The tactic to make the loan stand out among the offerings provided by mortgage brokers all over the country is achievable when all the documentation is supplied, Propertyfinance general manager Shaun Riley says.
"We have pitched the product based on service," he says. Propertyfinance is a step ahead as there is no lenders mortgage insurance (LMI) involved.
"One issue we had heard from brokers was that while a lender might like a deal, their insurer might not, so they can't do it. We don't have that issue as we are self-insured," Riley says.
"Customers can get a positive response, quickly." The "No Nonsense" loan is now a permanent part of Propertyfinance's product portfolio as its standard mortgage.
"The product is aimed at a good customer, with clear credit, but there may be something that is stopping them getting a loan with a bank. It could be a gifted deposit, or recently changed employment, an inheritance or just somebody who doesn't want to deal with a bank."
Propertyfinance offers a variable rate of 8.75% presently with up to 95% LVR. It does not offer fixed rates.
The other new element to the No Nonsense product is the low-doc feature, which enables a self-employed person who has trouble proving their income or hasn't produced their first set of accounts to borrow up to 90% of a house valuation.
"We want to see six months trading, but we don't necessarily have to see accounts. We will let people self-certify and we check their bank statements and make sure that what they have told us rings true," Riley says.
Other loan criteria are that the property must be owner-occupied, the mortgage must be at least $150,000, the borrower must have suitable life insurance, and single borrowers are not permitted when the loan exceed 90% LVR.
