What is an offset account?
An offset account is a savings or transaction account that is linked to your mortgage account. The primary function of an offset account is to help you reduce the amount of interest you pay on your home loan. Here’s how…
Category Mortgage
What are disbursements in legal fees for property?
Disbursements are the various out-of-pocket expenses that your solicitor or conveyancer incurs on your behalf during the process of buying a property in Australia. Disbursements are charged above and beyond the general conveyancing service fee. Some will include it into…
What is Loan to Value Ratio (LVR)?
Loan to Value Ratio (LVR) is a percentage calculated by dividing the loan amount by the lender-assessed value of your property. Lenders consider an LVR of more than 80% as a higher risk. For lenders to accept higher-risk loans, you…
LMI Waiver for first home buyers
Lenders’ Mortgage Insurance (LMI) is insurance that protects the lender, not you. It’s usually a one-off, non-refundable, non-transferrable payment made by the borrower at the time of loan settlement. Table of Contents How to waive LMI for first home buyers…
Waived LMI & no LMI: Do you qualify?
What is waived LMI? Lender’s mortgage insurance (LMI) is a type of insurance that lenders require borrowers to purchase if they make a down payment of less than 20% on a home loan. LMI protects the lender in case the…
What is home loan pre-approval?
Home loan pre-approval is a process that lenders use to determine how much money you can borrow to buy a home. It is a commitment from a lender to lend you a certain amount of money, subject to certain conditions.…
What is lender-assessed value?
Lender-assessed value can be different to the purchase price of the property. Lender-assessed value is subjective to each lender and is used to determine your Loan to Value Ratio (LVR). Table of Contents How is lender-assessed value calculated? Factors that…
What is Lender’s Mortgage Insurance (LMI)
Lenders’ Mortgage Insurance, or LMI, is insurance that protects the lender, not you. It’s usually a one-off, non-refundable, non-transferrable payment made by the borrower at the time of loan settlement. Here are important facts about LMI: When is LMI required?…