GenMoney has developed a unique loan product most suited to a younger home buyer demographic. The Subscriber Deposit Loan provides an opportunity for a buyer, who may not have saved the 5% deposit necessary to secure their home in a land lease development but has the borrowing power supported by income to borrow the 5% deposit. This loan is particularly targeted at land lease developments that might be pre-DA (Development Approval) or a development that may not be ready for delivery for 2 or more years.
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The borrower would pay a refundable $1,000 deposit to the developer and when DA was granted GenMoney would pay the 5% deposit to the developer, which is held in trust, and provide the home buyer with a loan for the 5% deposit calculated over the term to settlement.
Once the home is built the borrower would have already paid back the Subscriber Loan in full and saved a further 10% of the home purchase price in preparation for settlement. This enables GenMoney to provide a home loan on a 85% LVR (loan to value mortgage basis) to the borrower.