Mortgage manager throws open NRAS option

by Mackenzie McCarty28 Jun 2012

A Sydney-based mortgage manager will now accept finance applications as part of the National Rental Affordability Scheme, which is proving popular with property investors.

Iden Group has announced that effective immediately, it will accept loan applications under a new lending policy designed to capitlise on the government's NRAS initiative, which provides affordable rentals.

Brokers will be able to provide loans to clients who will be eligible to receive an incentive from the 
government for each approved dwelling rented to eligible low and moderate income households.

Iden said additional criteria applied to the new product, with lending up to 90% LVR (plus capitlised 
LMI), low-doc being unavailable, vacant land being unacceptable, and apartments and units unacceptable.

Construction is available with the NRAS-friendly loan, though the property must be leased or managed by an affordable housing consortium approved by the funder. Iden has also released an approved list.