What should I bring to my first meeting?

1. Photo ID: Driver’s license or passport.

2. Proof of Income: Last two payslips, last two years of tax returns, and any other income sources.

3. Details of Savings, Bank statements

4. Details of Liabilities: Information about credit cards, current mortgages, and any other debts.

5. Details of Living Expenses: An estimate of your regular expenses.

Having these documents organised and ready will make your meeting go more smoothly.

What is LMI?

Lender’s mortgage insurance (LMI) is insurance that a lender takes out to insure itself against the risk of not recovering the full loan balance if you don’t make loan repayments. LMI is typically paid as a one-off, non-refundable, non-transferrable premium when you first take out your home loan.  

LMI varies depending on the level of risk the lender takes on by loaning you money

What’s the difference between a redraw and an offset account?

A mortgage offset account is a savings or transaction account that can be linked to your home loan. The balance in this account ‘offsets’ daily against the balance of your home loan before interest is calculated. An offset account can help you cut years off your home loan term and save money on interest. 

A redraw facility is a loan feature that is usually available with variable-rate home loans and some fixed-rate loans. A redraw facility lets you access any extra repayments you’ve made on your home loan.