Home loan advisors are there to help you take the next step on your journey to home ownership – but how can you make the meeting a productive one?

Anyone who’s been on a date knows having something to talk about or even doing some research on their prospective partner’s interests helps to keep the conversation flowing.

Likewise, when you sit down with your home loan specialist for the first time, it’s a good idea to know what you’re there to speak about. Surprisingly, a lot of people come totally unprepared. Awkward.

Ken Wilson, Home Loan Specialist at RAMS Sydney South East, says there are two types of people who come to him to speak about taking out a home loan: the ones who’ve done their homework and the ones who are clearly diving into the conversation with no background.

For Ken, the people in group A are vastly preferable to those in group B.

“If someone comes in with a list of questions and has done some homework, the home buying journey will generally flow more smoothly,” Ken says.

Clueless or researched – which kind of home loan customer are you? Picture: Kate Hunter

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So how do you become one of these desirable home loan customers?

We asked Ken to break down the basics so you can come to your home loan discussion fully prepared.

Here’s an idea of the information you’ll be expected to provide – as well as the knowledge it’s useful to have – when you first go to meet with your home loan expert.

Situation

What is the current status of your property journey? Are you just window shopping or do you have a particular property in mind?

In order to gauge the urgency of your required service, the home loan specialist will need to know this information to better help you get to the next point. If you are thinking of making an offer on a specific property, bring those details to the discussion, including the property listing.

It is also vital to share whether or not you’re purchasing your first home. (If you’ve landed here, we’re guessing it’s your first time!)

How is a home loan approved?

Most lenders will focus the discussion on four important criteria – which it helps to know and understand before meeting with your home loan specialist. These are:

Borrowing capacity

Lenders will judge borrowing capacity on how much you earn and your costs of living. So be prepared to share information regarding your salary and lifestyle habits!

Ken says it’s easy to work this out as most lenders have online calculators that you can punch this information into to work out roughly how much they may allow you to borrow.

“The customers that come in organised have some idea about what they’re going to pay. Many lenders have online calculators that you can use – use one of these to find out how much you could potentially borrow and then you’ll at least know what ball park you’re in,” Ken says.

Understanding your borrowing capacity is key to getting you to the next stage in your hunt for ‘the one’ aka your dream home.  Picture: Kate Hunter

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Genuine savings

Are you contributing real savings to the transaction?

The lender will expect that you have something in the bank to prove that you’ve got a consistent pattern of saving – which will in turn put you in good stead to pay loan repayments. Most lenders will require savings of at least 5% of the total purchase price of the property.

“What lenders are not looking for is just a lump-sum deposit, but rather something that’s being regularly added to,” Ken says.

Loan amount – Loan to Value Ratio

The amount that the lender is prepared to lend you is expressed as a percentage of the value of the property being used as security for the loan (usually the property you are buying).  This is called the Loan to Value Ratio or “LVR”. The value of the security property is determined by the lender’s valuer, and it may be different to the price you actually pay for the property. 

For example, if your property is valued at $250,000 and you need to borrow $200,000, the LVR would be 80% (200000 / 250000 x 100 = 80).

When calculating your LVR, your lender will use the amount you need to borrow which will take into account costs associated with your purchase (including Lender’s Mortgage Insurance, which is explained in detail later along with other costs associated with purchasing a property) and your contribution to the purchase.

Other costs

The cost to purchase a property is more than the price you pay the owner for it, Ken explains.

The total price is calculated as:

• Stamp duty
• Conveyancing fees
• Application fee payable to the lender
• Any other government fees (which differ by state)

Stamp duty is a tax on a property transaction that is charged by each state and territory, and the amounts can and do vary. The stamp duty rate will depend on factors such as the value of the property, if it is your primary residence and your residency status.

You may also be eligible for stamp duty concessions, depending on a range of factors such as whether or not you’re a first home buyer, as well as if you’re purchasing a home off-the-plan or building a new home yourself.

Working out the amount of stamp duty you will have to pay is easy to calculate ahead of your discussion with your home loan specialist using an online stamp duty calculator.

Conveyancing fees for a property purchase will vary but the average is around $1,500, Ken says, and can cover a range of steps from reviewing the contract to preparing for settlement day.

On top of this you will be looking at fees for building and strata reports – around $350.

The cost of a property is not just the price advertised on the listing page. Picture: Kate Hunter

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Another cost that may be involved in your property purchase is Lender’s Mortgage Insurance (LMI). To find out more about LMI and whether you are likely to incur this additional cost, speak to your home loan specialist.

Credit rating

The lender will examine your credit report when you apply for a loan.

Ken’s advice? “When looking for a suitable home loan, it is worth giving some thought to how many lenders you apply for a loan with. The more activity on your credit file, the lower your credit rating may be. If you’re going to shop around for a home loan, consider how many loan applications you wish to make. You can enquire with multiple lenders, but apply for one loan,” he says.

Family guarantee

Family guarantees (sometimes known as parental guarantees) can be useful when trying to buy your first home and could potentially help you avoid having to pay LMI. They work by allowing your parents to use the equity in their home to guarantee part of your loan.

Talk to your parents ahead of your meeting with your home loan specialist so that you know whether a family guarantee could be on the cards. And something for your parents to bear in mind in considering whether to provide a parental guarantee is that they would need to get their own legal advice about doing so.

Information in this material is general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you.  You should also obtain independent professional advice relevant to your financial circumstances. While such material is published with permission, RAMS is not responsible for its accuracy or completeness.

This article was originally published on
15 Jan 2018 at 9:00am
but has been regularly updated to keep the information current.

On the path to home ownership, saving a deposit is arguably the biggest hurdle, but what happens next?

Fiona Conley, a RAMS Home Loan Specialist from Willetton/Canning Vale in Perth, and Taku Ekanayake, a 29-year-old “rent-vester” from Sydney, explain exactly what first-time buyers should do after securing a deposit.

Taku says working out what kind of buyer you are – an investor or traditional owner/occupier – is the first step.

Rent-vesting can be a way to have the best of both worlds when it comes to buying a house. Picture: realestate.com.au/buy

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Narrow the property search

After planning to buy a home in Sydney to live in, Taku chose “rent-vesting” – buying an investment property in a cheaper location and renting a home elsewhere to live in. He now owns six tenanted properties and lives “where he wants” in a rental.

“I was very committed to getting onto the property ladder and after researching for hours online and reading books, I came across the idea of buying an investment property, rather than a home first,” he says. “The numbers were more appealing to my position in life.”

Next comes research. “The next step was about understanding what type of property would best fit,” Taku says.

“I had to learn to understand the numbers behind the numbers. So, not just about how much deposit I needed, but also understand holding costs, mortgage repayments, interest only versus principal and interest repayments, rental yield and cashflow analysis,” he says.

“Once I educated myself on these numbers, I was clearer on what type of property to look for,” he says.

Once you’ve decided on your priorities when it comes to where you want to live, you can choose the best option on where you want to own. Picture: realstate.com.au/buy

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Seek sage advice

Fiona says talking to a home loan specialist at the beginning of your property search is wise. “We can explain the pros and cons of the different options and government assistance available to first home buyers, whether that’s with a house and land package, an established property or becoming an investor,” she says.

An expert will also explain the financial side, Fiona adds. “It’s not just about how much you can potentially borrow, it’s about what should you borrow to still be able to maintain a good level of living; a realistic figure,” she says.

WATCH: How to do your property homework…

Armed with knowledge, the real search can begin. Like all millennials, Taku went online in the first instance.

“A lot of my upfront research was done online and then by picking up the phone and calling agents, to try get access to upcoming properties (not yet on the market),” he says.

Living in Sydney and looking to buy interstate where property was more affordable, Taku didn’t have the luxury of attending open houses.

Buying interstate means doing most of your property research online. Picture: Getty

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Inspect properties with an eagle eye

“After months of research, I did go up to the specific area in Brisbane I had set my sights on, to do some ‘on the ground’ research. On my first trip, I put in an offer on a property and I was successful.

“However, I would not have had the confidence to put in an offer on the spot if I hadn’t done my months of desktop research prior to making the trip,” Taku says.

When looking to put in an offer, knowledge is power, Fiona says, which is where property profile reports come in.

“Our property profile reports provide in-depth information about the actual property you’re looking at buying, with things like how much it previously sold for, expected growth in the suburb, demographics and comparable properties.

“It also explains how much it should sell for, which is very important for first home buyers to understand,” she says.

Living close to friends and family can be priceless. Picture: Getty

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Negotiating on price is an art, but can be learned, according to Taku. “I took the time to learn to negotiate myself. I called a lot of agents to get a feel for how to communicate effectively with agents,” he says.

“I read plenty of sales, persuasion and negotiating books too. Some great ones are The Art of the Deal, Sell or be Sold and The 10 Times Rule.”

When it comes to finding professionals like conveyancers at the end of the buying process, personal referrals are often the best, Fiona and Taku agree.

Information in this material is general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

This article was originally published on
7 May 2018 at 6:17pm
but has been regularly updated to keep the information current.

If you’re looking to buy a rental property and your tax returns don’t tell the full story of your finances, a DSCR loan might be exactly what you need. This guide breaks down how DSCR loans work, how they compare to conventional financing, and how the right real estate agent can help you find properties that actually qualify.

Key Takeaways

A DSCR loan is an investment property loan where loan approval depends on the property’s cash flow rather than the borrower’s W‑2 income or tax returns. Lenders evaluate a property’s cash flow using the debt service coverage ratio formula: DSCR = Net Operating Income (NOI) ÷ Total Debt Service. A good DSCR for most lenders falls in the 1.15–1.25 range, though some programs accept ratios as low as 1.0 or even below.

DSCR loans allow qualification based on rental income only, which makes them attractive for self-employed real estate investors or anyone whose personal income looks low on paper due to depreciation and write-offs. The trade-off is that most DSCR loans require a larger minimum down payment (typically 20–25%), a minimum credit score of 660, and cash reserves covering several months of payments.

Compared to conventional loans, DSCR loans offer faster closings and no strict cap on the number of financed properties you can hold. However, the interest rate is usually slightly higher. A savvy real estate agent can help you identify cash-flowing, DSCR-friendly investment properties in the local market before you even submit an application. You can use FastExpert to connect with vetted local agents who understand investment and DSCR strategies.

What Is a DSCR Loan?

A DSCR loan is a type of mortgage loan designed for investment properties where the lender focuses on the rental property’s income instead of the borrower’s personal income. Put simply: a DSCR loan qualifies based on rental income, not personal income. If the property generates enough rent to cover its debt obligations, you can get funded-even without handing over W-2s or detailed employment records.

DSCR stands for debt service coverage ratio, and that ratio is the centerpiece of qualifying for these loans. Lenders want to see that the property’s rental income comfortably covers principal, interest, property taxes, homeowners insurance, and any HOA fees.

These are typically business-purpose mortgages used for income producing properties: long-term rentals, short-term rentals (Airbnb/VRBO), and small multifamily buildings (2–4 units). They’re classified as non QM loans, meaning they don’t follow standard Fannie Mae or Freddie Mac guidelines. That’s not a red flag-it simply means they live outside the conventional box.

One important distinction: DSCR loans are not for a primary residence or a vacation home you plan to live in. They’re built for investors growing a rental portfolio. The rest of this article walks through how DSCR is calculated, how DSCR loans work, their pros and cons, and how a local agent can help you find properties that actually qualify.

What Is Debt Service Coverage Ratio (DSCR)?

DSCR shows how easily a property generates enough income to cover its loan payments and related housing expenses. It’s the number lenders care about most when underwriting these loans.

Here’s the basic formula for how DSCR is calculated:

DSCR = Net Operating Income (NOI) ÷ Total Annual Debt Service

NOI equals gross rental income minus operating expenses (property taxes, homeowners insurance, property management fees, maintenance, vacancy). Total annual debt service includes your annual mortgage debt-principal, interest, taxes, insurance, and any HOA fees. Some lenders simplify it further: Monthly Rental Income ÷ PITIA (principal, interest, taxes, insurance, association dues) gives you a monthly version.

Concrete example: A property earns $24,000 per year in net operating income, and the total annual debt service is $20,000. That gives you a DSCR of 1.20-meaning there’s a 20% cushion above what’s needed to cover the mortgage.

Here’s what the numbers mean:

• Below 1.0: Negative cash flow. The property doesn’t cover its own debt. Risky for lenders.
• Equal to 1.0: Break-even. Rental income exactly covers debt service.
• Above 1.0: Positive cash flow. A DSCR above 1.0 indicates sufficient rental income to service the loan, which is what lenders want to see.

Keep in mind that some DSCR lenders use slightly different formulas-gross rent, market rent comps, or rent minus a vacancy factor. Always ask how a specific lender calculates the DSCR ratio. And DSCR isn’t just a pass/fail metric: it also influences your interest rate, maximum loan amount, and sometimes the reserves you’ll need to hold.

How Does a DSCR Loan Work in Practice?

Here’s the typical flow. You find a property, and the lender estimates realistic rent-either from existing leases or market rental comps. They calculate DSCR using those projected or actual numbers, then decide whether the property cash flow is strong enough to support the requested loan. The property’s rental income drives the decision, not your paycheck.

Unlike conventional loans, DSCR loans work without requiring W-2s, pay stubs, or tax returns for income verification. No W-2s or tax returns are needed for DSCR loans. That said, lenders still pull your credit report and review your personal assets and reserves. DSCR loans offer customizable terms for borrowers-you’re not locked into a single rigid structure.

Typical documents lenders require include:

• Lease agreements (existing or projected)
• Market rental analysis or comparables
• Appraisals with rent schedules
• Bank statements showing cash reserves
• Property tax and insurance quotes
• Entity documents if buying through an LLC

Most DSCR loans come as 30-year fixed-rate mortgages, though some lenders offer interest only payments during the first 5–10 years to reduce early monthly expenses. The loan term and structure vary by lender and property type.

DSCR loans can be used for both purchases and refinances. That includes cash out refinancing to tap equity and fund additional investment properties, as well as rate and term refinances. DSCR loans can be used for refinancing investment property loans, which makes them useful for investors who want to recycle capital into new deals.

>>DISCOVER: 8 Steps to Choosing the Best Realtor

An experienced real estate agent can help assemble realistic rent comps and operating cost estimates so the numbers your lender uses are as strong and accurate as possible.

What Types of Properties Can Use a DSCR Loan?

DSCR loans target income producing properties-primarily residential rentals, though some lenders extend to mixed-use or small commercial buildings depending on their guidelines.

Common qualifying property types include:

• Single-family rentals (houses, condos, townhomes)
• 2–4 unit multifamily (duplexes through fourplexes)
• Short-term and mid-term rentals (vacation rentals, corporate housing, traveling-nurse units)

DSCR loans are available for single-family residences and multi-unit properties. A property must be rent-generating or expected to generate market rent to qualify. For short-term rentals, some lenders underwrite using projected market rent rather than nightly rates-ask about this upfront.

Many DSCR programs allow large portfolio investors to hold numerous financed properties, though individual lenders may set their own per-borrower exposure limits. Condition and location matter too: most lenders want properties in livable condition in standard residential areas with documented rental demand.

Working with a local agent who routinely handles rental and investment deals helps you target neighborhoods and property types more likely to produce a good DSCR.

Typical DSCR Loan Requirements (Credit Score, Down Payment & More)

DSCR loans trade easier income documentation for tighter rules in other areas. Here’s what to expect across most lenders:

Lenders may require a minimum credit score of 660 for DSCR loans, but a lower credit score means higher rates or more money down. Your credit profile matters even though your salary doesn’t.

Most DSCR loans require a down payment of 20% to 25%. If your DSCR ratio is weaker-say, near 1.0-expect the lender to ask for more equity, larger reserves, or both. Cash reserves are often required for DSCR loans, typically covering several months of payments to protect against vacancies or surprise repairs.

Loan amounts for DSCR loans can reach up to $1 million, and some specialty lenders go higher. DSCR loans can finance properties with up to 80% CLTV when the ratio, credit, and property details are all strong.

Each lender sets its own underwriting matrix. Payment requirements, reserve thresholds, and credit score tiers vary, so borrowers benefit from shopping multiple DSCR lenders through their loan officer.

How DSCR Loans Compare to Conventional Financing

Conventional investment loans rely heavily on the borrower’s personal income and debt-to-income (DTI) ratio. The lender wants your full tax returns, W-2s, and proof that your monthly expenses leave room for another mortgage based on strict DTI math. DSCR loans flip this: the property’s rental income is the qualifier, and your personal income stays out of the picture.

Here’s a quick side-by-side:

Interest rates for DSCR loans are generally higher than conventional mortgages-usually by 0.25% to 1.5%-though that gap has narrowed in 2026 for borrowers with strong ratios and credit.

Conventional lenders cap the total number of financed properties per borrower (often around 10 under Fannie Mae rules). DSCR loans remove that ceiling. Once an investor owns several rentals and their tax returns show heavy write-offs, conventional qualification becomes harder even when actual cash flow is healthy. That’s where DSCR lending shines.

Traditional loans still win on rate for borrowers with strong W-2 income and few properties. Many investors use both tools over time: conventional for early properties, then DSCR loans later when portfolio cash flow is the main qualifier. An experienced agent can help run basic cash-flow estimates during property searches to see which loan options make more sense for a specific deal.

What Counts as a “Good” DSCR for Lenders?

What qualifies as a good DSCR depends on the lender and the deal, but most DSCR loan programs consider 1.15–1.25 or higher a strong target. A healthy DSCR is typically 1.0 or higher, meaning the property’s rental income at least covers its debt service. Lenders typically require a DSCR ratio of 1.0 to 1.25 to approve the loan.

Outcomes are tiered. A ratio near 1.0 may still earn loan approval, but expect a higher interest rate, lower maximum loan to value, or larger reserve requirements. A DSCR of 1.25+ often unlocks the best pricing and highest LTV.

Consider two identical $400,000 properties. Property A has a DSCR of 0.95 (negative cash flow); Property B hits 1.30. The investor buying Property B will likely get better rates, less money down, and fewer required reserves. Property A might still qualify-DSCR loans can be approved with a ratio as low as 0.75 in some aggressive programs-but the trade-offs are significant, and those deals are best for experienced investors with a clear value-add plan like increasing rental income through renovations or repositioning.

Don’t aim for the bare minimum. A cushion above 1.0 protects you against vacancy, repairs, and market shifts. A local agent can identify submarkets where rents are strong compared to purchase prices, making it easier to hit lender DSCR targets.

Pros and Cons of DSCR Loans for Real Estate Investors

DSCR loans can be powerful tools, but they’re not the right fit for every buyer or every property. Here’s an honest look at both sides.

DSCR loan pros:

• No need for W-2 income verification-ideal for self-employed borrowers
• Qualification centers on property performance, not personal DTI
• Scalable across multiple financed properties with no strict cap
• Streamlined approval process with potentially faster closings (15–30 days)
• Cash out refinancing available to unlock equity for more investments
• Entity (LLC) ownership supported by most lenders
• DSCR loans offer flexibility that traditional loans don’t for portfolio builders

Cons:

• Generally higher interest rates and underwriting fees versus conventional
• Bigger minimum down payment and reserve requirements
• DSCR loans can be less accessible for owner-occupants-they’re not designed for a primary residence
• Risk of relying on projected rents, especially for short-term rental income, which can shift with local regulations or demand changes
• Some programs carry prepayment penalties (often a step-down structure like 5-4-3-2-1)
• Mortgage insurance may not apply, but higher rates serve a similar risk-adjustment function
• Gift funds policies vary and may be more restrictive than conventional

The risks are real. If local rental demand drops or a municipality tightens short-term rental rules, your DSCR could fall below 1.0, leaving you to cover the gap from personal funds. Borrowers should talk with both a knowledgeable loan officer and a local real estate agent to understand how DSCR loans fit into their broader investing plan.

How a Real Estate Agent Helps You Find DSCR-Friendly Properties

Finding a DSCR loan is only half the equation. The property itself must cash flow well enough to meet lender DSCR thresholds-and that’s where a sharp local agent earns their value.

An experienced agent can source properties in neighborhoods where rents, vacancy rates, and price points historically support strong DSCRs. Before you make an offer, they can pull recent rental comps, estimate typical operating expenses (property taxes, insurance, property management fees, HOA fees), and run a rough DSCR calculation so you know where you stand.

Agents also negotiate. A lower purchase price, seller credits, or contractual repairs all reduce your cost basis-and a lower cost basis means better cash flow and a stronger DSCR ratio for your lender. Smart negotiation can be the difference between a deal that barely hits 1.0 and one that clears 1.25.

FastExpert lets buyers and investors compare reviews and track records to find agents who regularly handle investment and cash-flow-focused deals. Look for agents who openly discuss cash flow, vacancy, and local landlord rules-not just appreciation potential-so the property and DSCR loan work together smoothly.

Is a DSCR Loan Right for You?

Start by thinking about your goals. Are you building a rental portfolio? Preserving liquidity? Converting existing equity into more properties? Your answer shapes which loan eligibility path makes sense.

DSCR loans tend to fit well for:

• Self-employed investors whose tax returns understate real earnings
• Borrowers with high depreciation write-offs that hurt conventional DTI
• Investors who’ve maxed out conventional property count limits
• Anyone prioritizing speed and simpler documentation over the lowest possible rate

You may be better served by conventional financing if:

• You’re buying a primary residence (DSCR won’t apply)
• You have strong W-2 income, few write-offs, and fewer than five financed properties
• Getting the absolute lowest interest rate is your top priority

Run numbers under both DSCR and conventional scenarios. Look beyond the rate-compare total cash invested, monthly cash flow, loan eligibility for future properties, and how many deals you could realistically close over time.

A short planning conversation with both a loan officer and a local agent aligns your financing strategy, property selection, and long-term portfolio plans. FastExpert can connect you with agents who understand these trade-offs and can coordinate with your lender of choice.

DSCR Loan FAQs

Guidelines change by lender and over time, so verify current terms with a loan professional before making decisions. Here are answers to common questions not fully covered above.

Can I use a DSCR loan for a property I plan to live in?

No. DSCR loans are designed as business-purpose loans for investment and rental properties, not a primary residence the borrower lives in. Some investors use DSCR loans on properties they may occupy in the distant future, but they must qualify and close as non-owner-occupied under lender rules. If you want to house-hack (live in one unit, rent out others), ask lenders whether a DSCR or conventional multi-unit owner-occupied loan makes more sense.

Do DSCR loans show up on my personal credit report?

Many DSCR loans are made to individuals and can appear on a personal credit report. Some portfolio or LLC-based structures may treat reporting differently. Ask each lender whether the loan will report to personal credit bureaus and how that might affect future borrowing capacity. Even if not reported like a standard mortgage, lenders will usually still review your broader credit profile when approving new loans.

Can I get a DSCR loan through an LLC?

Yes. Many DSCR lenders allow or even prefer loans made to an LLC or other legal entity, with the investor signing a personal guarantee. Using an LLC can have legal and tax implications, so talk with an attorney or CPA before restructuring ownership. Title, insurance, and banking arrangements may be slightly more complex but are common in the investment world.

How many DSCR loans can I have at once?

There’s usually no universal hard cap like with agency-backed conventional loans. Each DSCR lender sets its own exposure limits per borrower. Large investors often spread properties across multiple DSCR lenders to keep growing without bumping into single-lender limits. Keep clean records and clear rent rolls so scaling across several DSCR loans is easier to manage.

What happens if my DSCR drops after I get the loan?

Most DSCR lenders qualify you based on underwriting at closing. They typically don’t re-underwrite DSCR every year unless you refinance or default. However, if DSCR falls due to vacancies, repairs, or rent declines, you still must cover the payment-so having reserves and conservative underwriting is critical. Work with your agent to choose markets with stable rental demand and with your lender to avoid overly aggressive projections.

In a world where you can settle most financial matters online, why is there still so much leg work involved in securing a home loan?

When it comes to your mortgage, chances are you’ll spend hours researching, travelling to and from banks, and meeting with people who want to sell you a product that’s right for you… and them.

As technology advances and many of our cumbersome traditional services undergo a digital makeover, people expect the same in their financial services.

“People always want more choice, lower prices and faster turn-around times, and that’s across every product category in the world, including home loans,” explains founder of online mortgage broking company, uno, Vincent Turner. 

Your best home loan deal could be right at your fingertips. Picture: Getty

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Turner argues that online mortgage brokers like uno not only provide quicker, on-demand customer service, but also have the scope to get you a better deal for you by showing you more options.

“If you do see a bank you’re only going to get products from that bank. It can be convenient if you’re already with that bank, but it’s still quite limited. They’re never going to give you the reach of a broker. Having said that, most people don’t know that, on average, brokers send 75% of their business to three banks. If you can’t see the screen that your broker sees, you’re not going to be sure that you’re getting the full range of options,” he explains, adding that uno works with over 20 lenders.

So what’s your alternative?

Online brokers like uno are using technology to give you the tools to review a broader range of loan options that are personalised to your individual situation. And they’re taking the service you would expect from a traditional broker and offering it via phone, email, text and chat – even on weekends and evenings. Here’s a step-by-step guide on how to choose a home loan, without your tush leaving the couch.

Step 1: Reviewing your options

If you’re looking to buy property, Turner recommends sussing out your options and securing financing well before making an offer.

While scrolling property online, why not check out suitable home loans too? Picture: Kate Hunter

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When starting the process online, you’ll be asked to answer questions pertaining to your loan needs and individual situation: Are you looking for an investment property or a new home? How much is the property you want to buy? How much can you afford to borrow? How much have you saved for your deposit? Do you want an interest-only loan, or principal and interest?

uno’s platform will use this information to narrow down thousands of options to a handful tailored to your individual situation and needs. 

Step 2: Finding the one

After Step One, you should have a suite of options catered to your needs. But how do you know which option is the right one for you?

At this point, it’s useful to get some guidance from a Home Loan Adviser via online chat, email, phone call, or even text.

However, without further information about your finances, it’s impossible to know which loans you’ll be eligible for. So, Step Two is providing more detailed information to your adviser, particularly relating to your employment, income, marital status, and dependents.

During this process, Turner says you’ll need to provide details on your finances and be prepared with some documents so that your online broker can verify your information and recommend the best loan for you. Most people should have these ready:

• Three to six months of bank statements
• Valid ID (a driver’s licence will do)
• Your last two pay slips to verify your income

“uno has the lender rules built in, and it knocks out loans that aren’t right for you,” Turner explains. “Based on this shortlist, our advisers can then say ‘here are the options that are suitable for you, but here’s who we recommend and why’.”

Step 3: Applying for your loan

So, just how DIY is the online home loan application process? Does it spell extra grunt work from your end?

Turner explains: “uno has automated a lot of the paperwork involved with home loans, and we work with lenders that offer convenient options such as ZipID, where you have your identity verified without leaving your home.”

Why should anybody decide on your home loan, except you? Picture: Getty

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While not all banks are on board with ZipID, if you do happen to pick one of these institutions, Turner assures an ID check should be your only face-to-face step. Otherwise, you can complete the process from the comfort of your living room, right through to settlement, with as much or little help as you need.

Step 4: Seeing it through

The beauty of technology is that it makes it easier to keep track of when a home loan needs checking on.

“Once it’s all settled, we check it gets set up correctly and then we continue to monitor your loan and make sure you’re being looked after,” Turner says.

“Every three to six months after the first year of the loan, you should consider refinancing so you know what your loan is, what your interest rate is and what your property is worth,” Turner advises. “Then you can use that to work out if you are getting a decent rate or not; and if you aren’t, come to us and say ‘here’s my situation’. We can very quickly say whether you could save a reasonable amount of money.”

This article was originally published on
30 Jul 2018 at 10:02am
but has been regularly updated to keep the information current.