Leading non-bank lender Homeloans Ltd
is launching a new non-conforming construction loan exclusively through the third-party channel.
The new Homeloans Accelerate Red Construction product is targeted to customers that do not qualify for a traditional construction loan. The loan, which is not yet available to the wider market, will be available to brokers from 15 December 2015.
Full doc rates are available from 5.69% (comparison rate 6.13%) and lo doc from 6.09% (comparison rate 6.54%). Full doc loans will offer up to 90% LVR while low doc loans will offer up to 80% LVR.
The Accelerate Red Construction product will also have unlimited defaults, judgments and writs to $1,000 (paid or unpaid).
“It’s an exciting opportunity to offer a construction purpose product to customers who fall outside standard lending guidelines and previously wouldn’t qualify for this type of loan,” Ray Hair
, Homeloans’ general manager – sales said.
“If a customer is unsuitable for Homeloans’ prime products, it means brokers can offer this alternative specialist solution.”
The Homeloans Accelerate Red Construction product is in addition to other Accelerate products, ranging from the Accelerate Prime at 4.44% (comparison rate 4.62%), to specialty options from 5.74% (comparison rate 6.01%).
“We continue to listen to the feedback of our brokers and provide them with solutions which benefit them and their customers’ individual needs,” said Hair.
“And that encompasses both prime and non-prime solutions.”