Homeloans to cover the cost of LMI for lo doc customers
Mortgage provider Homeloans Ltd has relaxed its lending criteria for lo doc customers and will cover the cost of Lender’s Mortgage Insurance (LMI) on its lo doc loans within the Homeloans Ultra range when the LVR is up to 70%.
Homeloans general manager of third party sales, Tony Carn, says borrowers will not be charged a loading on their interest rate for taking up this offer.
“Our Homeloans Ultra Lo Doc rate is already very competitive at 7.24%, and we’re now providing additional value by covering the cost of LMI. As an indication, a customer on a loan size of $600,000 with an LVR of 70% could save over $6,500 in LMI costs,” Carn says.
This latest change follows hot on the heels of Homeloans’ recent announcement of lending up to 95% LVR on its MoniPower range and is further evidence of Homeloans’ continued ability to offer competitive alternatives to the banks.
“Homeloans continues to provide innovative solutions to the market that the banks are not providing,” Carn says.
The change takes effect from 13 September 2010.