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Bank 80% Low Doc Home Loan
Rates From 6.76% Variable, Fixed Rates available (1-5 Years)
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DOES YOUR LENDER/BROKER PROVIDE YOU WITH THIS INFORMATION?
Our Fact Sheets provide in-depth information that is generally not available from any other source (INCLUDING the Lender).
They have been designed so that prospective borrowers have access to ALL of the information they need to make an informed
decision regarding the suitability of the loan to meet their requirements.
To properly evaluate a loan, we believe that full disclosure of the following information is critical to the decision making process:
- What are the loan features?
- How much will it cost to set up the loan?
- What are the interest rate options and ongoing fees?
- How much will it cost to discharge the loan?
- What documents will I need to supply to apply for this loan?
DOES YOUR LENDER/BROKER PROVIDE YOU WITH THIS INFORMATION?
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Product Highlights
FREE SERVICE - Rates, Costs and Fees are EXACTLY the same as if you had dealt with the bank direct.
NO TAX RETURNS OR BANK TRADING STATEMENTS required.
Suitable for any residential loan (purchase or refinance). Commercial property loans excluded.
An ABN for 2 years IS required in all cases (GST registration for minimum of 12 months is also a requirement).
Primary borrower must be self employed (minimum of 2 years). Secondary Borrower can be PAYG or self employed
(minimum of 2 years). No need for self employed borrower to earn the majority of income.
Companies and Trusts as Borrowers are NOT allowed.
Maximum loan amount of $1,000,000 to 80%
LVR
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The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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(selected Postcodes).
Loans over $1,000,000 considered to 60%
LVR
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The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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(case by case).
Maximum exposure per Borrower: $2,500,000.
Maximum 1 dwelling on a single title. Multiple dwellings on a single title may be considered at 60%
LVR
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The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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.
CANNOT add
LMI
Lenders Mortgage Insurance (or LMI) does not protect the borrower
in any shape or form. It is an insurance policy taken out by the Lender in case
you are late with your payments or default on the loan. If this occurs, then the
Mortgage Insurer will pay the lender the shortfall and will then
recover this amount from you. Mortgage insurance is normally payable by
borrowers on all loans with a Loan to Value ratio
LVR
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The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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exceeding 60% on Low Doc Loans. Mortgage Insurance is a
once-off cost and can often be added to the loan.
The premimum varies from Lender to Lender and will also depend on the amount being
borrowed and the
LVR
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The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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premium to loan (maximum lend is 80% including LMI).
Extremely flexible loan structuring options (ie mix of fixed, variable or line of credit style account).
Nationwide Branch network.
Discounted, competitive rates and fees (EXACTLY the same as Full Doc Loans).
Can build under a fixed rate loan (no owner builders). Conditions apply.
Land loans allowed (no requirement to Build).
Click Here for Category postcode listings.
Maximum land size of 3ha (7.4 acres).
Loan is portable (simultaneous settlement required where
LMI
Lenders Mortgage Insurance (or LMI) does not protect the borrower
in any shape or form. It is an insurance policy taken out by the Lender in case
you are late with your payments or default on the loan. If this occurs, then the
Mortgage Insurer will pay the lender the shortfall and will then
recover this amount from you. Mortgage insurance is normally payable by
borrowers on all loans with a Loan to Value ratio
LVR
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The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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exceeding 60% on Low Doc Loans. Mortgage Insurance is a
once-off cost and can often be added to the loan.
The premimum varies from Lender to Lender and will also depend on the amount being
borrowed and the
LVR
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The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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.
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is involved to avoid new premium).
First Home Owners are allowed.
Home and Contents Insurance discounts are available.
Minimal documentation requirements.
Pre-Approvals valid for 3 months.
Cash out is available but restrictions apply as follows:
- UNLIMITED cash out to 60% LVR (acceptable stated purpose only, no evidence required).
- $10,000 cash out 60%-80% LVR (acceptable stated purpose only, no evidence required).
- ELSE -
- 1) Cash out is limited to $50,000 UNLESS there is a Purchase involved with the transaction.
- 2) Bank will require details of what the Cash Out is to be used for (eg: Statutory declaration from all Borrowers
confirming their intent to purchase investments and that they understand the risks associated with such a
strategy OR a copy of a detailed financial plan that has been drawn up for the customer by a financial advisor
OR a copy of Quotes or Contract for any Home Improvements OR a copy of a Quote or Contract for the purchase
of a Motor Vehicle).
- 3) Costs of renovations where the Bank controls payment to the Builder are excluded for Cash Out purposes.
- 4) Refinancing of other Insitutions Debts are not counted as "cash out" (Statements are required and Bank
will control disbursement of funds at Settlement).
NO Genuine Savings requirement.
12 Months BAS Returns are now required for ALL Low Doc Loans. As a guideline, the maximum gross income that
can be declared is 50% of SALES TURNOVER (having said this, "Service" type professions are assessed on a
"case by case" basis).
The supplied BAS Returns MUST be as lodged with the ATO. Latest BAS Statement cannot be older than 4 months.
Acceptable proof includes: Completed ATO BAS templates, Completed BAS created via Accountant software, BAS
Printouts/Summaries from the Tax Agent Portal or the Tax Office.
Not suitable for applicants with
Bad Credit
Bad Credit refers to entries that have been recorded on your Credit Report
because you have not paid a bill following repeated requests from the Credit Provider
(commonly called a Default), or where a credit related matter has been formally placed before the Courts (Judgements and Court Writs).
Defaults often relate to unpaid Telco bills (telephones, mobile phones etc) as well as Utility bills (Electricity, Gas etc). Once an
entry has been recorded on your Credit Report, it can stay there for up to 7 years (regardless of whether you pay the outstanding amount
or not). Generally speaking, it is difficult to obtain Credit at favourable Terms if you have entries of this nature on your
Credit Report (particularly if the account has not been paid).
Note that being late with a bill payment or having an overdue account does not constitute Bad Credit. It is only a problem if it has
been formally recorded on your Credit Report (eg: placed with a debt collection agency).
As part of the Loans process, we usually check your Credit Report before we complete
formal paperwork. We will then discuss the results with you and advise you of your options if there are any matters of concern.
What is a
Credit Report
When you make a Credit Application with a Credit Provider (eg: a Bank, a Telephone company or for a Credit Card), the details of
your enquiry are logged in a Central Database (accessible, by Subscription only, over the Internet). If you do not pay an
outstanding account, then the Credit Provider can record this in the same Database (commonly called a Default). Most Credit
Providers will check your Credit Report before granting Credit. If there are adverse entries (Defaults, Judgements, Writs etc),
then your application for Credit MAY be declined (without reason).
Note that you have to give express permission to the Credit Provider before they can access your information.
This is usually done by signing a Privacy Authority included with the Credit Application Form. You are not required to grant permission
to the Lender to do this, but your Credit Application is unlikely to be approved without it.
The company that provides this service in Australia is Veda Advantage.
They are required (by law) to provide you with a copy of your Credit Report on request.
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Favourable purchases NOT allowed.
If Applicant/s are older than 55 years at time of Application and are looking to purchase or refinance an OWNER
OCCUPIED PROPERTY, then Applicant/s will be required to demonstrate an exit strategy by age 75.
Acceptable examples include: Investment property or shares sale, Superannuation funds, Other tangible
asset sale. NOTE: Sale of the Owner Occupied Home is NOT considered to be an acceptable exit strategy.
Additionally, it is expected that the loan Term will will be adjusted to clear the debt by age 75.
Fees and Charges
Lender setup costs of $355 per split/loan and one valuation.
Annual Package Fee of $395.
Mortgage Insurance applies - call for a Quote.
$200 TOTAL Construction progress valuation fee (if applicable).
Fixed Rate Lock Fee of 0.15% of the loan amount to guarantee published Fixed Rate AT LOAN APPLICATION:
- Must be paid prior to Settlement (cannot come from loan proceeds).
- Payable per fixed loan split.
- Valid for 90 days only (non refundable).
Other fees and charges may apply at the discretion of the Bank. For example:
- Where there is more than one Security property.
- Where Guarantors are involved.
Early Repayment Fees:
- $250 Admin Fee, regardless of time of discharge.
- Break Costs may apply if a Fixed Loan is repaid during the Fixed Term.
Government stamp duties and other government charges may apply.
Paperwork you will need to provide to apply for this Loan
ALWAYS REQUIRED
100 point ID for each applicant (usually a Passport or Birth Certificate PLUS a Drivers Licence).
If co-borrowers are PAYG, then we require the two most recent payslips OR the most recent PAYG Payment
Summary as well as a letter from the employer.
Last 12 Months BAS Returns. Note that the supplied BAS Returns MUST be as lodged with the ATO.
Latest BAS Statement cannot be older than 4 months (if BAS lodged Quarterly).
Evidence of ABN (refer to THIS SITE to lookup your ABN).
IF YOU ARE PURCHASING
Signed and dated Copy of the Contract of Sale.
IF YOU ARE REFINANCING
Last SIX months Home Loan Statements on all Home Loans being refinanced. Latest statement CANNOT be older than
1 month. Some GENUINE bank statements are required (ie: cannot provide all statements as Internet printouts,
does not matter how old genuine statements are).
Last ONE months Statements for all Credit Cards, Personal/Car loans being refinanced.
Maximum of 4 Debts can be refinanced (including Home Loan).
IF YOU ARE BUILDING
To enable the loan to be APPROVED - Copy of the Quote, Plans and Builders Specifications.
BEFORE Progress Payments can be made, we will need:
1. Copy of the signed and dated Fixed Price Building Contract from a Registered Builder.
2. Copy of Builders Registration.
3. Copy of STAMPED Council Approved Plans REDUCED to A4 size.
4. Construction Certificate (NSW) or Building Permit (VIC).
5. Builders Insurance (Certificate of Currency).
6. Builders Indemnity / Public Risk Insurance (minimum of $5m).
7. Slab Survey for NSW properties required prior to first payment drawdown.
Loan Stucturing Information and Interest Rates
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Line of Credit style Account (Variable)
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Fixed Rates
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Total loan amount:
$150,001 to $249,999
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7.16%
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6.24% - 1 Yr
6.24% - 2 Yrs
6.24% - 3 Yrs
6.74% - 4 Yrs
6.74% - 5 yrs
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Total loan amount:
$250,000 to $499,999
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6.96%
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As above
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Total loan amount:
$500,000 plus
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6.76%
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As above
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Borrowing Entity
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Individuals only
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Individuals only
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Payment Frequency
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No regular payment frequency required… you do NOT need to make any payments PROVIDED the balance of your Line of Credit
does not EXCEED the approved limit (ie: Capitalisation of Interest is allowed). Max loan period is 10 years.
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Weekly, Fortnightly or Monthly
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Interest Only Option
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Up to 10 yrs - Owner Occupied and Investment
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In line with Fixed Rate Term
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Offset Account
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Built-in (default) - a separate Offset Account is also available if required
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Not available
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Construction option
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Yes
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Yes, subject to:
12 month maximum progressive drawdown period applies to all loans (the loan must be fully drawn within 12 months)
For loans where fixed rate lock in is selected, the first drawdown must occur within 180 days of the product select date
The first loan drawing must be within 180 days of the offer date
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Funds Access
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Access to funds can be arranged via Debit Card, Cheque Book, EFTPOS, ATM, Internet, Phone, Over the Counter and Direct Debit.
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Not available during fixed rate period
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Redraw
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Yes - no minimum Internet, Telephone, ATM and EFTPOS - $1000 Branch, a $10 fee applies to investment loans
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Not available during fixed rate term
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Extra Payments
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Unlimited - repayments based on actual loan balance
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Yes - up to maximum of $25,000 during fixed rate term
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60% LOW DOC LOANS
BANK LOAN - 6.80% Variable (option to transfer to 6.60%+ after 2 years of good repayment conduct (rate could vary upwards by as much as 0.20% depending on amount borrowed and LVR)
BANK LOAN - Loans $500,000+: 6.54% to 75% LVR, 6.69% 75.01% to 80% LVR
Loans $250,000 to $499,999: 6.59% to 75% LVR, 6.69% 75.01% to 80% LVR
Loans to $250,000: 6.84% to 75% LVR, 6.94% 75.01% to 80% LVR
NON BANK LOAN - Max 60% LVR: 6.83% Variable (6.73% Variable for loans $500,000+)
BANK LOAN - 6.56% Variable for loans > $250,000 and lodged by 29 Feb 2012 - else 6.66%
BANK LOAN - 6.90% Variable for LVR's over 60% (Rates from 6.71% if LVR is 60% or under)
BANK LOAN - Rates From 6.76% Variable, Fixed Rates available (1-5 Years)
BANK LOAN - 7.70% Variable
BANK LOAN - 7.74% Variable, Fixed Rates available (1-5 Years)
NON BANK LOAN - Rates From 8.65% Variable
NON BANK LOAN - Rates From 8.59% Variable
NON BANK LOAN - Rates From 9.05% Variable, Fixed Rates available
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80% LOW DOC LOANS
BANK LOAN - 7.30% Variable (option to transfer to 6.60%+ after 2 years of good repayment conduct (rate could vary upwards by as much as 0.20% depending on amount borrowed and LVR)
BANK LOAN - Rates From 6.76% Variable, Fixed Rates available (1-5 Years)
BANK LOAN - $500,000 and above - 6.87% variable
$250,000 to $499,999 - 6.97% variable
Under $250,000 - 7.57% variable
BANK LOAN - 6.90% Variable for LVR's over 60% (Rates from 6.71% if LVR is 60% or under)
NON BANK LOAN - 60.01% to 80% LVR: 7.08% Variable (6.98% Variable for loans $500,000+)
BANK LOAN - 7.74% Variable, Fixed Rates available (1-5 Years)
NON BANK LOAN - Rates From 8.65% Variable
NON BANK LOAN - Rates From 8.59% Variable
NON BANK LOAN - Rates From 9.05% Variable, Fixed Rates available
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COMMERCIAL LOW DOC LOANS
BANK LOAN - Rates From 8.69% Variable, 7.79% Fixed 1 Year
NON BANK LOAN - Rates From 9.20% Variable, Fixed also available (call for current rates)
RESIDENTIAL AND COMMERCIAL CONSTRUCTION LOW DOC LOANS FOR DEVELOPERS
NON BANK LOAN - Rates From 10.20% Variable
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