The amount you can borrow may vary from lender to lender. However, it mainly determine by your financial situation. To clarify, your income, current savings, credit history and expenses etc are the key factors to calculate your borrowing capacity.

Certainly, it pays good value if you research and compare home loans. Finmortg brokers help you to run a complete individual assessment of your financial situation and arrange a loan that suits your objective.

The amount of savings or deposit mainly depends on factors like lender’s lending criteria, the amount of home loans and loan purpose etc. Generally, a minimum 5-10% (with LMI) of the purchase price is required as a deposit if you are applying for owner occupied. So, the good news is that the lending market is very competitive. Certainly, it is possible to find a good deal with flexibility in savings or deposit which may match with your circumstances.

LVR stands for Loan to value ratio. So, it is the percentage of the money you can borrow against the value of the property being used as security. For example, a property valued at $750,000 against which you’d like to borrow $500,000. Therefore, you LVR is 66%. However, a higher LVR generally means a higher risk to the lender. Consequently, the lender may add LMI and you may have higher home loans repayments.