Pioneer Launches A First For NZ
23 September 2004
Pioneer Launches A First For NZ Loan Product Market
Self-employed New Zealanders will now be able to access a loan with unmatched flexibility and qualifying criteria following Pioneer Mortgage Services launch of its "Express Home Loan" product range.
The Express Home Loans have been designed specifically for self-employed people who traditionally struggle to supply the appropriate income verification.
While it joins the growing range of "Low Documentation" (LoDoc) products in the New Zealand market, the unmatched combination of features and qualifying criteria make it a first for the New Zealand marketplace.
Pioneer Mortgage Services Chief Manager Peter Anderson said the Express Home Loans are substantially different to anything currently available on the market.
"Features such as an $800,000 maximum loan amount, interest-only terms, line of credit option and the wider range of lending purposes have set a new benchmark for this type of loan product," Mr Anderson said.
"LoDoc loans are becoming increasingly popular and we expect the flexible features of the Express Home Loan product range will appeal to a wide cross-section of the market.
"Pioneer has also developed a qualifying criteria that will give self-employed people the ability to access similar borrowing levels as others.
"Traditionally, self-employed applicants are placed at a major disadvantage as they have greater restrictions on the amount they can borrow and the purposes for which the funds can be used.
"The Express Home Loan has been developed specifically to overcome this situation.
"The product will appeal to both owner-occupiers and property investor borrowers as the funds can be used for construction financing, the purchase of vacant land or inner-city apartments," Mr Anderson said.
Pioneer Mortgage Services is one of the largest non-bank lending institutions in New Zealand and Australia. Established more than 20 years ago, the company has offices in Auckland, Wellington and Christchurch.
Pioneer Mortgage Services currently offers more than 100 products across home, business and investment lending funds. The diverse product range allows loans to be tailored to suit the individual needs of clients.
Features of the Pioneer Express Home Loan Product Range:
-A maximum loan amount of up to $800,000 is available whereas in the market the current maximum loan amount is only $600,000
-Loan purposes such as construction, vacant land and inner city apartments are all available, however are usually excluded in other current LoDoc products
-The lenders mortgage insurance premium is only paid by borrowers where their Loan to Value Ratio (LVR) is more than 75%
-Instead of typically required registered valuer's valuations, alternate valuations including Government Valuations (GVs) and Sale and Purchase Agreements are also accepted
-The LoDoc interest rates are amongst the best in the market and are available in both variable and fixed rates
-Although traditionally there is an interest rate premium for LoDoc products there will be an automatic complete elimination of that rate premium after 2 years of satisfactory loan servicing
-Interest-only terms are available up to 10 years, which is especially attractive to property investor borrowers
-Express Cashpower Line of Credit flexible loan structure is also available for borrowers seeking this option
-Pioneer does not apply on-going loan fees whereas most lenders in the market charge loan account fees
-Up to 25% of total loan funds may be utilised for business purposes whereas typically the purpose is restricted to personal / housing use.