What is a Certificate of Currency and Why do I Need One?

A closer look at a Certificate of Currency

When applying for a loan, your Bank or Lender will ask you for a Certificate of Currency. To many Australians, it seems to be just another confusing property market jargon term, but it is a document that can make or break your home loan. It’s, in fact, important and will be highly beneficial if you have one.

A Certificate of Currency is a document issued by your insurance provider that confirms your property is insured. More specifically, it should contain the following:

• Your details. It should identify the name/s and residential address of the insured party.
• Policy details. I.e. the insurance policy number and its expiry date.
• Limit to protection. A specification of the maximum monetary amount covered by the policy.
• Premium payment details. It should identify the amount of the premium that has been paid, as well as the date and method of payment.

Why you need one

A Certificate of Currency confirms that your property is correctly insured. This is necessary in case your property gets damaged by an unexpected event, for example by theft or fire. Like with any insurance, we hope you’ll never need it, but this way we can all be sure to minimise the impact in the case such an unfortunate event takes place.

Requesting your Certificate of Currency

A certificate of currency can be obtained from your insurance company free of charge. Simply call up your insurance provider and request that they email it over to you. This is usually able to be sent to you on the same day you request it.

There are a couple of things to keep in mind when you obtain your Certificate of Currency.

• Make sure that your property is insured for the minimum period required by us.
• The policy should start before the confirmed settlement date.
• There is a Certificate of Currency for banks and lenders. Make sure to request one for your lender.
• Double check the terms required for the certificate before contacting your insurance provider.

Once this is all in place, you’re a step closer to settling your home loan and owning your own property!

Mortgage House

At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.

But don’t worry, we can help with that.

If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. 

Click here to speak to us!