LENDING UPDATE – 29.04.09

Lenders have continued to tighten their residential lending policies since Easter. Reduced loan to valuation ratios (LVRs), proof of 5% genuine savings, lengthy approval times and sudden increases in fixed rates are key issues at present.

LENDER COMPARISON

This table shows current lender variable interest rates and maximum LVRs for popular loans. Some lenders will still add Lenders Mortgage Insurance (LMI) to the base loan amount:

%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
PLAN Lending Performance Plus 5.05 90
HomeSide HomePlus 5.07 95
St George Basic 5.07 95 + LMI
ING Mortgage Simplifier 5.09 90 + LMI
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 **

* CBA will lend to 95%+LMI for existing customers who have held a well-conducted
credit facility such as a credit card or personal loan for at least 6 months.
** Westpac will lend to 97% for existing customers who have held a Westpac account
for at least 6 months.
Only a few lenders will now approve 95%+LMI. Employment stability, 5% genuine savings and clean credit history are essential.

FAMILY GUARANTEE LOANS

As most lenders are now pulling back to 90%LVRs, many borrowers are unable to show evidence of 10% deposit, plus additional funds to cover stamp duty and mortgage insurance. Most lenders will offer Family Guarantee loans as a way of resolving this deposit problem. These loans involve family members (usually parents) offering their own property title as secondary security for the loan. A parental guarantee is signed for an agreed amount so that the new loan is reduced to no more than 80% of total security value. As a result, NO MORTGAGE INSURANCE IS PAYABLE….this can result in a saving of about $10,000 on a typical $380,000 first home buyer loan. Parental Guarantee loans will become more popular in the future as a response to tightening lender credit policies. If parents still have an existing mortgage on their property, the borrowers will generally have to use the same lender.

INCREASES IN FIXED RATES

In the last two weeks, numerous lenders have increased some of their fixed rates by between 0.2% and 0.45%. Fixed rates are not linked to Reserve Bank interest rate announcements and can be changed at any time. Fixed rates have already bottomed out.

Current advertised 3 year fixed rates are shown below for loans over $300,000 :

% Rate p.a.
HomeSide Homeplus 5.44
Westpac Premier Advantage 5.59
Adelaide Smartfix 5.69
St George Standard 5.69
RAMS Pro Pack 5.79
Westpac Standard 5.79
ING Smart Pack 5.89
Heritage Standard 5.99
CBA Pro Pack 6.04
BankWest Standard 6.19
ANZ Standard 6.19
CBA Standard 6.19
Citibank Standard 6.39
Suncorp Standard 6.39
AMP Pro Pack 6.59

There is a very wide spread in lender fixed rates which is not the case with variable rates. Fixed rates are also substantially higher than variable rates currently available. The anticipated consumer swing to fixed rates may not occur if this gap continues to widen with increases in lender fixed rates already happening.

Melbourne Mortgage Finance is always available to assist you with loan applications for owner-occupied homes, investment properties, construction, refinance, debt consolidation, line of credit or reverse mortgages. Please call or email at any time. Same-day service is 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.

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