What is a serviceability assessment?

When applying for an Unloan, a serviceability assessment is completed to ensure you can afford to repay your loan. We assess your serviceability by looking at a number of factors including your income, debts and expenses.  

How is serviceability calculated?

We calculate your loan serviceability by calculating your income, and subtracting your debts, liabilities and expenses.

Monthly Income – Monthly Household Expenditure (Repayments, Debts, Expenses)

Income

What’s classified as income?

To classify a payment as income, it must be considered as regular and ongoing. This income can come from a variety of sources, including:

• PAYG employment
• Self-employment
• Other income, such as rental income or government payments

Learn more about what kind of payments are classified as income, what’s excluded and how income impacts your serviceability assessment here.  

How do we verify your income?

Lenders will verify your income, to ensure it is accurate, in a number of ways, including:

• Account credits: checking your bank account statements to see how much money you have been paid
• Supporting Documents: providing us with documents such as payslips, tax returns, rental statements, and appraisals to verify your income

How do we collect income information?

You can provide your income information in a few ways, including:

• Entering it into the digital application
• Providing your income documents to a lender

Debts & Expenses

Debt and expenses are viewed as outgoing costs, and they are used to identify your household expenditure.  

What’s classified as debt?

Debt is money owed, and typically is a contractual agreement between yourself and another person or party. Examples include:

• Existing mortgages
• Credit cards
• Loans including personal loans, margin loans, HECS-HELP and more

Learn more about different kinds of debt here.

What is an expense?

An expense is a cost that goes towards your living costs monthly household expenditure, and can vary month on month. It covers a wide variety of costs and payments including:

• Food and groceries including dining out
• Utilities and maintenance costs such as strata, water and electricity bills, gardening and cleaning services and more
• Services such as phone, internet, and streaming providers
• Transport expenses such as car registration, insurance, tolls, petrol, public transport and Uber
• Medical, health and fitness expenses such as gym memberships, prescriptions, hair and beauty appointments.
• Entertainment such as movies, holidays, alcohol and more.

Learn more about what’s considered an expense here.

To find out more about Unloan, and your eligibility, click here.  

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.