Equity loan
Transportable homes, modular homes, prefabricated homes and factory built homes are specialised types of buildings that require specialised finance advice.
Because most lenders will not release funds prior to the completion of the house we have found other solutions that will allow our customers to finance their transportable home.
By using the equity in the land or another property you can have the funds released before the property is complete!
We are specialists in equity loans and can help you find the cheapest loans available even when your bank has said no!
How does it work?
You refinance your current loan and by using your land or another property as security release enough money to fund the entire project. If possible you can deposit the funds in an offset account until they are needed. Although most lenders do not like releasing equity from vacant land or have location restrictions we have lenders that can consider these types of loans.
Who this loan is for?
Owner occupiers, investors, purchases, refinances, construction. All types of transportable homes are usually acceptable including removal homes or second hand dwellings being relocated. The loan is assessed based on the current property value only. Low doc is acceptable in some circumstances.
Who this loan is not for?
People with very little equity. We recommend that these people apply for a guarantor loan.
Type of lender
Bank.
Type of loan
Typically this loan is available with both basic and professional pack discounts.
Maximum loan amount:
$1,000,000
Maximum % of property value (LVR):
95% of the total value of any properties owned. 80% for low doc loans.
Maximum loan term
30 years.
Frequency of payments
Weekly, fortnightly or monthly.
Interest only option
Available, maximum of five years. Interest only payments must be made monthly.
Redraw
Yes, a fee may apply.
Fixed rate option
Yes, up to 5 years available. Note that we recommend you should only fix part of your loan so that you can redraw the progress payments as you need them from the variable portion.
100% offset account
Available on some loans.
Lender Mortgage Insurance (LMI)
Yes payable if you borrow over 80% of the property value. 60% for low doc loans.
Notes
The details above are for the most commonly used equity loans from one of our lenders. The details of your loan may differ slightly, please refer to your loan offer for the full & correct details of your loan. The loan may take up to six weeks to be advanced if we are refinancing your current lender so please apply for the loan well in advance of entering into a building contract or agreement to purchase a removal home.
Where to from here?
- Take a look at our Frequently Asked Questions (FAQ).
- See if you meet our Lender Guidelines.
- Read about our popular guarantor loans.
- Send us your full details to get an obligation free quote.
- Download our Transportable Home Finance brochure.
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