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
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.
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 breach of contract?
A failure to follow all or part of a contract or breaking the conditions of a contract without any legal excuse. A breach of contract can be material, minor, actual or anticipatory, depending on the severity of the breaches and their material impact.
What is appreciation or depreciation of property?
The increase or decrease in the value of a property due to factors including inflation, demand and political stability.
Your current home loan interest rate. To accurately calculate how much you could save, an accurate interest figure is required. If you are not certain, check your bank statement or log into your mortgage account.
What happens to your mortgage when you die?
There is no hard and fast answer to what will happen to your mortgage when you die as it is largely dependent on what you have set out in your mortgage agreement, your will (if you have one), other assets you may have and if you have insurance. If you have co-signed the mortgage with another person that person will become responsible for the remaining debt when you die.
If the mortgage is in your name only the house will be sold by the bank to cover the remaining debt and your nominated air will receive the remaining sum if there is a difference. If there is a turn in the market and the sale of your house won’t cover the remaining debt the case may go to court and the difference may have to be covered by the sale of other assets.
If you have a life insurance policy your family may be able to use some of the lump sum payment from this to pay down the remaining mortgage debt. Alternatively, your lender may provide some form of mortgage protection that could assist your family in making repayments following your passing.
What is a valuation and valuation fee?
A valuation is an assessment of what your home is worth, calculated by a professional valuer. A valuation report is typically required whenever a property is bought, sold or refinanced. The valuation fee is paid to cover the cost of preparing a valuation report.
Mortgage Calculator, Repayments
The money you pay back to your lender at regular intervals.
Mortgage Calculator, Loan Term
How long you wish to take to pay off your loan.
How often is your data updated?
We work closely with lenders to get updates as quick as possible, with updates made the same day wherever possible.
Do other comparison sites offer the same service?
Real Time RatingsTM is the only online system that ranks the home loan market based on your personal borrowing preferences. Until now, home loans have been rated based on outdated data. Our system is unique because it reacts to changes as soon as we update our database.
Why should you trust Real Time Ratings?
Real Time Ratings™ was conceived by a team of data experts who have been analysing trends and behaviour in the home loan market for more than a decade. It was designed purely to meet the evolving needs of home loan customers who wish to merge low cost with flexible features quickly. We believe it fills a glaring gap in the market by frequently re-rating loan products based on the changes lenders make daily.
Real Time Ratings™ is a new idea and will change over time to match the frequently-evolving demands of the market. Some things won’t change though – it will always rate all relevent products in our database and will not be influenced by advertising.
If you have any feedback about Real Time Ratings™, please get in touch.
What does going guarantor' mean?
Going guarantor means a person offers up the equity in their home as security for your loan. This is a serious commitment which can have major repercussions if the person is not able to make their repayments and defaults on their loan. In this scenario, the bank will legally be able to the guarantor until the debt is settled.
Not everyone can be a guarantor. Lenders will generally only allow immediate family members to act as a guarantor but this can sometimes be stretched to include extended family depending on the circumstances.
What is appraised value?
An estimation of a property’s value before beginning the mortgage approval process. An appraiser (or valuer) is an expert who estimates the value of a property. The lender generally selects the appraiser or valuer before sanctioning the loan.
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.