Homeloans Ltd has announced an offer to low doc mortgage applicants. The funder will cover the cost of Lender’s Mortgage Insurance (LMI) on its Ultra range of lo doc loans on LVRs up to 70 per cent.
Tony Carn, the general for third party sales at Homeloans has told The Adviser that borrowers would not be charged a loading on their interest rate for taking up the offer.
“Our Homeloans Ultra Low Doc rate is already very competitive at 7.24 per cent, and we’re now providing additional value by covering the cost of LMI. On a $600,000 loan, a customer could save $6,500 in LMI costs,” Mr Carn said.
The announcement follows Homeloans decision to increase its lending up to 95 per cent LVR.
Homeloans Ltd remains committed to providing innovative and competitive loan solutions to the Australian borrower.
“Funding for the low doc market is opening up once again, which gives us the perfect opportunity to ease our lending criteria in this area,” he said.
With the introduction of credit licensing in Australia some experts predicted that the Low Doc market will progressively disappear. Instead this segment of the market is expanding the products on offer and is continuing to evolve with better deals for the consumer.
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