Product:  100% Plus

Introduction

100% Plus loans are designed for borrowers who do not have the deposit generally required by financial institutions.  This product takes various forms:

• The loan amount is 100% of the value of the security property and the Lender's Mortgage Insurance
  

• The loan amount is 97% of the value of the security property and 3% for the Lender's Mortgage Insurance ("LMI")

Key Features & Advantages

You do not need a deposit to qualify for this type of loan.

With the first form of this product, gifts and the First Home Owners Grant can be used to pay fees and charges to estbalish the loan.

With the second form of this product, the borrowing in excess of 100% is available to pay fees and charges to estbalish the loan.

Considerations

As you have borrowed more, you will pay more interest.

To reflect the additional risk of this type of product, you are required to take out LMI at 2.5% of the loan amount.

Suitable for

People who have the capacity to repay the loan but have not been able to save the deposit, or who are able to pay off debt without the ability to save.

Example of product

Home Loans Limited's 100% home loan