SMSF Loan (Principal and Interest) (LVR < 80%)
- Immediate cashback upon settlement
- $2000 for loans up to $700,000
- $4000 for loans over $700,000
Yard is a digital lender that aims to simplify the home loan process by providing fully featured, competitively priced loans through a seamless online experience.
Founded in 2017 by Nathan Gooley and Toni Mladenova, Yard makes use of an innovative mortgage solution that completely frees the borrower from the burdens of a home loan application, making every step of the process digital and convenient.
What Yard offers borrowers
Yard offers home loans, bridging loans, and SMSF loans.
True to its promise of keeping everything simple, the lender built the Yard Home Loan as a fully-featured product that enables borrowers to personalise the features.
The Yard Home Loan is available for both owner-occupiers and investors who are salaried employees, self-employed, or non-residents.
Yard Home Loan’s Specifications
Interest type. The rate can be set as either variable or fixed (up to five years). Borrowers can split the loan up to five times.
Loan term. The contract can range from two to 30 years.
Repayment type. Borrowers can pay in principal and interest or interest-only terms.
Repayment frequency. Payments can be scheduled weekly, fortnightly, or monthly.
Loan-to-value ratio. LVR tiers have different mortgage rates across variable and fixed options.
Loan size. The minimum loan amount that can be applied for is $150,000 while the maximum is $5m.
Yard Home Loan Features
Low interest rates. Yard offers one of the lowest owner-occupier and investor rates in the industry.
Unlimited Repayments. Borrowers can pay extra every month on their variable home loans for free. With unlimited repayments, borrowers can pay off their loans faster and save on interest.
Unlimited Free Redraw. Borrowers can access their pool of extra repayments for free if they need extra cash.
Optional 100% Offset Account. Yard offers borrowers an optional offset account to borrowers who want to save and reduce the amount of interest they pay on their variable home loan.
Up to 95% LVR. Borrowers who do not have the typical 20% deposit requirement can still apply for the Yard Home Loan even with as low as 5% deposit. A Lenders Mortgage Insurance (LMI), however, is needed when borrowing over 80% LVR.
Personal service. Yard borrowers will be assigned personal consultants who can help them throughout the home loan process. Off-the-plan purchases may also be eligible for a Yard home loan.
Yard Home Loan Fees
There are several fees borrowers must take note of when applying for a home loan at Yard. These are:
Valuation Fees – applied at cost
Settlement Fee – $150
Legal Fee – applied at cost
Offset account fee (optional) - $120 per annum
For borrowers who are refinancing their Yard loan to another lender, they will be paying a discharge fee of $500 on top of the other legal fees needed.
Break costs also apply for Yard borrowers who want to switch their fixed rates to a variable one.
How to apply for a Yard home loan
While Yard is an online lender, the process on how to apply is flexible and goes according to the needs of the borrower.
Borrowers can either choose the “Apply Now” button to answer a questionnaire or the “Talk to an expert” option to book an appointment with a specialist.
Yard will contact the borrowers via email or phone to discuss their applications.
Eligibility requirements for a Yard home loan
To be eligible for a loan at Yard, borrowers should:
Be at least 18 years old
Be an Australian permanent resident
Not have any previous defaults greater than $1,500
What borrowers need to apply
Essentially, borrowers need three things to start their home loan application with Yard:
Address of the target property or the area where the borrower is searching in
Selfie to validate the identity of the borrower
Identity documents such as an Australian driver’s licence, passport or Medicare card
Borrowers will also need to provide documents related to their employment, income, expenses, and other loan commitments via a separate portal.
After the assessment, borrowers and their personal consultants can commence discussing, designing, and customising the loan.
Frequently Asked Questions
What types of properties does Yard accept?
You can apply for a loan if your planned transaction falls under the following:
Houses, apartments, and townhouses
Rural residential and hobby farms
Can self-employed applicants apply for a home loan?
Yard provides home loans to borrowers who are employed (PAYG) and self-employed.
For self-employed applicants, Yard requires a minimum of two years ABN trading/registration and either of the two:
Last two years tax returns and tax assessment notices
Minimum one-year tax returns, supported with BAS statements from the last 12 months
For professionals who have recently become self-employed can apply even if they have traded under an ABN for only six months.
Does Yard provide guarantor home loans?
Yes, Yard provides ‘Family Guarantee’ or ‘Family Pledge’ home loans. These loans allow someone else in your immediate family to guarantee a portion of your loan.
Your chosen guarantor puts up a property they own as a security against your home loan, allowing you to borrow up to 110% of the purchase price of a property.
The guarantor home loan covers the entire purchase price plus other upfront purchase costs like stamp duty and conveyancing.
With a guarantor home loan, you will be able to avoid paying the LMI.