Yes, you can purchase a property with another person, even if you are not related. It’s important to establish a clear legal agreement outlining each party’s responsibilities and share in the property to avoid potential disputes. 

Typically, a pre-approved home loan is valid for about three months. After this period, most lenders will require you to provide updated documentation, such as recent payslips, other income documents, bank statements to re-confirm your financial details and ensure that your application still meets their criteria. 

We recommend securing a pre-approval before you start searching for a property. This gives you a clear understanding of your budget and ensures that you have a confirmed loan amount, providing peace of mind and helping you make informed decisions throughout your property search. Knowing your financing options in advance can also strengthen your position when making offers. 

For a quick, easy, and hassle-free approval, you will need to provide the following documents: 

• Identity documents: Eg. Driver Licence, Passport – A copy with your current address, or proof of current address. 

• Recent Payslips: Copies of your two most recent payslips or Group Certificates from the last two years. 

• Savings Account Statements: Recent statements for all savings accounts. 

• Credit and Loan Statements: Recent statements for all credit cards, personal loans, car loans, etc., if applicable for all applicants. 

• Current Rent Statement: Last three months of rent statements for your current property, if applicable. 

• Contract of Sale: Required only if the property purchase is finalised; not necessary for pre-approval. 

• Rent Appraisal: From a real estate agent, if the investment property purchase is finalised. 

Please ensure all documents are accurate and up-to-date. Additional documentation may be required based on your specific circumstances. For a complete list tailored to your situation, please contact Finedge Finance Team for guidance. 

Lender Mortgage Insurance (LMI) is typically required when you borrow more than 80% of the property’s value. It serves to protect the lender against potential losses if you default on the loan. Unlike other types of insurance, LMI benefits the lender, not the borrower. This insurance is a one-time premium that can often be included in the total loan amount, making it a manageable cost for the borrower. While LMI does not provide any direct benefit to you, understanding its implications is important for effective financial planning. For more detailed information and personalised advice on how LMI may impact your loan, please reach out to the Finedge Finance Team

Loan to Value Ratio (LVR) is a risk assessment metric used by banks and lenders to evaluate the risk associated with a loan application. It is calculated with the following formula: 

LVR = Borrowed Loan Amount / Property Value 

This ratio helps lenders assess how much of the property’s value is being financed through the loan. A higher LVR indicates a higher level of risk for the lender, as it signifies a larger portion of the property’s value is borrowed. Typically, a lower LVR is preferred as it suggests less risk and may result in better loan terms and lower insurance costs. Understanding your LVR can help you better manage your financial planning and loan requirements.