Low Documentation Home Loan - Rate Star Home Loans

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Rate Star Low Documentation Home Loan

The Rate Star Low Documentation Home Loan is suitable for self employed applicants who can not supply income verification documentation to support their application. Borrowers are required to self-certify their income.

Provided that the home loan has been conducted satisfactorily, the interest rate will reduce by 0.45% after 2 years. Borrowers may also choose to provide their financials once the loan has been established in order to change the home loan product to a Flexible or Flexible Plus Home Loan.

If a self-employed applicant has turnover or income of $75,000 or more per annum, they must be registered for GST or have a letter from their accountant or the ATO confirming they are exempt from GST.

Purpose: Owner occupied or investment property purchases, construction, refinancing existing residential or investment or business loans. For further information click here

Loan Size: From $150,000 to $1 000,000 per security property

Term: Up to 30 Years

Repayments: Principal and Interest or Interest Only for 2,3,5 or 10 years and Line of Credit 15 years

Frequency: Weekly, fortnightly or monthly. Extra repayments can be made on variable loans at any time

Convert to Fixed Rate: All or part of the loan can be converted to a fixed rate at any time at no cost (subject to maximum of 4 a/c)

Split Loan Facility: Up to 4 separate splits per facility. Transfer funds between splits using Inter Account Payment facility

Re-Draw Facility: Unlimited re-draw at no cost. Minimum re-draw $50 when using Loan Service Line or Loan Service Net for all variable rate loans

Pay Anyone: Payment can be made to any bank, building society or credit union directly from your loan using a valid BSB and account number (excludes credit cards). Max $5000 per day. Not available during a fixed rate period.

Maximum Loan to Valuation Ratio: 80% for all loans up to $1 000,000 (conditions apply)

Other Conditions:

All repayments need to be made by electronic direct debit or direct salary credit.
Break costs will apply to fixed rate loans if the fixed rate period is broken.
A 1st registered mortgage over residential property required as security on all loans.
Minimum self-employment period of 2 years.
A Low documentation Declaration will need to be signed by all Self Employed borrowers.
The security property to be located in a mainland capital city.

Additional Low Documentation Home Loan interest rate loadings:

A Low Documentation home loan with a value less than $750,000 and where the loan to value ratio is greater than 70% an additional 0.35% p.a. loading is applied to the interest rate.
A Low Documentation home loan with a value greater than $750,000 and where the loan to value ratio is greater than 65% and less than 70% an additional 0.25% p.a. loading is applied to the interest rate.
A Low Documentation home loan with a value greater than $750,000 and where the loan to value ratio is greater than 70% and less than 80% an additional 0.35% p.a. loading is applied to the interest rate.

Note: Clients can also choose to pay lenders mortgage insurance instead of the interest rate loading.