The NIK Finance home loan Quick Check is a free 2-minute set of questions about the purchase price, your deposit, job, income, residency and credit history. It works out your loan-to-value ratio (LVR) and tells you whether you look like a match for mainstream lenders or specialist lenders, or whether to talk to a broker first. It does not check your credit file. A licensed broker then follows up with real rates from our 130+ lender panel.
Estimates are fine.
Your loan-to-value ratio (LVR) is the loan divided by the property price. At 80% LVR or below, a 20% deposit, most lenders do not charge lenders mortgage insurance (LMI) and the widest choice of rates is open to you. Above 80%, LMI usually applies unless you qualify for an exemption or a government scheme. Above 95%, lenders generally need a guarantor.
How lenders usually treat each deposit level
| Deposit | LVR | What it usually means |
|---|---|---|
| 20% or more | 80% or less | No LMI and the widest choice of lenders |
| 10% to 20% | 80% to 90% | LMI usually applies |
| 5% to 10% | 90% to 95% | LMI, fewer lenders and a stricter assessment |
| Under 5% | Over 95% | Usually needs a guarantor |
First home buyer? Government schemes can replace LMI for eligible buyers. Current rules and caps are on the First Home Guarantee page, and options under 20% are on low deposit home loans.
Lenders test whether you could still afford repayments at a higher, buffered rate, not just today’s rate. Many look more closely once your total debt passes about 6 times your income. How your income is earned matters as much as how much it is.
| Income type | What most lenders want |
|---|---|
| Permanent full-time or part-time | Past probation, around 6 months in the job |
| Casual or contract | Around 12 months in the role or industry |
| Self-employed | 2 years of tax returns. Some lenders accept 1 year: see self-employed home loans |
For a dollar figure, use the borrowing power calculator.
The Quick Check tells you which lenders are likely to fit before any credit enquiry is made. Pre-approval is the next step: a lender assesses your documents and credit file and gives conditional approval up to an amount, so you can bid or make an offer with confidence. Applying to the wrong lender first can leave an enquiry on your file for nothing, which is what the Quick Check helps you avoid.
Read how home loan pre-approval works.
No. The Quick Check only uses your answers. Nothing is sent to a credit bureau or a lender. A credit enquiry only happens if you choose to apply for pre-approval or a loan.
Most lenders need at least 5% plus costs. With 20% you usually avoid lenders mortgage insurance. With less than 5%, a guarantor or an eligible government scheme may help, and a broker can check which applies to you.
LMI is a one-off insurance premium that protects the lender, not you, when you borrow more than 80% of the property value. It is usually added to the loan. Some professions and government schemes can avoid it.
Yes. Most lenders want 2 years of tax returns, some accept 1 year of financials, and low doc lenders can use BAS or bank statements instead. The Quick Check flags under 2 years so your broker goes straight to lenders that accept it.
Some lenders lend to temporary visa holders, usually with a larger deposit and depending on the visa type and how long it has left. Foreign investment rules can also apply, so your broker checks those for your visa before you look at properties.
See your LVR and how lenders will view you before any credit enquiry, then get a broker’s call back. No credit check.
NIK Finance Pty Ltd (ACN 685 393 917) is a Credit Representative (567387) of Finsure Finance & Insurance Pty Ltd (Australian Credit Licence 384704). This page is general information only and does not constitute financial advice. Consider your personal circumstances and speak with a licensed broker before applying for credit.