An Assessment Rate is the interest rate used when the lender is assessing the serviceability of your loan. It is generally higher than the rate of the product you are applying for. For example, if the product’s interest rate is 5%, they may assess you on your ability to pay off the loan if the (assessment) rate is at 7%.
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You may assume that your lender uses their standard variable rate when figuring out your borrowing strength. This isn’t true. Instead, they’ll use an assessment rate to work out how much you can borrow.
You can’t always get the amount of money you want when you apply for a home loan. Your lender takes a lot of things into account when working out your borrowing power.
Most lenders look at your employment history when considering your home loan application. They want to see that you earn a stable income and you’ve been in the same job for a while. This may make it hard to get a loan if you’re in your probationary period.