#Assessment
August 31, 2022
Gift as a deposit
2 Min to Read
For many first home buyers, saving for a home deposit can be tough, which is why you might need a helping hand from your parents. One way to do this is with a gifted deposit home loan.
August 31, 2022
What does High Density mean in the lending scape?
2 Min to Read
Lenders are cautious about issuing loans for properties in areas that they consider risky. Areas that are considered high density fall into this category and will normally be included in the list of postcode restricted suburbs, which means the lender will either not lend for that location, or the overall loan amount and LVR could be significantly reduced.
August 31, 2022
What are Postcode Restrictions?
2 Min to Read
These criteria are known as Postcode Restrictions, and they are put in place to protect the lender in the event that the borrower defaults on their loan obligations and the property needs to be sold to recoup the loan. What is it and why do banks put these restrictions in place?
August 31, 2022
Types of Defaults & Bad Credit Loans
7 Min to Read
What is a Default and how does it impact your home loan? How to deal with the situation of bad credit or any bankruptcies? Let's unpack a few of them here.
August 31, 2022
What is a Credit Report and what is a Credit Score?
7 Min to Read
A Credit Report is a summary put together by a credit agency, outlining your track record of paying back money to lenders. You’ll have a credit report if you’ve previously applied for any type of finance or even access to utilities, such as electricity, gas or an internet service.
August 31, 2022
What is LMI?
3 Min to Read
Lender’s Mortgage Insurance or LMI is a one-off insurance premium that the home buyer might be required to pay upon taking out a new home loan. You are only required to pay LMI if you are wanting to borrow a high percentage of the overall value of the property.
August 31, 2022
Ways to verify your identity
3 Min to Read
When you apply for a home loan, you will also need to verify your identity.In order to do so, you will need to provide 100 points of ID, which can consist of two primary identification documents, or one primary and one secondary document.
August 31, 2022
Different kinds of incomes: FTP, PTP, Casual, Contractors, Self-employed
8 Min to Read
Lenders are willing to offer finance to people with different types of employment, however, it is important to understand that the requirements vary for each employment type.
August 31, 2022
Government grants - FHOG, FHLDS, Reduced Stamp duty, Const grants
4 Min to Read
There are a range of government grants and exemptions that are available across Australia, which predominately target first-home buyers.
August 31, 2022
Genuine savings
3 Min to Read
When someone applies for a home loan, lenders like to see that the potential borrower has a deposit that stems from genuine savings. Lenders like to see that you have been able to save at least 5% of the purchase price for the property.
August 31, 2022
What is the assessment rate?
4 Min to Read
When you apply for a home loan, lenders will look at both your income and your expenses when determining how much they are prepared to lend you. When you apply to a lender for a home loan, they will not use the actual interest rate on the home loan to do their serviceability calculations. They use what is called an assessment rate.
August 31, 2022
Home loan process
7 Min to Read
A short summary introduction to the home loan process.
