factors that can affect your home loan borrowing capacity

Some clients come to us asking to maximise their borrowing capacity, here are a few tips we look at to increase borrowing capacity, it is definitely worthwhile talking with a mortgage broker firstly to make sure these options could assist your personal situation;

  1. Credit Cards – When lenders look at credit cards they assess the repayment as 3-5% of the credit limits. I would suggest 3 options, firstly reduce unneeded limits, 2nd if you were to consolidate the credit cards to a personal loan over 7 years the repayment should be reduced compared to the 3-5% repayment. Another option although not as beneficial for the new loan immediately could be a Credit Card Balance Transfer some bans offer rates of 0% for up to 16 months, this option would be beneficial for you to reduce your credit card debt balance. Although this option may not immediately increase borrowing capacity it does allow clients to reduce debts quickly and reduce limits.
  2. Loans – You could consider contacting your current provider and extending the loan term to 7 years for personal loans and 30 years for home loans to reduce the required minimum monthly repayment, by reducing the minimum payment it allows you to borrow more on the new home loan. You may also be able to reduce your repayments on home loans to interest only which again would reduce the required monthly payment. In most cases you can continue to repay the higher repayments, it would be a good idea to check with your lender when requesting the extended term.
  3. Close Debts – If you have any unused accounts like credit cards please close them off, check with your broker first as they may need to use some funds for deposit or fees.
  4. Minimise credit enquiries – When lenders do a credit check they can see how many applications have been completed in the past 1, 3, 6, 12 months. Some mortgage insurers will not accept a loan if there is more than 5 credit enquiries.

We have many more strategies that could help especially with low deposit home loans.

Always talk to your mortgage broker first as every application and client have there own needs.

Mortgage Offset accounts explained.

Mortgage Offset accounts explained.

Mortgage Offset

If you’re looking to shave years and thousands of dollars off your home loan, you might want to consider a mortgage offset account.

It’s an account that offsets the balance in that account against the balance of your home loan. This means you pay less interest on your home loan. Over time these savings can really add up and also reduce the time it takes to pay off your loan.

For example, if you have a home loan balance of $200,000 and have $10,000 in your offset account you’ll only pay interest on a home loan balance of $190,000.

Because home loan interest is calculated daily, if your offset account offers you 100% offset, every single cent in your offset account can reduce your home loan interest, every single day.

What to consider in an offset account
Not all offset accounts are the same, so it pays to check the details. Depending on the type of loan you choose, you might want to consider a full or partial offset.

A full offset means that 100% of the funds in your offset account will be deducted from what you owe on your home loan before interest is calculated.

A partial offset gives you a reduced interest rate on the part of your home loan equal to the balance of your offset account.

And while your money is working hard to reduce the interest you pay, your offset account will also be every bit as accessible as an everyday transaction account.

How many offset accounts can you have per home loan?
By having multiple offset accounts linked to your home loan, you can manage your finances however you choose while still benefiting from the interest saved by every single cent in your offset accounts. It’s a great way to save for a big spend such as a holiday, a new car, or even another property if you are thinking of investing.

Is an offset account only available with certain types of loans?
Check if your loan is eligible for an offset account by contacting your financial institution. The type of loan may have an impact on the type of offset account available to you (e.g. whether it offers full or partial offset). Fixed loans generally have more limited options in terms of offset accounts, although at the end of the fixed period you may have the option of 100% offset.

Who is an offset account best-suited to?
If you are unable to make additional or lump sum repayments on your home loan, an offset account can give you the benefits of interest-reduction while ensuring your funds are still accessible.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.

Interest Rate Announcement

The Reserve Bank of Australia has today announced the outcome of its eighth board meeting of the year, a decision anticipated by most industry experts. In the minutes from its last meeting the Reserve Bank forecast that the most prudent course was likely to be a continued period of stability in interest rates and in spite of an increase in unemployment has chosen to stick to this course for the time being.

As a result, the RBA announced it was again leaving the cash rate unchanged, at 2.5%. The rate has now remained unchanged at this record low for thirteen consecutive months.
Even though the cash rate has remained unchanged, there are still daily changes in the finance market with an increasingly intense competition amongst lenders.

With the competitive marketplace and banks regularly offering additional pricing discounts to Mortgage Brokers we suggest getting in contact with your Broker.

Here are some great Home Loan Tools

When purchasing or refinancing your home mortgage it is important to research, here are some great tools that can help you plan your next step.

Home Loan Calculator – Repayments, Interest Only, Interest Fluctuations it is all included in this tool and offers a downloadable Calculator for you to use on the move.

Home Loan Deposit Calculator – How much do you need to buy your property, easy enter your details here to find out.

Steps Involved in Purchasing a Property – Great tips on what to do next when buying.

Property Investment Tips Something all should read as your home will probably be the most expensive investment of you life.

You will also be able to find so additional information on our main site Zar Mortgage Brokers.




Fixed Rates are on the move down again.

One of our lenders has just announced some new low fixed rates, Please contact us to see if this product will meet your needs – https://www.zar.com.au/contact.html .

  • 3 Year FixedStandard Home Loan Rate – now only 4.59%p.a. (comparison rate# 5.18%p.a)
  • 5 Year FixedStandard Home Loan Rate – still low at 4.94% p.a.(comparison rate 5.21%p.a.).

Things you should know.

*Interest rates current as at 26/08/14 #Comparison rate based on a loan of $150,000 for a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Terms and conditions are available on request. Fees and charges apply. Applications are subject to credit approval.

what is a mortgage?

A lot of people ask What is a mortgage?

In Australia a mortgage is a document registered with a titles office.

What does this mean?

Well when you buy a house you are buying the Title to the house, the Title is held and updated with the Titles Office, so the Title says you own the property. When you take out a Mortgage it is registered on your Title that the lender holds a Loan Contract with you and before the property can be sold the Mortgage needs to be cleared by paying out the Loan Contract.

So there are 3 main points;

Title – This says you own the property

Mortgage – This advises someone has an interest in your property

Loan Contract – The terms that must be met to clear your Mortgage and what happens if you default

An example of a Title and Mortgage Document can be found at – http://www.business.qld.gov.au/industry/titles-property-construction/titles-property/titles-registry-forms

what is a mortgage

what is a mortgage?

Please if you have any questions just ask us or post to our Blog below, we also suggest speaking with your solicitor if you have any in depth questions on Mortgage’s.

A lot of valuable information can be found on our website www.zar.com.au and I would highly recommend purchases look at our pagewww.zar.com.au/steps-involved-in-purchasing-property.html

If you would like more information please contact us via – https://www.zar.com.au/contact.html

Property Investment Tips

Property Investment Tips

Investing in property most likely will not produce the get-rich-quick results promised by many late-night infomercials. Finding good investment property is an art that takes time to master. It takes a lot of work to achieve long-term success as a property investor, but for those that take the time to do their homework, make a plan and manage the property wisely, the rewards can be substantial.

To help make the most of your investment, Zar Mortgage Brokers would like to share some words of wisdom and a few tips for your future success.

Full article

Why use a broker

Mortgage Broker Brisbane

I will just quickly run through some recent experiences I have had with clients as some of you may fall into these categories.

Interest Rate Negotiations;

We recently had a client with a major bank who was offered a special rate, we were able to beat the offer by 0.3% and we placed the business back with the clients bank, saving the clients over $3,000. We were able to do this because of our relationship with the bank and being able to compare the loan to other offers in the market place. We currently have the ability to negotiate with all major banks and are seeing great offers .

Policy Issues;

A client recently came to use requiring a loan of 90% over a property located around a large power line. The clients bank could only offer 80% due to mortgage insurance issues. We were able to negotiate 90% (In this case we could have achieved a loan at 97% of the property value in this scenario) with one of our major banks at a slightly better rate than offered by the clients lender.

We constantly see clients who are able to complete finance with one bank that do not fit into another’s policy and are happy to review a client’s position to make sure they can achieve their goal.

Structuring Savings;

I had a client who needed to borrow 90% of the value of their new property, we were able to structure the loan using a parent as guarantor saving her over $10,000 in mortgage insurance.

A client was purchasing an investment property borrowing 90% of multiple properties, we structured the properties using multiple lenders to reduce mortgage insurance costs saving them over $6,000.


A lot of valuable information can be found on our website www.zar.com.au and I would highly recommend purchases look at our page www.zar.com.au/steps-involved-in-purchasing-property.html

If you would like more information please contact us via – https://www.zar.com.au/contact.html

Banks want your business so badly they are throwing cash at new clients from $600 – $1,250.

cash back mortgage home

With the home loan market in Australia being so competitive some of our major lenders have decided to throw cash at the problem of winning business. Some Cash Back offers include;

  • $600 Visa Gift Card
  • $1,000 for fist home buyers
  • $1,250 for refinance applications

As these are bank offers there are conditions that apply but a good mortgage broker will be able to work out if these offers will benefit you in your new home loan. On top of this we are seeing some of the best fixed rates in decades, check out our article fixed home loan interest rates have fallen again.

If you have any questions please contact Zar Mortgage Brokers Brisbane 1800 180 927.

Let us help you find a loan that suits you – https://www.zar.com.au/rate-quote.html