FAQs
Browse clear responses to common questions and typical lender or application concerns.
Common questions and answers
In addition to offering competitive rates, we pride ourselves on being available to help with whatever questions you have throughout the life of your loan. We don’t discriminate against first-time buyers or experienced investors – no matter who you are, we’re committed to being there when you need us.
What is the importance of LVR?
Loan-to-Value Ratio (LVR) measures the size of your loan compared to the value of the property, usually expressed as a percentage. Its’ how lenders determine their exposure. Higher LVRS means more risk taken by lenders if required to re-sell. A lower LVR can improve your chances of loan approval, even qualify you for better interest rates
What is an offset account?
An offset account is a transaction account linked to your home loan that helps reduce the interest you pay. The money in the offset account doesn’t earn interest but instead “offsets” your loan balance – so you only pay interest on the difference.
For example, if you owe $500,000 and have $50,000 in your offset account, you’ll only be charged interest on $450,000.
How much can I borrow?
How much you can borrow depends on several key factors, including:
- Your income (salary, rental income, etc.)
- Your expenses (living costs, debts, credit card limits)
- Your deposit size
- Credit history and financial commitments
- Interest rates and loan term
As a rough guide, many lenders allow you to borrow around 4 to 6 times your annual income, but this varies based on individual circumstances. If you’d like a more specific estimate, we can help you calculate it – Contact us for a borrowing capacity assessment.
What is the difference between principle + interest and interest only?
The main difference between principal + interest and interest-only repayments lies in how the loan is repaid:
Principal + Interest: You repay both the amount borrowed (principal) and the interest, gradually reducing your loan balance over time. This results in higher monthly repayments but helps you pay off the loan faster.
Interest-Only: You only pay the interest for a set period (usually 1–5 years), so repayments are lower initially, but the loan balance doesn’t reduce. Once the interest-only period ends, repayments increase significantly as you begin paying off the principal too.
Are you paying too much on your current home loan?
We offer a detailed assessment of your home loan to review your current mortgage, interest rate and overall loan structure, then compare it against options from our panel of lenders to see whether there’s a better fit. If there’s an opportunity to reduce your repayments or cut fees, we’ll explain the numbers clearly and guide you through the next steps. Get in touch today and you could save thousands of dollars.