Mortgage broker Squirrel has announced a new home loan product, which will be available exclusively to homeowner clients.
The Homeowners Loan is designed to fund home renovations and upgrades, and removes the necessity of the client having to go to and wrestle a loan from their bank. Potential customers can apply for loans of up to $70,000 at a rate of 7.95% p.a., the product has no establishment, monthly or exit fees, and borrowers can choose between a 2-7 year term to pay off the loan. The scheme is interest-only for up to a year, before being automatically transferred to a 5 year term.
Loans over $20,000 require an owner-occupied house as security, and the loan can only be used for home renovations or a large purchase for the house.
“We know that homeowners tend to be responsible borrowers and the money is being used for things for the house, meaning the risk to our investors is lower – and, most importantly, we can make the terms of the loan more attractive to the borrower,” Squirrel said.
“There really is nothing quite like it and we’re super proud of being able to offer it to our borrowers.”
The loan can also be bundled into a borrower’s existing mortgage within the first year, with Squirrel setting up the mortgage structure and securing a rate. It can also be kept as a personal loan, with the payments spread over a default term of five years.
Other loan products currently offered by Squirrel include its Personal Loan, Vehicle Loan and Debt Consolidation Loan.
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