La Trobe Financial Home Loans
Everything you need to know about a La Trobe Financial Home Loan
La Trobe Financial was founded by Ray O’Neill upon the belief that, “The opportunity to acquire your own home is a central tenant of our economic freedom and a measure of our success as a country”. Australia’s oldest specialist lender, La Trobe offers a range of niche home loan products including low doc loans and loans for first-time homebuyers, those with bad credit, and for SMSF loans. They do have higher than normal interest rates to tailor to the higher risk involved with untraditional borrowing but their solution-oriented approach can be a refreshing alternative for many borrowers.
Key Benefits
- Simple, straightforward home loans with competitive rates
- Simple application process
- Diverse options for investors
Drawbacks
- High fees on some loan products
- No branch access
- Some loans come with high-interest rates
La Trobe Financial Home Loan Products Breakdown
Residential Lite
- Principle and Interest repayments from 4.59% p.a.*(4.76%p.a^ Comparison rate)
- $100,000 minimum loan amount
- Loan term of 30 years
An easy to obtain residential home loan
For those who are unable to fulfil the requisite amount of documentation needed for the full doc loan, La Trobe offers the lite doc residential loan. The only documentation that is required is either an accountants letter, trading statements or BAS. As well as this, the maximum loan to value ratio (LVR) required sits at 80%, which is 15% lower than the maximum ratio for the full doc loan. However, the catch is that you may have to pay higher application fees with this type of loan.
Residential Full Doc
- Principle and Interest repayments from 3.59% p.a.* (3.86%p.a^ Comparison rate)
- $100,000 minimum loan amount
- Loan term of 30 years
A flexible loan that can cater to a wide range of needs
Whether you are a buyer, you’re refinancing, you’re an investor or self employed- the residential full doc loan will be able to cater to your needs. To meet the requirements for this loan, you’ll need to produce your last 2 payslips plus a reference, or alternatively documentation that shows your financials over the past two years will suffice. There are also a range of features that may benefit you, such as the ability to redraw with no extra charge and the ability to make interest only payments for up to 5 years.
Self Employed Lite Doc
- Maximum LVR of 80%
- Loan term of 30 years
- Free to redraw
A hassle-free home loan for self-employed borrowers
La Trobe makes a point to reach out to self-employed borrowers, who may not always have the necessary two years’ worth of financial statements in order to qualify for a full doc loan. This low doc loan option comes with a moderately competitive rate and plenty of great features like free redraw and the ability to make additional repayments. Borrow up to 80% of the property value.
Self Employed Full Doc
- Maximum LVR of 95%
- Loan term of 30 years
- Freed to redraw
A loan for financially comfortable self-employed borrowers
Similar to the Lite Doc loan, this loan is tailored to cater to the needs of self-employed borrowers but offers lower variable interest rates. As well as the lower rate, you’ll also enjoy lower application fees than offered by the Lite doc loan. Those who have a Loan to Value Ratio that is greater than 80% will have to get lenders mortgage insurance for this loan. However, you will still get access to free redraw and additional repayments that are enjoyed by those who have the self-employed lite doc loan.
SMSF Residential
- No ongoing fees
- Flexible rates
- Maximum LVR of 80%
A flexible loan for a range of different properties
For those who have a self-managed super fund, SMSF Residential is a useful product for investing in a second property. This variable rate loan lets you borrow up to 70% of the property’s value. You won’t need to pay LMI but keep in mind the fees on this loan are quite high.
Performance Plus Loan
- Extra repayments
- Flexible rates
- Maximum LVR of 80%
A home loan that rewards borrowers for performance
Something you won’t see with many traditional banks – La Trobe’s Performance Plus offers rebates if your account is up to date and you’ve maintained your loan without any issues. You can redraw your rebate funds or it can be used towards your home loan. This loan product comes with both full doc and low doc options.
Construction
- No ongoing fees
- Extra repayments
- Free redraw
Build or renovate your dream home with a great rate loan
With either a full doc or low doc verification, you can qualify for a Construction home loan product to be used for either your own home or for investment purposes. To benefit investors, you can take advantage of an interest only repayment period, even for the low doc version of this loan. Redraw and additional repayments are available.
Parent-2-Child – First Home Assistance Loan
- No guarantor or remortgage
- No financial risk
- Save as you go
Help shape your child’s future with a first home assistance loan
This loan product is specifically for parents who want to help their child buy their first home but are not interested in putting their own home up as equity. With this product, the parents can contribute as much of the home value as they want without taking on any risk. The child is still eligible for the First Home Owners Grant. As La Trobe sets up all the paperwork and takes care of the legal requirements, P2C becomes a safe financial arrangement for both parents and their children looking to purchase their first home.
Rural-Resi Loan
- Maximum LVR of 75%
- Loan term of 30 years
- Can make interest only payments for term of 30 years
Interested in making a rural investment? This loan might be for you
Whether you’re contemplating a move to the countryside or considering investing, the Rural-Resi loan can assist you with purchasing or refinancing for loans that are up to 100 acres. You won’t be required to pay lenders mortgage insurance or risk fees for this loan. There are also other features that may benefit you, such as the ability to make additional repayments and make interest-only repayments.
Aged Care Loan
- Maximum LVR of 50%
- Loan term of up to 7 years
- Variable interest rate
Reduce the stress of moving a loved one into aged care
La Trobe offers this loan to cover the costs that may be consumed by having to pay Refundable Accommodation Deposit when transferring a loved one into an aged care facility. You can borrow up to $750,000 (provided that this is 50% of your LVR) to fund this deposit, which can often cost more than $500,000. You will not have to pay capital payments during the loan term and will not be required to pay interest payments until the outstanding amount reaches 40% of the loan borrowed. These features may alleviate the stress faced during an already emotionally sensitive experience.
Disclaimer
* Terms and conditions, fees and charges, and normal lending criteria apply. Interest rate is correct as at last update. Interest rates to existing borrowers may vary to the advertised rate. Read more. La trobe advise this rate depends on the loan amount and risk grade of borrower.
^ Comparison rate based on a loan of $150,000 over 25 years. WARNING: This comparison rate is true only for the example or examples given and may not include all fees and charges. Different terms, fees and other loan amounts may result in a different comparison rate.
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La Trobe Home Loan Products Comparison
Frequently Asked Questions
Who owns La Trobe Financial?
La Trobe Financial was founded in 1952 by Ray O’Neill and his son Greg took over as CEO in 1997. However, in December 2017, La Trobe Financial announced the sale of 80% of its operations to Blackstone Group NYC. It’s currently 100% privately owned — 80% by Blackstone and 20% by interests associated with Greg O’Neill.
How secure is La Trobe Financial?
There is always some degree of security risk when it comes to any financial activity — whether it’s the minor risks of a data breach when online banking or the more pronounced risks involved in investing. However, La Trobe Financial is clearly a bank that priorities security. Their website states “we have implemented technology and policies with the objective of protecting your privacy from unauthorised access and improper use and will update these measures as new technology becomes available, as appropriate.” They also have a section on their website, The Security Hub, that provides useful tips for protecting your assets.
How to apply for La Trobe Financial home loans?
Applying for a home loan through La Trobe Financial usually starts with talking to a mortgage broker, who will be able to find the most suitable product for your needs. They will also be able to help you organise and submit your loan application forms.
La Trobe does not have physical branches, so you will need to access the form via La Trobe’s website and forward it to their office via email. You can also contact them on 13 80 10 to speak to staff who will be able to help you fill out your form. At this stage, you will also need to submit any necessary identification, including your driver’s license, passport, birth certificate or Medicare form.
Once received, La Trobe Financial will call you back with a status update, which may be conditional approval. They will ask you to submit information related to your income and the property you’re looking to purchase. They will also do a valuation on the property. If formally approved, you’ll be sent a settlement pack including forms you’ll need to sign. Once sent back, this will be reviewed by La Trobe Financial’s solicitor to ensure everything has been signed properly. From here, your settlement date will be set and you’ll receive your funds!