Get a home loan that suits self-employed individuals and PAYG customers, and comes with minimal fees.
Self-employed borrowers looking for home loans might want to take a look at what the PMG Standard Lo-Doc Home Loan has to offer. This variable rate home loan is also suitable for PAYG customers. Borrowers can look forward to repayment flexibility in different ways, such as being allowed to make interest-only payments during the initial period. The ability to make extra payments without attracting penalties gives you the option of repaying the loan early, and you can also use a free redraw facility to access your extra repayments at any time.
PNG also offers a Fixed Home Loan, a Construction Home Loan, and a Line of Credit Home Loan.
Things to consider about the PMG Standard Lo-Doc Home Loan
You can use this loan to buy a house to live in or for investment purposes, and you can also use this loan to consolidate up to three existing consumer loans, but you cannot use it for business purposes or for the construction of a new home.
The property in question must also be located in a metro area or in a select regional area.
Features of the PMG Standard Lo-Doc Home Loan
- Loan amount and term. The minimum you can borrow with this loan is $50,000 and the maximum stands at $2,000,000. Loan terms vary between 5 years and 30 years.
- Lender’s Mortgage Insurance (LMI). You can borrow up to 75% of a property’s Loan-to-Value Ratio (LVR) without requiring LMI, as long as you need any more than $600,000. If you wish to borrow more than $600,000, you can get up to 70% of the property’s LVR without requiring LMI. If you do get LMI, you can borrow as much as 80% of a property’s LVR.
- Repayment flexibility. While this loan normally requires you to make principal and interest repayments, you also have the option to make interest-only repayments for up to five years. You can make your regular repayments weekly, fortnightly, or monthly, in accordance to when you receive your pay. Making extra repayments does not attract any penalties. Repayment methods include direct debit and direct salary crediting.
- Redraw. If you do make extra repayments, you can access these funds at any time through a redraw facility. You get unlimited free redraws as part of this home loan and can redraw funds into a nominated account via online banking or over the phone.
- Loan splitting. You can split this loan in different ways. If you wish to split it using loan purpose as a parameter you can split it between personal and investment components. By loan type, you can split it into interest-only and principal and interest portions. Splitting by security type enables you to split between owner-occupied and investment components, as well as between two properties.
Fees you can avoid
- Application fee: $0. This covers the cost of establishing your accounts with PMG.
- Valuation fee: $0. A valuation fee is usually charged when your lender needs to undertake an independent valuation of your property.
- Settlement fee: $0. This fee covers the cost of moving funds.
- Monthly fee: $0. These two fees generally cover the cost of maintenance for your account.
Fees you can’t avoid
You get access to a complete list of fees and charges along with your loan documentation once your loan application has gone through.
How to apply for the PMG Standard Lo-Doc Home Loan
If you would like to apply for this loan, please speak to a mortgage broker or contact PMG directly. Before you apply, remember that you have to meet the following eligibility criteria for PMG to consider your application. You need to:
- Be a permanent resident or a citizen of Australia
- Be over the age of 18
- Have a regular source of income
- Have a good credit history
PMG requires that you submit different types of information as part of the application process. This is information PMG uses to verify your identify as well as to establish your ability to borrow and make repayments. To complete the application process, prepare to part with the following:
- A copy of your driver’s license, passport, and Medicare card
- Your employer’s name and contact details
- Your annual earnings from all sources
- Your average monthly expenses
- Details about all your assets with approximate values
- Details about all your liabilities
While the PMG Standard Lo-Doc Home Loan is an option for self-employed individuals seeking home loans, certain other lenders offer similar products with competitive interest rates, so make sure you compare this loan with others before making a decision.