businessOwned by: Privately-owned
monetization_onFunded by: Institutional funding from CBA and wholesale capital markets
securityLMI Provider: Self-Insured
account_balanceLender type: Non-bank, Specialist Lender
RedZed operates exclusively through a team of accredited highly qualified and experienced mortgage partners.
Since they only work with a select group of mortgage partners, handpicked for their expertise, credibility and customer focus, you may not have heard of them.
They’re experts in lending to people with a low credit score, bad credit history, limited proof of income or people who want to buy a commercial property.
How do RedZed’s loans compare?
- Low doc loans for self-employed borrowers
- One of the best lenders/rates for low doc loans
- Low doc commercial loans available
- Specialist commercial lending
- Special solutions for borrowers with a bad credit history
- One of the few specialist lenders that will accept vacant land (capital cities only)
- Assessing loans using common sense instead of credit scoring
- A range of residential and commercial mortgage products
- They assist in refinancing existing business debt and tax debts
- Equity releases (can do around $500,000 cash out)
- Interest rates and fees are higher than the banks
- Their risk fee, similar to LMI, can be expensive
- No branch network
- Most mortgage brokers aren’t accredited with RedZed
- They don’t do construction loans
- They can’t help you if you have a low deposit
- Depending on how busy they are, they may be slow to assess your application
Why aren’t more brokers accredited with RedZed?
Firstly, RedZed isn’t on the panel of most mortgage broker groups, known as aggregators, and most mortgage brokers aren’t allowed by their aggregator to make direct agreements with lenders.
Secondly, RedZed is a small lender and doesn’t have the capability to handle the large numbers of applications they could receive from mortgage brokers. So they prefer to pick and choose specialist mortgage brokers to work with. This way they give a great experience to a small group of customers.
We’ve made an agreement with RedZed as they have some unique credit policies that aren’t available from other lenders. In particular their low doc loan and their commercial loans can help borrowers that can’t get a loan from any other lender.
What home loan products does RedZed offer?
RedZed has a range of variable rate mortgages. Their focus is on providing solutions to the Self Employed and for those individuals that may have had a history of credit impairment.
They offer the following loan options:
- Residential loans to a maximum of 80% of the value of the security property and a maximum loan amount of $1.75 Million
- Commercial loans up to a maximum of 70% of the value of the security property and a maximum loan amount of $3 Million
Tip for applying with RedZed
Use RedZed’s loan application pack to prepare for your mortgage application.
Note: This is the latest loan application pack effective December 2020. Please refer to RedZed for their most up-to-date document requirements.
RedZed client story
To release equity in property to fund renovation work on investment properties.
Following a painful divorce, Emily was able to build a new life for herself as a professional property investor.
Her main strategy was pure capital gains, buying real estate, renovating the property, and selling it at a higher price.
As her main source of income, Emily didn’t have full financials to provide to get approved with a prime lender but she was able to finance her property purchase with specialist lender RedZed instead.
Having grown her investment portfolio substantially, she needed extra funds to renovate some properties she recently purchased and needed to release some equity in her owner-occupied mortgage.
By staying with RedZed, Emily was able to release $280,000 at 70% of the property value and only needed to provide one accountant’s letter to prove her income.
The other great thing about RedZed that made it easy for Emily was that she was able to release equity without providing a stated purpose, which is a typical requirement for most banks.
However, RedZed have one of the lowest low doc interest rates on the market so Emily was happy to pay the cost and start work on her investment properties.
Compare RedZed to other lenders
Not sure which lender 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.