Non-bank launches FHB product with no LMI requirement

by Adam Smith07 Feb 2014
A non-bank lender has launched a new home loan designed to give a hand to first homebuyers.

Liberty has announced its Liberty Swift Home Loan, a product aimed at first homebuyers, available up to 95% LVR with a capped risk fee and no LMI. The lender said the product would start at rates of 5.70% (comparison rate 6.19%) with an accompanying risk fee. Liberty will also continue to offer first homebuyers the option of using LMI "where appropriate", the lender said.

Liberty national sales manager John Mohnacheff said the lender launched the product in response to tightening credit criteria.

“We’ve seen a real tightening in credit criteria for First Home Buyers over the last six months which is shutting many aspiring home owners out of the market," he said.


  • by Monty of Perth 7/02/2014 11:39:24 AM

    Now let me think. The GFC was formulated with Low interest rates in the USA and high LVRs. All due to circumstances very much like those in this article.
    Higher LVRs and low rates. A recipe for another GFC perhaps.

  • by Cynical 7/02/2014 12:02:33 PM

    In what world is 5.70% a low interest (today) PLUS LMI /REF Fee??? And capped to what LVR??
    How about postcode restrictions? Gen Savings?
    Qualifying assessment rates will continue to restrict applicants.
    How about flexible borrowing options split & FR??
    The devil/s will be in the detail Im sure....

  • by Yep 8/02/2014 8:09:50 PM

    Does the capped risk fee = LMI cost?
    @ 5.70% the rate is loaded as well.
    Last but more important - is the clawback the most aggressive of all lenders? Ar la a DEF on brokers!!