Your Goal of Property and Financial Success Starts Here.

Lenders calculate how much you can borrow by evaluating your current income, what you already owe in terms of debt, how much you have saved for a deposit, and your creditworthiness. These are the factors that will decide what you can comfortably afford to repay.

The deposit needed for a home loan can vary. Some loans are available with as little as 5% deposit, but a larger deposit (like 20%) usually means you won't have to pay Lenders Mortgage Insurance and might be able to access more competitive interest rates.

Furthermore, you may also be able to access various Government deposit schemes to fast track your home ownership journey.

The interest rate for your home loan is determined by the lender's base rate, which fluctuates with market conditions and the RBA's decisions. On top of that, they'll assess your risk as a borrower, looking at your credit history and deposit, consider whether you're living or investing in your property and see if you're paying off the loan's principal or just interest only; all of which can influence the final rate you're offered.

Think of Lenders Mortgage Insurance (LMI) as an insurance policy for the lender. If you borrow more than 80% of the property's value (meaning you have less than a 20% deposit), the lender often requires LMI to cover their risk in the unlikely event that you default on the home loan.

However, LMI can also be a useful tool that can help you get into your property sooner by allowing you to borrow with a smaller starting deposit.

The Loan to Value Ratio (LVR) is a calculation of how much of the property price is covered by your loan. A higher LVR means you're borrowing a larger portion and typically have a smaller deposit. The LVR is calculated by dividing the loan amount by the property's total value and expressing it as a percentage. Lenders use LVR to assess the risk of a loan – a lower LVR (hence larger deposit) generally indicates lower lending risk.

A credit score is your personal financial report card. It's a number that lenders use to assess how likely you are to repay debt, based on your past borrowing and repayment history. It summarises your creditworthiness and how responsible you have been in managing your credit, and it could influence whether lenders will approve your loan and at what interest rate.

An offset account is a transaction account linked to your home loan. The money you keep in it 'offsets' the overall loan balance, meaning you only pay interest on the reduced amount. It's like a savings account that is working to lower your loan interest without actually being paid off, potentially saving you money over the life of the loan.

Applying for a loan typically involves a few key steps. First, you'll need to gather your financial information, such as proof of income and identification. Then, we'll complete an application for you with a suitable lender. Once an application is lodged, the lender will then assess your application and creditworthiness before making a decision.

Reach out to us when you're ready to starting your lending journey and we can help guide you through each step.