Glossary + Tips

Property purchase price

Select the property budget

Your cash deposit

The amount of cash contributed toward a property purchase.

Tip: Keep cash aside for upfront cost

Your Estimated Payments

The amount is the sum of the home loan monthly payments and AffordAssist DDA monthly payments due after completion.

Upfront cost

In addition to a cash deposit, there are other upfront costs to budget for.
The following have not been included in the payments calculator.

Property acquisition costs related to a purchase vary across Australia. Purchase costs may include; loan/ lenders fees, registration of mortgage, registration of transfer, government stamp duty, conveyancing fees, depreciation report, and overseas buyer’s premium (taxes).

Tip: These costs are not considered in this calculator. Keep cash aside from your cash deposit to cover the upfront cost.


Create your own specific home loan and AffordAssist deposit scenario. By using the Scenario options, different loan types and deposit amounts can be added to easily demonstrate varying scenarios.

Home loan

Property value

The home loan lender assigns a property valuer to provide a report with their professional opinion of the selling price and rental. Lenders generally have a number of valuers on their panel. The property value noted within the report is used by the lender to determine their maximum loan amount against the property value.

The value noted in the report is a professional opinion of the property valuer.

Valuations are not an exact science, it is not unusual for a valuer to have a differing professional opinion to another valuer. I,e within the industry it may be possible to see variances of 5%.

Loan (LVR%)

LVR stands for a Loan to Value ratio and is a percentage figure relating to the value of a loan in relation to the asset purchased by the loan. Leading mortgage aggregators / financial institutions determine LVR’s on the property type / size or method of purchase, such as:

  • Typical property LVR’s are 80%
  • Studio units are typically under 50 square metres and are treated with approximately 60% LVR
  • SMSF property purchases are approximately 70% LVR

Entering a Loan to value (LVR) figure will alter the loan amount.

Loan amount

The loan type (LVR%) and the property value determine maximum loan amount.

Loan term

A set period of time relating to the repayment of a Loan amount. This period of time is typically up to 30 years within Australia.

Repayment type

The two common loan repayment types being Principle & Interest and Interest Only.

Principle & Interest: Monthly repayments are calculated on the total repayment of the Loan amount within the nominated Loan term.

Interest Only: Monthly repayments are calculated on payment of the interest only, therefore, the Loan amount will not reduce over the Loan term.

Interest rate (%)

A monetary percentage rate that is charged on the 1st Mortgage loan amount to calculate monthly payments.

The default value Principle & Interest rate is a competitive current market rate that is sponsored by a leading mortgage aggregator / financial institution. This rate is used to calculate the Principle & Interest monthly repayments.

The default value Interest Only rate is a competitive current market rate that is used to calculate the Interest Only monthly repayments.

LMI estimated (%)
LMI value

A Housing Policy was introduced into Australia in 1963 by Sir Robert Menzies. The policy included Loan Mortgage Insurance (LMI). LMI is a one-off premium added to a loan allowing borrowers to have less than 20% deposit and protect the lender against any loss they may incur in the event a borrower is unable to repay a loan.

LMI applies to all loans above 80% LVR. Some lenders use the term risk fee, in essence it serves the same purpose.

The estimated percentage (%) is determined by a number of factors ie, LVR, loan amount, property purchase price. The premium increases in relation to these factors. Example, the premium on 81%LVR would cost less than 95%LVR. For example a 90% loan, typical LMI is estimated at 2.25 of the loan amount.

By selecting:

  • None, LMI is not applicable
  • Included, LMI is included in the loan amount
  • NPlus loan, LMI is added to the loan amount

Available funds

Available funds is the loan amount less the LMI premium where applicable

Monthly payments

The amount payable per month for the Loan terms and Repayment type selected

Deposit summary

Property purchase price
less property value,

This amount where applicable is added to the loan-deposit amount needed. The AffordAssist DDA has provision for the deposit amount to be increased.

Tip: Buyers and Sellers struggling to settle existing purchase agreements, due to valuation or other factors around loan-deposit shortfalls may benefit by using the AffordAssist.

Loan-deposit amount,

Is the loan-deposit amount needed, including LMI where applicable. This amount is needed to obtain a home loan.

AffordAssist Deposit solution

Purchase type

Select one of the following:

  • First home owner
  • Investment
  • Owner occupied

Stamp duty may be applicable on your property purchase. First home buyers, please refer to FHOG below. Investment and owner occupiers would need to consider the stamp duty obligations.

This calculator does not include stamp duty in the calculations

First home owner grant

The first home owner grant scheme (FHOG) conditions and cash grant amounts vary across Australia.

Typically FHOG has two parts. A stamp duty free, up to a certain property price and a cash grant applicable for properties within a certain price.

In some cases, the cash grant is increased for regional locations.

Please click here for details pertaining to your property purchase location http://www.firsthome.gov.au/

Other grant

Additional cash grants to the FHOG may also be available in certain locations.


Applicable where developers and or property sellers offer a rebate after settlement.

AffordAssist deferred
deposit agreement (DDA)
DDA amount as percentage
of property purchase

This amount is the balance of the loan-deposit amount needed to satisfy a lender to obtain a home loan. The balance takes into consideration where applicable government grants and buyers cash deposit.

Interest free term

The total DDA payment term agreed to by the property seller. Typically AffordAssist approved properties have a 60 months term. These terms may be reduced where the DDA amount is small or increased to allow lower monthly payments. Each applicant is assessed separately. Terms may and have varied from 12 months to 144 months. Always interest free.

Is the property
off-the-plan / still being
built ?

Payments towards the DDA amount start 1 months after exchange of contract of sale and or 1 month after completion/ settlement of contract of sale.

Tip: Buying off-the-plan, there are no home loan monthly payments during the construction period. Home loan monthly payments start within 1 months of loan settlement/ property completion. This could be an opportunity to make larger payments towards your AffordAssist DDA amount. Thus increasing the deposit monies held in trust and reducing DDA balance and monthly payments after settlement/ property completion.

Property due to complete
in (months)

Estimated months to complete the build.

Minimum monthly
amount payable during

The amount a buyer is able to pay during the construction period. Where the property is still being built, payments may start towards the DDA amount. These are added to the deposit held in trust.

Additional funds paid into
trust account and fully
applied to settlement

These monies are paid directly into a nominated trust account and serve as part of the deposit held in trust and applied towards total funds for settlement.

Tip: The more that is paid outward the DDA amount during the period reduces the monthly payments of the DDA balance after settlement.

Property Deposit Summary

Balance paid after
settlement / completion

The DDA amount less any monies paid into trust during the off-the-plan period.

Payable within

The total DDA less any off-the-plan period.

Monthly interest free

The DDA less any monies paid into trust during the off-the-plan period equally payable within the remaining period after completion/ settlement.



View a scenario on a graph. Showing deposit needed to secure a loan with and without AffordAssist


Save a scenario into My Scenarios; view in table format and for comparison.

My Scenarios

Provides the functionality to view and update multiple scenarios for comparison.


Copy the url link for a scenario. This link may be accessed/ updated at a later time. 


An email with a scenario url link, will be sent to receiver’s email. This link may be accessed/ updated at a later time.


Non mandatory text fields provide the option to personalise into a PDF Scenario Report. This report includes the Conditions of use and the option to exclude the glossary of terms.


An email with a PDF Scenario Report may be shared by a user.

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