500 at 7% and their monthly due date is 26th September 2011, but make repayments of \$3,000 on the 25th of each month.

\$321,500 x 7% divided by 365 days = \$61.66 per day  \$61.66 is calculated every day from 26th August 2011 through until 24th September 2011 (30 days)  \$61.08 is calculated for 1 day of 25th September because a payment of \$3,000 was made to the loan reducing the balance of the loan to \$318,500 for that day.  The total interest charged to the loan for this month is (\$61.66 x 30) + \$61.08 = \$1,910.88

Why does my interest amount vary in some months? There may be months where interest amounts vary. This is because the amount of days in each month varies and interest is calculated on a daily basis.

For example there are 31 days between 26th August 2011 and 25th September 2001, however there are only 30 days between 26th September 2001 and 25th October 2011

2-What are the first home buyer benifits in each state?

# NSW

The First Home – New Home scheme commenced from 1 January 2012 and provides eligible purchasers with exemptions from transfer duty on new homes valued up to \$550,000 and concessions for new homes valued between \$550,000 and \$650,000.

Eligible purchaser buying a vacant block of residential land to build their home will pay no duty on vacant land valued up to \$350,000, and will receive concessions for vacant land valued between \$350,000 and \$450, 000.

# QLD

The \$15,000 Great Start Grant is available for first home buyers who are buying or building a brand new home as their first home from 12 September 2012.

With the introduction of the Great Start Grant, the eligibility requirements of the previous \$7,000 first home owner grant have changed. It is only available if:

• your contract to buy an established home (that is, a home previously lived in) is dated before 11 October 2012
• your contract to buy or build a brand new home is dated before 12 September 2012
• as an owner-builder, the foundations for your home were laid before 12 September 2012.
First Home Owner Grant

# VIC

• For contracts entered into on or after 1 July 2013, eligibility for the Grant will be limited to buyers of new homes.

For contracts entered into on or after 1 July 2013 to build or purchase a new home, a payment of up to \$10,000 is available for eligible first home buyers. For contracts entered into prior to 1 July 2013, a payment of up to \$7000 is payable to eligible first home buyers. This grant is not means-tested nor is it restricted by the price of the property for contracts entered into prior to 1 January 2010.

For contracts entered into on or after 1 January 2010, the grant will only be payable where the price of the property or construction of the home does not exceed \$750,000. An exception to this requirement is where the contract relates to a home that is on, or to be built on, primary production land.

# First Home Owner Grant (FHOG)

## WA

The changes announced in the 2013-14 State Budget to increase the First Home Owner Grant from \$7,000 to \$10,000 for first home buyers purchasing or building a new home and to provide a \$3,000 grant for those purchasing an established home commence operation from 25 September 2013.

This means that on or after this date, first home buyers signing a contract to build or purchase a new home and owner builders that commence laying foundations for the construction of a home will be eligible for the increased grant of \$10,000. First home buyers signing a contract to purchase an established home on or after this date will be eligible for a \$3,000 grant.