Home Loans

The market spends hundreds of millions advertising who has cheaper interest rates.
This is no doubt an important pillar, but certainly not most. Whether you’re a first-time buyer or long-term investor, the hurdles faced are completely different no matter how many times you may have borrowed before. We have access to each lender’s bespoke calculators and will therefore give you an accurate guide of how much you can borrow, what your repayments are going to be and ideally have a pre-approved loan application in place prior to you (re)entering the market. We find the loan that best suits your circumstances and arrange pre-approval so you can confidently go property hunting. Once you’ve found the property you want, we manage the rest.

Qualifying for a loan

The general lending criteria are:

  • You should have 5% – 10% in ‘genuine’ savings (genuine savings is defined differently by lenders but typically is defined as the funds that an applicant has saved themselves gradually over time. Generally speaking, lenders require at least 5% of savings in the applicant’s account over a three-month period prior to application.
  • A good credit history.
  • A healthy credit score.
  • Stable employment.

How to improve your borrowing capacity

The following are some tips to be maximise your borrowing capacity:

  • Ensure all your existing credit are paid on time with no dishonours showing;
  • Reduce your credit card limits;
  • Do not apply for any other credit (be it cards, cars in the months leading up to applying for a loan);
  • Apply for joint loans if need be;
  • Fix your rate for three to five years (see below).

Banks credit departments all have different ways of assessing income, which include variances in the percentages they will adopt, example:


Your living expenses and existing credit make a significant difference in how much you can borrow. You may need to reduce your discretionary spending in order to maximise how much you can borrow.

Rental income

Most banks use 80% of rental income while some will use 100%

Other income

Banks assess PAYG salaries in the same way but apply different percentages for other types of income, including dividends, distributions, bonuses, self-employed add backs, overtime etc

Negative gearing

Only some lenders will take the negative gearing benefit into account which can add a significant amount of additional borrowing.

Assessment rates

In 2019, APRA changed the way banks needed to assess a borrower’s capacity to repay a loan. Lenders use different assessment rates and therefore off the same income, will lend different amounts.

Based on the above you will have noted that there are numerous items to consider and we highly recommend calling us to discuss your particular circumstances.

First Home Buyers

As a first home buyer you may be entitled to one of your State Government’s home buyer grants or concessions. On this page, you will find all grants and concessions available to first home buyers (differs per state) and a summary to help guide you to further information on the grant or concession most relevant to you.

Owning a home is often ticks ones of the boxes of a person’s material dreams – however, it can also be a mystifying and confusing experience, involving many professionals and a seemingly arcane legal process.

It’s essential to work out exactly where you stand financially. You need to know precisely what you’ll be able to afford to pay back each month, as well as what the upfront costs are going to set you back. Putting together a budget is relatively simple – as long as you’re disciplined about it.
In order to check that you are eligible for the FHOG in your State or Territory we recommend that you go to the following website: www.firsthome.gov.au

Once on the site select your State or Territory and click on the ‘Eligibility Checklist’ button and answer the questions asked to determine your eligibility. To make an appointment to see us, please click here.

Charter Finance

Find out if you qualify

Get in touch with Charter Finance today and let us chart this journey with you!