For residential home loans, it can be owner occupy or investment. When the borrower resides in the property, no rental income is earned from a tenant. If the property is leased, the net rental yield in Australia typically vary between 2.75% to 5%. In this form of lending the lender pays close attention to the borrower’s ability to service the loans interest payments from their surplus income.
Residential property lending is largely the domain of banks, building societies and the like, who often use the residential loan as an opportunity to gain other financial relationships with the borrowers. As well, residential lending is frequently done at a lower interest rate than commercial lending and at a higher loan to valuation ratio (LVR), which simply means the amount of the loan expressed as a percentage of the value of the property.
Loan purposes for residential loans include:
- Owner occupy or Investment
- Refinance, including business purposes
- Unlimited Cash Out for any worthwhile purpose including payout ATO debts, working capital and purchase of business equipment
- Debt consolidation including payout ATO debts
- Business purposes
- Construction and Vacant Land
OUR LENDERS AND BUSINESS PARTNERS
We panel consists of more than 25 residential and commercial lenders including major banks, regional banks, building societies and sub-prime lenders. This ensures that our customer will be getting most competitive loan package with a lender which best meet their needs.