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Saving a 20% deposit is the hardest part of buying a first home. A guarantor home loan can be a way around it — here's h...
19/06/2026

Saving a 20% deposit is the hardest part of buying a first home. A guarantor home loan can be a way around it — here's how it works.

A guarantor (usually a parent) uses the equity in their own home as extra security for your loan. They don't hand over any cash, and you still make all the repayments. Their guarantee simply tops up your security so the lender treats you as having a larger deposit.

What that can mean for you:
• Buy sooner — you may not need to wait years to save a full deposit.
• Skip LMI — getting your effective deposit to 20% can remove Lenders Mortgage Insurance, often saving anywhere from $15,000 to $35,000+.
• Borrow up to the full purchase price in some cases, with a guarantee in place.

It's important to be clear-eyed about the guarantor's side too. They're responsible for the guaranteed portion if repayments aren't met, it can affect their own borrowing capacity, and they should always get independent legal advice before signing. The good news: a "limited guarantee" can cap their exposure to just the shortfall amount, and the guarantee can usually be released once your loan drops to 80% of the property value — through repayments or price growth.

A guarantor isn't right for every family, but for many it's the difference between buying now and buying years from now.

Happy to walk you (and your potential guarantor) through how it would work in your situation.

General information only — not financial or credit advice.
Loan Worth is a Credit Representative (Credit Representative Number 498798) of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).

The RBA left the cash rate on hold at 4.35% this week — but it's worth being clear about what a "hold" actually means, b...
17/06/2026

The RBA left the cash rate on hold at 4.35% this week — but it's worth being clear about what a "hold" actually means, because it's easy to read it as good news.

A hold means rates stay exactly where they are. It's not a cut. After three back-to-back rises earlier this year (Feb, March and May added up to 0.75%), this pause simply means your repayments shouldn't change from this decision — the next Board meeting isn't until August.

So what does that mean for you?

If you've got a variable loan, this is breathing room, not a reduction — a good window to check your actual rate and make sure you're not drifting onto a lazy one. If you're a first-home buyer, lenders still assess you with a buffer on top of today's rates, so your borrowing power hasn't suddenly jumped. And with most economists tipping at least one more possible move later in the year, building a small repayment buffer now is smart either way.

The takeaway: a pause is a chance to get your loan in shape before the next decision — not a signal to relax.

Happy to run the numbers on your situation if it's useful.

General information only — not financial or credit advice.
Loan Worth is a Credit Representative (Credit Representative Number 498798) of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).

"We'll start saving once we hit 20%."It's the most common thing first home buyers tell themselves — and it's holding a l...
17/06/2026

"We'll start saving once we hit 20%."

It's the most common thing first home buyers tell themselves — and it's holding a lot of people back longer than they need to wait.

Here's the part most people don't realise: you don't have to have a 20% deposit to buy your first home.

Through the First Home Guarantee, eligible first home buyers can buy with a 5% deposit, and the government steps in so you're not charged Lenders Mortgage Insurance (that's the one-off cost normally added when your deposit is under 20% — it protects the bank, not you). As of late 2025 there are no income limits and no cap on places, so it's open to a lot more people than the old scheme was.

What that can look like in real numbers:
• 20% deposit on a $500,000 home = $100,000 saved up first.
• 5% deposit on the same home = $25,000.

Same house. A very different savings timeline.

A smaller deposit isn't the right move for everyone, and price caps and eligibility rules apply. But if you've been waiting to hit 20% before you even start looking, it's worth knowing the door might already be open.

Happy to walk you through the numbers for your situation — no pressure either way.

General information only — not financial or credit advice.
Loan Worth is a Credit Representative (Credit Representative Number 498798) of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).

A lot of people think the living-expenses figure they write on a home loan application is just a formality. It isn't — a...
10/06/2026

A lot of people think the living-expenses figure they write on a home loan application is just a formality. It isn't — and getting it wrong can cost you either way.

Here's how lenders actually do it. Most start with a benchmark called the HEM (the Household Expenditure Measure), which estimates typical spending for a household like yours. Then they take the HIGHER of that benchmark or the expenses you declare. So writing down an unrealistically low number doesn't help — the lender just uses the benchmark instead. But declaring more than the benchmark? That can quietly shrink how much you're allowed to borrow.

And these days they check. Lenders commonly review a few months of bank statements, and regular commitments — subscriptions, Buy Now Pay Later, even a gym membership — get counted. Missed payments on things like BNPL can also show up on your credit file.

The honest takeaway: you can't game your living expenses, but you can get loan-ready. A tidy few months of statements, fewer small recurring commitments, and a realistic, accurate expense figure usually present far better than trying to look frugal on paper.

Happy to look over your numbers and show you what a lender would see before you apply.

General information only — not financial or credit advice.
Loan Worth is a Credit Representative (Credit Representative Number 498798) of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).

"You need a 20% deposit to buy." It's one of the most repeated lines in property — and it's not actually true.Here's the...
09/06/2026

"You need a 20% deposit to buy." It's one of the most repeated lines in property — and it's not actually true.

Here's the real picture. Lenders will often lend with a much smaller deposit. The catch with a low deposit has traditionally been Lenders Mortgage Insurance (LMI) — a one-off cost that protects the lender (not you) when you borrow with less than 20% down. On a typical purchase it can run into the tens of thousands, and it's usually added to your loan.

So the question isn't only "can I buy with 5%?" — you often can — it's "what does the low deposit cost me, and is there a way to avoid that cost?" There are a few: government schemes that waive LMI for eligible first home buyers, family guarantees, and lender-specific offers. Which one fits depends on your situation.

The takeaway: a smaller deposit can get you in the door sooner, but the structure around it matters just as much as the number. Worth understanding before you start saving toward an arbitrary 20%. Happy to map out what your deposit could actually unlock.

General information only — not financial or credit advice.
Loan Worth is a Credit Representative (Credit Representative Number 498798) of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).

The Reserve Bank meets again on Tuesday 16 June, and there's a fair bit riding on it. Here's the plain-English picture.T...
09/06/2026

The Reserve Bank meets again on Tuesday 16 June, and there's a fair bit riding on it. Here's the plain-English picture.

The cash rate is 4.35% right now. It's climbed three times this year — in February, March and May — which together undid all of last year's cuts. Higher fuel and commodity prices have been feeding into inflation, and that's what the RBA is responding to.

For June, the experts don't agree. Commonwealth Bank and economist Saul Eslake think the Bank will hold steady; Westpac is tipping one more rise to 4.60%; NAB says stay cautious. Nobody knows for certain — which is exactly why it's worth understanding the mechanics rather than the prediction.

What a change actually means for you: on a $600,000 variable loan, a 0.25% move shifts repayments by roughly $90–$100 a month. So a hold means no change; a 0.25% rise would add around that much. Knowing your own number — your loan size, your rate, your buffer — matters far more than guessing the Bank's call.

A couple of things worth doing before the 16th: check whether you're still on a competitive variable rate, and look at how a 0.25% rise would sit in your budget. If you'd like, I'm happy to run your numbers so you know exactly where you'd stand either way.

General information only — not financial or credit advice.
Loan Worth is a Credit Representative (Credit Representative Number 498798) of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).

Ever heard a lender talk about your "DTI"? Here's the plain-English version.DTI = debt-to-income. It compares your total...
05/06/2026

Ever heard a lender talk about your "DTI"? Here's the plain-English version.

DTI = debt-to-income. It compares your total debt to your gross (before-tax) income. So if a household earns $150,000 and wants to borrow $900,000, that's a DTI of 6.

Since February 2026, there's a new rule worth knowing: banks can only let loans at a DTI of 6 or higher make up 20% of the new home loans they write each quarter. Think of it as a speed limit, not a roadblock — these loans still happen, banks just can't write too many of them at once.

What it means for you:
- Most owner-occupiers and first-home buyers borrow well under 6x their income, so this won't touch you.
- It mainly affects people borrowing a lot relative to income — often investors with several properties.
- Timing can matter: if you're a high-DTI borrower, a lender may be closer to its quarterly cap at some times than others.

The bigger takeaway: how much you can borrow isn't just about your deposit or the rate — it's about how your income stacks up against your total debt. Knowing your rough DTI early helps you set realistic expectations before you fall in love with a property.

Curious where you'd sit? Happy to run your numbers — no pressure.

General information only — not financial or credit advice.
Loan Worth is a Credit Representative (Credit Representative Number 498798) of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).

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