A home loan that considers credit impairment, offers repayment flexibility, and comes with a redraw facility.
The Bluestone Group Clean Slate Home Loan is a home that that offers a range of features and waives Lender’s Mortgage Insurance (LMI). You can top up your loan, make extra repayments and redraw the funds if you need them for an emergency.
|Product Name||Bluestone Clean Slate Clear Home Loan|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$100,000|
|Maximum Loan Amount||$2,250,000|
|Minimum Loan Term||15 years|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||70%|
|Mortgage Offset Account||No|
|Mortgage 100% Offset||No|
|Loan Redraw Facility||Yes|
|Split Loan Facility||Yes|
|Fixed Interest Option||Yes|
|Suitable for Investment||No|
|Repayment Type||Principal & Interest|
|Lender's Legal Fee||from $400|
|Valuation Fee||Properties valued upto $1m free and > $1,000,000 quote required|
|Ongoing Fees||$15 monthly ($180 p.a.)|
- Available for bad credit borrowers
- High maximum borrowing amount
- Requires a large deposit
- Several fees apply
Things to consider about the Bluestone Group Clean Slate Home Loan
You can use funds from the Bluestone Group Clean Slate Home Loan to buy a residential or investment property. You can expect to get a loan to buy a home in most metropolitan areas, and when it comes to non-metropolitan and rural areas, Bluestone Group uses population as a decisive factor.
The Clean Slate Home Loan is designed for PAYG borrowers, self employed individuals, companies, and trusts. It requires that you support your income through tax assessment notices, payslips, or full financials. You can apply for this loan even you if you have bad credit.
Features of the Bluestone Group Clean Slate Home Loan
- Loan amount and loan term. The minimum you can borrow through this loan is $100,000. While you can borrow as much as $2,250,000, this maximum limit depends on loan to value ratio, location, and lending assessment. Loan term can vary in between 15 years and 30 years.
- Interest rate. This is a variable rate home loan. Since Bluestone Mortgages is not a bank but a risk based lender, it determines your interest rate taking into account factors like loan to value ratio, existing mortgage repayment or rental payment history, credit worthiness, as well as funding costs. As a result, the interest rate this home loan attracts varies from case to case.
- Repayment flexibility. You can make principal and interest repayments or make interest-only repayments for the first three or five years. In addition, you have the option to make weekly, fortnightly, or monthly repayments. If you want to make extra repayments to pay your loan off sooner, you can.
- Redraws. While this loan allows you to make extra repayments, it also gives you the ability to access this money through a redraw facility. Bluestone Group makes more details about this feature available during the course of the application process.
- Centrelink income considered. Bluestone Mortgages takes into account Centrelink pension income when assessing loan affordability. This can include disability pension, aged pension, widow’s pension, Austudy for full-time students with satisfactory academic records, and family payments. It does not consider Newstart payments.
Bluestone Group allows for you to add your fees onto your principal.
Fees you can’t avoid
- Legal fee from $400. This fee is charged to cover the cost of the legal paperwork involved, and ensuring your name is on the title of the property.
- Establishment fee $0. Also known as an upfront or set-up fee, this is a one off payment to start your loan and set up all your accounts.
- Title Protection fee $350. Similar to LMI, this fee offers protection over risks such as illegal building structure and covers the lender, not the buyer.
- Risk fee. Amount varies. The higher your LVR is, the higher this fee will. For a quote, please get in touch with Bluestone Mortgages.
- Settlement fee $120. This fee is charged to cover the cost of your funds settling.
Fees can you can avoid
- Lender’s Mortgage Insurance (LMI). While Bluestone waives LMI, you’ll need to pay the title protection fee which also initiates insurance.
How to apply
You can apply for the Clean Slate home loan even if you have poor credit history, but know that the impairment level plays a role in establishing your interest rate. Bluestone will not consider your application if there is filing of a judgment, writ, summon, or default greater than $500 against you in the six months preceding your application. To apply, you have to meet the following eligibility criteria.
- You are a permanent Australian resident who resides in Australia.
- You are least 25 years old if you want to borrow for an investment property with self-certified income. In all other scenarios, you should be at least 18 years of age.
To complete the application process, expect to furnish a variety of personal, job related, and financial information. It’s best to keep the following handy.
- Copy of your Australian driver’s licence
- Contact details of your employer
- If you’re self-employed, contact details of your accountant
- Tax assessment notices, payslips, or complete financials