As housing affordability issues rise and APRA's new rule potentially reduces the average Joe's borrowing power, it's important that first home buyers and home owners alike wrap their heads around how much they can actually borrow. 

Recently, REA Group announced its partnership with open banking fintech Frollo to provide its users the ability to generate a 'Financial Passport', to help people understand their borrowing power. 

Aiming to provide users with financial insight early on in the home buying process, this tool allows buyers to get a 'real-time', 'accurate' and 'complete' grasp on their finances.

This free tool allows users to fully understand their income and expenses, and is set to make the home loan application process easier.

How does the Financial Passport work?

Frollo's Financial Passport is powered by open banking, and it works in three easy steps:

  1. The user connects their accounts using open banking or screen scraping;
  2. Frollo's AI tool collects and categorises data based on lending criteria;
  3. The user receives an 'in depth' financial profile detailing income, expenses, assets, and liabilities.

Once the report has been generated, it can be downloaded as a PDF. 

FrolloPassport.jpg

Source: Frollo

Why is a Financial Passport useful?

realestate.com.au is Australia's largest property finding platform, and the Financial Passport tool will allow buyers to understand their borrowing capacity early on in the buying journey.

This way, they can specifically search for properties within an affordable price range by knowing exactly where they stand financially.

Eloise Wall, REA Group General Manager, Digital Product & Innovation, said integrating the financial passport allows REA Group to continue their mission of changing how people experience property. 

"Tools like Frollo’s financial passport can help consumers understand their income and expenses and we’re confident that in the near future, these types of innovative open banking experiences will make the home loan application process easier," Ms Wall told Savings.com.au.

Ms Wall also said that it's important for first home buyers to have a solid grasp on their spending patterns and financial position before applying for a home loan.

"Lenders will use this information to determine their borrowing power," she said.

"Frollo’s Financial Passport gives buyers an easy way to access a complete and accurate picture of their finances."

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

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