Lenders Mortgage Insurance (LMI) is a one-off premium that protects the lender if you default on your mortgage and the property sale doesn't cover the outstanding loan balance. LMI is typically required when your deposit is less than 20% of the property's purchase price. The premium varies based on your deposit size and loan amount - for example, on a $600,000 loan with a 10% deposit, LMI might cost between $15,000 to $25,000 depending on the insurer and lender. This cost can be paid upfront at settlement or capitalised into your loan amount, though adding it to your loan increases total interest paid over time. Some lenders offer LMI waivers for certain professions like medical practitioners, lawyers, or accountants. While LMI adds to your borrowing costs, it enables property purchase with smaller deposits, potentially allowing you to enter the market sooner. Personalised Finance can explain LMI costs across different lenders and help you weigh the benefits of paying LMI versus waiting to save a larger deposit.

Your borrowing capacity depends on several factors including income, expenses, existing debts, deposit size, and the lender's assessment criteria. Most lenders use a debt-to-income ratio, typically allowing total debts up to 6-8 times your annual gross income, though this varies significantly between lenders. They also apply a serviceability test, ensuring you can meet repayments at interest rates higher than the actual loan rate (usually adding 2-3% buffer). Monthly expenses are carefully scrutinised including living costs, existing loan repayments, credit card limits, and dependants' costs. A single borrower earning $100,000 annually might borrow between $500,000 to $700,000 depending on expenses and deposit. Couples with combined income of $150,000 could potentially borrow $800,000 to $1,200,000 in suitable circumstances. Recent changes to lending standards mean lenders examine bank statements closely and may question discretionary spending. Personalised Finance can provide accurate borrowing estimates based on your specific financial situation and identify lenders whose criteria align with your circumstances, potentially maximising your borrowing capacity within responsible lending guidelines.

Self-employed borrowers and those with irregular income can definitely secure home loans, though the application process may be more complex than for traditional employees. Lenders typically require self-employed borrowers to demonstrate stable income over at least two years through tax returns, business activity statements, and accountant-prepared financial statements. Some lenders specialise in non-traditional employment situations and may accept alternative income verification methods. Income averaging across multiple years helps establish borrowing capacity for those with fluctuating earnings. Factors that strengthen self-employed applications include substantial deposits, strong business financials, good credit history, and working with an accountant who can provide professional references. At Personalised Finance, we work with lenders who understand various employment structures including contractors, freelancers, commission-based workers, and business owners. We can advise on documentation requirements and potentially identify lenders more suited to your specific situation, improving your chances of approval while potentially securing favourable loan terms.

An offset account is a transaction account linked to your mortgage where the balance reduces the loan amount on which interest is calculated. For example, if you have a $500,000 mortgage and $50,000 in your offset account, you only pay interest on $450,000. The money in your offset account remains accessible for daily expenses while effectively earning interest at your mortgage rate, which is typically higher than standard savings account rates. This arrangement can significantly reduce interest payments and loan term length. A fully offset account provides 100% offset benefit, while some lenders offer partial offset accounts that might provide 40-60% of the benefit. Offset accounts work particularly well for borrowers who maintain higher account balances or receive irregular income like bonuses. The key advantage is flexibility - your money remains available while working to reduce mortgage interest. Many lenders charge fees for offset accounts, so the benefit must outweigh these costs. Personalised Finance can calculate potential offset benefits based on your typical account balances and compare lenders offering offset facilities.

Mortgage broker can provide you with range of different lenders that may suit your lending requirements. We do not provide "one size fits all" approach because we believe each person needs is unique.

The deposit requirement varies depending on your circumstances and the lender you choose. Generally, most lenders prefer a minimum 20% deposit of the property's purchase price to avoid Lenders Mortgage Insurance (LMI). However, many lenders will accept deposits as low as 5% of the purchase price, though this will require LMI which adds to your borrowing costs. For example, on a $800,000 property in Hornsby, a 20% deposit would be $160,000, while a 5% deposit would be $40,000 plus LMI costs. Some government schemes, such as the First Home Owner Grant in NSW, may assist eligible buyers with deposit requirements. At Personalised Finance, we can explain various deposit options and help you understand the implications of different deposit amounts on your overall loan structure and repayments.

Personalised Finance provides you with a range of lender panels that can offer lending for your residential property, commercial property, smsf lending, bridging loan, asset finance and personal loans.

The choice between fixed and variable rates depends on your risk tolerance, budget flexibility, and market expectations. Variable rates fluctuate with market conditions and Reserve Bank of Australia decisions, meaning your repayments can increase or decrease over time. This uncertainty can make budgeting challenging, but you might benefit if rates decrease. Variable loans typically offer more flexibility including offset accounts, redraw facilities, and the ability to make extra repayments without penalty. Fixed rates provide repayment certainty for the fixed period (usually 1-5 years), making budgeting more predictable. However, you won't benefit if variable rates fall below your fixed rate, and fixed loans often have restrictions on extra repayments and may not include offset accounts. Many borrowers choose split loans, fixing a portion for security while keeping part variable for flexibility. Current market conditions, your financial goals, and personal preferences all influence this decision. Personalised Finance can explain the current rate environment and help you understand how different rate structures might work with your financial situation and objectives.

Documentation requirements depend on your employment type and financial situation. Employed borrowers typically need two recent payslips, last two years' tax returns and Notices of Assessment, two to three months of bank statements showing salary deposits and expenses, and employment contracts or letters confirming position details. Self-employed applicants require additional documentation including business activity statements, profit and loss statements, accountant-prepared financials, and ABN registration details. All borrowers must provide identification such as driver's licence and passport, details of existing debts including credit cards and personal loans, and information about assets including superannuation and investments. Once you have a property under contract, you'll need the contract of sale and council rates notice. If you have previous credit issues, explanatory letters may be required. Personalised Finance provides a comprehensive checklist tailored to your circumstances and employment type, ensuring you gather appropriate documentation before submitting your application to avoid delays.

You can reach our mortgage broker by clicking book an appointment button on the left hand side of this website.

If you have difficulties in booking an appointment with him, please feel free to send a text to his mobile, 0433 434 583. We are looking forward to speaking with you.

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The mortgage application timeline varies depending on several factors including lender choice, application complexity, and how quickly you provide required documentation. Typically, the entire process from initial application to settlement takes 6 to 8 weeks. The initial application assessment usually takes 3 to 10 business days once all documents are submitted. If the lender requires a property valuation, this adds another 5 to 10 business days. Unconditional approval might take 2 to 3 weeks from application submission. Settlement periods in NSW are commonly 42 days from contract exchange, though this can be negotiated. Factors that may extend timeframes include incomplete documentation, complex financial situations, or peak periods when lenders experience high application volumes. At Personalised Finance, we work to ensure your application is complete and accurate from submission, potentially reducing processing delays. We also maintain regular contact with lenders to monitor progress and address any queries promptly.