It's not the rate that's so impressive, it's the fact that this product is a true lo doc loan. Virtually all the remaning lo doc loan providers require BAS statements which negates any real benefits of a lo doc loan. The main document of concern would be an accountants letter certifying income.  

The Lender prices risk appropriately at this level.

• 7.03% for loans under a 60% LVR;
• 7.33% for loans under an 80% LVR.

These rates are as good as, if not better than some full doc lenders' rates at the moment.

Debtor finance is an innovative method of providing funding to businesses by using the value of your outstanding invoices as security.

Debtor finance is ideal for:

• Business growth plans / acquisitions;
• Purchasing stock and satisfying other regular overheads;
• Debt refinancing / Payment of ATO debt;
• Removal of personal property from business security.

Your business can generally access between 80% - 90% of the value of its invoices within 24 hours, without changing your customers’ payment terms.

In addition:

• Debtor finance provides a higher level of funding than typical overdraft facilities.
• There are no requirements for bricks and mortar security, allowing you to retain control of your home or other properties.

There is growing competitiveness between lenders at present to increase residential market share. Certain lenders are waiving application fees for refinances, however most importantly the variable rates at present are very competitive as follows:

1. Loans under $1.5 million: 0.90% - 0.95% of the standard variable rate;
2. Loans above $1.5 million: 1.00% off the standard variabe rate.

(LVR needs to be below 75%).

In addition, lenders have dropped their fixed rate loans by 15 - 20 points over the past couple of weeks.

 

If you require any additional information, please contact Dean Perlman on 02 9363 2747 or dean@charterfinance.com.au

The material contained in this newsletter does not constitute financial advice. Any transmission or receipt of information via this newsletter does not intend to create a professional services relationship between Charter Finance Institute Pty Ltd and the visitor. All products or rates detailed in this newsletter are valid as at the date of this newsletter and are subject to change by the Lender without notice.

Charter Finance Institute Pty Ltd is not responsible for any action taken in reliance on any information contained in this newsletter. Anyone reading the newsletter should not act upon material contained in this newsletter without appropriate consultation.