Compare Yard Home Loans & Interest Rates
Dominic Beattie
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- Yard is an online non-bank lender founded in 2017.
- It offers a range of home loan products for owner occupiers, investors, and SMSF trustees.
- It caters to self-employed borrowers and non-residents, in addition to salaried employees.
- It lends to a range of property types.
Founded in 2017 by Toni Mladenova and Nathan Gooley, Yard positions itself as a digital non-bank lender offering home loans, commercial loans, and SMSF lending solutions.
It leapt onto the scene with a goal 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."
While customers can apply for a home loan at any time on any device, Yard being an online-only lender also means it has no physical branch network which may be a drawback to some customers who prefer face-to-face banking.
What makes Yard home loans stand out
Broad borrower acceptance
The lender focuses on “quick, simple” loans available to a wide range of borrowers.
Beyond salaried employees, Yard also lends to self-employed borrowers, self-managed super fund trustees, and non-Australian residents.
Among other low-rate lenders, Yard is more accepting of different property types. It will lend for regular homes, apartments and townhouses, as well as hobby farms and off-the-plan purchases.
That's broader than other low-cost online lenders that focus almost exclusively on vanilla PAYG borrowers.
Higher LVR lending
Eligible owner occupiers can borrow up to 95% loan-to-value ratio (LVR), though keep in mind you may pay lenders mortgage insurance (LMI).
Investors, on the other hand, can borrow up to 90% LVR, also subject to lending criteria and LMI where applicable.
Additionally, first home buyers can also access Yard's Family Pledge and Family Guarantee home loans, allowing a family member to guarantee 20% of the purchase price to avoid the need to pay LMI.
Yard's advantage versus Big Four: Recognising Australians' unique circumstances
According to Ms Mladenova, Yard recognises that Australians can have "unique personal and financial circumstances".
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.
Whether you're a salaried employee, self-employed, located overseas, 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.
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.
Yard also takes pride in its simple and quick home loan applications.
Ms Mladenova said they can typically approve simple home loan applications within 24 to 48 hours. This is much faster than other lenders, which could take weeks.
"We separate ourselves through the breadth and speed of our proposition," she said.
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.
What home loans does Yard offer
Yard offers home loans for owner occupiers, property investors, and SMSF borrowers. Its home loans are available at variable and fixed rates, plus an option to split the loan.
Standard Home Loan
Yard's standard home loan is available for the purchase or refinance of an owner occupied or investment property. Key features include:
- Variable and fixed rate options
- Split loan option
- Optional 100% offset account
- Unlimited free redraw for variable loans
- Unlimited additional repayments for variable loans
- Flexible repayment frequency
- Up to 95% LVR for owner occupiers
- Up to 90% LVR for investors
- Loan amount from $150k to $5 million
- Loan terms up to 40 years
SMSF Loan
Yard offers SMSF loans to trustees seeking to buy commercial property (office, retail, warehouses, etc.) through a limited recourse borrowing arrangement (LRBA). Key features include:
- Variable rate
- Optional 100% offset account
- Unlimited additional repayments
- Flexible repayment frequency
- Up to 80% LVR
- Loan amount from $150k to $3.5 million
- Loan terms up to 30 years
Self-Employed Home Loan
Non-PAYG borrowers and sole traders looking to purchase, refinance or invest can access Yard's low-rate self-employed home loan.
It caters to sole traders, contractors, freelancers and company directors who may not have regular payslips but can demonstrate income through tax returns, business bank statements or alternative documentation.
Key features include:
- Flexible income verification
- Optional 100% offset account
- Unlimited free redraw
- Unlimited additional repayments
- Flexible repayment frequency
- Up to 95% LVR
Other lending options
Compare Yard home loan interest rates
| 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 home loan features
Additional repayments
Yard customers with variable rate home loans can make unlimited additional repayments, helping reduce their principal faster and potentially save interest over the life of the loan.
Redraw facility and offset account
Yard home loan customers who make extra repayment can access those funds through a redraw facility at no cost.
The lender also offers an optional 100% offset facility (for a fee, varies by loan product) plus the ability to link up to 10 offset accounts to a loan.
The ability to make extra repayments is only available to variable rate home loan borrowers, and consequently, these features as well.
Split loan option
In addition to variable and fixed rate options, customers may split their home loans between fixed and variable interest rates.
Dedicated personal service
Yard says every customer gets their own personal consultant who will work with them throughout the process, including finding a suitable mortgage product for their needs and circumstances.
Yard home loan fees
Yard has no upfront application fees, however borrowers may incur a few other charges throughout their home loan journey with the online lender.
- Valuation Fee – applied at cost
- Settlement Fee – $150
- Offset account fee – starts at $120 per annum
- Legal Fee – applied at cost
- Discharge fee – $500
Certain other fees may apply across some home loan products. For example, an early repayment fee may be charged for paying down a fixed rate home loan before the end of the fixed term period.
Different fees as well as terms and conditions apply to SMSF and commercial loans.
Pros of Yard home loans
- Fully digital application process
- Specialist loans available
- Broad range of borrowers
- Broad range of property types
- Free redraw
- 100% offset account
- High-LVR lending
Cons of Yard home loans
- No branch network
- Fee structure varies depending on the loan
How to apply for a Yard home loan
Eligibility requirements
To apply for a home loan with Yard, would-be borrowers generally need to meet the following eligibility criteria:
- Be at least 18 years old
- Be employed or self-employed
Additional documentation may be required for SMSF and commercial loan borrowers.
If you meet the eligibility requirements and additional requirements, where applicable, go to Yard's website and begin your application.
Yard's application process is totally digital, starting with an online form submission. No documents required yet, but during this stage you may be asked the property you're after, as well as your employment details, income, and expenses. This is for a borrowing estimate.
It'll be followed by a subsequent chat with one of Yard's lending specialists, and then the step during which supporting documentation must be submitted.
Documents needed
- Valid ID (e.g. driver's licence, passport, Medicare card)
- Income and employment details (e.g. most recent payslips for employed, most recent tax returns and ATO tax assessment notices for self-employed)
- Details of savings and assets (e.g. bank statements)
- Details of other loans and liabilities
- List of regular expenses
Once the application is submitted, it will be sent to the assessment team for approval.
Savings.com.au's two cents
Yard may not have the brand recognition, let alone the branch network, of the major banks, but it has a surprisingly comprehensive range of loan options for a non-bank lender.
It provides specialist SMSF lending, caters to a broad range of borrowers, and is willing to consider a variety of property types (not just your usual established home).
Its loan features are nothing to be scoffed at as well. Depending on the product, you can access its optional 100% offset account (up to 10, in fact), redraw facility, flexible repayment options and more.
However, being an online-only specialist home loan lender means Yard may not suit borrowers who prefer branch-based banking or want all their financial products under one roof.
That said, if you're seeking a competitive non-bank alternative, especially if the product you're looking for is not available at others or that you have more complex lending needs or a non-traditional borrower profile, then Yard may be worth considering.