The following answers may provide more clarity to issues that concern you. In addition we encourage you to speak directly with an M+ consultant on 1300 067 587 - they will be happy to provide answers to all your questions.

GENERAL

  • I'm purchasing a property, what deposit do I need?
  • Generally a minimum of 5% is required. The source of your deposit can be a gift, borrowings or savings. In all cases you need to provide evidence of available funds to complete the purchase. These include the shortfall (if any) between the loan amount and the purchase price plus acquisition costs such as government charges.
  • How much will you lend me against my property?
  • This depends on the type of property you have. When refinancing we can lend up to 90% of the value of your residential property. The value of your property is determined by obtaining a sworn independent valuation from one of our panel of valuers across the country.
  • How long does it take to get a loan approved?
  • Upon receipt of full application and supporting documentation we will assess your loan and advise you of preliminary loan approval - this can be done in two days. Depending on the complexity of the application and when our valuer can access your property, formal loan approval advice can be within 7 days.
  • Why doesn't M+ have "no frills" / "basic loans"?
  • Generally no frills or basic home loans are limited in features and come with a variety of fees and charges e.g. monthly fee. These factors impact on the value of the "lower" interest rates sometimes not making them lower at all.
  • I am self employed and my accountant is yet to complete my tax returns, can I still get a loan?
  • Yes, you can with our M+ Freedom option.
  • What is a comparison rate?
  • A comparison rate not only factors in the annual interest rate but also all ascertainable ongoing, up-front and other fees associated with setting up a loan. It is what you are really paying, not just the advertised headline rate.
  • My current interest rate is lower than the M+ rate. So how can I possibly save money with M+?
  • M+ is about looking at your financial position as a whole. At the end of the day it's about how much money is leaving your pocket, which sometimes can be "clouded" by low rate offerings and hidden fees and charges. Even if you have a similar interest rate, once you factor in one of the M+ benefits, you will see there are savings to be made. Call us on 1300 067 587 to compare the real cost of your loan with M+.
  • How do I apply for an M+ loan?
  • There are many ways you can apply for an M+ loan
    • Arrange to have an M+ Loan Consultant meet with you;
    • Call us on 1300 067 587 and apply over the phone;
    • Fax or Post us your completed application form;
    • Request an application kit be sent to you via mail.
  • What is a line of credit?
  • A line of credit facility gives you an approved loan amount, which you can draw down on as often or as little as needed.

    M+ has two line of credit options - Latitude 10 and 15. These are 10 and 15 year interest only options, reverting to principal and interest for the remaining term of the loan. With Latitude 15 you can also capitalise interest up to the loan facility limit. For further details please refer to the loan product summary.
  • What is LVR?
  • LVR stands for Loan to Value Ratio, which is the loan amount against the value of the property expressed as a percentage.

    Example:
    Loan amount $100,000
    Property value: $200,000
    100,000 / 200,000 = 50% LVR
  • What is Lenders Mortgage Insurance (LMI)?
  • Lenders Mortgage Insurance covers the lender should a borrower default on their home loan. The LMI covers any shortfall arising from the sale of the property and any outstanding loan amount.

    LMI is different to Mortgage Protection Insurance, which covers the borrower's repayments in the event of unforeseen circumstances; e.g. unemployment, illness or death.

    There are some instances where the LMI premium is payable by the borrower. In such cases the borrower will be advised at the time the application is processed.
  • How can I access details of my loan facility after settlement?
  • You can access your details and manage your home loan through internet and/or phone banking 24 hours a day, 7 days a week at no cost.
  • What is redraw?
  • Redraw is a feature which allows you to withdraw the extra money you've paid into your home loan i.e. money you have paid in addition to your scheduled repayments. M+ does not charge you to redraw your money (after all it is your money, not ours).
  • Do I have a redraw facility?
  • All M+ variable interest rate loans have a redraw facility at no extra charge to you.
  • How do I access my redraw facility when I have funds available?
  • You can access your redraw funds via the internet, phone banking, ATM or EFTPOS. Unlike some banks there is no minimum redraw amount
  • My current loan has minimum redraw restrictions of $2,000. Is this the same with M+?
  • Unlike most loans where minimum redraws could be $2,000 or $500 there are no such restrictions with most M+ loans depending on the method of redraw, e.g. you cannot redraw under $20 by ATM.
  • My current loan charges $50 per redraw while my friend's charges $25. Does M+ charge redraw fees?
  • There are no redraw fees with M+ loans. Depending on the method of redraw there could be a transaction fee such as an ATM fee.
  • Can I switch interest rates?
  • You can switch from a variable interest rate to a fixed rate at any time or from a fixed rate to a variable rate at the end of the fixed rate period.

    There is a $299 fee payable to lock in a fixed rate.
  • What are your loan application fees?
  • M+ does not charge loan application or establishment fees - what we do need to pass on to you are costs we incur from third parties.

    M+ charges a once off property inspection fee of $300, which covers an independent sworn valuation of your property or the property you are looking to purchase.

    A further $450 legal documentation fee is payable at settlement and, where required, can be deducted from settlement proceeds. Additional fees will apply where company borrowers, multiple properties or commercial properties are involved, or where a residential property is greater than $750,000 in value or is in a remote or regional location.

    Please note a non-proceeding fee will apply if legal documentation is drawn up and settlement does not occur.
  • Do you charge on-going fees?
  • No. M+ does not charge on-going administration or account keeping fees associated with our loan products.
  • How much does it cost to refinance?
  • When refinancing an existing loan to M+, your current lender may charge fees for the discharge of their mortgage and arranging settlement. Your M+ consultant will assist you to identify these costs. Other costs you may incur include Government fees and charges.
  • Does an M+ loan affect my eligibility to obtain the First Home Owner's Grant?
  • No, not at all. In fact you can submit your application for First Home Owner's Grant together with your loan application to M+ and we will process it for you at no additional cost.

    For further information on the First Home Owner's Grant please refer to the various state revenue office websites.

    VIC - http://www.sro.vic.gov.au/
    NSW - http://www.osr.nsw.gov.au/
    ACT - http://www.revenue.act.gov.au/
    QLD - http://www.osr.qld.gov.au/
    WA - http://www.osr.wa.gov.au/
    SA - http://www.revenue.sa.gov.au/
    NT - http://www.nt.gov.au/ntt/revenue/
    TAS - http://www.treasury.tas.gov.au/domino/dtf/dtf.nsf/v-sro/001
  • Does M+ have a local branch I can visit?
  • M+ is a direct provider, which means we have no branches and therefore lower overhead and operating costs. What this all means, is more savings for you through lower interest rates and our unique benefits options.
  • Where is M+'s customer service centre located?
  • M+ has its headquarters in Melbourne, Victoria. M+ does not engage the services of overseas call centres and we do not undertake any form of telemarketing - we will not ring you at home of an evening, unless you have specifically requested one of our consultants to do so.
  • Am I indirectly paying for this benefit?
  • No, there are no hidden fees and charges - what you see is what you get. M+ can offer you these benefits as it does not pay any on-going commissions to advisors in connection with your loan.
  • How much fuel/health cover do I get?
  • Your benefit is based on the amount of your loan and in the case of health benefit on your choice of cover, Lifetime Heath Cover rating and state of residence.
  • How do you do it?
  • M+ puts borrowers before profit. Whilst M+ has overheads like any business what M+ doesn't have is an expensive retail network or shareholders to pay dividends to. By keeping its costs low, M+ can include benefits which make a difference in everyday life to its customers.

FUEL

M+ HEALTH

  • What type of cover do I have access to under the M+ Health program?
  • You have access to a range of combined hospital and extras packages for singles, couples, families and single parent families provided by Medibank Private.
  • What is Lifetime Health Cover?
  • Lifetime Health Cover (LHC) is a Federal Government initiative, which is designed to encourage people to take out hospital cover early in life and maintain it, by allowing them to pay lower premiums compared with others who take out hospital cover when they’re older, or who allow their cover to lapse for long periods.

    How does it apply to me?

    •If you don’t have private hospital cover by 1 July following your 31st birthday, you will pay an additional 2% loading on your heath insurance contributions each year you delay taking out hospital cover.
    •The maximum loading a person can be required to pay is 70%.
    •Where a loading has been applied to a premium, the loading will be removed after the member has held appropriate hospital cover for a continuous period of 10 years.
  • Will I be penalised under Lifetime Health Cover if I switch to Medibank Priority?
  • No.  When you adopt Medibank Priority through the M+ Health program, your status under Lifetime Health Cover will be maintained - provided you join Medibank Priority within two months of leaving your former fund.
  • How does having private hospital cover affect my tax bill?
  • If you are single and earning over $70,000 per annum or a family earning in excess of $140,000 per annum (subject to change) and do not have private hospital cover, you are required to pay the Medicare Levy Surcharge. The Medicare Levy Surcharge is an additional 1% surcharge on your taxable income. The Medicare Levy Surcharge is in addition to the normal Medicare Levy (up to 1.5%). If you fall into this category and take out private hospital cover, you will pay less tax.
  • If I am changing my private health cover to Medibank Priority, will I have to go through the waiting periods again?
  • If you join Medibank Priority through the M+ Health Program within 2 months of ceasing your membership with your previous fund and you have served the equivalent Medibank Private waiting periods, you will be eligible for benefits under your new cover for those services that were payable under your old cover straight away.  However, waiting periods may apply for any benefits you weren’t previously covered for. 
  • When will my cover commence with Medibank Priority?
  • Your cover with Medibank Priority will commence on the 1st day of the month following the first full month anniversary of your mortgage settlement.  For example, if your mortgage settled on the 20th June, your M+ Health cover would commence from 1 August.
  • What if I am already a member of Medibank Private?
  • If you are already an existing Medibank Private member you will need to complete the application form to change your cover and direct debit details.
  • If I was to increase my level of cover from the level held with my current fund, would I have a waiting period?
  • If you choose a level of cover that is higher than the cover held with your previous fund, you would immediately be eligible for benefits under your new cover for those services that were payable under your old cover. Waiting periods would apply before you are entitled to the higher benefits.
  • If I currently have a waiting period with another health fund, will that be transferred to Medibank Priority?
  • Yes.  If you have not fully served the equivalent Medibank Private waiting periods with your former fund, then you will need to serve only the remaining balance of these waiting periods before you are eligible for benefits.
  • If I have a Lifetime Health Cover loading on my hospital cover, will you cover this cost?
  • No.  M+ does not cover the cost of any loadings you may incur. The M+ health benefit takes into account any health cover loadings, which may apply to your circumstances, when working out your subsidy.
  • What happens if I am in the middle of receiving treatment when I switch funds?
  • You will receive benefits under your Medibank Priority cover at an equivalent rate to your previous cover from the date you join Medibank Private.
  • If I have an excess on my hospital cover, who pays the excess?
  • You will need to pay any applicable excess.
  • Does Medibank Private have preferred health care providers or can I go to my usual family dentist or physiotherapist?

  • You can still visit your usual health care provider and Medibank Private will pay any applicable benefit, as long as they are a Recognised Provider.  However, Medibank Private has negotiated agreements with the majority of private hospitals and extras providers across Australia so you can receive greater value-for-money from your health insurance cover. This is called Medibank Private Members’ Choice Network.

    If you choose to be treated by a Members’ Choice Extras Provider you can get more from your cover. This includes capped fees or discounts and in most cases, higher Benefits than if you were treated by a non Members’ Choice Provider (subject to Annual Limits and Sub-limits). Medibank Private Members’ Choice Network includes a wide range of extras providers including dentists, dental prosthetics, optical retail outlets, chiropractors, physiotherapists, podiatrists, naturopaths and acupuncturists.
  • Can I max out my current health fund privileges now and then have the same privileges with no waiting periods or maximum use when I start with Medibank Private?
  • No, if you max out your benefits with your current fund, you will not be entitled to claim full benefits with Medibank Priority until the new calendar year.  For example, if you use $200 out of your $400 physiotherapy yearly maximum, when you transfer to Medibank Priority, their system will show that you have used $200 of your physiotherapy annual limit in that calendar year.  Any remaining annual limit will depend on your level of cover and whether any waiting periods are applicable.
  • What age are my children covered to? 15, 18, 21?
  • Your children can be covered under your membership if they are:
    • under the age of 21 years, unmarried and not living in a de facto relationship; or
    • aged 21 or over but under the age of 25 years, unmarried, not living in a de facto relationship and undertaking full-time study in an approved course as defined by Medibank Private.
    If you have children who are over 21 but under 25, are no longer full time students and are not married or living in a de facto relationship, they may be able to be covered under your membership for an additional cost.
  • What happens if I am in default under my mortgage payments?
  • If you fall into default under your mortgage we will write to you advising your benefit has been suspended and we will cease to make payments to Medibank Private on your behalf.  You should be aware that if your health cover is unpaid for a period longer than 2 months, your cover will lapse and your membership will be closed without further notice from Medibank Private. You can bring your membership up to date provided that it is not more than 2 months in arrears.
  • Am I still covered while I am in default under my mortgage?
  • Yes.  M+ will keep you covered for a maximum of 30 days following an event of default.
  • Is there a help line or website I can call to find out more about private health cover?
  • Yes. You can call the Private Health Insurance Hotline on 1800 307 446 to find out more or visit www.privatehealth.gov.au If your enquiry is to do with a specific Medibank Priority product please call 131 680
  • Who is paying for my health insurance subsidy?
  • M+ pays for your health insurance subsidy by passing on the savings it makes through its unique program. Medibank Priority is in no way responsible for the payment of this subsidy.
  • How is my subsidised premium paid?
  • At the end of each month M+ will debit your nominated bank account the difference between the amount of your subsidised premium and the full retail rate.
  • What happens to my benefit if I discharge my loan?
  • Should you discharge your loan, your M+ health subsidy will cease at the end of the month in which the loan is discharged. Continuity of cover is your responsibility and can easily be maintained by making a new payment arrangement with Medibank Private.

    Your Medibank Private membership will not cease unless it is more than two months in arrears. Please note that health cover claims are not payable if your premium payments are in arrears, however you can bring your membership up to date by paying any outstanding premiums, provided that your membership is not more than two months in arrears.