Mortgage insurance covers the lender in the unlikely event that you default on your loan. It does not cover you, the borrower.

Your Lending Manager will advise you if you require mortgage insurance and the costs involved. We may be able to structure your loan to avoid, or minimise the need for mortgage insurance.

A comparison rate reveals the cost of a loan, allowing you to compare ‘apples with apples’ when choosing a loan. The comparison rate takes into consideration the costs associated with setting up a loan, including the interest rate, the loan approval fee and any other up front or ongoing fees. It excludes government fees and charges, because they are standard across all loans.

The comparison rate can be compared against the rates of other loans and loans with other lenders. It is also important to consider the features of a loan rather than just the interest rate when comparing loans. No monthly fee, repayment flexibility and money saving features such as 100% mortgage offset, can make a huge difference to the final cost of a loan.

This is the amount you need to borrow, calculated as a percentage of the property’s value, as assessed by the lender.

So, if the property you want to purchase is valued at $500,000, and you need to borrow $400,000 to pay for it, the loan is 80% of the property value, making your LVR 80%.

LVR is important because different lenders and loan types have different maximum LVRs.