LENDING UPDATE – 18.05.09

Key issues continue to be : lengthy approval times, requirement for proof of 5% genuine savings, the gradual disappearance of 95% lending as we have known it for many years and an extension of the current First Home Owners Grant scheme.

LENDER COMPARISON

Current variable rates and maximum loan-to-valuation ratios (LVRs) for some of the more popular loan types are shown below. Fortunately, most lenders will add the once-only lender’s mortgage insurance (LMI) premium to the maximum loan amount for loans over 80%. On a typical $350,000 95% loan, the LMI premium would average about $8500.

%Rate p.a. LVR max %
Heritage Basic Variable 4.82 90
BankWest Rate Tracker 4.85 90 + LMI
CBA 3 yr Special Variable 4.96 90 + LMI *
RAMS Basic Variable 4.99 90 + LMI
St George Basic 4.99 90 + LMI
ING Direct Smartpack Simplifier 5.03 90 + LMI
PLAN Lending Performance Plus 5.05 90
HomeSide HomePlus Variable 5.07 95
Homeloans Ltd Premium Saver 5.09 90 + LMI
Suncorp Metway Standard Variable 5.10 95 + LMI
ANZ Simplicity Plus 5.11 90
Westpac Flexi First Option 5.11 92

Exceptions:
Bankwest : 95% + LMI for borrowers who take the 5.70% Mortgage Shredder loan.
CBA : 95% + LMI for their own customers who have held a satisfactory credit card or personal loan facility for at least 6 months.
St George : 95% + LMI for their own customers who have held an account for 6 months.
Westpac : 97% maximum for their own customers who have held an account for 6 months.

5% GENUINE SAVINGS REQUIREMENT

Nearly all lenders now require borrowers who need loans over 80% LVR to contribute 5% of the purchase price in genuine savings accumulated over a three month period. This especially applies to first home buyers. Genuine savings can include:

. bank statements in the name of the borrower showing accumulated savings
. sale value of shares (less any tax payable)
. equity from real estate held (either sale proceeds or borrowings)
. after-tax bonuses from employer
. non-preserved superannuation contributions (if accessible in cash form)

The following sources of funds do NOT count towards the required 5% genuine savings figure, but can be used in addition to the proven genuine savings:

. FHOG
. inheritance
. gifts (may need to be held in the account for three months, depending on the lender)
. sale of assets

Suncorp will accept just 3% genuine savings from first home buyers, but the CRAA report must be completely clear of default listings.

FIRST HOME OWNERS GRANT : AMOUNTS PAYABLE AFTER 30.06.09

A summary of the recently announced changes to the FHOG scheme is as follows for the Melbourne metropolitan area:

01.07.09 to 30.09.09

Established Homes $16,000 ($14,000 Federal + $2,000 State)

New Homes $32,000 ($21,000 Federal + $11,000 State)

01.10.09 to 31.12.09

Established Homes $12,500 ($10,500 Federal + $2,000 State)

New Homes $25,000 ($14,000 Federal + $11,000 State)

01.01.10 to 30.06.10

Established Homes $9,000 ($7,000 Federal + $2,000 State)

New Homes $18,000 ($7,000 Federal +$11,000 State)

Note : an extra $4,500 is payable from 01.07.09 for new homes built in a country area

Contact Melbourne Mortgage Finance for immediate assistance in arranging your loan application. Same-day service and home visit are generally available.

Barry LeBrocq

Melbourne Mortgage Finance
Mob 0437417042
Web www.mmfinance.com.au

Disclaimer: the above information is intended as general information only and is not intended to cover specific personal situations. Every effort has been made to ensure that content is accurate, however it should be understood that lenders are constantly changing their products, interest rates and lending policies. Potential borrowers should contact Melbourne Mortgage Finance to discuss their specific personal financial needs and loan eligibility prior to making a borrowing decision.

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Leongatha, VICTORIA

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Somerville VICTORIA

 

LENDING UPDATE 14.06.19

  • LIVING EXPENSES ARE NOW A KEY ISSUE
  • COMPREHENSIVE CREDIT REPORTING NOW IN EFFECT
  • INVESTMENT LOANS AT OWNER-OCCUPIER INTEREST RATES
  • REVERSE MORTGAGE LOANS FOR SENIORS OVER 60
READ MORE

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