Having a larger deposit means you may not have to borrow as much money, which reduces the amount of interest you will be paying back over the term of the repayment period. A larger deposit means less risk to the lenders and a greater likelihood of receiving a competitive interest rate. It is typically suggested that you put down at least 20% of the buying price as a deposit. You can, however, put down a lesser deposit because this may not be possible for everyone. In most situations, this entails the use of lender-provided mortgage insurance. First home buyers can put down as little as 5% and may be eligible for a variety of government loans, subsidies, and programmes to help them along the way.

Lenders' mortgage insurance (LMI) is a non-refundable, non-transferable charge that is often applied to your home loan. It applies to situations where the borrower does not have enough savings or assets to meet the usual asset requirement of 20% of the asset value. LMI is a type of insurance that protects the lender rather than the borrower. The higher the percentage, the higher the premium, as the lender's risk of loss is considered higher.

A mortgage offset account can help you lower the interest rate on the loan. The mortgage is linked to an account where you may deposit your salary and other funds. These funds can subsequently be used to pay your bills. If you have a $200,000 loan and $5,000 in your offset account, for example, the amount of interest you pay will be computed on only $195,000 ($200,000 – $5,000). Instead of paying off your current mortgage, you can use these funds towards a new deposit. With Extra Repayments/Redraw facility you can make extra payments for unexpected expenses that may occur. Some loans with this feature allow you to miss a mortgage payment if you have enough cash in your account to cover it.

Upfront costs

• Stamp Duty – A stamp duty is a duty or tax imposed by the state government on certain transactions, including the purchase of your first home. The amount depends on the purchase price of the home.
• Lenders mortgage insurance – LMI is applicable on loans when the deposit is less than 20% of property value.
• Legal Costs – It includes conveyancing and title searches costs on your new home.
• Building and pest inspections – this is a report on the structure and condition of the home you’re purchasing.
• Home and contents insurance – Covers the expense of replacing or repairing your personal
  belongings in the event of theft, loss, or damage.

Pre-approval is a guarantee from Lender that, the property you want to buy has been appraised and we have all the information we need from you, you may proceed with our financial support if the final checks are successful. The term "conditional approval" indicates that a lender has evaluated your financial status and has proposed an anticipated loan amount that may be officially authorised after you find a property.

Yes. The stamp duty cost can be deducted from the loan's principal. The stamp duty will be paid from the money you put down on your loan as a down payment. The amount of stamp duty you owe depends on where you live and how much your house is worth.

You can get in contact with one of our friendly team who can assist you with, at the time of the loan
application.