If you are hoping to apply for a loan with APS benefits, you can apply for a Personal Loan or if you require more than $15,000, a Special Purpose Loan.
What are the benefits of a Special Purpose Loan?
The main benefit of a Special Purpose Loan is that you can borrow more – $60,000 for individuals and $80,000 for households. Interest rates are also lower compared to Personal Loans as your property is used as security. There are no monthly fees, no application fees and no penalty for early repayment. This makes it an attractive option if you meet the criteria.
Special Purpose Loan criteria
If you are applying for a Special Purpose Loan, you need to own property (residential or investment). You need to have net equity of at least four times the amount of the loan that you are applying for. Our guidelines are that we will lend an amount no greater than 25% of your equity (i.e. if your property is worth $280,000 and your mortgage is $180,000, your equity would be $100,000. The most we could lend is 25% of your equity, which is $25,000). If you don’t own property, you will not be eligible, however, you can still apply for a Personal Loan of up to $15,000.
Please note that Special Purpose Loans require your property to be used as security. All persons listed as owners of the property are required to co-sign the loan application and loan contract documentation (if the loan is approved).
Your loan also needs to be used for a special purpose such as home renovations or improvements. It may also be used for purposes such as overseas travel, medical procedures, approved investments, or any reasonable request. These Loans cannot be used for the purpose of clearing arrears or paying unpaid defaults.
Do you have questions about APS Loans?
Our team are here to help answer all of your questions – big and small! Get in touch to speak to one of our Loans Specialists.