businessOwned by: ASX listed, with NAB and Macquarie Bank as major shareholders
monetization_onFunded by: Adelaide Bank, Advantedge (NAB), ING, Pepper Home Loans, Resimac, Homeloans RMT and Macquarie Bank
securityLMI Provider: Genworth, QBE and some self-insured products
account_balanceLender type: Non-Bank, Mortgage Manager
Homeloans Ltd is one of the largest non-bank lenders in Australia, has the transparency of a company that is listed on the ASX and an experienced credit team.
The major strength of Homeloans Ltd is its diverse range of funders. With one simple application, you can get funding from a variety of sources, which means a wide range of credit policies and special offers as well.
The majority of Homeloans Ltd mortgages are submitted by mortgage brokers. They’ve been a popular choice for mortgage brokers since the industry’s inception.
How do Homeloans Ltd’s home loans compare?
They’re great at
But they’ve got some drawbacks…
- People who would prefer a major bank
- People who want to deal with their lender through a branch
- Their LMI or risk fee can be expensive with some funders
- Some of their funders may take a long time to approve a loan
- Some of their funders may change their rate after your loan is advanced
- Some of their funders are easier to deal with directly rather than through Homeloans Ltd
What home loans types do they have?
Homeloans Ltd has a vast array of home loans products which can be a little confusing. So let’s break it down by funding source:
- Monipower Loans are funded by Adelaide Bank
- Ultra Loans are funded by Advantedge
- Accelerate Loans are funded by Pepper Home Loans
- Prosmart Loans are funded by ING
- FlexiChoice Loans are funded by Resimac
- Classic Loans are funded by Homeloans Ltd themselves
- Optima Loans are funded by Macquarie bank
These loans include a dizzying array of options as each funder has 4 – 10 home loan products. So let’s not get carried away, they have something for everyone.
Tips for applying with Homeloans Ltd
Despite being around since 1985 many mortgage brokers and customers see non-bank lenders as a higher risk and don’t consider them for a home loan.
If you’d like a home loan from a non-bank lender like Homeloans Ltd, then you should find a mortgage broker who works with them regularly. Since their product range is so confusing a little experience goes a long way.
Use Homeloans’ application form to prepare for your mortgage application.
Note: This is the latest application form as of September 2014. Please refer to Homeloans Ltd for their most up-to-date document requirements.
Homeloans Ltd client story: William, NSW
When William and his family arrived in Australia a couple years ago, he was knocked back for a home loan because he was a temporary resident on a 457 visa and only had a 5% deposit.
William applied for a Pepper-funded product through one of our brokers and he had been making repayments at a fixed interest rate of our around 5.8% for the past 2 years.
Last year, William qualified for permanent residency and we were able to product switch him to a different funder (Macquarie) within HLL and get William a much sharper interest rate (4.2%).
On top of this, during that time, the market value of his property increased and we were able to refinance him at 80% LVR which meant he could avoid the cost of Lenders Mortgage Insurance (LMI).
Our mortgage broker could have suggested another lender but William chose HLL because it was going to be a simple product switch between a Pepper product and a Macquarie product.
He and his family are now saving $469 a month in mortgage repayments.
Compare Homeloans Ltd to other lenders
Not sure which Homeloans Ltd mortgage is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.