Access the equity in your home for renovations or to invest with the State Custodians Low Rate LOC
If you have been thinking of renovating your existing home, or using the equity to invest in other interests, State Custodians offer this line of credit home loan with a very low interest rate. The Low Rate LOC allows you flexible access to your equity and comes from a multi award-winning pedigree.
| Product Name | State Custodians Low Rate LOC |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $100,000 |
| Maximum Loan Amount | $2,000,000 |
| Minimum Loan Term | 15 years |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 90% |
| Mortgage Offset Account | No |
| Mortgage 100% Offset | No |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Fixed Interest Option | Yes |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $0 |
|---|---|
| Valuation Fee | $0 |
| Ongoing Fees | $0 p.a. |
| Discharge Fee | $300 plus legal |
| Early Termination Fee | $0 |
Pros
- There is a $0 application fee
- A competitive interest rate
- It features unlimited repayments with no penalty fee
Cons
- No offset account
- When you pay off your loan, there is a $300 exit fee plus legal
Who is State Custodians?
State Custodians is a non-bank lender funded by Resimac LIMITED, a 30-year industry veteran, awarded a 'strong' servicer ranking by Standard and Poors, the ratings agency's highest category. It has written more than $1 billion in home loans to date. Because State Custodians is an online lender without physical branches, it saves on overheads and can pass low rates on to you.
Details to keep in mind about the State Custodians Low Rate LOC
LVRs at or below 80% are eligible for the lowest interest rate. The interest rate will then increase as the LVR increases. You will also be charged Lender’s Mortgage Insurance for borrowing above 80% LVR. You can draw from this loan as much as you would like up to your credit limit, however you must draw a minimum of $100.
You can deposit your salary into the line of credit to reduce any interest you pay and you can operate this as a full transaction account. If after 5 years you are still using your line of credit, it will revert back to a standard principal and interest home loan.
You can also link this loan to a Debit Mastercard so you can use your line of credit at an ATM or EFTPOS machine. You'll also get the added benefit of PayPass.
Features of the State Custodians Low Rate LOC
- LMI. LMI is charged when you borrow over 80% of the value of the property you are using as security for your loan. However, you are able to add this charge to your principal loan amount to pay back with the bulk of your loan.
- Split loan. Split your loan into portions at no extra charge you can only have one line of credit per loan but other variable or fixed portions are acceptable.
- Access funds. You can have a free cheque book as well as access to a linked Debit Master Card in order for you to access the funds in this loan. You have fee free ATM transactions at all Westpac group ATMs.
- Repayment flexibility. Your can make interest-only repayments for up to 5 years, after which they will convert to principle and interest repayments. Repayments can be made weekly, fortnightly or monthly to suit you.
How to apply for the State Custodians Low Rate LOC
If you are looking for a flexible line of credit that allows you direct access to your equity and think you're ready to apply for the Low Rate LOC, please click on 'Go to Site' to get your application started. You'll be taken to State Custodian's website, where you can start a pre-approval application or just find out more.
Are you eligible? You're eligible to apply for this loan if:
- At least 18 years old
- A resident or a non-resident
- Have a good credit standing, though if you have a few defaults a State Custodians specialist can still offer some options
- Employed and have been in the same job for at least 3-6 months. However, if you've been in the same industry for two years, this can be shorter.
- Casually employed (but you must have been with the same employer for a period of at least 12 months and receive regular shifts.)
What documents do you need to supply to apply?
- Personal details - full name, address, marital status and residency status
- Employment details - whether you are PAYG or self-employed and annual income
- Loan details - product name, borrowing situation and security property details
- Financial details - your assets, liabilities and equity
hi – I have a home that I wish to use to buy another property. I need, i think, a bridging loan or line of credit.
The property I wish to buy goes to auction February and then I wish to sell my current home in April.
New property approx. 2.5 M (loan amt until owned prop sold)
thanks
Hi Link,
Thank you for your question and for contacting finder.com.au we are a financial comparison website and general information service we are not mortgage specialists so can only offer general advice.
If you’ve met the eligibility criteria outlined above, please contact State Custodians directly and discuss your loan option with them. You can also click on the ‘Go to site’ button above to be redirected to their page.
Meantime, if you want to check other lenders that offer line of credit home loans, please refer to this page. Alternatively, you can speak to a mortgage broker to discuss your borrowing options and the type of finance that will suit your situation.
Cheers,
May