How much equity do I need to refinance my home loan with Unloan?

Before you begin your refinance application with Unloan, here are some things to consider to help determine if we’re the best fit for you.

How much equity do I need?

The all important question! Unloan accepts properties with at least 20% equity – this means you have less than 80% loan to value ratio (LVR).  

To calculate your loan to value ratio, a property valuation is required. We may arrange a physical valuation of your property. If you have completed your own valuation, or have a copy of a valuation, we won’t be able to use these.  

What if I don’t have 20% equity?

We do not offer lower equity loans with lenders mortgage insurance (LMI) or guarantors as part of our refinance home loan application.

What kind of properties do you finance?

Below are eligible securities we accept as part of your refinance application:  

• Freehold and leasehold estates
• Vacant land
• Properties under the National Rental Affordability Scheme (NRAS)
• Up to 4 dwellings within the one development per application
• Any land size or floor size
• Zoned for domestic/residential occupancy or current use includes residential (income generated by the property cannot exceed 25% of total other eligible income)

Click here to see the ineligible securities.

What is the purpose of the property?

The property must be categorised as either owner-occupied or an investment.  

What is an owner-occupied property?

• Occupied by at least one of the borrowers on a permanent or periodic basis
• Not have any associated rental income or tax offsets listed in the application

What about the title structure?  

Unloan must be able to be the first registered mortgage holder, and there can be a maximum of two owners on the title. All listed owners on the title need to be an Unloan borrower.  Where there are two Unloan borrowers, but only one on the title, we can proceed, providing we can confirm the person who is not listed on the title is benefiting from the loan.

If your property is held by a Trust or Company, we are unable to accept your application.  

Limited titles are acceptable as long as there are no caveats on the title.  

Learn more about Unloan and applying with Unloan here.

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.