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AFC Online is proud in providing the Finance and Real Estate Industries with a snap shot on hot topic and changes to market conditions. Our Banking News and Views section of the Website is updated regularly! |
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AFC Online is proud in providing the Finance and Real Estate Industries with a snap shot on hot topic and changes to market conditions. Our Banking News and Views section of the Website is updated regularly! |
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In this article we will be reviewing Genworths Low Doc Home Loan policy. we will take into account the maximum Loan To Value Ratio (LVR) the maximum borrowings according to the Category of the property according to post code and finally a snap shot of their lending guidelines.
Low Doc Home Loans are suited to self-employed borrowers (applicants) who are unable to produce current financial information or documentation. LMI provides Self-Employed borrowers access to residential mortgage finance without providing evidence of income. The borrower self certifies an income amount that is used to establish serviceability.
| Maximum loan amount and LVR (per security) - As per Genworth security location guide | ||||
Property Type |
LVR |
Category 1 |
Category 2 |
Category 3 |
| House / Unit | 0 - 80% | $1,000,000 | $750,000 | $500,000 |
| Land | 0 - 80% | $600,000 | $400,000 | - |
| Genworth Policy Guidelines | |
Lod Doc Home Loan FEATURE |
A SUMMARY of PRODUCT PARAMETERS |
| Loan Purpose | For owner-occupied and investment properties: • Purchase of an existing residential dwelling • Construction of a single or duplex residential dwelling • Purchase vacant residential land • Home Improvement • Refinance existing mortgage • Off the plan purchase • Bridging Finance • Debt Consolidation • Equity Release/Cash Out Excludes: • Refinance of investment loans • Debt Consolidation • Equity Release / Cash Out |
| Security | Size of property not to exceed 2.2ha (5 acres) Acceptable securities: • Zoned for residential use • A house, villa, home unit, duplex, or vacant land • Free from adverse features • Well presented • Readily saleable Restrictions apply to: • Rural residential properties • High Density Apartments • New House & Land package • Off the plan strata purchases • Company title home units • 2nd mortgages • 3rd party mortgages/guarantees • Display homes • Transportable Homes • Relocated Homes |
| Deposit / Equity | • Must have existing equity in real estate OR • Genuine personal savings of at least 20% equity of the property purchase OR • If borrowers have recently sold property and are in the process of purchasing another, this requirement may be waived |
| Borrowers | • Acceptable borrowers: - Natural person (over the age of 18) - Company - Trust or - Any multiple or combination of the above • Australian Residents only • ‘First Home’ discount not applicable Restrictions apply to: • Borrowers of convenience • Non-residents |
| Employment / Income | • At least one borrower must be Self-Employed • All Self-Employed borrowers must hold: - An active ABN for at least 2 years - GST registration for at least 12 months • Declared income and Assets and Liabilities position must be verified through: - Past 12 months BAS Statements from the ATO - BAS Statements will be required for each trading entity, should the borrower declare income from more than one trading entity on the LMI application - Past 6 months personal transaction account statements (primary account only) • Must have a Net Disposable Income of at least 1.00:1 of total commitments based on declared income |
| Credit History | • Clear credit history for borrower/s and guarantor/s |
| Loan Term | Maximum of 30 years |
| Repayment Type | • Principal & Interest (P&I) • Interest Only (IO) • IO Converting to P&I within 10 years |
| Maximum Borrower Exposure | • $2,500,000 (total aggregate exposure) |
| Premium Capitalisation | • LMI Premium may be capitalised • When calculating premium payable, the Base Loan Amount (before adding the LMI premium) is used. |
| Loan Features | • Split Loans • Redraw Facility • Line of Credit Excludes: • Parenting Repayment Break |
As you can see there is quite a lot involved when it comes to Low Doc Home Loans and care should always be taken. Always refer to your Aggregator or Banking Institution for further clarification and support. It should also be noted that there may be other restriction by the Bank being considered and you should also refer to their product matrix.
Feel free in book marking this page for future reference.
For more information please do not hesitate in Contacting Us and one of our people will be able to assist.