FAQs

Every lender has their own formula for calculating your borrowing power, and they generally look at six main factors.

• Deposit - the larger your deposit, the more you can borrow and the less interest you’ll have to pay on your loan.
• Income – this is not just how much your household brings in, but how much is left for home loan repayments after the bills and day-to-day expenses are paid.
• Level of debt – how much you owe on other loans and credit card limits will also influence your available income.
• Savings history – having a savings history of at least 3 months demonstrates to a lender that you’ll be able to manage your home loan repayments.
• Credit rating – a sound credit rating is one of the first things lenders look at, as it is based on your borrowing and repayment history.
• Home loan term – a lender will look more favourably at a longer loan term, but remember it will mean you pay more interest over the life of the loan.
• Property value - a lender may conduct a valuation of your chosen property to determine the amount they are willing to lend you.

​​You can get an upfront estimate of your borrowing power with Tiimely Home by using our borrowing calculator.

Yes, equity is a powerful tool that can set you on the road to building a profitable investment property portfolio.

You can use the equity in your home as an investment property deposit and if you have enough equity built up, you can borrow 80% of the property’s value without having to use your own cash.

How equity is calculated

Your accessible equity is the difference between your home’s current value and how much you still owe on your home loan.

If you’ve lived in your home for five years or more, you’ve probably accumulated quite a bit of accessible equity.

But lenders will only lend up to 80% of your home’s current value minus your current mortgage. This is known as your useable equity, which is quite a bit less than your accessible equity.

But it can still be a significant amount for an investment property deposit or any other use you may have for it, such as renovating your home, investing in shares or managed funds or improving your lifestyle with a holiday or new car.

Tips when buying an investment property

• All investments carry some level of risk, so to reduce your exposure when accessing your equity;
• You could keep some of your equity for emergencies, instead of using it all to invest in property.
• Consider repaying your home loan as quickly as you can.
• Think about learning more about property investing so you can make educated choices.
• It's always important to get professional financial advice to fully understand your options.

Equity is the difference between your home's market value and the amount you still owe on your home loan.

You can borrow against this equity to buy an investment property, do renovations or for any other purpose.

Two popular ways to access your home’s equity are by refinancing or by taking out an equity loan.

Refinancing

This involves replacing your existing home loan with a new one, ideally with better terms and conditions and a lower interest rate. Because it involves just one loan with ongoing repayments, it can be easier to manage than an equity loan.

Equity loan

An equity loan is a separate loan you take out in addition to your home loan. It’s often a line of credit which gives you approval to borrow up to a certain amount. You can then choose how much of this you borrow and you only pay interest on what you use.

If you’re a first home buyer, the answer is probably yes.

The amount and eligibility criteria for the First Home Owner Grant varies, but here is a summary of what each state currently offers;

• NSW – a $10,000 grant available for new properties valued up to $600,000 or $750,000 when building a home.
• Victoria – a $10,000 grant for buying or building a new home valued up to $750,000.
• Queensland – a $15,000 grant to buy or build a new home valued up to $750,000.
• ACT - a $7,000 grant. For 2023-24, the maximum concession amount is $34,504.
• WA – a $10,000 grant for buying or building a new home valued up to $750,000 (south of the 26th parallel) or $1 million (north of the 26th parallel).
• SA – a $15,000 grant for buying or building a new home valued up to $650,000 (where the contract was entered into on or after 15 June 2023) or $575,000 (where the contract was entered into on or before 14 June 2023).
• Tasmania – up to $30,000 grant for buying or building a new home.
• NT - a $10,000 grant for buying or building a new home of any value.

To see the eligibility criteria for your state or territory, visit the government website.

What is a good deposit on a house? The simple answer is as much as you can possibly get together. The larger the deposit you have, the smaller the loan you’ll need, the easier the approval process will be and the better the interest rate and loan terms you’ll be able to negotiate.

The minimum home loan deposit normally required is 10%, but you should try and get at least 20% together if you can. That’s because if you borrow more than 80% of a property’s value, your lender may require you to take out Lenders’ Mortgage Insurance.

It’s also worth checking if you’re eligible for any grants or government schemes (like the First Home Owner Grant), as they can help to bolster your deposit amount.

Yes. Making additional repayments can reduce the overall repayment period. Tiimely Own home loans allow unlimited additional repayments on all variable home loans, and up to $20,000 of additional repayments per year on all fixed home loans.

In short, no. However, your maximum purchase price may increase with a higher deposit.

When we look at your borrowing power, we take into account your ability to comfortably meet repayment requirements, which is impacted by your income, expenses, other financial commitments and living/family situation (eg de facto, single, dependents or no). All of these factors can impact how much you can borrow. Using tools like borrowing calculators is an easy way to get an idea of how much you can borrow.

With a Tiimely Own home loan you can get a first home owner loan with a minimum 10% deposit. If you have less than a 20% deposit you’ll need to pay Lenders’ Mortgage Insurance (LMI). LMI protects the lender in case you can’t make your repayments, the cost can be added to your total loan amount (but keep in mind this means you’ll have less to spend on your home). You’ll also need additional funds to cover any government and third-party fees.

Lenders use it to determine risk when assessing loan applications, so here’s a quick summary of what you need to know about LVR.

What is it?

LVR stands for Loan to Value Ratio. Simply put, it’s a comparison of how much you’re borrowing with how much the property you’re purchasing is worth.

How is it calculated?

LVR is calculated by dividing the loan amount by the purchase price or valuation of the property and multiplying it by 100.

For example, a $240,000 loan to buy a property valued at $300,000 would have an 80% LVR (240,000 divided by 300,000 multiplied by 100).

LVR is important to lenders because the lower the LVR is, the lower the risk is to the lender.

What types of loans does it apply to?

LVR is used by lenders to calculate risk on all sorts of different types of home loans including;

Standard home loan – LVR is calculated by subtracting your deposit from the purchase price and dividing the remainder by the property value.

Refinancing – the lender uses their own valuation of the property to calculate LVR because the price you paid for the property may no longer be relevant.

Off-the-plan – because the value may change by the time the home is built, the lender uses either the purchase price or valuation to calculate LVR, whichever is lower.

Favourable purchase (between family members) – the lender also chooses the lower amount between purchase price and valuation.

For units/apartments that are considered to be high density, then LMI may apply if the LVR is more than 70%. Speak with our team if you want to check.

Still not crystal clear on LVR? Contact us at Tiimely Home to assess your individual needs.

Budgeting can be hard. Trying to work out where your money is going and how much you will have to spare is stressful. Not to mention planning for unexpected costs that seem to pop up too often. So, having a fixed home loan repayment is something you know won’t change. And the fewer the surprises, the better.

Having a fixed period on your home loan gives you a set interest rate for a set length of time (usually 1-5 years). During this time the interest rate on your loan does not change. This gives you the security of knowing how much your repayments will be for that period. Which means you can create a more accurate long-term budget. Setting your repayments up as direct debits means you won’t think twice.

You can start prepping by using a budget calculator to figure out how much you are spending and where you are spending it. ASIC’s MoneySmart has a handy online planner to help get you started.

The First Home Owner Grant is a national first home buyer scheme designed to help Australians with buying their first property. Each state and territory have their own criteria to be eligible, but in general to be eligible you’ll need to be over the age of 18, a permanent resident or Australian citizen, and you can’t have previously owned a residential property anywhere in Australia.

State-by-state breakdown (updated Nov 2023)

South Australia

• Up to $15,000 for eligible first home buyers
• Available for new new homes with a value of up to $650,000 (where the contract was entered into on or after 15 June 2023) or $575,000 (where the contract was entered into on or before 14 June 2023)
• You’ll need to reside in the property for at least 6 months once you have bought it or construction is complete
• You must be 18 or over
• At least one applicant needs to be a permanent resident or an Australian citizen
• No applicant can be a company or trust
• You can’t have owned a home prior to 1st July 2000
• You can’t have lived in a home that you owned after 1st July 2000 (for six consecutive months or more)

You can find more information specific to the South Australian FHOG here.

Australian Capital Territory

• A grant of up to $7000 was available until 30th June 2019.
• The FHOG has been replaced with the Home buyer concession scheme, which eliminates or reduces the amount of stamp duty payable
• For 2023-24, the maximum concession amount is $34,504
• The concession is available for all properties within the ACT, new and old. This includes land.
• All buyers of the property must be at least 18 years old.
• The total gross income of the buyers must meet an income threshold to be eligible.
• Buyers can not have owned property within the previous 2 years.
• At least one of the buyers must reside in the property for a minimum period of 12 months.

You can find more information specific to the Australian Capital Territory FHOG here.

New South Wales

• Up to $10,000 for eligible individuals when you buy or build your first new home.
• Available for new properties up to the value of $600,000 OR;
• When building a home with a total value up to $750,000
• Full or partial exemption from paying transfer (stamp) duty for eligible home buyers
• You’ll need to live in the property for 6 months once you have bought it
• You must be 18 or over
• At least one applicant must be a permanent resident or an Australian citizen
• No applicant can be a company or trust
• You can’t have owned a home prior to 1st July 2000
• You can’t have lived in a home that you owned after 1st July 2000 (for six consecutive months or more)
• You can’t have previously received a grant

You can find more information specific to the New South Wales FHOG here.

Victoria

• Up to $10,000 for eligible home buyers
• Available for new properties up to the value of $750,000
• Land transfer (stamp) duty exemption or concession for eligible home buyers
• You’ll need to live in the property for 12 months once you have bought it
• You must be 18 or over
• At least one applicant must be a permanent resident or an Australian citizen
• You can’t have owned a home prior to 1st July 2000
• You can’t have lived in a home that you owned after 1st July 2000
• You can’t have previously received a grant

You can find more information specific to the Victorian FHOG here.

Northern Territory

• Up to $10,000 for eligible home buyers
• Household goods grant of up to $2000
• You’ll need to live in the property for 12 months once you have bought it
• At least one applicant must be 18 or over
• At least one applicant must be a permanent resident or an Australian citizen
• No applicant can be a company or trust
• You can’t have owned a home prior to 1st July 2000
• You can’t have lived in a home that you owned after 1st July 2000
• You can’t have previously received a grant

You can find more information specific to the Northern Territory FHOG here.

Queensland

• Up to $15,000 for eligible home buyer
• Available for new properties up to the value of $750,000
• Transfer (stamp) duty concession of up to $15,925 of properties valued under $550,000, or a full exemption for properties valued under $500,000
• You’ll need to live in the property for 6 months once you have bought it
• You must be 18 or over
• At least one applicant needs to be a permanent resident or an Australian citizen
• You can’t have lived in any home that you have owned
• You can’t have already received a grant

You can find more information specific to the Queensland FHOG here.

Western Australia

• Up to $10,000 for eligible home buyers
• Available for new properties (located south of the 26th parallel of south latitude — which includes the Perth metro area) up to the value of $750,000
• Available for new properties (located north of the 26th parallel of south latitude) up to the value of $1,000,000
• Transfer (stamp) duty exemption or concession for eligible home buyers
• You’ll need to live in the property for 6 months once you have bought it
• You must be 18 or over
• At least one applicant needs to be a permanent resident or an Australian citizen
• No applicant can be a company or trust
• You can’t have owned a home prior to 1st July 2000
• You can’t have lived in a home that you owned after 1st July 2000 (for 6 consecutive months or more after the 1st July 2004)
• You can’t have previously received a grant

You can find more information specific to the Western Australian FHOG here.

Tasmania

• Up to $30,000 for eligible home buyers (until 30th June 2024)
• Available for new properties only
• Transfer duty concession of up to 50% for first home buyers purchasing an existing property up to a value of $600,000 (until 30 June 2024)
• No purchase price limit
• You’ll need to live in the property 6 months once you have bought it
• You must be 18 or over
• You must be a permanent resident or an Australian citizen
• No applicant can be a company or trust
• You can’t have owned a home before 1st July 2000
• You can’t have lived in a home that you have owned after 1st July 2000 (for 6 consecutive months or more)
• You can’t have previously received a grant

You can find more information specific to the Tasmanian FHOG here.

You can increase your borrowing power by reducing your financial commitments. Things like closing or reducing the limits of unused credit cards can improve your borrowing power.

Having extra income (like a second job or side hustle), and ensuring you have all your extra income types (like overtime or commission) included when filling out an application. A borrowing calculator can also help!

To calculate loan repayments, at a very basic level, we take your loan amount, add the total estimated amount of interest we’ll charge over the life of the loan, and then divide that total up into a weekly, fortnightly, or monthly amount (whichever suits you best) based on the length of your loan term.

How we calculate weekly and fortnight repayments

We calculate weekly and fortnightly repayments a little differently. For example, in a fortnightly repayment scenario, instead of multiplying the monthly repayment by 12 and dividing it by 26 fortnights, we simply divide your monthly repayment amount by 2.

The fortnightly repayment amount is rounded up to the nearest dollar. This calculation method ensures you pay the full monthly figure over 2 fortnights. Over time, this means you'll pay off your loan slightly faster and pay less interest than if the repayments were calculated by annualising the monthly figure.

For fixed and interest-only loans

If you’re taking out a fixed or interest-only loan — or a fixed interest-only loan — we’ll also take that into account, as your repayments will change when the fixed and/or interest-only period ends.

No one said saving for a home was going to be easy.

As well as the biggest deposit you can possibly manage (at least 10% and preferably 20%), there are a number of other upfront expenses you’ll have to save for when buying your home. These include;

• Stamp duty – ranges from zero up to many thousands of dollars, depending on where you are. If you’re a first home buyer, you may be entitled to an exemption, so check the government website in your state or territory.
• Transfer fee - a state government fee for property title transfers which also varies by state. It could be hundreds or thousands of dollars, so check your government website for details.
• Mortgage registration fee – another government fee covering mortgage registrations, but usually only in the low hundreds, depending on which state you’re in.
• Legal fees - covers the cost of a licensed conveyancer reviewing your contract and title and drafting the settlement documents. This can cost anywhere from a few hundred to a few thousand, depending on complexity.
• Mortgage application fee – a fee charged by your bank to set up your mortgage. Some banks offer reduced-fee deals, so shop around.
• Lenders Mortgage Insurance – usually only required if your deposit is less than 20%, it can cost you between 1 and 3% of the loan amount.
• Inspection fee – you’ll need a building inspection to check for termites and structural issues. This could set you back anywhere from $200 to $500.
• Other costs - building insurance costs around $1000 a year for home insurance and $500 for contents, utility connections can be in the hundreds of dollars and removalist fees can be anywhere from $500 to $3,500.

Altogether, you could be looking at $30,000 on top of your deposit, so make sure you budget these amounts into your savings plan so you don’t have any nasty surprises come settlement time.

If you’d like a more detailed breakdown of the costs, take a look at our Home Loan Guide.

You can get more information about the fees associated with a Tiimely Home home loan here.

There are typically a range of costs involved when you take out a home loan. These can include application fees, valuation fees, establishment fees and discharge fees.

Our fees are simple and transparent, so you'll always know what to expect. You can view our fees here.