Loan pre-approval, sometimes called conditional approval, is a formal indication from a lender that they’re likely to approve your home loan (up to a specific amount) based on certain conditions.
To calculate your loan serviceability, you can add up your income, subtract your expenses and debts, and then add your proposed monthly mortgage payment.
In its final decision of the year, the Reserve Bank of Australia (RBA) has opted to leave the cash rate unchanged at 4.35%
While indicators are shifting, the RBA has made it clear that consistent progress is necessary before any rate cuts are implemented, particularly until underlying inflation drops below 3%.
Most often, LMI is paid as a lump sum at the start of the loan. Imagine a world where instead of paying a large sum upfront, you could spread your LMI payments over monthly instalments.
The RBA remained determined to take steps against inflation but they did not discuss rate hikes directly.
The official cash rate is on hold at 4.35% for the seventh consecutive meeting.
The official cash rate remains at 4.35%, where it has been since the RBA last increased rates in November 2023.
Loan documentation can be overwhelming, so learning some basic concepts is important to get you started.
