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ISCOVER
Staff Reporter
Collins Home Loans has announced it will increase the flexibility of its low doc lending policy in a bid to enhance its position in this space.
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Effective from today, Collins will allow the refinance of Low Doc loans up to a loan to value ratio of 80 per cent with an unlimited cash feature.
The lender will also cut the interest on its product, taking the new rate to just 8.99 per cent pa.
Speaking about the changes, Collins chief executive officer Rob Emmett said the lender was pleased to relax its lending policy given that low doc lending was one of the hardest hit product segments during the global financial crisis.
“After this date many consumers were stuck paying higher rates on their loans with an inability to refinance to a competitive alternative or apply for top up finance. For many people with a low doc loan the only option to exit a loan, until recently was through the sale of their property. Part of the relaxation of the low doc policy has been brought about by the better than expected performance of loans in this segment and partly by the feedback we have received from the broker channel,” Mr Emmett said.
“Brokers have provided constructive feedback around fee structure and loan qualification which we have also introduced to make the application process much simpler.”
