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Bank Rip-Offs Revealed - Click
for Video
22-Sep-2003
A number of lenders have recently made available "No Deposit Home Loans" which allow the borrower to finance 100% of the cost of a residential property providing they can meet purchasing costs. Purchasing costs include such items as stamp duty and conveyancing, and typically represent about 5% of the cost of a property.
St George Bank is offering a "No Deposit Home Loan" at 6.87%, compared with their standard 6.57% variable rate. However, the borrowing requirements for this loan are more restrictive, and the establishment, redraw and ongoing fees are also slightly higher compared to their standard variable product.
Pepper Home Loans also have a "100% Home Loan" available at a variable rate of 7.95% for new purchases or refinances of residential owner-occupied properties.
The Commonwealth Bank has also recently followed St. George Bank's lead in introducing a reverse-mortgage. These loans are designed for borrowers over 65 years of age to tap into the equity in their homes to provide income to supplement their lifestyles. Both lenders' products are being offered at an interest rate of 7.57% and require no repayments until the borrowers either pass away, sell or move out of the property.
The Commonwealth's product is called the "Equity Unlock Loan for Seniors". It comprises an establishment fee of $950 and a monthly service fee of $12. Borrowers need to own their home outright, and the minimum loan is $40K up to a maximum of $225K. This can be drawn down either in a lump sum, or via periodical payments, or a combination of both.
Both the CBA and the St. George product, the latter known as the "Seniors Access Home Loan", allow all establishment and monthly fees, in addition to the interest costs, to be added to the loan balance, enabling seniors to get set without incurring any upfront costs.
Reader's wishing to access either the 100% Loans or Senior's Loans can do so via our recommended broker Loan Vision. See our home loans page for more details.
Loan Vision guarantees that you will not pay anymore for a loan than you would have if you went through to the bank/financier directly, and in most cases they can save you money by negotiating interest rates and fees on your behalf. They also charge absolutely no fees for arranging residential loans and refinances, and are members of the Mortgage Industry Association of Australia and the Finance Brokers Association of Australia.
If you decide to obtain a loan or to refinance through Loan Vision, contact us and we'll send you a free copy of the "Family Finance Planner" software.
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