Information & other Resources

Lenders Mortgage Insurance (LMI) is a fee that the client must pay if they are borrowing more than 80% of the property's value. This fee protects the lender from losing money if the client fails to pay back the loan. LMI can be included in the loan amount, and it can range from a few hundred to several thousand dollars, depending on the loan size and the property value.

However, some lenders offer LMI waivers for certain workers who are considered to have a stable and high income, such as doctors, lawyers, engineers, and accountants etc., These workers can borrow up to 90% of the property value without paying LMI, which can save them thousands of dollars in upfront costs. For more details contact or ask your Mortgage Broker.

The LVR, or Loan-to-Value Ratio, is one of the key factors in determining the interest rate for a client. It is the percentage of the loan amount relative to the value of the property or the purchase price of the home. The lower the LVR, the better the deal for the client. A low LVR means a low risk for the lender and a lower interest rate might be on the cards for the borrower. Therefore, it is advisable to negotiate the best deal based on your LVR and financial situation.

Equity in a home loan is the amount of money that you own in your property, after subtracting the remaining mortgage balance from the current market value. For example, suppose your property is worth 500,000 and you have 300,000 left to pay on your mortgage. Then your equity is $200,000. However, this does not mean that you can access $200,000 for buying another property. Your eligibility for a home equity loan or line of credit depends on your financial situation and the lender's policy. Usually, lenders will allow you to borrow up to 80% of the property value. So, in this case, you can get a maximum of $100,000 (80% of 500,000 minus 300,000) from your equity. You can use this money to fund the down payment on another house although current terms and conditions as per lenders policy are applicable as these calculations are indicative only.

The comparison rate is a useful tool for borrowers to understand the true cost of a loan. It combines the interest rate and the fees and charges associated with the loan into a single percentage. This way, borrowers can compare different loan offers more easily and accurately. However, the comparison rate may not reflect all the costs and benefits of a loan, as it is usually based on a standard loan amount and term ($150,000 over 25 years). Therefore, borrowers should also consider their own circumstances and needs when choosing a loan.

The deposit you need to save depends on several factors, such as the type of loan, the lender and the amount you want to borrow. However, a general rule is to save at least 10 to 20 per cent of the price of the property you want to buy.

A larger deposit will reduce the amount you have to borrow, which will lower your repayments and interest costs.

The amount of money you can borrow for a home loan is influenced by various factors, such as your credit score, your current debts, your initial deposit, and your employment situation. However, some lenders may be able to offer you a loan with a high Loan to Value ratio (LVR) i.e., 90 percent, which means you can borrow up to 90 percent of the value of the property you want to buy, not including government fees. It is always advisable to consult a Mortgage Broker to get an estimate of your borrowing.

One of the most important steps before applying for a loan is to check your credit rating. Your credit rating reflects your past borrowing and repayment behaviour, such as how many loans you have taken, what types of loans they are, and whether you have paid them on time. Any missed or delayed payments will lower your credit rating and make it harder for you to get approved for a loan.

A Mortgage Broker can assist you in improving your credit rating by advising you on how to manage your debts and repayments before submitting a home loan application.

To make an informed decision about your mortgage options, you need to weigh several aspects, such as your present income and expenses, your objectives, and your plans for staying in your home. Your Mortgage Broker can assist you in assessing your situation and finding a solution that suits your current and future needs.

A Mortgage Broker has access to a range of lenders and can help you find the most suitable loan for your financial situation. A Mortgage Broker is required to act in your best interest and offers you the best possible solution from their panel of lenders. However, if you go to a bank directly, they will only offer you the best deal with their own products. This means you might miss out on a better deal from another lender and end up paying more interest than you need to. Therefore, it is advisable to consult a Mortgage Broker instead of a bank when looking for a home loan.

No, you do not have to pay any fees for most of the mortgage services we offer. A Mortgage Broker is get paid by the lender for bringing them a new customer. This way, Mortgage Broker can help you find the best mortgage deal without charging you extra.

The documents you need to apply for a mortgage vary depending on your income source and personal circumstances. For example, if you are a PAYG employee, a self-employed person, or a trust beneficiary, you may need different types of documents to prove your income and assets. A Mortgage Broker will provide you with a detailed document checklist after the first meeting, after assessing your financial situation and you have decided to proceed with the application. The list below is only a general guide and not a complete list of all the documents you may need. Please contact your Mortgage Broker for more information and advice. The documents are usually grouped into the following categories:

1. Identity Documents: Passport, Driver’s License, Medicare card, Name change certificate (If applicable) etc.,

2. Income Documents: Pay slips, Notice of Assessment, Latest ITR, P/L statements, Balance sheet, any dividends, Documents related to Trust etc.,

3. Expenses: at least 3 months of bank statements, council bills etc.,

4. Assets: 3 months' bank statement showing the savings, any shares, superannuation, or gifts, which must be accompanied by statuary declarations etc.,