Frequently Asked
Am I eligible to apply for a home loan with Loanity?
Eligibility depends on your situation, but most Australians qualify if they have a stable income, a good credit history, and meet basic lending requirements. We’ll assess your borrowing power, deposit size, income type (PAYG or self-employed), and overall financial position to help you understand exactly where you stand. Find out about your elidgibility through a free consultation session.
Can I really get a home loan with just a 5% deposit?
Yes. Many first-home buyers enter the market with as little as 5% deposit. We’ll guide you through low-deposit home loan options, government schemes, and whether you qualify for LMI waivers, grants, or lender incentives to help you buy sooner.
What is the difference between a broker versus going to a bank?
Unlike a bank that offers only its own products, a brokre compares multiple lenders to find better rates, clearer terms, and more flexible loan options. Our job is to negotiate for you, explain everything in simple language, and help you choose the loan that suits your goals — not the bank’s.
Do we charge any fees for home loan or refinancing services?
Nope! Our home loan and refinance services come at no cost to you. We’re paid by the lender when the loan settles, so you get expert support, comparisons, and personalised advice without paying a cent in broker fees*.
*Read more about our refundable engagement fee here
How long does the home loan approval process take?
While bank processing times vary, Loanity aims to get you “market-ready” as quickly as possible. We generally aim for a conditional pre-approval within 2 to 5 business days, provided all documentation is ready. Having this pre-approval in hand gives you the confidence to make a firm offer or bid at auction, knowing exactly what your budget is.
Can Loanity help me if I’m self employed or have non-standard income?
We absolutely can! We work with lenders who specialise in self-employed and contractor income. Whether you have tax returns, BAS statements, or alternative documentation, we’ll help structure your application so you’re in the strongest possible position.
Find out more here.
What interest rates can I get right now?
Interest rates depend on your lender, credit score, income, deposit size, and loan type. We compare a wide range of lenders daily to help you secure competitive home loan rates and show you how refinancing could save you money.
Does Loanity offer special conditions for medical professionals?
Certainly – many lenders offer special home loan benefits for certain professionals, including 95% LVR, $0 LMI, priority assessment and discounted interest rates. We can check whether you qualify instantly.
Read this list to see whether your occupation qualifies.
Can I use the equity in my home to buy an investment property?
Yes, this is one of the most common ways to grow a property portfolio. You can often refinance your current home loan to release “usable equity,” which acts as the deposit for your investment purchase. This means you could potentially buy an investment property with no out-of-pocket cash deposit. Loanity can calculate your equity and help you structure a “top-up” or sub-account to keep your investment debt separate for tax purposes.
Should I choose an interest-only or principal and interest investment loan?
Many investors prefer interest-only loans because they maximize tax-deductible interest payments and improve short-term cash flow. This allows you to redirect your extra cash toward paying down non-deductible debt (like your own home loan). However, principal and interest loans help you build equity faster. Loanity will help you compare both options based on your long-term investment strategy and cash flow needs.
How does “negative gearing” work with my investment loan?
Negative gearing occurs when the deductible expenses of owning an investment property (including loan interest, maintenance, and rates) exceed the rental income it generates. This “loss” can often be used to reduce your taxable income, potentially resulting in a tax refund. While Loanity finds you the most competitive rates to manage your costs, we always recommend consulting with your accountant to see how negative gearing fits your specific tax bracket.
What is a “cross-collateralised” loan and should I avoid it?
Cross-collateralisation is when a lender uses more than one property as security for a single loan (e.g., your home and your investment property). While it can be easier to set up initially, it can limit your flexibility later if you want to sell one property or switch lenders. At Loanity, we generally prefer “stand-alone” loan structures that keep your properties independent, giving you more control over your wealth and future financing options.
Can I get an investment loan through my SMSF (Self-Managed Super Fund)?
Yes, you can use a Limited Recourse Borrowing Arrangement (LRBA) to purchase residential or commercial investment property through your SMSF. These loans have very specific compliance rules and higher deposit requirements (usually 20-30%). Loanity has access to specialized SMSF lenders and can work alongside your financial planner to ensure the loan is structured correctly according to ATO regulations.
How do lenders calculate “rental yield” when assessing my borrowing power?
When you apply for an investment loan, lenders don’t just look at your salary; they also consider the projected rental income of the property you are buying. Most lenders will “shade” this income (typically using only 70-80% of the rent) to allow for vacancies and management fees. Loanity knows which lenders have the most generous rental income policies, which can significantly increase your total borrowing capacity.
Which professions are eligible for professional home loan packages?
Professional loan packages are typically tailored for high-income earners in specialized fields. This includes medical professionals (doctors, dentists, specialists), legal professionals (lawyers, solicitors, barristers), and accounting professionals (CPAs, actuaries, auditors). At Loanity, we have access to specific lender panels that recognize these stable career paths and offer exclusive benefits not available to the general public
How can I buy a home with a 10% deposit and no LMI?
One of the biggest advantages of a professional package is the Lenders Mortgage Insurance (LMI) waiver. While most buyers must pay LMI if their deposit is under 20%, eligible professionals can often borrow up to 90% (and sometimes 95% for medical staff) without paying a cent in insurance. This can save you between $10,000 and $30,000 in upfront costs, allowing you to keep your capital for other investments.
Do professional packages offer lower interest rates than standard loans?
Yes. Lenders view professionals in these sectors as “low-risk” borrowers. As a result, they often offer tiered interest rate discounts that sit well below the standard advertised rates. Loanity negotiates directly with these premium lending divisions to ensure you receive the deepest discount possible based on your loan size and professional status.
Are there specific benefits for medical professionals and doctors?
Medical professionals often receive the most significant benefits in the Australian market. This can include LMI waivers on loans up to $4.5 million, higher borrowing power assessments, and the ability to use “future income” or private practice earnings for serviceability. Whether you are a GP, an intern, or a surgeon, Loanity can help you leverage your medical status to secure a premium mortgage structure.
Can I get a professional package if I am a contractor or partner in a firm?
Absolutely. We understand that many professionals work as contractors or are partners in their firms rather than PAYG employees. Loanity works with lenders who specialize in “complex income” assessments, allowing us to use your partnership distributions or contract rates to prove your income. We ensure the lender sees the true strength of your professional earning capacity.
Can Loanity help me if I’m self employed or have non-standard income?
Beyond rate discounts and LMI waivers, these packages often include premium features at no extra cost, such as multiple offset accounts, a fee-free credit card, and discounted rates on other insurance products. Loanity will help you compare the annual package fees against these benefits to ensure the professional package provides the best overall value for your financial goals.
What can I use a personal loan for?
A personal loan through Loanity can be used for a wide range of purposes, including debt consolidation, home renovations, wedding expenses, travel, or medical bills. Because the loan is flexible, you can use the funds for almost any personal expense. We help you find a lender that offers the best terms based on your specific goal and financial situation.
How quickly can I get a personal loan approved and funded?
Speed is one of the biggest benefits of a personal loan. Many of our lenders offer “same-day” or 24-hour approval. Once your loan is officially approved and the digital contract is signed, the funds can often be transferred to your bank account within 24 to 48 hours, making it an ideal solution for urgent financial needs.
What is the difference between a secured and an unsecured personal loan?
A secured personal loan requires an asset (like a car or a savings account) as collateral, which usually results in a lower interest rate. An unsecured personal loan doesn’t require collateral, meaning your assets aren’t at risk if you default, though the interest rate may be slightly higher. Loanity will compare both options to see which provides the lowest overall cost for you.
Can I get a personal loan if I have a less-than-perfect credit score?
Yes. While a high credit score helps you access the lowest rates, Loanity works with a variety of lenders, including some who specialize in “second chance” or credit-repair loans. If you have a steady income and can demonstrate your ability to manage repayments, we can often find a loan product that fits your profile and helps you rebuild your credit over time.
Are there any fees for making extra repayments or paying the loan off early?
Many modern personal loans offer the flexibility to make extra repayments at no extra cost, helping you save on interest and clear your debt faster. However, some lenders may charge an early exit fee. At Loanity, we prioritize finding you “no-fee” or flexible repayment options so you have full control over how quickly you pay back your loan.
How do personal loan interest rates compare to credit cards?
Generally, personal loans offer much lower interest rates than standard credit cards, which can often exceed 20% p.a. This makes a personal loan a very effective tool for debt consolidation—by moving your high-interest credit card balances into a single personal loan with a lower fixed rate, you can reduce your monthly repayments and pay off your debt much sooner.
How quickly can I get a car loan approved?
At Loanity, we know that when you find the right car, you want to move fast. We can often secure a “same-day” approval for many clients. Once approved, the funds are typically transferred to the dealer or private seller within 24 to 48 hours, allowing you to drive away in your new vehicle sooner than you would with a traditional bank.
Is it better to get a car loan through a broker or a dealership?
Dealership finance is often limited to a single lender and may include hidden fees or “balloon payments” that cost you more in the long run. By using a Loanity broker, you get access to a panel of over 30+ lenders. We compare multiple rates to find the lowest interest rate and most flexible terms for your specific budget, rather than being restricted to one dealer’s offer.
Can I get a car loan for a used vehicle or a private sale?
Yes, Loanity provides financing for both new and used vehicles, whether you are buying from a licensed dealership or a private seller. While some banks have strict age limits on vehicles, we have access to lenders who specialize in older models or classic cars, ensuring you get a competitive rate regardless of the car’s age.
What is a “balloon payment” and should I include one in my car loan?
A balloon payment (or residual) is a lump sum you agree to pay at the end of your loan term. This reduces your monthly repayments during the life of the loan, which can help with your weekly cash flow. Loanity can help you calculate if a balloon payment is right for you, or if a standard principal and interest loan is a better long-term financial move.
Can I get a car loan for my business through my ABN?
Absolutely. If you use your vehicle for business purposes more than 50% of the time, you may be eligible for a Chattel Mortgage. This type of business car loan often offers lower interest rates and significant tax benefits, such as GST input tax credits and depreciation. Loanity can help you structure the loan to maximize these business incentives.
Can I pay off my car loan early, and are there exit fees?
Many of the car loan products we offer at Loanity come with the flexibility to make extra repayments or pay the loan off entirely before the term ends. While some lenders may charge a small early termination fee, we prioritize finding you “no-fee” or “low-fee” options so you have the freedom to clear your debt faster without heavy penalties.