Founded by Toni Mladenova and Nathan Gooley in 2017, Yard leapt onto the home loan scene to change the "inefficient" home loan application processes that can "feel ancient and seem to take an eternity."
"Most home loans are confusing. The long list of hidden fees and charges makes meaningful comparison tough," Ms Mladenova told Savings.com.au.
"At Yard, we have changed this. We're obsessed with designing innovative mortgage solutions that are simple, transparent, and fairly priced. We make the home loan experience better for people."
It says it uses the latest tech to provide "exceptional, locally-based" customer service to Australians everywhere.
Compare Yard home loan interest rates
Yard is a non-bank lender and its "simple, online home loans" span products for owner occupiers, investors, and self-managed super funds. It's also one of the few lenders to offer SMSF loans for commercial properties. Across the gamut of products its rates are broadly competitive with other lenders.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $445 | 60% | |||||||||||||
6.14% p.a. | 6.26% p.a. | $3,043 | Principal & Interest | Variable | $0 | $445 | 60% | |||||||||||||
6.90% p.a. | 7.30% p.a. | $3,293 | Principal & Interest | Variable | $0 | $445 | 60% | |||||||||||||
6.90% p.a. | 7.30% p.a. | $3,293 | Principal & Interest | Variable | $0 | $445 | 70% | |||||||||||||
6.90% p.a. | 7.30% p.a. | $3,293 | Principal & Interest | Variable | $0 | $445 | 80% | |||||||||||||
7.75% p.a. | 8.17% p.a. | $3,582 | Principal & Interest | Variable | $0 | $445 | 60% | |||||||||||||
7.85% p.a. | 8.27% p.a. | $3,617 | Principal & Interest | Variable | $0 | $445 | 70% | |||||||||||||
7.95% p.a. | 8.37% p.a. | $3,651 | Principal & Interest | Variable | $0 | $445 | 80% |
Yard's other home loans on offer
Yard home loan features
"We want to provide people with all the features that a big bank might provide - we just want to combine this with extremely competitive interest rates and low fees," Ms Mladenova said.
So, with that in mind, let's get into some of the features.
Unlimited free redraw: Additional repayments are made into a redraw account, which serve to lower your interest bill over time but provide access to funds if you need it.
Unlimited additional repayments: On many home loans you can repay as much as you like with no penalty. This lets you get ahead and save years and potentially thousands in interest.
Optional 100% offset facility: As it's a non-bank lender, its offset account is not a separate bank account, but a facility linked to a debit card, with which you can transact. You can open up to 10 offset accounts.
Up to 95% LVR: You can get a home loan with Yard with as little as a 5% deposit but keep in mind you'll pay Lenders Mortgage Insurance (LMI).
Up to 5 splits: Split accounts split your home loan between fixed and variable rates; having up to 5 splits means you could be getting a variety of different interest rates and lock in some of your mortgage for rate certainty.
Yard home loan fees
Yard has no upfront application fees, however you may run into a few other fees on your home loan journey with Yard:
- Valuation Fee – applied at cost
- Settlement Fee – $150
- Legal Fee – applied at cost
- Offset account fee (if you select to have one) – $120 per annum.
- Discharge fee (if refinancing away from Yard) - $500
Certain other fees may apply across some home loan products. For example, SMSF loan applications can be more complex, more time-consuming and thus costlier to establish.
Break fees may also apply if you're exiting out of a fixed-rate home loan early.
Yard home loan approval times
Yard told Savings.com.au it can typically approve simple home loan applications within 24 to 48 hours. This is much faster than some other lenders, which could take weeks.
"We separate ourselves through the breadth and speed of our proposition," Ms Mladenova told Savings.com.au.
Of course, your mileage may vary; for a speedy approval process you want to make sure you have all your documentation (more on that later) ready to go. Complex applications such as SMSF and low-doc borrowing may take longer.
Yard home loan eligibility
Ms Mladenova said Yard recognises that Australians can have "unique personal and financial circumstances".
"Whether you're a salaried employee, self-employed, located overseas, are looking for a loan through a trust or company, or buying in a regional area; Yard tries to meet a wide range of circumstances and your loan consultant can look to see if Yard can help you," she said.
To apply for a home loan with Yard, you'll need to meet its home loan eligibility criteria, including:
Being at least 18 years old
Being an Australian citizen or permanent resident
Having a good credit history
Receiving a salary from an employer, or you are self-employed with at least two years of ABN registration; self-employed professionals (doctors, lawyers, IT professionals) may be considered if they have held an ABN for six months
Having no previous defaults greater than $1,500
Maximum LVR is 95% with lenders mortgage insurance (LMI)
Minimum loan size is $150,000 and the maximum is $5 million
Among other low-rate lenders, Yard is also more accepting of different property types. Yard will lend for regular homes, apartments and townhouses, as well as hobby farms, and off-the-plan purchases.
How to apply for a Yard home loan
Yard's application process is totally digital, starting with an online form submission, and a subsequent chat with one of Yard's Lending Specialists.
- Application Start: No documents required yet, but tell Yard about the property you're after, as well as your employment details, income, and expenses. This is for a borrowing estimate.
- Book a meeting with a loan consultant to talk about your scenario and your required settlement times.
- Provide your supporting documentation: This is when the rubber hits the road - supply payslips, bank statements, tax returns, your identification, and any supplementary information about other debts.
- The application is sent to the assessment team for approval - hopefully you've provided everything.
- Home loan is approved (hopefully within 24 to 48 hours); this is your chance to sign the contract.
- Yard works with your conveyancer and real estate agent/s to settle everything before your settlement date.
Yard home loan support
Yard has no bricks-and-mortar presence, with its processes being almost totally online. This is common among non-bank lenders and means they tend to offer speedier service and support.
“You’re also likely to get a better deal when going with an online lender, as most of the competitive rates on the market currently come from an online lender," Ms Mladenova said.
Yard says it boasts a "highly skilled" team based in Australia, and are available at a time that suits your schedule to make the process easy.
- Lending specialists are available via phone, online chat, online forms, and email.
"Yard is a full-service mortgage lender. Our sole focus is on providing home loans and we are specialists," Ms Mladenova said.
"Every Australian's property investing journey is unique. Property preferences vary, your investment strategy is your own and your financial circumstances are unique to you.
"We are committed to getting to understand what you really need and want today, and then how we can help you build wealth into the future."