Deposits and Equity
Differences in the amount of deposit or equity required occurs between lending organisations. Most lenders prefer a minimum 10% deposit, however some will accept a 5% deposit. Ultimately, personal circumstances determine whether or not a particular lender will lend to you.

Interest Offsets
Some lenders offer mortgage interest offset accounts that work like normal savings accounts. But, instead of earning interest on your savings (and being taxed on it), the whole balance of your savings account is offset on a daily basis against your home loan, effectively reducing the overall cost of the loan.

Fees and Charges
These differ between lenders with discounting sometimes used as a marketing ploy. Commonly, fees are charged to: - apply for the loan (application fee); value the property (valuation fee); establish the loan (establishment fee); prepare the mortgage documents (mortgage fee); register the mortgage documents (mortgage registration fee); settlement of title (settlement fee); and government stamp duty. Some organisations charge a periodical loan maintenance fee over the life of the loan.

Repayment Options
A variety of repayment options exist. Savings can often be made by paying more frequently. For example, the usual payment rate is monthly; however many lenders now offer fortnightly or weekly options. Additional lump sun repayments can be made at any time to reduce the outstanding balance of the loan. Some lenders increase the repayment a small amount each year to offset interest increases, others review the repayment at predetermined intervals. While others adjust repayment amounts with interest rate variations.

Length of Term Options
Maximum repayment terms vary, with some lenders offering up to 30 years. Longer terms cost more in total interest over the life of the loan. Some loans can incur a penalty for early repayment.

Mortgage Insurance
When the loan-to-value or loan-to-purchase price ratio is greater than the lender’s normal lending margin, mortgage insurance is required to protect the lender against loss. This requirement can vary between lenders, but is generally applied to loans with a loan-to-value ratio greater than 80%. This is, a minimum equity requirement of 20%.

Insurance (Other than Mortgage)
Several different types of insurance can be applied to your circumstances. Lenders require you to insure the property for protection against fire and risk. This can either be an indemnity policy or a replacement policy. In addition, some lenders may require a mortgage protection policy which protects the borrower, ensuring the debt will be repaid if the borrower suffers disability or death.

Building Societies
Rules governing the lending parties of Building Societies and Credit Unions. These guidelines can, in certain circumstances lead to more flexible borrowing conditions for residential home loans than from banks.

Terminating Building Societies
A terminating building society manages a finite fund of money with lending restricted to owner-occupier home loans. This can lead to greater flexibility for borrowers whose circumstances may not meet bank’s lending criteria.

Credit Unions
Credit Unions are also governed by the Registrar of Building Societies and Credit Unions. They tend to have similar criteria for property lending providing the applicant is eligible for membership of the credit union.

Superannuation funds, Solicitors funds and other Institutions
Other institutions, such as mortgage fund managers, provide property finance through a mortgage securitisation program. Finance is available from time to time through superannuation funds. Private funding can be arranged through Solicitors and Finance Brokers.

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