An ASX-listed lender has announced the launch of a new mortgage product with increased flexibility that removes the need for credit scoring.
Homeloans’ general manager Ray Hair said the new product, Homeloans Accelerate Red Construction, will give all customer types the opportunity to build their own home without the need for genuine savings, effective immediately.
“It removes the need for credit scoring on a construction loan, while also being flexible with applicants’ credit history,” he said.
Full-doc rates are available from 5.69 per cent (comparison rate 6.13 per cent), while low-doc rates are available from 6.09 per cent (comparison rate 6.54 per cent).
Other features of the Accelerate Red Construction product include: full-doc loans of up to 90 per cent LVR; low-doc loans of up to 80 per cent LVR; unlimited defaults, judgments and writs to $1,000 (paid or unpaid); unlimited defaults, judgments and writs below $1,000 (paid or unpaid) if registered for less than 24 months; and discharge from bankruptcy (one day accepted).
“It’s an exciting opportunity to offer a construction purpose product to customers who fall outside standard lending guidelines and previously wouldn’t qualify for this type of loan,” Mr Hair said.
“If a customer is unsuitable for Homeloans’ prime products, it means brokers can offer this alternative specialist solution.”
Homeloans’ Accelerate Red Construction product is in addition to other Accelerate products offered to broker customers.
These range from the Accelerate Prime product at 4.44 per cent (comparison rate 4.62 per cent) to specialty options from 5.74 per cent (comparison rate 6.01 per cent).
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