Non-bank lender offers option to skirt LMI

by 22 Jan 2014
Non-bank lender Homeloans Ltd has released a new product designed to open up borrowing options to clients that may otherwise struggle to get a loan.

Homeloans announced yesterday it has launched a new product, Homeloans Accelerate Prime, which is says is “designed to provide a solution for those borrowers who might ordinarily fall outside the mortgage insurance and banking guidelines”.

Greg Mitchell, Homeloans general manager sales, says the product opens up “yet another opportunity for home buyers with limited or no savings to get into the property market”.

The new product will provide an exemption on LMI up to 95%, although a Lender Protection Fee will be charged above 80% LVR for full-doc and 70% for low-doc loans.

Non-genuine savings are also allowable up to 95% LVR.

The loan also provides no credit scoring and financial defaults under $500 will be ignored.

The product is also available as low-doc (up to 80% LVR).

If a customer is unsuitable for the Prime product, brokers can offer this alternative specialist option. It provides that added layer of solutions,” said Mitchell.


  • by not so old broker 22/01/2014 9:05:00 AM

    I wonder which sale men got this past the compliance folk's "not unsuitable" test.

  • by John 22/01/2014 1:43:32 PM

    No LMI, but a Lenders Protection fee? Is it a certain % of the loan amount, or a fixed fee amount?