RESIDENTIAL & INVESTMENT LOANS

How much you can borrow will depend on your individual financial situation and the lending criteria of different lenders. Factors such as your income, living expenses, existing debts, credit commitments, dependants and the size of your deposit can all affect your borrowing capacity.

At 180 Finance, we can review your circumstances and compare a range of lenders to give you a clearer idea of your borrowing capacity and the loan options available to you.

The deposit you need will depend on the property, your financial circumstances and the lender you choose. While a 20% deposit can help you avoid Lenders Mortgage Insurance (LMI), some lenders may allow you to purchase with a smaller deposit.

There may also be government schemes or concessions available to eligible home buyers. We can help you understand the options that may be available and what they mean for your overall costs.

Home loan pre-approval gives you an indication of how much a lender may be willing to lend you, subject to their conditions and final approval.

At 180 Finance, we start by understanding your financial position and what you’re looking to achieve. We can then compare suitable lenders, help you gather the information required and prepare and submit your application for pre-approval.

Having pre-approval can give you a clearer budget when you start looking for a property, although it isn’t a guarantee that your final loan will be approved.

Lenders Mortgage Insurance, commonly known as LMI, is insurance that protects the lender if a borrower is unable to repay their home loan and the property sale doesn’t cover the outstanding loan amount.

LMI may apply when you’re borrowing a higher percentage of the property’s value, often when your deposit is less than 20%. The requirements and cost can vary between lenders and individual circumstances.

We can compare different lending options and explain whether LMI is likely to apply to your situation.

Your deposit isn’t the only cost to consider when buying a property. Depending on your circumstances and where you’re buying, you may also need to allow for costs such as stamp duty, conveyancing or legal fees, building and pest inspections, lender fees and property-related expenses.

Some buyers may be eligible for government grants or concessions that reduce certain costs.

Understanding these expenses before you buy can help you set a more realistic budget and avoid unexpected costs during the purchase process.

Investment property loans and owner-occupied home loans work in a similar way, but lenders may apply different interest rates, lending criteria and deposit requirements depending on how the property will be used.

Your loan structure can also be particularly important when purchasing an investment property.

At 180 Finance, we can compare investment loan options from a range of lenders and help you consider a loan structure that suits your circumstances and investment plans.

Depending on your circumstances, you may be able to use some of the equity you’ve built up in your existing home towards the purchase of an investment property.

Equity is generally the difference between your property’s value and the amount you still owe on your home loan. How much of that equity you can access will depend on factors including the lender’s requirements, your borrowing capacity and the value of your property.

We can help you understand how much usable equity you may have and discuss lending options for your investment property purchase.