LENDING UPDATE – 25.03.09

The mortgage lending scene is changing rapidly and the items below may be of use to potential borrowers who are currently considering a mortgage loan:

RATE COMPARISONS AS AT 25.03.09

There are hundreds of loan products available, but the following table highlights current variable rates for some of the more popular loan products and maximum loan to valuation ratios (LVRs) available on a typical $300,000+ loan (12 month “honeymoon” rate loans excluded):

CBA 3 year Special 5.06% 95% *
Heritage Basic 5.07% 90% *
RAMS Basic 5.09% 95% *
ING Simplifier 5.13% 90% *
St George Basic 5.17% 95% *
Homeside HomePlus 5.17% 95%
Suncorp Standard 5.20% 95% *
St George No Deposit 5.21% 100%
Westpac First Option 5.21% 95% *
AMP Simplicity Plus 5.21% 90%

* indicates that mortgage insurance premium can be added to the base loan amount.

ING, Citibank and Heritage Building Society have followed ANZ and reduced their maximum LVR to 90% (previously 95%). St George is the only well-known lender still offering a 100% loan (with a higher mortgage insurance premium) provided income is strong and the credit record is very clean.

GENUINE SAVINGS

Most lenders have recently introduced the requirement for borrowers to hold genuine savings for a period of 3 months prior to application. This is partly to improve the quality of applications and partly to control the high levels of new business being received. For example, CBA and RAMS now require bank statements proving 3% savings over a 3 month period, while ANZ and ING now require statements proving 5% savings over a 3 month period. Some lenders such as Suncorp and Homeside are currently more flexible on the need for genuine savings …as long as borrowers hold sufficient funds in an account and can prove required income, they are generally prepared to consider the application. Proof of 3-5% genuine savings is becoming a standard requirement, however, with most lenders.

EARLY TERMINATION OF FIXED RATE LOANS

Vendors who are selling or refinancing may be terminating old fixed rate loans prior to the scheduled fixed rate expiry date. Depending on the loan size, the original fixed rate and how early the loan is being terminated, the penalty interest payable can be substantial. Penalties of $20,000-30,000 or more can easily be incurred. Vendors need to be aware of the penalty they will incur prior to selling their property or deciding to refinance. An unexpected shortfall of funds may arise when the lender deducts the payout balance AND the fixed rate early termination penalty.
As variable rates fall, penalties for early termination of old fixed rate loans generally become larger.

Melbourne Mortgage Finance is available any time to assist clients who need mortgage finance for purchase, construction, refinance, line of credit, debt consolidation or reverse mortgage seniors finance.

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

Home Loans, Investment Loans, Equity Access Loans, Low Doc Loans, 100% Loans, Refinance Loans, Commercial Loans, Deposit Bonds, Reverse Mortgages, Accommodation Bonds, Vehicle Finance, Plant and Equipment Finance, Financial Planning and Business Finance.

IMMEDIATE appointment can be made to meet at your home or office

  • NO CHARGE for assisting you. We receive a standard fee from the lender you select
  • reliable service, communication and follow-up. See “Testimonials
  • accreditation with 20 national lenders, allowing you to select from an excellent range of loans
  • we carefully listen to your needs, do our research, then present you with a short-list of three potential loan solutions. You choose the lender.
  • printouts of products, fees, interest rate and loan features are provided
  • arrange for your property insurance and personal insurance requirements to be assessed
  • ongoing availability to assist you after loan settlement
  • over 30 years experience in arranging finance and mortgage loans