Loan Products

Once you have a need to borrow funds, we'll find the most suitable loan product/s for your personal requirements. What is your situation?

Buying Your First Home

The NSW Government will discontinue the $7,000 First Home Owner Grant where the eligible transaction is dated on or after 1 October 2012. The $15,000 First Home Owner Grant (New Homes) scheme commences on 1 October 2012 for all new home purchases.

Banks and non-banks will lend up to 80% of the purchase price or the valuation (whichever is lower) without charging Lenders Mortgage Insurance (LMI). LMI enables First Home Buyers to borrow up to 95% of the value of the property. However, LMI can be expensive (up to 3.3% of the loan amount). Usually the lending institution will allow you to capitalise the LMI (i.e. add onto the loan) up to 2%. You can avoid the cost of LMI with family assistance. A family member (mum, dad, brother or sister) can offer their property as security to reduce the lending ratio to 80%.

We will also assist you with completing the First Home Owners Grant application form and have the funds available at settlement. At Baker Financial we will review all options to ensure you have the right loan structure to suit you.


i.e. selling your existing property and purchasing a new property

Many purchasers sell their existing property before they purchase/settle on a new property. Quite often, settlement of both the new property and existing property occur on the same day.

However, some purchasers exchange on a new property before they sell their existing one. Lenders have now developed products that allow you to fund 100% of the new property while still having a mortgage on the existing property and have up to 6 months to sell.

You may have a competitive fixed rate loan on the existing property that you wish to retain. We can show you how this can be done even if you settle on your existing property before you settle on the new property.

You may need to increase or reduce your current mortgage.

Whatever your situation, we can work with you to identify what is best for you.

Investing in Property

When investing in property, it is important to understand the cash flow requirements and the tax benefits.

At Baker Financial we can develop a personalized cash flow analysis that enables you to understand the impact an investment property may have on your monthly cash flow. You may be able to claim the tax benefits monthly, which reduces your tax payable.

Some clients plan to switch their owner occupied property to an investment property in the future. It's important to consider this when taking out a loan. We can show you the best loan structure to ensure maximum tax deductibility once you switch to the investment structure.

Building or Renovating

At some stage, we all complete renovations, whether they are large or small. Often purchasers wish to do renovations soon after settlement. It is important to understand the mechanics of funding the cost of building or renovating and what the lending institutions requirements are. Council plans may need to be approved, fixed price contracts may need to be in place, valuations may need to be completed on the end valuation.

Some lending institutions will allow "owner builder" construction which may suit some borrowers. At all times the lending institution will want to control the disbursement of funds, ensuring that there are enough funds to complete the renovation/construction.

We are available to review all aspects with you.


The loan that was right for you 5 years ago may not be the right loan for you now. We have software that enables us to compare different loan products which we can email directly to you (limited to 5 loans at any one time).

Consolidating various loans, including personal loans and credit card debt can often result in a significant cash flow benefits and savings.

We can develop a spreadsheet to identify the benefits to you by comparing your existing structure to the proposed loan structure, including all associated costs. An additional service we provide is to negotiate a better rate with the lender which can result in significant savings.

Try our service; it's free with no obligation on your part.

Low Doc Loans

At times you may not be able to prove your income to service the required loan. These loans usually apply to self-employed borrowers; however some lenders have Low Doc Loans for PAYG borrowers.

Normally Lenders Mortgage Insurance (LMI) applies to loans above 60% lending ratio and the maximum lending ratio is 80%.

Usually a borrower needs to be self employed for 2 years before they can apply for a Low Doc loan. Some lenders have a product which only requires an ABN for 1 day; however the lending ratio is reduced to 40% maximum.

We will work with you to identify the best loan for you. We also ensure you have the ability to service the total loan facility.

Non Resident Loans

These loans fall into 2 categories:

  • Expat loans - i.e. Australian citizens living and working overseas.
    Expats lending rules vary from lender to lender. Some lenders will only allow a maximum lending ratio of 80% while some will allow up to 90%. Usually these properties are purchased as investments until the purchaser returns to Australia, so it's important to set up the correct loan structure from day 1.
  • Overseas residents - (i.e. non Australian citizens).
    Unfortunately non-resident's cannot obtain a home loan in Australia.

    We will work with you to identify the most appropriate loan structure for you.

 If you are an expat or overseas resident and require help in finding a property to buy in Sydney then go to


Working out where you stand with your finances and investments can be a challenge. There may be underlying factors involved in how much you can borrow so leave this to the experts.  Contact Us and use our expertise to structure your loan and often negotiate a better interest rate.


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