Liberty Financial is known for offering home loans designed to provide flexible options for a range of customers, including owner occupiers, investors, and borrowers who don't fit into traditional lending criteria.

The non-bank lender specialises in mortgages tailored to the customer's profile and financial circumstances. That said, the pricing of these loans is broad-based and somewhat complex as it varies based on the borrower's deposit size, income proof they can provide, and whether or not their credit history is less than ideal.

While many non-conforming borrowers who struggle with meeting bank requirements find Liberty a useful alternative, rates tend to be higher due to the higher risk involved. Conversely, Liberty's rates are generally competitive for prime borrowers i.e. those with high credit scores, higher incomes, good borrowing history, good deposit sizes, and solid employment.

Home Loans Available at Liberty Financial

Low Rate Home Loan

A competitive home loan offering low variable interest rates and zero ongoing fees.

Suitable for: Customers with stable income and a good credit score. Would-be borrowers must be able to present proof of income and savings to demonstrate solid financial standing.

Features:

• Low rate

• Principal and interest (P&I) repayments

• Flexible repayment schedule

• Additional and lump sum repayments allowed

• Redraw facility (online transactions are free)

• Maximum LVR 95%

• Borrow up to $500,000

Flexible Home Loan

A fully featured mortgage that comes with an offset-redraw facility, linked debit card, and the option to choose between fixed and variable rates

Suitable for: Borrowers looking for more flexibility in their home loans, such as being able to lower their interest payments using an offset account and finding the rate structure that helps them pay off their loans faster.

Features:

• Available in fixed or variable rates

• Split loan option (free up to 4 splits)

• Principal and interest (P&I) or interest-only (IO) repayment

• Flexible repayment schedule

• Additional repayments allowed

• Redraw facility (online transactions are free)

• 100% offset facility

• Linked Visa debit card

• Maximum LVR 95%

• Borrow up to $5,000,000

As Liberty is not a bank, deposits stored in the offset are not covered under the $250,000 government guarantee.

Low Deposit Home Loan

A home loan that lets customers borrow up to 95% of the property purchase price. Customers with deposits below 20% may have to pay lenders mortgage insurance (LMI), which can be rolled into the loan and paid off over time.

Suitable for: First home buyers who haven't built a large deposit and don't have enough savings, or customers using gifted or borrowed funds from family to purchase a property.

Features:

• Borrow up to 95% of the property purchase price (LMI rolled into the loan)

• Split loan option (free up to 4 splits)

• Principal and interest (P&I) repayments

• Redraw facility (online transactions are free)

• 100% offset facility

• Linked Visa debit card

• Borrow up to $1,000,000

Low Doc Home Loan

Liberty Financial's low rate home loan accepts alternative documentation for income verification.

Suitable for: Small business owners, freelancers, and investors who rely on investment income. Essentially, this home loan is suitable for borrowers who, despite a good credit history, may struggle to secure a home loan due to a lack of documents typically required to validate their earnings. Liberty notes that self-employed with bad credit may also apply, though expect to pay much higher interest rates.

Features:

• Variable rate

• Split loan option (free up to 4 splits)

• Principal and interest (P&I) or interest-only (IO) repayment

• Flexible repayment schedule

• Additional repayments allowed

• Redraw facility (online transactions are free)

• 100% offset facility

• Linked Visa debit card

• Maximum LVR 85%

• Borrow up to $3,000,000

Fresh Start Home Loan

This home loan is designed for riskier borrowers who don't typically qualify for a mortgage due to a bad credit history. As this product is tailored to considerably high-risk customers, interest rates are higher and several fees, including monthly and equalisation fees (starting from 0.5%), may apply.

Suitable for: People with bad credit, including paid or unpaid defaults, mortgage arrears, and those who have been through bankruptcy.

Features:

• Variable rate

• Split loan option (free up to 4 splits)

• Principal and interest (P&I) or interest-only (IO) repayment

• Flexible repayment schedule

• Additional repayments allowed

• Redraw facility (online transactions are free)

• Maximum LVR 95%

• Borrow up to $5,000,000

Fees Charged to Customers

Liberty Financial home loan fees vary depending on the product.

These are correct at the time of writing and are subject to change.

How to Apply for a Home Loan with Liberty Financial

Since Liberty Financial caters to a diverse range of customers, eligibility requirements vary depending on the loan product.

The requirements are less stringent for more flexible products, making them suitable for applicants with non-conforming income evidence or less-than-ideal credit histories. Meanwhile, for low rate home loans, borrowers must have a strong credit score and stable income to qualify.

Interested borrowers can apply online through the lender's website, arrange a meeting with any Liberty Adviser, or go through a Liberty-approved mortgage broker in the area.

Customers are advised to assess their financial situation, including getting a free copy of their credit report and applying for pre-approval to determine their borrowing power.

To be eligible for the bank's home loans, applicants must meet the standard requirements on personal identity, income source, expenses, assets, and liabilities. Borrowers must be Australian citizens or permanent residents aged 18 and over and have a regular source of income.

Here are the documents required to be submitted to the bank:

For full doc loans:

• Identification (e.g. driver's licence or Australian passport)

• Payslips and/or tax returns

• Bank statements and/or other proof of savings

• Details of any existing debts or liabilities

• Credit history (Liberty will perform a credit check)

For low doc loans:

Required documents are similar to full doc loans but alternative forms of income verification are also considered such as:

• Business Activity Statements

• Accountant's declaration

• Bank statements

As with other lenders, approval time varies based on several factors including the complexity of the application, the completeness of the documents provided, and Liberty's current processing workload.