Near Prime Home Loan

A near prime home loan is a type of home loan that is designed for borrowers who don’t meet the strict credit criteria of traditional prime home loans, but who are still considered to be less risky than subprime borrowers.

Near prime borrowers may have a slightly lower credit score, a higher debt-to-income ratio, or a shorter credit history than prime borrowers, but they typically have a steady income and a solid repayment history. As a result, near prime home loans often come with slightly higher interest rates and fees than prime loans but lower than subprime loans.

Lenders may also offer near prime home loans with different features, such as fixed or variable interest rates, flexible repayment terms, and reduced documentation requirements.

A near prime home loan is suitable for Purchases, refinance of both Owner Occupied and/or Investment Property. Available to PAYG applicants and Self Employed. Both investment and owner-occupied loans have similar features, fees and charges, although interest rates may vary.

• 100% of Casual, Part Time, Probation, Overtime, Commissions, Bonuses and Second Job accepted
• Rental income from Holiday Homes and Air BNB (12 months of net income after after fees / cleaning used)
• Credit History – Paid or Unpaid defaults up to $1,000 may be considered.
• Genuine Savings not required.
• Up to 90% of the loan amount for Debt Consolidation or Cash Out (unlimited number of debts including tax debts)
• 100% of Government A & B benefits, Foster Care, Income Protection, Workers Compensation and Child Support through Child Support agency (no private arrangements)
• Single HEM considered for single applicant that is part of a couple subject to verification of non applicants income
• Refinance from Private Lenders with Capitalised Interest
• Vacant Residential Land in cat 1 and 2 locations to 75% LVR
• Most recent year Self-Employed income acceptable

Minimum & Maximum Loan Amount for a Near Prime Home Loan

1. $900,000 (Syd or Melb) $750,000 (other) to 95% of Property Value
2. $1,000,000 to 90% of Property Value
3. $1,000,000 to 85% of Property Value
4. $1,750,000 to 80% of Property Value
5. $2,000,000 (Syd or Melb) $1,750,000 (other) to 75% of Property Value
6. $2,500,000 to 70% of Property Value

Acceptable Securities

• Residential & Rural Residential securities in Cat 1 – 3 with a max land size of 25 acres (10 hectares)
• Standard zoned residential, rural residential or rural
• Residential units (with separate title) over commercial premises up to 80%
• Leasehold residential dwellings of standard construction
• Residential: Up to 2 properties on 1 title

Income documentation

• (PAYG) Last 2 pay slips plus one of the following: Letter of employment, Tax assessment notice, Latest income statement from MYGOV website or 3 months bank statements
• (SELF EMPLOYED) Latest years tax returns for Companies and last personal returns for sole traders and tax assessment notices minimum 2 years ABN registration.

Standard Features & Versatility