Offset accounts and redraw facilities are loan features that allow you to use surplus income or savings to reduce your loan balance and thereby reduce the amount of interest you pay on your loan.  So, how do they work? Offset Accounts An offset account is essentially a savings or transaction account that is linked to your loan account.  When your bank or lender calculates interest on your loan, ...

As a homeowner with a mortgage, chances are you’ve heard of the term ‘refinancing’. Refinancing involves reviewing your current mortgage, and potentially swapping your loan to another lender who can better meet your current needs, wants and circumstances. Refinancing can also allow you to consolidate your debts or pay down your mortgage more quickly. Another common reason borrowers l ...

If you have a stable income but don’t have the cash for a deposit, our finance experts can help find a way to turn your dreams into reality. Tom and Julia had a good, solid income but they didn’t have a sufficient deposit to be able to buy a property. They had been knocked back after visiting various lenders, but, when they went to see their local bank branch, it turned out that they just hadn ...

What is LMI? Lenders mortgage insurance (LMI) is one way to buy a property without having the 20 per cent deposit which is typically required by most lenders. With LMI, lenders may provide finance at a higher proportion of the purchase price, allowing prospective home buyers to purchase a property with a smaller deposit than would otherwise be required. Lenders Mortgage Insurance (LMI) is insuranc ...

What is LVR? The mortgage industry is a wide, wondrous world with a language all of its own. One of the many acronyms bandied about is ‘LVR’, which stands for ‘loan-to-valuation ratio’. Here’s what it means. When you are working out what amount you can borrow to purchase a property, the size of deposit you need to save and whether you are eligible for a particular mortgage product, the l ...

How much do I need for the deposit? As a rule, home buyers need to have at least 5-10% of the property value as a deposit. For instance, 5% of the property value for a home worth $500,000 means that you’ll need $25,000 as a minimum before you can apply for a home loan. Most banks have a genuine savings requirement that typically requires your deposit to come from savings you’ve accumulated o ...

Are you ready for a home loan? Not everyone we speak to is ready or able to buy a property right away. This page is a guide for increase your chances of approval or qualifying for a better discount when the time is right. We know how the banks are looking for in an application! Step 1: Basic lending rules If you meet the lending criteria of most major banks, you will be able to apply for the cheap ...