Frequently Asked Questions

 
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What do lenders consider when approving home loans?

Lenders consider a range of factors, with the most important being:

  • your income, payment and credit history

  • the value of the home you’re purchasing or refinancing

  • the size of your deposit payment, as well as how you got it (savings, gift from parents, etc)

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How can I get the best home loan?

  1. Get a fee-free savings account

  2. If you NEED a credit card, get one that provides extra value

  3. Put any surplus cash into your offset account

  4. Take advantage of loansHub Review Invites

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What documents are needed for a loan application?

Mortgage applications can require a LOT of documents, so to make your mortgage experience as efficient as possible, be sure to have all supporting documents ready for verification when you apply.

Exactly what is required depends on your income classification.

Full Time/ Part-time PAYG:

  • Latest 2 Payslips

  • If still in probationary period, letter of employment (must be on company letterhead and state following: base salary, job tenure and any fixed allowances)

  • Latest 2 monthly rental statements (if there are investment properties)

Self-employed – Sole Trader:

  • Completed tax return from the last two years or more

  • Notices of Assessment from the last two years

  • Latest 2 monthly rental statements (if there are investment properties)

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How much can I borrow?

This is referred to as borrowing power, and it’s calculated according to your income and expenses, plus any short-term financial changes stated by the borrower when working out your serviceability.

Find out your borrowing power today using our calculator.

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What’s a comparison rate?

A comparison rate is a rate that helps you work out the true cost of a loan, making it easier to compare different loans with each other.

A comparison rate is calculated by reducing the loan’s interest rate and associated fees and charges down into a single percentage figure.

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