Cross collateralisation is a complex term for a borrower offering two properties as security for a new loan.

It keeps the loan to value ratio (LVR) as low as possible, which increases the likelihood of securing the loan, and helps to avoid other costs like lenders mortgage insurance (LMI).

Redraw lets you access extra repayments you have made on your loan. In an emergency, access to this extra cash can be a live-saver.

Similar to how a savings account works, you can also save within your mortgage account simply by making payments over and above your minimum monthly requirement.

The mortgage industry is a large and complex world that seems to speak its own language. One of the many acronyms you may have heard being used is ‘LVR’, which stands for Loan to Value Ratio.

When calculating the amount of money you need to borrow to purchase a property, how much deposit you need to save, and whether you are eligible for a particular mortgage product, the Loan to Value ratio (LVR) is one of the most important considerations.

Lenders Mortgage Insurance (LMI) is an insurance policy which insures the lenders/banks from potential loss. When a borrower is wishing to borrow over 80% of the value or purchase price of a property, lenders in Australia must insure the loan with an LMI policy. So, the policy covers the bank but the premium is payable by the borrower.