
No, FrontYa cannot force a sale on your home.


Can FrontYa force a sale on my home?


Yes! FrontYa looks to partner with people who are looking to maximise their purchasing power by FrontYa doubling the savings to fund the deposit and stamp duty. This is in exchange for 25% of the property's future appreciation over the initial 6 years after purchase or sooner. If you have saved 5% and meet our pre-approval criteria, we may be able to get you into your dream home quickly.


Can FrontYa help me get into the property market if I've saved 5% of the intended purchase price?


At this stage, FrontYa is available exclusively to those looking to buy a property as an owner-occupier or their primary place of residence. Should you wish to purchase an investment property using FrontYa, please sign up for our newsletter at the bottom of this page to stay up to date with our latest product offerings.


Can I buy an investment property with FrontYa?


Yes! FrontYa can be used for customers acquiring their property either via an auction or a private sale. Note that our "Entry Price Limit" applies to your purchase, which you can read more about in these FAQs or our Product Guide and Terms (provided upon customer FrontYa pre-approval). This will be explained to you in more detail prior to the big auction day via the Bidding Schedule.


Can I buy via auction or a private sale?


You have full ownership of your property and can make any changes that you'd like. However, FrontYa will not contribute to the costs of any improvements / renovations. If the property appreciates as a result of any improvements made, this will be to the benefit of both the homeowner and FrontYa.

You must get approval from FrontYa for any renovation plans exceeding $10,000. We will approve almost all renovations unless they're truly detrimental to the value of the property.

Can I make changes to the property once I've moved in?


FrontYa will only fund one property per customer at a time.


Can I purchase several properties with FrontYa?


Yes! There are several State and Federal sponsored schemes that will contribute funds towards a purchase or waive certain costs such as stamp duty. FrontYa can work with customers who are entitled to these benefits in buying their home. However, we require a customer to provide a minimum contribution of 5% of the property's purchase price from genuine savings outside of Government contributions.


Can I use FrontYa alongside existing Government incentive schemes such as the First Home Owner's Grant?


FrontYa funds can only be used for the deposit and stamp duty. The buyer is exclusively responsible for any fees associated with legals, reports, accounting, tax and other ancillary costs. LMI is typically capitalised into the loan.


Can I use FrontYa for the other costs associated with buying a house such as stamp duty, LMI and legal fees?


FrontYa will assess each application on its merits and we encourage you to contact us if you think FrontYa may be of benefit to you.

Can I use FrontYa if I am self-employed?


Generally in Australia, LMI is required if your LVR is above 80%. By partnering with FrontYa, you may be able to reduce the LMI required or in some cases, remove it altogether. It is important to note however, that the LMI payable varies between lenders, and so each case may be different.


Can I use FrontYa to avoid paying LMI?


Yes! If you have a partner, spouse, relative or other person that is purchasing the property as an owner-occupier, you can jointly apply for FrontYa.

Can I use FrontYa to buy a home with someone else?


While we work with a large number of FrontYa Accredited brokers, we can certainly work directly with you too.

Ultimately you will need to secure a loan, which can be done through a mortgage broker (they are very helpful and are generally at no direct cost to you) or directly with a lender. We can provide an introduction to our panel of preferred lenders should you require.


Do I have to go through a mortgage broker to use FrontYa or can I do it directly through you?


At FrontYa, we recognise that life can bring unexpected challenges. If you've been with us for more than six years, we understand that our annual 2% share increase might become burdensome during a period of hardship.

With that in mind, we offer the following hardship policy:
If your home loan provider has approved your financial hardship application, FrontYa will pause our 2% share increase for 12 months should you cross the six-year point with us. Our goal is to support you during tough times.


Do you have a hardship policy?


The starting price of the property does not include stamp duty and other purchase costs. The starting price will be the lower of the purchase price of the property or FrontYa's Entry Price Limit.


Does the starting price of the property include stamp duty and other purchase costs?


This is getting exciting! It's important that you understand how the auction process impacts FrontYa's position, including the "Entry Price Limit". Your FrontYa Account Manager will explain the details to you and also provide you with a "Bidding Schedule" that will clearly explain our position and your maximum purchase price on the day.

Lastly, if you are bidding at the auction and are successful, you must be able to pay the deposit as agreed in the Contract of Sale. As such, FrontYa recommends that you pre-negotiate that the contract be amended to a 5% deposit, which you will pay with your own savings. FrontYa, subject to the T&C's of the offering, will then contribute its funds on settlement day.

We know there's a lot to digest here and your Account Manager will work with you prior to auction day to work through the details.

FrontYa has approved me as a client and auction day is fast approaching. What's next?


We'd love to hear from you! Please complete the Contact form [here](/contact-us).

How do I contact FrontYa?


The FrontYa contract (Product Guide and Terms) including all relevant disclosure documents will be made available once you are pre-approved as a potential FrontYa customer. You can apply for FrontYa customer pre-approval [here](https://portal.frontya.com.au).

How do I read the FrontYa contract?


There is really no comparison.

With FrontYa, the home is yours from the day you move in, and you don't pay on-going dead rent. We are investing in you and your property - no monthly payments, no ongoing fees, no shared ownership of the house. Feel free to do the maths on our offer vs. other schemes - we're that confident you'll see which is better for you!

How does FrontYa compare to other help-to-buy offers?


The home's increase in value is the growth your home experiences from the day of settlement to the day you pay the funds to exit FrontYa.

The starting price of your home is the purchase price and does not include stamp duty, LMI, or other ancillary charges like legal fees or inspection reports. Importantly, if your purchase is subject to an Entry Price Limit, the home's increase in value will commence from the lower of this value and the actual purchase price.


How does FrontYa define the home's increase in value?


FrontYa has several policies and procedures in place to ensure that there is full trust and transparency in the transaction for all parties involved. We have the client's best interest at heart and want to ensure that they understand the full agreement before entering into the partnership.

The measures in place to mitigate any harm and detriment include:
- Flexibility with utilising Buybacks and choosing the exit timing
- Encouraging professional financial, legal and taxation advice
- Checkboxes in all client contracts to ensure clients acknowledge their understanding of the terms in the contract
- Quarterly client statements that report the size of FrontYa's current position, time until the six-year mark and reminders of useful features (eg. Buybacks)


How does FrontYa protect clients from any potential harm and detriment?


Once you're a qualified homebuyer, FrontYa provides half of your purchasing funds (the deposit and stamp duty) to boost your purchasing power. We then help you buy smarter, using data and analytics to confirm you’re buying a dream home with good growth potential.

While it’s our job to get you on your property journey as soon as possible, we don’t want to hang around any longer than you need us. So, as soon as you’re ready to go it alone, you can sell or refinance at any point (typically within 6 years) from the day your property settles. When you do, you pay us back our initial contribution plus 25% of any increase in the home’s value up to then. It’s that simple!

How does it work?


Any Buybacks will be beneficial for you as it will reduce the cost at exit! This is because:
- FrontYa’s future share of the property will reduce
- The FrontYa investment will reduce by the total amount of Buybacks made (the amount leftover from FrontYa's initial contribution that has not yet been paid)

How does paying my FrontYa early reduce the cost I need to pay to exit FrontYa?


Your approval as a FrontYa customer lasts for a period of 3 months. If you have been approved as a FrontYa customer but have not purchased a house within the 3 month period, please contact us 2 weeks prior to the 3 month period expiring so we can look at options to extend your FrontYa approval.

If your customer pre-approval lapses, you are free to re-apply.


How long will my customer approval period last for and can this be extended?


FrontYa are equal deposit partners with you and will generally match the savings you are contributing to the home purchase.

For example, if you have $100k in savings for a home purchase, FrontYa will provide an additional $100k to unlock more of your borrowing potential.


How much can FrontYa contribute towards my home purchase?


We'd love to help you on your property journey. Fill in your interest [here](/contact-us) so that you can book a phone call in with our friendly team.

I can't find the answer to my question and would like to book in a time to chat with a FrontYa team member?


We can potentially still assist. As tenants have certain legal rights, including the ability to stay in their premises for the duration of their lease, you may not be able to simply ask them to leave if you're successful in purchasing the property. If you intend to move into the premises when the lease expires, we encourage you to reach out to us for a chat so we can explore options together.


I do intend to live in the property, however it is currently tenanted and as such I will only be able to move in in the future. Can FrontYa still assist?


We're here to get you into the property market and your dream home, but not to hold onto you forever. If you're ready to exit FrontYa's position prior to 6 years, that is super news and we're here to help you do so.

It is important to note however that there is a mechanism in place to disincentivise using FrontYa as short-term bridging finance. If you exit within three years without selling your property, there is a minimum growth rate applied to the property for the purpose of calculating FrontYa's share of the growth. This equals the Entry Price (lower of the Purchase Price and Entry Price Limit) with an annual growth rate of 5.5% p.a. compounded daily. If the property has grown faster than this value, then the actual property value is used for calculating FrontYa's share of the growth.


I know that I'm able to partner with FrontYa for 6 years, but what if I'm ready to exit FrontYa's position earlier than 6 years?


FrontYa partners with qualified homebuyers to provide 50% of the deposit and stamp duty in exchange for the return of our initial contribution, plus 25% of the home's increase in value (FrontYa Return). We only make money when your home appreciates - a true win-win for all parties.


I understand that this will help me, but what's in it for FrontYa?


Yes and yes! Buybacks are a completely optional incentive repayment program that can be used at the customer’s discretion. Any early payment of FrontYa's initial contribution, no matter how small or large, is rewarded with a reduction in the FrontYa Return (FrontYa's future share in the property's growth in value).


If I have excess money available to me within the 6 year period, am I able to use it to repay some of the FrontYa contribution? Is there any benefit to me in doing so?


Yes! We understand that you may have owned a property before but are now looking to get into a bigger property or simply back into the market. We're here to assist you on your property journey, regardless if this is your 1st purchase or your 101st purchase (but we'll only fund one of your properties at any given time).

I'm not a first home buyer - can I still use FrontYa to buy a home?


ASIC have provided FrontYa with confirmation of their view that the FrontYa product is not a debt regulated under the National Consumer Credit Protection Act 2009 (Cth) (*NCCP*), nor a financial product under the Corporations Act 2001 (Cth).

While FrontYa is not regulated by NCCP, FrontYa still acts like a regulated entity through adopting the same RG209 Responsible Lending Requirements during customer underwriting, publishing a [Target Market Determination](https://frontya.com.au/tmd) and operating an Enterprise Risk Management Framework with governance committees.

You can read our [Product Guide and Terms](/product-guide) for more information. You can also read our [Privacy Policy](/privacy-policy) and [Terms of Use](/terms-of-use).

Is FrontYa regulated?


FrontYa's financial contribution is typically equivalent to the savings that you are looking to allocate towards your deposit and stamp duty. FrontYa is generally looking to commit a minimum of $50,000 per property and a maximum of $300,000, although we can and do make exceptions to these guidelines. You may contact us, or your mortgage broker, to explore our solutions and how this may benefit you.


Is there a minimum and maximum that FrontYa will contribute to my purchase?


It's important to seek guidance from your mortgage broker for your individual set of circumstances. As general advice, Lender's Mortgage Insurance (LMI) can be used as a powerful tool in getting maximum benefit from your deposit. It's also worth noting that LMI can also be "capitalised" into your loan and paid off over the life of your loan, along with the debt associated with the property itself. Lastly, some individuals may be exempt from LMI as a result of having certain qualifications or being active in a certain profession. Chat with your mortgage broker to explore your individual set of circumstances and how LMI affects you.


Lenders Mortgage Insurance (LMI) seems expensive. Is it worth it and do I have to pay it?


No, FrontYa is not debt and it does not impact serviceability. There are no monthly repayments, no ongoing fees and no need for personal guarantees. This means you will only ever need to pay us back from your home equity and never your personal savings.

The beauty of our approach is that our interests are aligned: we make money when you make money - when your home increases in value. If your home’s value doesn’t grow, you don’t owe us a cent more than our initial contribution provided you sell or refinance within 6 years.

And, unlike debt products, partnering with FrontYa doesn't reduce your borrowing capacity!


So is FrontYa's contribution regarded as debt?


We want to solve housing affordability, not fuel the problem further. When designing our product, we were conscious to structure it in a way that mitigates the effect of adding more capital into the housing market. Mitigation is achieved via two ways:

- Every FrontYa approved property comes with an Entry Price Limit that incentivises customers to buy good value properties and discourage over-paying.
- FrontYa funds our investments from those wanting exposure to the property market. At scale, this is simply a re-allocation of property funding from those who are currently going out and buying investment properties. This means property investors no longer need to compete with first time homebuyers and rather can allocate their capital to helping them.

Wait, isn't FrontYa going to fuel the property market growth even further?


Whether you’re a first home buyer trying to enter the property market, or an existing homeowner looking to upgrade, FrontYa can be beneficial! Some key benefits of the partnership include:

- Ability to create more equity in your property (even after paying us out)
- Losses are limited by the property, so if there isn't enough capital in the property to pay us back after repaying the mortgage, then FrontYa will take the loss and it does not extend to you personally
- No ongoing fees, compulsory repayments, interest or personal guarantees
- Flexibility and optionality where you can reduce FrontYa's share by making Buybacks and you can choose when and how to exit FrontYa
- You are the owner
- You get to choose your property across Australia
- Purchasing your dream home today rather than purchasing something smaller today and having to upgrade in the future


What are the benefits of using FrontYa? Is FrontYa a good financial investment?


FrontYa's settlement costs on Exit are payable by the client. The Settlement Cost on Exit is $565 to $1,199 (as of 30 June 2023), depending on the property's State of Territory.

On Exit, there is also a FrontYa Service Charge which is 3.75% of the FrontYa investment. For example, if FrontYa provided you with $100,000, the Service Charge would be equal to $3,750.

What are the exit costs or fees, if any, in engaging with FrontYa?


There are no ongoing costs or fees in partnering with FrontYa and there are no obligations to make any payments to us within the 6 year period. There is a completely optional Buyback incentive that allows you to make optional payments if/when you want, which has the benefit of reducing the 25% FrontYa Return.

We designed FrontYa so you're free to enjoy your home with no additional payments within the 6 year term of the FrontYa offering.


What are the ongoing costs, if any, in partnering with FrontYa?


FrontYa's settlement costs on Entry are payable by the client. The Settlement Cost on Entry is $728 to $1,834 (as of 30 June 2023), depending on the property's State of Territory.

There are no other upfront costs or fees in partnering with FrontYa.


What are the upfront costs or fees, if any, in engaging with FrontYa?


FrontYa is not for everyone. To qualify, we are generally looking for people who can display evidence of serviceability growth over the next 6 years. We typically approve people with a good employment record and those who are likely to see income growth down the track. We also sometimes approve people who can demonstrate that their expenses are likely to reduce over the next 6 years.

You also need to have at least 5% of the property purchase price as genuine savings. If you think this meets your criteria, we'd love to hear from you.


What do I need to do to qualify as a FrontYa client?


Whether you come straight to us or hear about us through your mortgage broker, the process is similar.

If you are coming directly to us, you will fill in a Contact [Form](/contact-us). Once completed, you will receive an email with a link to book time to chat to our Customer Success team to cover any questions and to determine how we can assist you with your home buying journey. We will then direct you to our application form on our [Portal](https://portal.frontya.com.au) for FrontYa's assessment. You can fill in this form directly too without chatting to our team if you wish.

If you hear about us through your mortgage broker, if they are FrontYa Accredited, they can assist you with explaining how the product works, together with filling in the application on behalf of you.

The next step is to acquire pre-approval from a FrontYa lending partner, with assistance from a mortgage broker or directly with the lender. Once you have pre-approval, you can submit properties of interest for approval. Once your properties are assessed and approved by FrontYa, you are ready to go out and purchase your home.

The whole process may seem daunting, but don’t worry at all! Our team will hold your hand and guide you through it!

What does the high-level process look like?


If you sell the property for a loss, the proceeds are first used to repay your lender. The remaining proceeds then go to FrontYa until our initial contribution is recouped. Any further proceeds are kept by you. You are responsible for funding any sale costs including agent fees, and so it is a requirement that on the settlement table, we rank below the senior lender but above yourself or any other third party (e.g., real estate agent fees).

If having repaid your lender there are insufficient funds to repay all or any of FrontYa's initial contribution, we take the loss on our investment at no penalty to the customer.

What happens if the property market falls and there is now less equity in the home than at purchase?


That's great news - congrats! When you're ready to pay-out your FrontYa position, please log-in to your FrontYa portal to get the process started. This process will be determined by whether you're selling your house, refinancing your mortgage or using a windfall. We're here to assist throughout the process.


What happens when I'm ready to part ways with FrontYa?


The term of the FrontYa product, as per our T&Cs and disclosure document, is 6 years. With that said, we understand that life is unpredictable and even the best laid plans can sometimes take a different direction. As such, if you're unable to exit FrontYa's position after 6 years, FrontYa's share of the home's increase in value will grow by 2% for every additional year. For example, if you exit after 7 years, FrontYa's share will be 27% of the home's increase in value from the date you purchased the home with FrontYa.

Note that the FrontYa Return (FrontYa's share) is capped at a 50%.

Remember you can also make Buybacks of FrontYa's contribution to reduce our 25% FrontYa Return and the remaining amount to exit FrontYa. Utilising Buybacks over the course of your relationship with FrontYa will signficantly reduce that chance of not being ready to pay FrontYa back after 6 years. You can also make Buybacks after the 6 year mark to help pay-off and reduce your FrontYa position over time.

If you believe you're unlikely to be able to exit our position within 6 years, please contact us so we can discuss your circumstances. We are mutually aligned to having you exit FrontYa as soon as possible and we can explain all the options available to help you make the best plan possible to enable that.


What if I'm not ready to pay FrontYa back after 6 years?


If you have a change in circumstances that would mean you need to lease out your property, you need to let us know.

There is a Rental Charge of 0.5% p.a. added to the Exit Funds for each calendar day that the property is rented on a pro rata basis.

What if my circumstances change and I need to rent out the property?


Buybacks are a completely optional incentive payment program that can be used at the customer’s discretion. Any Buyback of FrontYa's initial investment, no matter how small or large, reduces the FrontYa Return (FrontYa's future share of the property’s appreciation). FrontYa's share reduces in proportion to the amount and timing of the Buyback made.

Buybacks can be made via PayID and FrontYa will explain how this works to you.

You can explore different Buyback scenarios using the calculator [here](https://frontya.com.au/buyback-calculator).


What is a Buyback?


A FrontYa Bidding Schedule outlines the purchase price that can be achieved for each incremental level of savings contributed by the customer.

The Bidding Schedule will clearly show the maximum amount of funds that FrontYa will supply. The Bidding Schedule will also clearly show the Entry Price Limit (a cap on the price at which FrontYa enters into the transaction). Provided the Purchase Price is within the range of the Bidding Schedule, FrontYa will still fund the transaction even if the Purchase Price exceeds the Entry Price Limit.

The Bidding Schedule is provided to you when your property is approved by FrontYa.


What is a FrontYa bidding schedule?


Invest in residential property via a Home Equity Investment Trust (HEIT&trade;). A HEIT&trade; enables you to invest in property without the headaches of being a landlord while targeting returns of 2x the performance of the Australian residential property index. Contact us to learn more about our Home Equity Investment Trust opportunity.

What is a Home Equity Investment Trust?


A Loan-to-Value ratio is a percentage that represents the amount that you are borrowing compared to the value of the property that you are purchasing.

For example, a Loan-to-Value ratio of 85% means that you are borrowing 85% of the property’s value from a lender.


What is a Loan-to-Value ratio or LVR?


A home loan with repayments of both principal and interest is one in which you pay interest and also repay the amount borrowed (principal) at the same time in each monthly repayment.

This loan type differs to an interest only loan where the bank agrees that you will not have to repay the principal amount for a period of time. It is important to note that FrontYa will only work with clients whose loan is structured as a Principal and Interest loan.


What is a Principal & Interest (P&I) loan and how does this compare to an Interest Only loan?


FrontYa secures their interest by lodging a caveat and second mortgage on the property at settlement (second charge). The second charge restricts clients from reselling, transferring or refinancing the property without FrontYa's written consent. FrontYa lifts the second charge when clients exit the product through a sale, refinance or windfall.

What is a second charge?


FrontYa is a "deposit booster" that helps close the deposit gap. The deposit gap is a pertinent problem that many Australians face when wanting to enter the property market. With strong wages and serviceability, many aspirational homeowners still lack the upfront funds necessary to unlock home ownership and utilise their full borrowing capacity.

FrontYa doubles your deposit and stamp duty funds, which increases your purchasing power, enabling you to access a higher value property that suits your lifestyle needs.

What is FrontYa?


Lenders Mortgage Insurance (LMI) is a one-off insurance premium that is usually added into your home loan and is designed to protect your lender (who provides you with your mortgage) against any loss they may incur if you are unable to repay your loan.

It's calculated based on the size of your deposit and how much you borrow, and generally kicks in if your deposit is 20% or less of the purchase price. Some professions are able to get their LMI waived because the lender is convinced they are not a default risk.


What is Lender's Mortgage Insurance or LMI?


Borrowing capacity refers to how much an applicant (or joint applicants) are able to borrow from the lender for their mortgage.

This capacity is typically based on the applicant(s) annual income less cost-of-living expenses and is determined by your lender based on their underwriting criteria and the interest rate offered.


What is my borrowing capacity and how is this calculated?


Purchasing power is the maximum purchase price that you can afford, based on several key inputs such as your savings and borrowing capacity.

Our handy calculator can be used to demonstrate your purchasing power (aka your maximum homebuying budget) with and without FrontYa. All you need to supply is your borrowing capacity (as determined by your lender/broker) and your savings. You can find it [here](/calculator).


What is purchasing power? And what is the FrontYa calculator able to show me?


This is the pointy end of the whole process – the day you take legal possession of your new home. The exact date is agreed upon between you and the seller and is then specified in the contract of sale.

FrontYa will attend the settlement process (digitally) to provide you with your FrontYa funds as part of the settlement process.

At settlement, FrontYa will also place the caveat and second mortgage on the property.


What is settlement day?


Stamp duty is levied by State Governments on a range of asset purchases, including property.

Each State has a different rate of stamp duty, ranging from 0-7% of the property value, which can land up being a hefty chunk of the funds required to buy your property.


What is stamp duty and how much does it cost?


FrontYa will agree to a maximum price point for a particular property which is supplied pre-purchase through the use of our proprietary automated valuation model (AVM). This price point will be deemed as the Entry Price Limit of the property, even if the customer decides to pay above this price.

Note: FrontYa will still fund purchases above the Entry Price Limit (provided it is within the maximum FrontYa investment), but this is the price we will recognise when calculating the home's increase in value.


What is the Entry Price Limit?


The exit price is the price of your home when you exit FrontYa. The exit price can be determined in one of three ways:

- If a sale: the value that your property achieves at sale (either via auction or private sale) and does not take into account any marketing costs, auction fees, capital gains tax or any other fees associated with the sale.
- If a refinance: the valuation of the property as determined by a third party professional valuer, in line with the independent valuation process.
- If a windfall: FrontYa will appoint a third party valuer, in line with the independent valuation process.


What is the exit price and how is it calculated?


Known as the FrontYa Return, FrontYa takes a share in the property's future increase in value, in return for their funding. The FrontYa Return starts at a 25% share of the property's growth from FrontYa's Entry Price (minimum of the Purchase Price or Entry Price Limit). The FrontYa Return can be reduced through Buybacks and if the client exits FrontYa after six years, FrontYa's Return increases by 2% each year (with daily vesting) up to a cap of 50%.


What is the FrontYa Return?


This process of valuation is used to determine the value of the property at exit if a sale does not occur (aka a non-sale exit). An independent valuer is sent to perform a valuation on the home. Both the customer and FrontYa have the option to contest the valuation, which triggers another valuer from the panel to perform a valuation. If the two values are within 5% then the average value is taken, if the two values are outside 5% then an additional valuer is sent. This process continues until there are at least two valuations within 5%. The final value is the average of all properties within 5%.


What is the independent valuation process?


Much like engaging with your mortgage provider, we need to ensure that we have a good understanding of who we're dealing with. As such, we will request that you provide us with a few pieces of documentation including your last two payment slips, your last two tax returns and references from your current and prior jobs. The good news is that you'll likely have much of this information on file from providing it to your mortgage broker, and it can simply be uploaded in your FrontYa customer portal for us to review. We promise to get back to you quickly with feedback too.


What kind of documentation will FrontYa be looking for to determine if I'm a suitable candidate?


FrontYa can be used for most types of residential property purchases where the buyer is looking to live in the property as their primary residence. This includes established apartments, townhouses and houses, but does not include vacant land, new builds (like house and land packages), off the plan properties or mining towns. Importantly, while FrontYa may approve a customer, we reserve the right to decline the purchase of a particular property if it doesn't meet FrontYa's specific criteria.


What kind of property can I buy? Does the property have to be established?


FrontYa is looking to work with LVR’s between 80-95%. This means the loan from your mortgage provider must be greater than or equal to 80% of the purchase price (including FrontYa's contribution).

If you wish to contribute more than FrontYa's investment, we will permit LVR's below 80%, but our funding caps out had the purchase been at an 80% LVR, meaning that you will need to fund the additional upfront costs. Our online calculator takes this constraint into account.

We're conscious that it can be hard to work out how these rules impact your purchasing power and how much of your savings you'll need to contribute, so we'll provide you with a Bidding Schedule before making a bid on a property to help clarify your bidding options.


What Loan-to-Value ratios will FrontYa work with?


FrontYa's product runs for a typical term of 6 years from the day your property settles, but can be terminated any time prior to that if you're in a position to do so. You can also exit after 6 years if you're unable to exit our product prior.


When do I have to pay the money back?


Your property value is only calculated at two points:
- The date of settlement (Entry)
- The date of exit (Exit)

The value on the date of settlement is the lower of the purchase price and the Entry Price Limit. The value on the date of exit is either the sale price, or the valuation as determined through the independent valuation process if exit occurs through a refinance of windfall.

When is my property valued to determine how much I owe FrontYa?


FrontYa is able to provide funds across all States and Territories in Australia.


Where can I buy a property with FrontYa?


FrontYa works with a variety of lenders such as major banks, neo-banks, non-bank lenders and building societies. We are constantly looking to expand our lending panel and your mortgage broker can help you find the best product for your circumstances.

If you are a lender looking to partner with FrontYa, please contact us at [partners@frontya.com](mailto:partners@frontya.com).

Which lenders does FrontYa work with?


PEXA stands for Property Exchange Australia and is a national online system that allows you to electronically settle your property transactions. These include payment of settlement monies, duties, taxes and any other disbursements. PEXA also electronically lodge and register your interest in the property with the appropriate Land Registry.

PEXA are used at the property’s settlement where FrontYa will provide its funding.


Who are PEXA? When are they used in the FrontYa process?


FrontYa is not necessarily for everyone. We partner with qualified buyers (individual or joint applicants) who are lacking the upfront funds needed to purchase their home. See our [TMD](https://frontya.com.au/tmd) for more insight into who FrontYa is suitable for.

Interested buyers need to apply for FrontYa pre-approval. FrontYa primarily looks to approve customers who can demonstrate growth in their future serviceability (income growth or expense reduction).


Who can use FrontYa?


We're glad you asked! FrontYa's management team have over 75 years of combined commercial experience with a background in property, technology, law, data, finance and marketing. We've designed the FrontYa offering to make it as easy as possible for you to get into the property market and access the home of your dreams as quickly as possible and with minimum fuss.

Who is behind the FrontYa business?


When buying a property with FrontYa, you are the owner of the property.

FrontYa secures its interest via a caveat and second mortgage. This ensures that we are paid back our initial contribution and share of the increase in your property's value should you sell or transfer it while we're still in partnership on your home.

Who is the legal owner of my home?


The Taylors' lender will only loan up to 90% of the purchase price of the home, including LMI.
This constraint means the Taylors' savings needs to fund the 10% deposit, plus stamp duty of 4-5%,
plus any reduction in the loan as a result of taking out LMI.

As a result, the maximum the Taylors can borrow is $805k for a $895k home since $90k is for
the 10% deposit, $20k is for stamp duty & transaction costs, and $15k is for the reduction in the
loan as a result of taking out LMI - making total minimum upfront costs of $125k.


Why can't the Taylors borrow their full loan of $1.37m with $125k in savings?


FrontYa holds a caveat and second mortgage on your property which typically prevents you from refinancing the mortgage so this is a great question to clarify.

FrontYa will allow you to refinance your mortgage provided the new loan is for an equal or lower amount. There may also be restrictions to only refinance with lenders on FrontYa's lending panel. 

You can contact your FrontYa Account Manager to arrange a non-exit refinance.


Will FrontYa allow me to refinance my mortgage without paying them out?


No! Your credit rating will not be affected whatsover by talking to our team or by completing an application form.

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