Cairns Lockie subsidiary General Finance has expanded the range of no financials loans it offers to include a prime mortgage at regular interest rates in direct competition with fellow lender Sovereign.
“What we have found in the low doc area is that there are a number of very good applications which Sovereign is targeting,” William Cairns of General Finance says.
“We want to have a product that is the same as Sovereign’s so we can compete head to head in that particular market,” he says.
No financials loans for self-employed borrowers was not a sector of the mortgage market where the banks were competitive, Cairns says.
General Finance will continue to offer a no financial loan with a loading of up to 60 basis points above the regular rates for applications that are just below prime criteria, plus a non-conforming low doc loan, as well as second mortgages for low doc clients.
The company’s prime low doc loan has a higher lending limit of $800,000 per property at a loan to value ratio of up to 80%. Also, in most main centres General Finance’s previous requirement for registered valuations has been relaxed.
Some borrowers will be able to rely on council valuations, but the policy will be decided on a case-by-case basis depending on the nature of the property, Cairns says.
