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16 Jun 2004
Mortgage House Offers First Low Doc Home Loan At Banks Standard Variable Rate
Mortgage House’s home loans department has today announced a Discounted Low Doc Home Loan at virtually the same interest rate that many banks are offering their standard, full paperwork, variable home loans.
“The interest rates on this new Low Doc Home Loan actually reduce after the four year anniversary of the home loan, so on comparison rates the effect of the home loan rate reduction makes these home loans one of the lowest available in the market,” said Mortgage House Home Loans Managing Director Ken Sayer.
“Our Low Doc Discounted Home Loan Plus Variable Rate now hits the market at a comparison rate of 6.89%. Even on our headline home loan rate of 7.07%, this puts this low doc home loan product on par with the standard variable home loans of Commonwealth Bank, NAB, St George Bank and Westpac banking Corporation.”
“This is the one of the first low doc home loan products to recognise that borrowers should not have to pay a huge premium just for having a simplified home loan approval process.”
“Low doc home loans are a legitimate and important product for those in, for example, small business or who are self-employed. The paperwork generally needed for a standard home loan product is often an onerous burden for people in these categories and low doc home loan products simply offer them a real alternative to having to deal with the delays and significant expense of getting financial statements together to secure a simple home loan,” said Mr Sayer.
Borrowers on a Home Loan Plus Low Doc home loan also have a choice of paying an upfront fee for a lower initial home loan interest rate over 4 years (drop down) or a higher initial home loan interest rate that reduces (steps down) over 4 years
| Interest Rate Reduction (Conditions apply 1 ) | Fee (in addition to standard fees) |
Comparison Rate 2 |
|
| MHA Low Doc Discounted Home Loan Plus Variable Rate 7.07%pa | 0.48% at 4 th anniversary | 0.50% of the approved credit limit, payable at settlement | 6.89% pa |
| MHA Low Doc Discounted Bullet All In One Variable Rate 7.24% pa | 0.50% at 4 th anniversary | As above | 7.04% pa |
| MHA Low Doc Discounted Equity Gold Revolving Line of Credit Variable Rate 7.49% pa | 0.50% at 4 th anniversary | As above | 7.30% pa |
Notes:
(1) Rate reduction at MHA’s discretion subject to the home loan account being conducted in a satisfactory manner (including payment of any amount under the home loan contract by its due date)
(2) Comparison rates quoted on the basis of a $150,000, 25 year fully amortising principal and interest loan. A full home loan comparison rate schedule is available on the MHA website.
Issued for Mortgage House Home loans by Wilkinson Media, 8969 6255