State Custodians is an online lender that was founded in 2007, with a mission to offer an affordable alternative to the banks.
Although a newcomer to the home loan business in Australia, State Custodians is now owned and funded by RESIMAC Limited, which has been delivering financial services for more than three decades.
State Custodians offers a broad range of home loans and also specialises in mortgages that cater for borrowers with bad credit.
State Custodians home loan repayment calculator
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Pros and cons
- State Custodians offer a variety of home loan products.
- Flexible loan options.
- Award winning loan products.
- No branch network.
- Some products include fees.
State Custodians home loans rates
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State Custodians customer service
How to Apply
Customers wanting to apply for a State Custodians loan can apply by filling out a pre-qualification application online or by calling the bank. Before applying for a home loan it is advisable to think about how much money you could conceivably borrow given your financial situation and income.
You will also need to provide documentation when applying for a home loan. This will include:
- Name and contact details of each borrower.
- Income & expenses.
- Existing property details and liabilities.
- If you’re self-employed you will need to include the last two Business Activity Statements (BAS), three months of business bank statements and a letter of verification from an accountant.
About State Custodians home loans
State Custodians has as a reputation for offering simple home loan products that suit the following customers:
- First home buyers
- Self-employed (low-doc)
- Line of credit
State Custodians home loans come with a range of interest rate options:
- Principal and interest
- Fixed rate
- Variable rate
- Split loans
State Custodians allows its customers to borrow up to 95 per cent of the home’s value, as long as conditions are met.
The online lender has a minimum loan amount of $100,000 and a maximum of $2,000,000.
Customers of State Custodians can make unlimited extra repayments, and free online redraw facilities are available on their home loans. All its mortgages also come with a free 100 per cent offset account.
State Custodians home loan terms range from 1-30 years and repayments can be made weekly, fortnightly or monthly.
State Custodians home loan rates
State Custodians interest rates differ depending on the product, and range from very low to moderate.
Customers of State Custodians paying principal and interest get lower interest rates than those paying interest-only, and those with lower LVRs get lower interest rates than those with higher LVRs.
However, unlike most of its competitors, who increase interest rates on their line of credit mortgages, State Custodians tends to charge similar rates to its other products.
For owner-occupiers there are products that have very low rates, however generally their rates are moderately low to moderate.
The current home loan interest rates for investors paying principal and interest range from very low to moderately low. The interest-only investor mortgage rates are moderately low.
Although the upfront fees tend to be moderately high, State Custodians’ ongoing home loans fees are generally very low, but there are some products that also have high annual fees.
State Custodians home loan review
As a challenger lender, State Custodians has a point of difference from the big banks that offer face-to-face customer service, as well as a host of other financial services - it attracts customers by offering lower than market interest rates.
As an online lender, most of its customer service is done online, but customers can also call for assistance 9am-6pm Monday to Friday.
Although State Custodians offers a wide variety of home loans, the lender doesn’t offer reverse mortgages, SMSF home loans or land and construction loans. However, unlike many lenders who turn down customers with bad credit, State Custodians offers specific mortgage products to suit these clients.
Since it began trading, State Custodians has consistently offered competitive home loan rates; in fact it has won several independent awards, including Money Magazine’s Non-Bank Lender of the Year award for 5 years in a row.
Learn more about State Custodians
Who offers 40 year mortgages?
Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank.
Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.
Why is it important to get the most up-to-date information?
The mortgage market changes constantly. Every week, new products get launched and existing products get tweaked. Yet many ratings and awards systems rank products annually or biannually.
We update our product data as soon as possible when lenders make changes, so if a bank hikes its interest rates or changes its product, the system will quickly re-evaluate it.
Nobody wants to read a weather forecast that is six months old, and the same is true for home loan comparisons.
What is the amortisation period?
Popularly known as the loan term, the amortisation period is the time over which the borrower must pay back both the loan’s principal and interest. It is usually determined during the application approval process.
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Does Real Time Ratings' work for people who already have a home loan?
Yes. If you already have a mortgage you can use Real Time RatingsTM to compare your loan against the rest of the market. And if your rate changes, you can come back and check whether your loan is still competitive. If it isn’t, you’ll get the ammunition you need to negotiate a rate cut with your lender, or the resources to help you switch to a better lender.
How much information is required to get a rating?
What do mortgage brokers do?
Mortgage brokers are finance professionals who help borrowers organise home loans with lenders. As such, they act as middlemen between borrowers and lenders.
While bank staff recommend home loan products only from their own employer, brokers are independent, so they can recommend products from a range of institutions.
Brokers need to be accredited with a particular lender to be able to work with that lender. A typical broker will be accredited with anywhere from 10 to 30 lenders – the big four banks, as well as a range of smaller banks, credit unions and non-bank lenders.
As a general rule, brokers don’t charge consumers for their services; instead, they receive commissions from lenders whenever they place a borrower with that institution.
Does each product always have the same rating?
No, the rating you see depends on a number of factors and can change as you tell us more about your loan profile and preferences. The reasons you may see a different rating:
- Lenders have made changes. Our ratings show the relative competitiveness of all the products listed at a given time. As the listing change, so do the ratings.
- You have updated you profile. If you increase your loan amount, the impact of different rates and fees will change which loans are the lowest cost for you.
- You adjust your preferences. The more you search for flexible loan features, the more importance we assign to the Flexibility Score. You can also adjust your Flexibility Weighting yourself, which will recalculate the ratings with preference given to more flexible loans.
How will Real Time Ratings help me find a new home loan?
The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.
That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.
Best of all, the ratings are calculated in real time so you know you’re getting the most current information.
What is a construction loan?
A construction loan is loan taken out for the purpose of building or substantially renovating a residential property. Under this type of loan, the funds are released in stages when certain milestones in the construction process are reached. Once the building is complete, the loan will revert to a standard principal and interest mortgage.
The amount you currently owe your mortgage lender. If you are not sure, enter your best estimate.
What is a building in course of erection loan?
Also known as a construction home loan, a building in course of erection (BICOE) loan loan allows you to draw down funds as a building project advances in order to pay the builders. This option is available on selected variable rate loans.
What is a redraw fee?
Redraw fees are charged by your lender when you want to take money you have already paid into your mortgage back out. Typically, banks will only allow you to take money out of your loan if you have a redraw facility attached to your loan, and the money you are taking out is part of any additional repayments you’ve made. The average redraw fee is around $19 however there are plenty of lenders who include a number of fee-free redraws a year. Tip: Negative-gearers beware – any money redrawn is often treated as new borrowing for tax purposes, so there may be limits on how you can use it if you want to maximise your tax deduction.
How much are repayments on a $250K mortgage?
The exact repayment amount for a $250,000 mortgage will be determined by several factors including your deposit size, interest rate and the type of loan. It is best to use a mortgage calculator to determine your actual repayment size.
For example, the monthly repayments on a $250,000 loan with a 5 per cent interest rate over 30 years will be $1342. For a loan of $300,000 on the same rate and loan term, the monthly repayments will be $1610 and for a $500,000 loan, the monthly repayments will be $2684.
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