• Angela Dye

Mortgage FAQs

Updated: Jul 29

Angela Dye answers some of the most popular questions asked about getting a mortgage...

Q: I am self-employed. Can I get a loan?

Yes, is the short answer to this question. Most banks have loans for self-employed applicants. The types of loans available vary from bank to bank however most have a full document loan as well as a low or alt document loan. Where you fit into the loans available will be determined by the paperwork that you can supply the bank. Your accountant will usually form part of the income verification process. Keeping your company accounts in order and up to date will make the process easier for all self-employed applicants.

Q: What is an LVR and how does it affect my loan?

LVR stands for Loan to Value Ratio. That means the amount of your loan compared to the value of your property. E.G if your property is valued at 500k and your loan is 350k your LVR is 70%. Your loans LVR forms part of the bank’s risk in lending you money. The lower the LVR the lower the risk to the bank.

Q: What is a pre-approval?

A pre-approval, also known as a conditional approval is an acknowledgment from the bank that based on the information you have supplied to the bank and subject to listed conditions the bank may consider you for a loan. It is important to note that a pre-approval is not a formal loan offer and there is no guarantee that you will actually get a loan from the bank.

Q: How often should I review my home loan?

Your personal and financial situation and needs will change through the years and it is important that your home loan is reviewed on a regular basis and adjusted accordingly.

A home loan that was suitable for you when you bought your first home may not be suitable for you later in life.

The mortgage industry is very competitive and with changes to policies, rates and products a common occurrence it is important to do a review of your current home loans features and rates at least once every two years. This will help you to decide if your current loan is still the most suitable or if there is a more appropriate product out there that would save you money and give you better features.

If you have any questions regarding mortgages or property, Ask Ang.

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