LENDING UPDATE – 24.08.09

Key issues

  • Generally no movement in variable rates since last month
  • continuing rapid increases in lender fixed rates. See table below.
  • reduced volumes of new loan applications due to tighter lending policies
  • First Home Owners Grant in Victoria now $16,000 for established properties and $32,000 for newly-built properties until 30.09.09 (conditions apply)
  • 95% LVR lending to new customers is still available from some lenders at marginally higher rates

LENDER COMPARISON

The difference between lender basic variable rates and their standard 3 year fixed rates is significant. The table below shows some of the more popular variable rate products. It excludes 12 month “honeymoon” products and “professional package” products which cost $350-400 pa.

Basic variable %

LVR max %

Standard
3 year
fixed %

Bankwest

3 year Rate Tracker

4.87

90+LMI

7.14

RAMS

Basic

4.99

90+LMI

6.74

ING

Simplifier Smartpack

5.03

90+LMI

7.09

PLAN Lending

Performance Plus

5.05

90

7.22

CBA

Rate Saver 3 yr Special

5.06

90+LMI

7.14

Homeside(nab)

HomePlus

5.07

90

6.89

St. George

Basic

5.07

90+LMI

6.94

ING

Simplifier

5.09

90+LMI

7.09

Homeloans Ltd

Premium Saver

5.09

90+LMI

7.16

Suncorp

Standard (<90%)

5.10

90

6.99

ANZ

Simplicity Plus

5.11

90

6.99

Westpac

First Option

5.11

92

6.99

Suncorp

Standard (>90%)

5.30

95+LMI

7.19

Police & Nurses

Easy Pay

5.53

95+LMI

6.99

Bankwest

Mortgage Shredder

5.70

95+LMI

7.14

Notes

:+LMI indicates lenders who will add mortgage insurance to base loan amount

:CBA, Westpac and St. George will lend 95+LMI only to their own existing customers at normal rates

:Suncorp, Police & Nurses and Bankwest will lend 95+LMI to new customers at higher rates

100% FAMILY GUARANTEE LOANS

Most lenders will lend up to 90% of property valuation where a single property is offered as security for the loan. Some lenders will lend up to 95% of valuation to their own customers or to new customers who meet strict eligibility conditions

Several lenders will lend 100-105% of purchase price only if another property, usually the parental family home, is available as additional security for the loan.

Example: if the purchase price is $400,000 a 100% loan can be structured as follows:
$320,000 (80%) loan in the purchaser’s name secured by the new property
$ 80,000 (20%) separate loan in the purchaser’s name secured by the parents’ property

Parents are required to sign normal mortgage documents as well as a property guarantee limited to the amount of $80,000.

Important points to consider with this type of loan include:

  • the lender will require proof of strong income and satisfactory employment history
  • parents must be willing to offer their home as additional security and must receive independent legal advice before signing documents
  • NO MORTGAGE INSURANCE is payable, saving about $10,000 in the above example
  • parental involvement in the loan can be terminated once the loan balance reduces to 80% of the new property value.

LOW DOC LOANS

Lenders offer low doc loan facilities to borrowers who are self-employed, but who cannot produce full tax returns for the last two financial years at the time of loan application.

  • most banks will lend up to 60% of value without mortgage insurance
  • some banks will lend up to 80% of value with mortgage insurance once the loan exceeds 60%
  • most banks now require Taxation Department BAS statements as part of a low doc loan application
  • a few banks will still lend up to 80% of value without BAS statements, and will accept an application based solely on the borrower’s signed Income Declaration form.

Low Doc loans for PAYG Employees

One bank offers low doc loans to normal employees with no proof of income required. Loans up to 60% of value are approved on this basis.

Please contact Melbourne Mortgage Finance for immediate assistance with loan applications.

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.

What our customers say about us

Thanks for all your help and for making it so easy for me. Life will be so different now.

Jan Vincent
Montrose, VICTORIA

Thank you for your time on the phone yesterday and copying me into the below email.
I just wanted to take the time to say that I have never seen such a comprehensive email provided to clients by a Broker before. Very clear and detailed.
I hope it’s ok that I hold onto your details to refer to clients who may need assistance.
Kind Regards,

Shannon Oatley
Director & Licensed Conveyancer
Property Conveyancing Group, VICTORIA

We have found Barry Le Brocq of Melbourne Mortgage Finance to be very patient, caring and diligent in achieving a successful outcome to our refinancing requirement. We have no hesitation in recommending his services to others.

Don & Christine Perrett
Leongatha, VICTORIA

Many thanks Barry for the exceptional service that you have provided. We will most certainly be recommending you to our daughter (Bank of Melbourne branch manager) for any future customers who need a reverse mortgage loan.

Paul & Barb Spark
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

Melbourne Mortgage Finance offers an extensive range of mortgage products and services including

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