Mortgage provider Homeloans Ltd has said it will cover the cost of Lender’s Mortgage Insurance (LMI) on its Ultra range of lo doc loans on LVRs up to 70 per cent.
Homeloans general manager of third party sales Tony Carn told The Adviser that borrowers would not be charged a loading on their interest rate for taking up the offer.
“Our Homeloans Ultra Low Doc rate is already very competitive at 7.24 per cent, and we’re now providing additional value by covering the cost of LMI. On a $600,000 loan, a customer could save $6,500 in LMI costs,” Mr Carn said.
The announcement follows Homeloans decision to increase its lending up to 95 per cent LVR.
Mr Carn said the mortgage provider was committed to providing innovative solutions to its customers.
“Funding for the low doc market is opening up once again, which gives us the perfect opportunity to ease our lending criteria in this area,” he said.
“In the past there has been the perception that with the introduction of licensing, low doc loans would become a dead space, but this is simply not the case. There has always been a demand for low doc loans and we are now in a better position to cater to this demand.”
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