What is lenders mortgage insurance? (LMI) Lenders Mortgage Insurance, or LMI, is designed to protect the lender, not the borrower, in case the borrower defaults on their loan (i.e. can no longer make their repayments). If the borrower defaults, the lender can...
What is interest only? Interest Only Repayments Home loan repayments are generally made up of two components: the principal (your loan balance) and the interest (the amount you’re charged on the outstanding loan balance). ‘Interest only’ means you pay only the...
What is a fixed rate? A fixed rate loan allows you to lock your interest rate in for a period of time. This means that your repayments will be the same for the fixed term you choose and you’ll be protected against any interest rate increases during this period of...
What is a family guarantee? Guarantor Home Loan – Can my family help? A guarantor allows you to purchase a property sooner and potentially save thousands of dollars. By using the equity they’ve built up in an existing property, a guarantor can help you to...
What is an offset account? An offset account is one of the most powerful ways to save you hundreds of thousands of dollars over the lifetime of a mortgage. A ‘100 per cent offset account’ can sound too good to be true. But these accounts enable you to have every cent...
