If you have a bad credit history or you fall outside the mortgage insurance guidelines, you can still get a home loan.
Making a financial mistake doesn't mean you never get a home loan. The Homeloans FlexiChoice is a full doc loan designed to help those who may not have the good credit history needed to apply for a conventional mortgage, but can still provide the full documentation if needed. Homeloans will also reward you for keeping up your repayments. You'll get a discount of 0.25% p.a for having 12 months of good payment history, and a further 0.25% p.a discount for keeping up a good repayment history for 24 months.
|Product Name||Homeloans FlexiChoice Clear Home Loan|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$50,000|
|Maximum Loan Amount||$1,500,000|
|Minimum Loan Term||15 years|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||90%|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$0|
|Ongoing Fees||$0 p.a.|
- Accepts applications from self-employed borrowers.
- Accepts applications from people with poor credit histories.
- Redraw facility and 100% offset account available.
- There is a $599 application fee.
- There is a $260 valuation fee.
Things to consider about the Homeloans FlexiChoice Home Loan
This loan can be used for those looking to a buy a home or investment property, refinance, or to consolidate their debts. It's also available to release equity and for business purposes. The FlexiChoice Home Loan a full doc loan so you'll need to provide the full range of paperwork expected in a regular loan. As mentioned above, applicants with bad credit history are open to apply. If you're still in the probation stages for your job, you can still apply for this loan but you'll need to have been with your last employer for a minimum of 6 months.
Read on to find out the features which come with a FlexiChoice Home Loan.
Features of the Homeloans FlexiChoice Home Loan
- Maximum LVR. The maximum you can borrow with the FlexiChoice is 90% of the purchase price of the property. This loan to value ratio (LVR) is available for purchasing a property, refinancing or consolidating debts. If you're taking the loan out to get access to cash or business purposes the maximum LVR you can have is 90%. The maximum term with the FlexiChoice is 30 years.
- Extra repayments. As with many full-featured loans you can make extra repayments into the FlexiChoice, so you can pay it down sooner.
- Redraw. If you choose to make extra repayments, you can then later withdraw them again if you need the extra cash. There's a minimum redraw amount of , with a maximum of $20,000 a day if you carry out the transaction over the phone or via the internet. If you redraw the funds manually there's still a minimum amount of $100, but the maximum is whatever balance is available.
- 100% offset account. An offset account is linked to your home loan. Any balances left in your offset account at the end of the day will be deducted from your home loan when it comes time to calculate the interest you owe. This in effect decreases the interest you pay and the length of your loan.
- Interest only. The FlexiChoice is a flexible loan which offers you the choice of both principal and interest charges or interest-only payments. Interest-only payments are smaller than regular principal and interest payments and so can be useful for those looking to free up cash flow for other investments.
- Debt consolidation. As mentioned above the FlexiChoice can be used to roll your different debts into one loan with a lower interest rate. Credit card debts and personal loans generally have higher rates than home loans, so combining these various debts into one make it easier to repay. The FlexiChoice has no limit on the number of debts that can be consolidated.
- Loan portability. If you change properties more than once over the loan term, you can keep the same home loan to avoid any exit fees and application fees. You can also save money on stamp duty as well as any other fees and charges related to refinancing.
Fees and charges
Fees you can avoid:
- Ongoing fees. These are charged to cover the cost of the upkeep of your loan and attached accounts. You don't have to pay this with the FlexiChoice Home Loan.
- Legal fees. These cover the cost of a solicitor transferring the property ownership to you on settlement. These aren't charged with the FlexiChoice Home Loan.
Fees you can't avoid:
- Application fee. $599. This fee is charged to finalise your loan application and covers the costs of processing a loan.
- Valuation fee. This is payable following conditional approval of your loan and will cost approximately $200 - $300.
- Lenders mortgage insurance (LMI). LMI isn't charged with the FlexiChoice. You do have to pay a 'waiver' fee; however this is dependant on the LVR of your loan.
Calculate your repayments by filling in some of your details
Applying for the Homeloans FlexiChoice Home Loan
If you feel the FlexiChoice Home Loan is the right product for you, you can apply following a few steps.
First, click on the 'find out more' or 'enquire' buttons on the right hand side or bottom of the screen. This will take you to a form where you can input your:
- Email address
- Phone number
- Loan Amount
A Homeloans mortgage specialist will be in touch with you, who'll talk through your options. Click the 'enquire' button today and find out more about the FlexiChoice Home Loan.
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Homeloans FlexiChoice Home Loan Interest Rate History vs RBA Cash Rate Graph
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