Frequently Asked Questions

An offset account is a transaction account linked to your mortgage/loan account. You should consider using this account for all salary/income/rent to flow though this account. The more money you have in this offset account the more you save on interest since your own funds offsets the mortgage/loan account.

A savings account is also a transaction account however not linked to your mortgage/loan account. Traditionally banks will offer you a low interest on your savings balance which will become taxable, meaning you have to pay Tax on it. Ideally if you have a mortgage, the benefits of having an offset account instead of a savings account is far greater.

In our opinion, investment property loans are a “good loan” – why? Because it helps reduce your taxable income thus paying less tax. The interest on these loans are generally tax deductible (please confirm with your accountant) reducing your net declared income from your investment properties. This is also referred to as negative gearing.

In our opinion owner-occupied home loans are a “bad loan” – why? Because they are not tax deductible and need to be paid from your after-tax income. Therefore, we always recommend and strategise with our customers to find ways to pay off their home loans as soon as possible.

This is an interesting one. Many of our clients get this wrong. Equity on your property is not the difference between property value and the loan amount. Equity is determined by the lender’s LVR policy. This means if your house is worth $1,000,000 and the current loan on it is $500,000 with lender’s policy of up to 80% LVR, then the equity on your property is $300,000. (Calc -$1,000,00 @ 80% LVR = $800,000 – $500,000 = $300,000). Your Equity may differ from lender to lender depending on their LVR policy.

Lender’s Mortgage Insurance (LMI). This insurance protects the lender if customers default on their loan. Typically banks/lenders will charge LMI if the LVR is over 80%, i.e. if customers don’t have at least 20% deposit towards the loan. We personally are not in favour of customers paying LMI however in some cases it’s unavoidable.

Loan to Value Ratio (LVR). If you purchase a property for $500,000 and you only have a 10% deposit or $50,000, you will need a loan of $450,000 or 90% LVR.

Loan to Value Ratio (LVR). If you purchase a property for $500,000 and you only have a 10% deposit or $50,000, you will need a loan of $450,000 or 90% LVR.

Generally, a deposit of at least 20% is ideal to avoid paying Lenders Mortgage Insurance (LMI), but some lenders allow as little as 5–10% with conditions.

Yes - refinancing your home loan can help you access a better interest rate, restructure your loan, or access equity for other financial goals.

Most lenders require ID, income documents (payslips or tax returns), bank statements, and details of existing assets or liabilities.

Most lenders require ID, income documents (payslips or tax returns), bank statements, and details of existing assets or liabilities.

Yes — self-employed borrowers can absolutely apply for a home loan. At Clear Finance, we help with home loans for self employed Australians who may not have traditional income documentation like payslips. We work with a wide range of lenders who offer flexible options based on tax returns, BAS statements, or business bank statements, and we help package your application to give you the best chance of approval.

If you’re self-employed, you may not need payslips to apply for a loan. Many lenders offering home loans for self employed borrowers can assess your income using alternative documentation such as business bank statements, financial reports, BAS statements, or a signed accountant’s declaration. At Clear Finance, we help structure your application to suit lender requirements and maximise your chances of approval.

Medico finance is a type of medical finance tailored specifically for medical professionals. It offers benefits such as more competitive interest rates, higher borrowing capacity, and in some cases, waived Lenders Mortgage Insurance (LMI). These specialised loan products are designed to support doctors, dentists, and other healthcare professionals throughout their careers.

Yes, Clear Finance can assist with loans for setting up, acquiring, or expanding a medical or dental practice, including fit-out, equipment and working capital.

Medical equipment finance is a loan used to purchase specialised medical, dental or diagnostic equipment for your clinic or practice.

Private lending is non-bank finance, typically used when traditional lenders can’t offer a solution. It’s often faster, more flexible, and useful for complex or urgent funding needs.

Private equity finance is funding provided by investors or firms in exchange for a share of equity in your business or investment project.

Disclaimer: Your complete financial situation will need to be assessed before acceptance of any proposal or product.