Loan Avenue provides a range of competitive loans for first-home buyers, investors, refinancers or even those looking to build.
Who is Loan Avenue?
Loan Avenue is a non-bank lender that offers a range of home loans with competitive features. Loan Avenue can help you with home loans, business loans, investment property loans and refinancing existing loans.
They offer a range of variable rate loans, fixed rate loans, lines of credit, split and combined loans, bridging financing, 100% offset loans, low doc loans and non-conforming loans.
Loan Avenue’s Line of Credit loan is an option if you need funds for investing in a property or for renovating one, while their Lo Doc loans are for if you’re self-employed and don’t have the normal income documentation needed to apply. Their non-conforming loans are available for those who may have a poor credit history or a short employment history.
Home loans offered by Loan Avenue
Premium Range
This is Loan Avenue’s 100% Offset Home Loan. The offset account on this loan works by offsetting the principal amount you borrow, thereby reducing your interest, The loan is available with a principal and interest repayment option or an interest-only repayment option for a maximum of 10 years. The loan comes with either a variable or fixed interest rate (one to five years).
The 100% Offset Home Loan can be used for purchasing or refinancing a residential or investment property, debt consolidation, a home equity loan for investment or private purposes, construction, or bridging finance purposes. There’s a redraw option on this loan and it’s also offered as a split loan. There are also no penalties for additional repayments on the loan.
Application fees apply to this loan if you have multiple security properties, require a guarantor, or have a trust or company involved in the loan application, but there’s no administration fee. You can borrow a minimum of $10,000 and there’s no maximum limit. The loan terms for this home loan are from five years to 30 years, and the loan to valuation ratio (LVR) is 95% which includes Lender’s Mortgage Insurance (LMI). You can make repayments every week, fortnight or month with this account.
Flexi Range home loan
This is a variable rate home loan that offers you different options when setting up your loan. You can choose to accept a lower interest rate by choosing an annual fee or you can choose to have no annual fee with a higher interest rate.
This loan is best used for property purchases, refinances, cash outs (construction excluded), or debt consolidations. Cash outs are loans where the proceeds are fully or partially released to you regardless of your stated purpose for the loan. In this case construction is excluded from this option. There is also a redraw option on this loan.
The maximum loan amount on this loan is $1 million while the Loan-to-Value Ratio (LVR) is 90%. This is a 30 year loan term that can have principal and interest or interest-only repayments. The LMI is payable by you on LVRs that are above 80%.
Advantage Range home loan
This is another 100% offset account home loan from Loan Avenue. Like the Premium Range loan the Advantage Range has all of the benefits of a 100% offset account. You can pay off both the principal and interest or choose to make interest-only payments for up to 10 years.
You can also choose a fixed or variable interest rate or choose to split this loan between a fixed and variable rate. You can also convert your rate from one to another during the life of the loan after paying a loan variation fee. This loan can be used for purchases, refinances, debt consolidation, and home equity for personal or investment purposes.
There’s no administration fee for this loan but additional fees, including an application fee, may be charged if you have multiple security properties, need the support of a guarantor, or have a trust or company involved in the loan application. You can borrow as little as $50,000 and up to $750,000. The maximum LVR is 90% while the loan term can be anywhere from five to 30 years. There are also redraw options and repayments are flexible with this home loan. Repayments can be made monthly, fortnightly, or weekly.
Loan Avenue also has low doc home loans available for self-employed borrowers who may not have adequate financial records for a full doc loan, and offer refinancing loans and debt consolidation options, where you can consolidate other debts with your home loan to save on interest payments. Loan Avenue donates a portion of all of the payments they receive to HeartKids.
Pros and cons of Loan Avenue home loans
Pros
- Choice of variable or fixed interest rates. You can choose between a variable interest rate, a fixed interest rate, or a split loan. This allows you to get the best deal for your individual situation.
- Debt consolidation available. Loan Avenue allows you to consolidate your existing debt with your home loan so that you can cut down on the interest charges you pay for your other debt repayments.
- Wide variety of mortgages available. The variations on home loans available help ensure that you’ll be getting the best home loan for your situation. For example, if you’re self-employed their Lo Doc Home Loan can help you get what you need while working within your circumstances.
- Additional features available. Their home loans come with additional features like offset accounts, redraw options and additional repayment options without penalty.
Cons
- Limits on borrowing amounts. There are minimum and maximum limits applied to their different home loans so you have to make sure that the home loan you want allows you to borrow exactly what you need.
- Additional fees applicable. Loan Avenue warns that additional fees, including application fees, may apply to your loan if you fall within certain parameters, such as if you have multiple security properties.
How to apply for Loan Avenue home loans
To apply for any of the home loans available from Loan Avenue you can follow the link on this page to speak to a mortgage broker. You can then send a representative an enquiry form through the site. Besides contact forms on the website, you can also call the company’s main office to speak directly to a representative in order to start your application process.
Loan Avenue offers a suite of home loans that are suitable for a wide range of individual needs. Choose from a variety of interest options, additional features, and repayment options to choose the best loan for you.
