Fit Loans exists to provide a fresh, honest and customer focused approach to lending.
About Us
Fit Loans was created to help borrowers find a suitable loan product and structure that fits their borrowing and financial needs. We pride ourselves on our high quality of client care and keeping you informed every step of the way.
With the market flooded with a variety of loan options, Fit Loans is here to take out the confusion and stress associated with finding a suitable loan for you.
We are dedicated to assisting you to find the loan that fits your needs. Whether you are ready to buy your first home, refinance an existing loan, looking for an investment property or simply wanting to learn more about reducing your debt, Fit Loans is here to help.
Variable, fixed, interest only, LVR, LMI…. we cut through the jargon and explain things in an easy to understand manner. We weigh up all your options and take you through our recommendations step by step.
We don’t play favourites with lenders – we find the most suitable fit for you. Fit Loans advice is free of charge.
It only takes a minute to complete our enquiry form and from there, a Fit Loans consultant will be in contact within 24 hours to provide assistance and answer any queries you may have.
All information will be kept strictly confidential and secure.
Frank Zinghini
Managing Director
Fit Loans was created to help borrowers find a suitable loan product and structure that fits their borrowing and financial needs. We pride ourselves on our high quality of client care and keeping you informed every step of the way.
With the market flooded with a variety of loan options, Fit Loans is here to take out the confusion and stress associated with finding a suitable loan for you.
We are dedicated to assisting you to find the loan that fits your needs. Whether you are ready to buy your first home, refinance an existing loan, looking for an investment property or simply wanting to learn more about reducing your debt, Fit Loans is here to help.
Variable, fixed, interest only, LVR, LMI…. we cut through the jargon and explain things in an easy to understand manner. We weigh up all your options and take you through our recommendations step by step.
We don’t play favourites with lenders – we find the most suitable fit for you. Fit Loans advice is free of charge.
It only takes a minute to complete our enquiry form and from there, a Fit Loans consultant will be in contact within 24 hours to provide assistance and answer any queries you may have.
All information will be kept strictly confidential and secure.
Frank Zinghini
Managing Director
Our Services
Home loans
Refinancing
Business lending
Investment loans
Construction loans
Commercial loans
Motor vehicle finance
Asset finance
Debt consolidation
Self managed super funds
Why Choose Us?
Whether you are a first home buyer or a seasoned investor, Fit Loans will find the right loan to fit your needs. We will provide you with quality customer service that you will value for the life of your loan.
- We have access to over 35 different lenders
- Our services are provided free of charge
- We work for you, not the lender
- We will be easy to do business with
- We will always get back to you promptly
- You will be kept informed every step of the way
- We will go the extra mile, every time
- We will listen to what you want
- We will provide a loan solution that fits your needs
- Our team is qualified and fully compliant
Education Centre
Fit Loans believe that you can never learn too much. That is why we have set up an education centre providing informative articles and check lists that can be read online or downloaded for later viewing.
Testimonials
-
Would highly recommend. Amazing service. Frank was extremely efficient with his responses and always explained everything thoroughly (good and bad). We were very impressed with the service and are very thankful to have had such a great broker!
Shenae Clements
June 8, 2023Just refinanced with Frank's assistance and he made the process so smooth. It's such an advantage when your mortgage broker goes above and beyond to understand what you need, what your priorities are and what will work best for you. We will definitely keep coming back each time we need help with financing.
Harvey Jones
December 8, 2022Great experience with Fit Loans. A friend recommended them and I'm so glad they did. Frank was so helpful and approachable. He always explained things clearly and patiently answered my questions. Highly recommend.
Sarah Ryan
December 8, 2022Look no further than Frank @ Fit Loans - you won't be disappointed. Frank was recommended to us when we wanted to know more about our financial circumstances and were not in a position to buy our new home. He came on the journey with us, provided constant advice, was pro active, very responsive and when we found out perfect home went over and above to help us secure our home. Countless emails & phone calls day and night, Frank truly went above and beyond. Looking forward to our next opportunity to use Fit Loans again.
Catherine Maiuto
December 8, 2022As a first home buyer, I entered into the property market with a great deal of anxiety and trepidation. Frank at Fit Loans was a 'word of mouth' recommendation, and I felt comfortable with him immediately. Not only was he available and responsive, he took the time to explain information and processes in an accessible way - repeatedly if necessary. I was always confident that he conducted a thorough and individual assessment of my needs as a buyer, and sought the best home loan deal for me. Other brokers I had approached came across as clinical, salesy, process driven and impersonal. One of the best things about Frank is his knowledge and acumen regarding the finance and banking industry. He has exceptional interpersonal skills too. I also suspect he'd make quite a good counsellor!
Chaouen Fan
December 8, 2021Frank is excellent, he always gave us the right advice. Very responsive and gave a very clear explanation to all our doubts and patiently answered all our questions. Highly recommended.
alekhya pinisetti
December 8, 2021 -
Frank is very switched on and responsive, which helps immensely during the loan application process. Couldn't be happier!
Justin Shu
December 8, 2021Frank's service was professional, friendly and high quality from the moment we met. Frank has great attention to detail and took the time to explain the process every step of the way. Highly recommended.
David Mangano
December 8, 2021i would highly recommend Fit Loans. Frank went above and beyond for us to get our loan sorted. Frank is diligent and responsive. We cant thank Frank enough.
Terri Shannon
December 8, 2020I had a wonderful experience with Frank.. He was very open and honest and supportive throughout the whole process. His communication was excellent, very professional and he found me a great deal. He is attentive, reliable and was always available to answer any questions or concerns I had. I have friends and family that have also used his services and they’ve all been more than satisfied. Highly recommend.
Sofia Skliros
December 8, 2020Extremely easy to deal with. Frank made the whole process a breeze. Much much much simpler and also cheaper than what the bank offered. Cant recommend Frank at Fit loans enough.
Alumach Pty
December 8, 2020Frank was brilliant to deal with. He was always there when I needed him, made dealing with banks easier and also provided in depth information that allowed us to get the best out of our new home loan. I highly recommend Fit Loans!
Nathan Vellucci
December 8, 2020
Contact Us
Spring has sprung and following the encouraging finance and property reports from the June quarter, we anticipate continued momentum in our markets during this traditionally vibrant property season.![]()
![]()
The Australian lending landscape has demonstrated impressive resilience during what could be considered the most challenging period since interest rates began their upward trajectory 28 months ago. This resilience has unveiled numerous opportunities for those ready to seize them.![]()
![]()
This month's property and finance update is a must read for all current and prospective property owners.![]()
![]()
Arming yourself with knowledge is crucial before diving into a buoyant property market. There is just no substitute for solid education.![]()
![]()
The Australian lending landscape has shown remarkable resilience and growth in 2024. The latest data from the Australian Bureau of Statistics (ABS) revealed increases across housing, personal and business loans.![]()
![]()
This upward trend paints a picture of a robust economy and growing consumer confidence despite the challenges faced in recent years.![]()
![]()
Housing market leads the charge![]()
The housing sector continues to be a significant driver of lending activity.![]()
![]()
In June:![]()
![]()
New housing loans increased by 1.3% and reached a total value of $29.2 billion.![]()
This growth is particularly noteworthy in the investor segment that saw a 2.7% rise to $11.0 billion.![]()
Owner occupier loans also grew, albeit at a slower pace of 0.5%, and reached $18.2 billion.![]()
The disparity between investor and owner occupier growth rates highlights a shift in market dynamics. Investors appear to be capitalising on favourable conditions and are potentially driven by expectations of capital growth and rental yield opportunities. This trend could indicate a competitive rental market and may impact housing affordability for tenants.![]()
![]()
Regional variations in loan sizes![]()
New South Wales continues to lead the nation in average loan sizes for both owner-occupiers and investors:![]()
![]()
The average loan size in NSW reached $780,000 for owner occupiers and $818,000 for investors.![]()
These figures underscore the ongoing affordability challenges in Australia’s most populous state, particularly Sydney’s property market.![]()
Other states and territories also saw increases in loan sizes and reflect the broader trend of rising property values across the country.![]()
This situation presents both opportunities and challenges for potential homebuyers and investors depending on their financial position and long-term goals.![]()
![]()
FIRST HOME BUYERS RE-ENTERING THE MARKET![]()
Encouragingly, first home buyers are showing renewed interest in the property market. The number of loans issued to first home buyers increased by 5.8% in the June quarter compared to the previous quarter. This resurgence could be attributed to various factors, including government incentives, stabilising interest rates and a desire to enter the market before further price increases.![]()
![]()
BUSINESS AND PERSONAL LENDING ON THE RISE![]()
The lending growth isn’t limited to the housing sector. ![]()
Business lending has also seen significant increases:![]()
loans for business construction rose by 4.5% and![]()
business property purchases were up by 3.4%.![]()
This growth in business lending suggests increasing confidence in the commercial sector and will potentially lead to job creation and economic expansion.![]()
![]()
Personal fixed term loans![]()
These loans have seen a modest increase of 1.1% and indicates that consumers are feeling more comfortable taking on debt for personal expenses or investments.![]()
![]()
Building material costs stabilising![]()
In a positive development for the construction industry and homebuyers alike, the cost of building materials has shown signs of stabilisation. After experiencing record high increases during the pandemic, price growth has returned to below pre-pandemic levels. This moderation in costs could help alleviate some of the pressures on new home construction and renovations.![]()
![]()
WHAT THIS MEANS FOR YOU!![]()
For potential homebuyers and investors, the current lending environment presents a mix of opportunities and considerations:![]()
![]()
With investor activity on the rise, competition for properties may increase and will potentially drive up prices in desirable areas.![]()
The stabilisation of interest rates provides a more predictable environment for borrowers to plan their finances.![]()
First home buyers may find more support and opportunities to enter the market, however they should be aware of the competitive landscape.![]()
The moderation in building material costs could make new construction or renovation projects more attractive.![]()
![]()
TAKING ACTION IN THE CURRENT MARKET![]()
Given the dynamic nature of the lending and property markets, it’s crucial for consumers to stay informed and proactive.![]()
![]()
Here are some steps to consider:![]()
![]()
Review your financial position and borrowing capacity in the light of current market conditions.![]()
Allow our finance team to research different loan products and lenders to find a suitable finance fit for your needs.![]()
We can provide insights into various loan options and help navigate the application process.![]()
For those considering property investment, analyse market trends and seek professional advice to make informed decisions.![]()
First home buyers should explore government incentives and support programs available in their state or territory.![]()
The Australian lending market’s growth in 2024 reflects a resilient economy and presents various opportunities for borrowers.![]()
![]()
Whether you’re a first time homebuyer, an investor or a business owner, now might be an opportune time to review your financial goals and explore your borrowing options.![]()
![]()
Remember, every finance decision should be made with careful consideration of your personal circumstances and long term objectives.![]()
![]()
Reach out for a personalised finance exploration tailored to your situation.![]()
![]()
As always…![]()
With your best interest in mind![]()
![]()
And please remember…![]()
As you embark on your busy day, if you haven't yet entered for your chance to win the trip of a lifetime to JAPAN, now's the time to throw your hat in the ring!
MEC PF September 2024 CTA Page - Comp - Your Finance News
yourfinancenews.com.au
The Australian housing market has experienced significant changes in recent years with investor activity playing a pivotal role in shaping both housing availability and prices. This article illustrate...
The Australian property market has been a rollercoaster ride in recent years with soaring prices and record low interest rates followed by a swift upswing in interest rates from May 2022.![]()
![]()
With predictions and empty promises earlier this year of interest rate reductions to commence next month, the expectation now is we won’t see a reduction until mid to later next year.![]()
![]()
This volatility has left many aspiring homeowners pondering the age old question…![]()
![]()
“Is it better to buy NOW or WAIT for interest rates to drop?”![]()
![]()
So sit back, relax and please enjoy this month’s property and finance update.![]()
![]()
And - Just a reminder…![]()
Before you head off into your busy day, we are halfway through our competition period. If you haven’t already entered to win the trip of a lifetime to JAPAN, then you better jump in today!![]()
![]()
With economists not expecting rate drops until next year, waiting for lower interest rates and potential housing price reductions may be tempting. However delaying your purchase could be a more costly gamble.![]()
![]()
The mirage of falling prices![]()
It's important to understand that the Australian housing market is unlikely to experience a significant price drop in the foreseeable future.![]()
![]()
Several factors contribute to this.![]()
![]()
Supply and demand imbalance![]()
The demand for housing continues to outpace supply, especially in major cities. This imbalance has created upward pressure on prices, even in the face of rising interest rates.![]()
Construction costs![]()
The cost of building materials and labour has been rising steadily, making it more expensive to construct new homes. This, in turn, has pushed up the prices of existing properties.![]()
Population growth![]()
Australia's population is growing and, with it, the demand for housing. This sustained demand further supports property prices, making a significant price drop unlikely.![]()
The hidden costs of waiting![]()
While you might save on interest payments if rates eventually fall, delaying your purchase could incur substantial opportunity costs:![]()
![]()
Lost capital growth![]()
Property values tend to appreciate over time, even in a fluctuating market. By delaying your purchase, you're missing out on potential capital growth. This could far outweigh any savings from lower interest rates.![]()
Increased competition![]()
As interest rates eventually stabilise or start to decline, more buyers will likely enter the market. This will intensify competition and potentially drive prices even higher.![]()
Rental costs![]()
If you're currently renting, you'll continue to incur rental expenses while waiting for interest rates to drop. These payments could be put towards building equity in your own home, or at least an investment property.![]()
Inflation![]()
Inflation erodes the value of money over time. If prices continue to rise while you wait, your savings might not be sufficient to purchase the same property later.![]()
Emotional costs![]()
The stress and anxiety of waiting for the ‘perfect’ time to buy can take a toll on your mental wellbeing. The uncertainty of the market can lead to missed opportunities and regret.![]()
The power of time in the market![]()
A common misconception is that timing the market perfectly is the key to success. However, history has shown that time in the market is often more important than timing the market. By purchasing a property sooner rather than later, you allow your investment to grow and benefit from the potential compounding returns over the long term.![]()
![]()
The importance of financial preparedness![]()
While the decision to buy or wait is a personal one, it's crucial to assess your financial readiness. Ensure you have a stable income, a healthy deposit and a clear understanding of your borrowing capacity before entering the market.![]()
![]()
The allure of lower interest rates can be tempting, but delaying your home purchase comes with significant risks and potential costs. The Australian housing market is unlikely to become more affordable in the foreseeable future and waiting could mean missing out on valuable capital growth.![]()
![]()
Instead of focusing on timing the market, prioritise your financial preparedness and consider the long term benefits of homeownership.![]()
![]()
Remember, the best time to buy a property is when you're financially ready and have found a home that meets your needs and budget.![]()
![]()
As always, our finance team awaits your call to help guide you through all your finance questions, concerns and to understand your capacity to borrow.![]()
![]()
With interest rates on the potential downside mid to late next year, NOW may be the best opportunity for you to consider buying your first home, upsizing or investing in property.![]()
![]()
Remember, we are only a phone call away.![]()
![]()
Oh – and remember to keep an eye on our monthly property and finance updates for the latest developments on interest rate predictions.
MEC PF August 2024 CTA Page - Comp - Your Finance News
yourfinancenews.com.au
It's a question that's on the minds of many Australians while interest rates continue to hover at elevated levels. The allure of waiting for a potential 1% drop in two years is undeniable with the pro...
The prospect of refinancing your home loan can seem daunting, especially when high interest rates and the high cost of living are adding to your financial stress. ![]()
![]()
Don't be discouraged!![]()
Refinancing can be a savvy move to reduce interest and potentially shorten the term of your mortgage.![]()
![]()
Before you embark on this journey, let's clear up some common misconceptions and delve into the costs involved to help empower you to make a well informed decision.![]()
![]()
So sit back, relax and please enjoy this month’s property and finance update.![]()
![]()
While the allure of lower interest rates and reduced monthly payments is enticing, refinancing isn't a cost free endeavour.![]()
![]()
It's crucial to understand the various fees associated with refinancing your home loan. We explain them here.![]()
![]()
The price tag of refinancing – there’s more than meets the eye![]()
![]()
Discharge fees![]()
Think of this as your old lender's ‘farewell’ gift. This fee covers the administrative costs of closing your existing loan. Depending on your lender and loan type, it could be a few hundred or even thousands of dollars.![]()
![]()
Application fees![]()
Your new lender wants a piece of the pie too by charging an application fee to process your refinancing request. This fee can vary considerably between lenders. That’s why we research a range of lenders for you to find loan options that are suitable to your circumstances.![]()
![]()
Valuation fees![]()
Lenders need to know the current market value of your property, so they'll commission a valuation. This fee can be a few hundred dollars or more depending on the size and complexity of your property.![]()
![]()
Government fees![]()
Depending on your state or territory, you will need to pay registration fees and stamp duty.![]()
![]()
Lenders' mortgage insurance (LMI)![]()
If you're borrowing more than 80% of your property's value, you'll likely need LMI. This insurance protects the lender, not you, if you default on your loan.![]()
![]()
Other fees![]()
Remember potential legal fees, title search fees and other miscellaneous costs that could pop up during the refinancing process.![]()
![]()
While the upfront costs might seem overwhelming, remember that the potential long term savings by obtaining a lower interest rate or shorter loan term can significantly outweigh these.![]()
![]()
Our finance team can help you assess the overall financial impact of refinancing and determine if it's the right move for you.![]()
![]()
Refinancing is often surrounded by myths that can deter homeowners from taking advantage of its benefits. Let's set the record straight by debunking some of these.![]()
![]()
Myth 1 - Refinancing is an administrative nightmare.![]()
The process does involve paperwork and research, but it's not rocket science. With our finance team’s assistance, we can streamline the process and guide you through the maze of paperwork and compare different loan options on your behalf.![]()
![]()
Myth 2 - Only those with a perfect credit score can refinance. ![]()
While a good credit score may help you secure a lower interest rate, it's not the only factor that lenders consider. They also look at your income, employment history and debt-to-income ratio. Don't assume you're ineligible just because your credit score isn't perfect.![]()
![]()
Myth 3 - Refinancing always leads to savings.![]()
This isn't always the case. It's crucial to carefully compare your current loan with potential new ones by factoring in all the costs involved. Sometimes, the savings might not be significant enough to justify the hassle and expense of refinancing.![]()
![]()
Myth 4 - Refinancing is a one-time deal.![]()
While there's no limit to how often you can refinance your mortgage, it's crucial to weigh the potential benefits against the costs involved each time. Refinancing does come with expenses, and those can add up. Furthermore, each loan application triggers a credit inquiry, which can temporarily affect your credit score. We'll strategically manage the refinancing process to minimise any potential drawbacks and maximise your chances of securing the most appropriate outcome.![]()
![]()
Factors to consider when refinancing![]()
Refinancing can be a powerful tool for achieving your financial goals, but it's not a one size fits all solution. Consider the following factors before making a decision:![]()
![]()
Your financial goals![]()
Are you looking to lower your monthly payments, shorten your loan term, or tap into your home's equity?![]()
How long do you plan to stay in your home?![]()
Refinancing usually makes sense if you plan to stay in your home long enough to recoup the closing costs through your savings.![]()
The current interest rate environment![]()
If you have rolled over from a low interest rate to a much higher one with your current lender, renegotiating with them or refinancing to another lender could be a great way to save money.![]()
Loan servicing![]()
If you are unhappy with your current lender's customer service, refinancing provides an opportunity to switch to a lender who better meets your needs.![]()
Access to additional lenders![]()
Refinancing opens doors to a wider range of lenders and loan products, potentially giving you access to more favourable terms or features not offered by your current lender.![]()
Allow us to help you![]()
By using our finance services, we will take the time to thoroughly research your options, compare lenders and crunch the numbers to determine how much your interest payments could be reduced.![]()
![]()
Our expertise can offer valuable insights and guidance throughout the process that you may find challenging to navigate alone.![]()
![]()
Remember, refinancing is about achieving your finance goals. So take the time to make an informed and confident decision that sets you up for success.![]()
![]()
With your best interest always in mind
Refinancing? Don’t do it on your own!
yourfinancenews.com.au
.mb-20 li{margin-bottom:20px;} Refinancing? Don’t do it on your own!
As your finance specialist, we are committed to providing you with not only the best mortgage solutions but also the knowledge to empower informed financial decisions. Today, we would like to discuss a critical but often overlooked issue affecting property ownership in Australia - the gender property gap.![]()
![]()
Regardless of your gender, we are sure you’ll enjoy the read.![]()
![]()
So sit back, relax and please enjoy this month’s property and finance update.![]()
![]()
What is the gender property gap?![]()
At first glance, it may seem like women are doing well in the property market. Overall, women do have a slightly higher rate of property ownership than men. However, when we dig deeper, a different picture emerges.![]()
![]()
Young women are falling behind![]()
Among Gen Z Australians (those under 30), there is a staggering 24.3% property ownership gap between men and women. This means that significantly more young men own homes than their female counterparts.![]()
![]()
Investment property gap![]()
Men are more likely to own investment properties. This translates into the potential for greater long term wealth accumulation through property.![]()
![]()
Property values and debt![]()
On average, women tend to own less valuable properties and may carry slightly higher debt levels relative to their assets. This can create a financial disadvantage over time.![]()
![]()
Why does this gap exist?![]()
Several factors contribute to the gender property gap. ![]()
Here are some of the key ones:![]()
The gender pay gap![]()
Unfortunately, the gender pay gap persists in Australia. This means, on average, women earn less than men for comparable work. The Workplace Gender Equality Agency reports a national gap of 14%. Lower earnings make it harder to save for a deposit, qualify for a mortgage and afford ongoing housing costs![]()
![]()
One of the most notable discrepancies in residential property ownership was actually by income rather than gender. When asked about personal, annual pre-tax income, respondents earning less than $100,000 per annum had a home ownership rate of 61.4% compared to 86.6% of those earning more than $100,000.![]()
![]()
Risk appetite![]()
Some studies suggest that women may be more risk averse when it comes to large financial decisions such as investing in property. This can be influenced by a multitude of factors including societal expectations and financial education.![]()
![]()
Financial knowledge gap![]()
There is evidence of a financial literacy gap with men, on average, demonstrating slightly higher knowledge about financial concepts. When navigating the property market, this can impact confidence and decision making.![]()
What does this mean for you?![]()
The gender property gap highlights that systemic inequalities can create financial hurdles regardless of your hard work and dedication.![]()
![]()
However, awareness is the first step towards mitigating these challenges.![]()
![]()
Here's how understanding this gap can empower you:![]()
![]()
Planning ahead![]()
If you're a young woman aspiring to homeownership, start planning and saving as early as possible. Every dollar saved brings you closer to your goal.![]()
![]()
Exploring investment strategies![]()
Even if property ownership feels out of reach right now, consider other investment options. Building a diverse portfolio can help create long term wealth.![]()
![]()
Building financial knowledge![]()
Seek out resources to enhance your financial literacy. ![]()
Staying subscribed to our industry updates is a good starting point.![]()
We're here to support you![]()
Our role as your mortgage broker goes beyond finding you a loan. We're committed to being your finance research partners.![]()
![]()
If you have concerns about how the gender property gap might impact your finance and property goals, please feel free to reach out.![]()
![]()
Together we can develop strategies to help you achieve your property dreams.![]()
![]()
As always…![]()
With your best interest in mind
Helping young adults bridge the property gap | Your Finance News
yourfinancenews.com.au
Recent studies, like CoreLogic’s Women and Property report, highlight a stark ownership gap between young Australian men and women. In the Gen Z cohort (those under 30), the disparity is a staggerin...
There’s a lot of jargon in the finance industry and we understand it can be hard to keep up to date. Combined with abbreviating these titles no wonder our clients are sometimes confused.![]()
We often talk about:![]()
• LMI![]()
• LVR![]()
• PER![]()
• ROI![]()
• DTI![]()
• HEM![]()
and the abbreviations go on. ![]()
![]()
This month we would like to focus on your DTI and HEM and the importance of these 2 considerations when applying for a loan or refinancing.![]()
![]()
DTI is your financial compass in the loan landscape.![]()
Debt to Income ratio (DTI) might not be the most thrilling topic, but it's a crucial number to understand if you're planning to borrow money – especially for a major purchase like a home.![]()
DTI is essentially a snapshot of your debt burden compared to your income and it's a key factor that lenders use to assess your loan eligibility and potential risk.![]()
![]()
We would like to explain what it is and the importance of DTI when financing or refinancing a home. We also provide some guidance and comfort when securing that most important next home loan.![]()
So sit back, relax and please enjoy this month’s property and finance update.![]()
![]()
Understanding your Debt to Income ratio (DTI) is more important than ever. It's a financial compass, not just a number, and it directly impacts your ability to borrow money – including taking advantage of refinancing opportunities.![]()
With regulatory changes coming in 2024 emphasising DTI, proactively addressing your financial health now is your strategic advantage.![]()
What is DTI and why does it matter so much?![]()
Your DTI is a snapshot of your debt obligations compared to your income. ![]()
To calculate:![]()
• divide your total monthly debt payments by your gross monthly income (before taxes).![]()
The result is a percentage that shows lenders how much of your income is dedicated to servicing existing debt.![]()
Example:![]()
Monthly debt payments of $3,000 with a gross monthly income of $8,000 results in a DTI of 37.5%![]()
($3,000 ÷ $8,000 = 0.375 or 37.5%).![]()
Lenders love a low DTI because it indicates you have financial flexibility and a greater capacity to handle additional debt.![]()
On the flip side, a high DTI could make lenders hesitate as it might mean you're already thinly stretched.![]()
Key debts included in your DTI![]()
It's crucial to know exactly which debts count toward your DTI:![]()
Mortgages![]()
Both your existing loans and any new mortgage you apply for.![]()
Credit cards![]()
Minimum monthly payments are factored in even if you pay more.![]()
Personal loans![]()
Outstanding balances and ongoing repayments.![]()
Car loans![]()
Payments on financed vehicles.![]()
HECS-HELP/student loans![]()
Repayments on higher education debt.![]()
Buy Now, Pay Later (BNPL)![]()
Those tempting instalments add up!![]()
![]()
While lenders already consider DTI, it's about to become even more important. During 2024, Australian regulators are placing a stronger emphasis on DTI for loan approvals. Understanding your DTI now gives you a serious edge.![]()
![]()
How to take charge of your DTI. Don't let your DTI control you.![]()
Here's how to improve it proactively:![]()
Debt demolition![]()
Prioritise paying down debt by starting with those high interest culprits such as credit cards. Strategies like the debt snowball and debt avalanche can be highly effective.![]()
Income boost![]()
Explore ways to increase your earnings through a raise, side hustle or a higher-paying job.![]()
Consolidate carefully![]()
Combining debts into a lower interest loan could reduce your monthly payments, but make sure to consider all potential fees.![]()
Pause on new debt![]()
While you're improving your DTI, try to avoid taking on additional credit.![]()
Refinancing success - Your DTI is key![]()
Think of refinancing as applying for a fresh mortgage. Lenders will reassess your finances and your DTI plays a major role in these key refinancing benefits:![]()
• Demonstration of repayment capacity![]()
A strong DTI shows you have room in your budget to manage the new loan, even in a changing interest rate environment.![]()
• Better interest rates![]()
A lower DTI often unlocks those coveted lower interest rates and could save you thousands over the life of your mortgage.![]()
• Maximise borrowing power![]()
If your finances have improved since your original mortgage, a healthier DTI may even allow you to borrow more through refinancing – maybe by tapping into equity for renovations, investments or debt consolidation.![]()
Additional criteria lenders assess when you apply for a loan![]()
Your Debt to Income ratio (DTI) is a big factor in having a loan approved, but it's not the whole story. Lenders take a 360 degree view of your financial life before handing you a stack of cash. ![]()
Let's dive into the other key ingredients they toss into the decision-making mix.![]()
![]()
The reputation factor![]()
Think of your credit score as your financial report card. It's a number that reflects how responsibly you've handled borrowed money in the past. A stellar credit score shows lenders you're a reliable borrower and makes you more likely to get the green light for loans and potentially score those lovely lower interest rates. On the flip side, a less than ideal score might mean higher interest rates or stricter loan conditions.![]()
The proof is in the pay stubs![]()
Lenders like stability. A steady employment history demonstrates that you have a reliable source of income to meet those loan repayments. If you're self employed, be prepared to provide evidence of your income history, such as tax returns and financial statements.![]()
Show me the money (or the assets)![]()
Any assets you own, such as a house, savings accounts or investments, can boost your attractiveness as a borrower. Assets act as a form of security for the lender and demonstrate you have resources to fall back on if needed. Plus, having a deposit saved up for a home loan shows you're serious and financially prepared.![]()
![]()
Key takeaway![]()
Your DTI is a dynamic tool for your financial success. By understanding its impact, proactively managing it and approaching both new borrowing and refinancing strategically, you empower yourself to achieve your finance goals – saving money, repaying your home loan faster or accessing equity to build wealth.![]()
Remember, we are here to help you understand the jargon and walk you through the process of all your lending decisions. Use our expertise to find the most appropriate finance options for you.![]()
As always…![]()
With your best interest in mind![]()
![]()
Click link to read article on what is HEM![]()
yourfinancenews.com.au/mec-pf-april-2024-cta-page/