Home Loans Australia

Borrowing capacity is driven by your income, expenses, existing debts and a serviceability buffer, not by what you feel you can afford. Lenders must test whether you could still afford repayments if your interest rate rose by 3 percentage points. Each lender assesses these factors differently, so your borrowing power can vary. PFGA calculates your range before you start looking.

A fixed rate gives you set repayments for a period, which helps with budgeting. A variable rate can move up or down, and often offers more flexibility, such as extra repayments and an offset account. The right choice depends on your budget, your plans and how you feel about rate changes. PFGA explains the trade-offs and compares options for you.

A split loan divides your home loan into a fixed portion and a variable portion. That way you get some repayment certainty and some flexibility. How much you put in each part is your choice, and it depends on your goals. We’ll show you how different splits could work for you.

An offset account is a transaction account linked to your home loan, and money held in it reduces the interest charged on your loan. Offset accounts aren’t available on fixed rate loans. Whether it’s worth it depends on how much you keep in the account and whether the loan has extra fees. PFGA compares loans with and without offset accounts so you can see the real difference.

LVR, or loan-to-value ratio, is your loan amount divided by the lender’s valuation of the property. For example, a $480,000 loan on a $600,000 home is an 80% LVR. If your LVR is higher than 80%, you may need to pay Lenders Mortgage Insurance. A lower LVR can also improve your options. PFGA shows you where you sit and what could change that.

Pre-approval is a lender’s conditional agreement to lend you a specified amount, and full approval only occurs once you have a contract of sale. Most pre-approvals are valid for around three months, though this varies between lenders. A pre-approval application is a form of credit enquiry, which is recorded on your credit report. PFGA helps you time it well, and can make discreet enquiries first to help protect your credit file.

It might be worth a look if your fixed rate is ending, your rate no longer feels competitive, you want to access equity or you want to change your loan structure. Refinancing can involve costs, so it’s important to weigh them against the potential benefits. PFGA reviews your current loan and tells you honestly whether switching makes sense.

PFGA explains how we’re paid, and any fees that may apply, before you proceed, so there are no surprises. For most home loans, we’re paid by the lender after your loan settles. To talk through your situation, call us on 1800 574 055 or book an appointment.

Lenders typically ask for identification, proof of income such as payslips or tax returns, recent bank statements, and details of your debts, credit cards and living expenses. If you’re buying, they’ll also want the contract of sale. Requirements vary by lender and your situation, so we’ll give you a clear checklist and help you pull it together.