Granite Home Loans - 100% LVR?

About Us | Granite Home Loans

Anyone heard of. I did a search on here and never been mentioned.

disclaimer - not affiliated with this company at all. Just thought I share and get some discussion point here as I might be interested in the new year!

 

Absolutely a unique option for those that don't have things like a parental guarantor available - quite innovative. They've got a 100%, 97% and 90% product, all owner occupier only.

The compromise with these are that there tend to be quite high fees (application/establishment) and the rates are significantly higher than normal prime lending.

Their assessment policy is also quite stringent - on the 100 product for instance you need to be University educated, minimum 3 years employment with same employer, etc, and they use higher assessment rates for servicing.

 

Interesting product.

My first question would be - why can't the borrower save at least a 5% deposit?

Have to have some skin in the game.

 

$3,500 application fee
with the main rate close to 6%.

They lend you the deposit.

 

Its similar to a 100% medico loan in that its a blended loan of 2 loans.

So 80% of the loan is a normal 30 year loan term and the remaining 20% of the loan is max 10 years.

This in turn will affect servicing and they use Genworth's servicing calculator. Credit scoring will play a big part in the approval and the overall application will need to be extremely strong stable employment history, occupation type, limited unsecured liabilities, dual income is great, good servicing surplus, etc.

Essendonfan is right in that its important to have skin in the game but a fair chunk of people generally have around 5% deposit and of what approx 4% goes to stamp duty (assuming they are not eligible for the exemption) and other closing costs such as solicitor/conveyancing fees, B&P's, etc.