Loan Initiatives FAQ

Below we have a list of most frequently asked questions and answers. Click on a question below to reveal answers, if you still have questions contact us here.

LVR is also known as Loan to Value ratio it is the percentage of between the value of your home (Value) against the value of your total loan (Loan). This tells us how much you owe against your property that is being used as security.
Lenders mortgage insurance is a fee that is charged to you by the bank that insurers the bank in the instance of a default or shortfall in a repossession. It is generally charged when you have a deposit that is less than 80% of the purchase price of the property.
Redraw is the ability to be able to withdraw surplus funds that you have paid into your home loan. It can also help you to pay off your home loan quicker as the more surplus funds you have in the account the less interest you will be charges.
Yes, the loans we offer are the exact same products that the banks offer as well as the same interest rates. When you use a broker it is like walking into your own bank only you have a range of banks and products to chose from rather than being restricted to a few options.
A split loan is a loan that has different portions to it but is still secured by the same property. For example: having a home loan for $450,000 and splitting it into a fixed loan for $250,000 and a variable loan for $200,000.
Bridging finance is generally short-term finance to help you purchase a new home while still trying to sell your current home. Sometimes our dream home comes on the market unexpectedly and the funds aren’t available to purchase it however, bridging finance gives you the power to do so.
Interest is calculated on the balance of your loan on a daily basis and is accrued and then charged monthly. To work out roughly what the interest would be on your next loan take your loan amount and times it by the interest rate then divide this figure by 12.

An offset account is usually an everyday banking account that is linked to your home loan. The bank takes into consideration your offset account balance and this offsets your home loan balance.

Eg. if you have a home loan for $300,000 and an offset account balance of $30,000 you would only be paying interest on the difference of $270,000

A line of credit card is almost like a giant credit card. With a line of credit the interest is calculated on the balance of your loan on a daily basis. They give you access to cash up to a pre-arranged limit. These can be perfect for investors as their limit is generally set and you have the ability to repay and redraw up to this limit at your leisure.
Our service is FREE when you settle a home loan with us. We are paid by the lenders individually for putting your home loan with each lender. We are not biased towards any of the lenders as they all pay us the same.
Often we have access to niche products and rates that your own bank may not be able to provide. When you are looking at making a significant financial decision we can provide you more options, choices and products that your own bank is unable to offer. Sometimes, the cheapest rate may not be the best interest rate for you.