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Major Bank 60% Low Doc Home 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
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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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Features
FREE SERVICE - Rates, Costs and Fees are EXACTLY the same as if you had dealt with the bank direct.
ABN active 24 mths plus with GST registration held for a minimum of 12mths.
Income substantiation: BAS Returns for last 12 months OR Bank Statements for Trading Accounts for last 6 months.
Income declared should be no more than 40% of Gross Business Turnover as stated in Business Activity Statements
or Trading Statements.
Max
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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: 60%.
Favourable Purchases considered.
100% Offset Account available for variable rate loans (Cheque Book, ATM, Internet access).
Fixed Rates available (1 to 5 years).
Interest Only available (up to 5 years).
Redraw available on variable rate loans. There is no fee to deposit or withdraw, however, withdrawals must
be arranged through a branch.
Co-Applicants can be employed ... full income verification required.
Minimum loan amount: $100,000; Maximum loan amount: $1,000,000.
Maximum exposure per client: $2,500,000 (Can be with a single security).
Payment Frequency: Weekly, Fortnightly or Monthly.
Discounted, competitive rates and fees (EXACTLY the same as Full Doc Loans).
Suitable for any residential loan (purchase or refinance).
Cannot do Company Title, Student Accommodation, Owner Builder, Commercial or Income producing properties.
Generally no Postcode restrictions.
Max land size of 5 acres - Rural Residential property OK (NOT Rural).
Land loans allowed.
Construction allowed but construction must be completed within 12 months of loan settlement.
Up to 3 dwellings on a single Title considered.
Units must be at least 50 sq m in size (excluding balconies) - must have a separate bedroom.
Loan is portable, simultaneous settlement not required.
First Home Owners are allowed (Bank will process Grant).
No Genuine Savings requirements.
Minimal documentation requirements.
Pre-approvals possible (valid for 90 days).
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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. One small default under $500 and paid more than 12 months ago
may be considered (with satisfactory explanation).
Cash Out / Refinancing Policy and Restrictions:
You can only refinance an existing Full Doc Loan to a Low Doc Loan where the LVR will not exceed 60%. If you
require "cash out", then 80% of the total loan amount will need to be substantiated, however, the maximum Cash
Out allowed is limited to $100,000. Some examples:
a) Refinancing an existing Full Doc Loan of $400,000 with $50,000 Cash Out with no substantiating documentation
(ie: a "stated purpose" only). Total loan of $450,000. This is allowable as the Cash Out component is only 11.11%
of the total loan amount.
b) Refinancing an existing Full Doc Loan of $700,000 with $120,000 Cash Out. Total loan of $820,000.
This is NOT allowed as the Cash Out amount exceeds $100,000.
c) Refinancing an existing Full Doc Loan of $200,000 with $80,000 Cash Out with no substantiating documentation
(ie: a "stated purpose" only). Total loan of $280,000. This is NOT allowed as the Cash Out component is 28.57%
of the total loan amount. You would need to provide substantiating evidence for at least $24,000 of the Cash
Out amount in this example to fit the Policy.
Additional Notes:
** Lender will require evidence that any Home Loan being refinanced was originally written as a Full Doc Loan.
This is generally done by sighting a copy of the original Loan Agreement that you signed with the existing Lender.
** Unacceptable Cash Out stated purposes include: Payment of Tax Debts and funds for Business Purposes.
** Example of acceptable Substantiating documentation for Cash Out evidence include:
a) Copy of Contract on a property that you want to buy from the Cash Out proceeds (Contract does not need to
be executed and Lender does not need to control disbursement of funds at Settlement).
b) Letter from Financial Planner explaining how Cash Out component will be invested.
c) Quotes for any renovations that need to be done (if Structural, Council Approved Plans usually required).
Fees
$300 Lender setup costs (loans of $250,000+), $900 setup costs (loans < $250,000).
$162.50 Lender Legal Fees.
Monthly Fees: $10.
NO MORTGAGE INSURANCE (
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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).
Construction Progess Fee of $60 per drawdown applies.
0.15% of Loan Amount Fixed Rate Lock Fee to guarantee published Fixed Rate AT time of APPLICATION:
- Available for 1 year to 5 year fixed rate loans only.
- Lasts 90 days from date of Application.
- Payable per fixed loan split.
- NOT available for Construction Loans.
Other fees and charges may apply at the discretion of the Bank. For example:
- Where there is more than one Security property.
- Loan re-negotiation Fee.
Early Repayment Fees:
- $600 if loan discharged in first 4 years.
- Break Costs may apply if a Fixed Loan is repaid during the Fixed Term.
Government stamp duties and other government charges may also apply.
Paperwork you will need to provide to apply for this Loan
ALWAYS REQUIRED
Last 12 months BAS Returns OR last 6 months Bank Accounts for all Trading entities.
NOTE: Maximum 40% of BAS Sales allowed as a declarable income.
Last 6 mths statements required on all home loans and other loans. If the client does not have any existing loans,
3 months statements for all PERSONAL transaction accounts are required.
Most recent Statement for all Credit Cards (full statement, not just front page).
JP certified 100 point ID for each applicant.
If you are relying on Rent to service the loan:
Either: Current bank statement showing direct credits identifiable as rental income; or
Current lease agreement or Real estate agency appraisal.
IF YOU ARE PURCHASING
Signed and dated Copy of the Contract of Sale.
Evidence that you have sufficient funds to cover the Deposit and Purchasing Costs (eg: Bank Statement).
IF YOU ARE REFINANCING
Latest Rates Notice(s) on the Property(s) being offered as Security.
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 three months credit card(s) statements for cards being refinanced (1st page only).
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.
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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 - 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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