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 very much for the service you provided us regarding the refinance of our home loan. All went well and smoothly with no problems. We are happy with the new loan arrangement. Once again, thank you very much for your assistance.

Bala Krishna
Cranbourne 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 24.09.18

  • Product of the month : 3.62% fixed for 2 years
  • Tips for First Home Buyers
  • A reverse mortgage loan can fund an Aged Care bond
  • If your bank says “No”, alternative lenders are available
  • Use a Deposit Bond when cash is not available

LOANS TO SELF MANAGED SUPER FUNDS (SMSFs)

Since September 2007, Self Managed Super Funds are legally entitled to borrow money to acquire residential or commercial investment property.

NOTE : the following information is basic, general information ONLY. It is not intended to be a detailed explanation of all the relevant points which individuals will need to consider before establishing their own Self Managed Super Fund and investment property acquisition strategy. Individuals should FIRST obtain their own independent legal, financial planning and taxation advice.

There are several important ELIGIBILITY CONDITIONS/REQUIREMENTS:

  • the Self Managed Super Fund must be correctly structured both from a legal and borrowing viewpoint
  • independent legal, financial and taxation advice must be obtained before investing in property through a Self Managed Super Fund
  • the property must be held in trust by a Property Trustee for the Self Managed Super Fund
  • the Self Managed Super Fund must be permitted to borrow for the purposes of acquiring investment property
  • the purchased property cannot be used as a residence for a Fund member or their family. It can, however, be used as a commercial business premises for a Fund member or their family
  • the property purchase must be a permitted investment strategy for the Fund
  • there must be no recourse by the lender against any other assets of the Self Managed Super Fund
  • all members of the Fund should be in the accumulation phase (making contributions to the Fund) rather than being in the pension phase (receiving a pension from the Fund)
  • after the loan is repaid and the mortgage discharged, the Self Managed Super Fund has the right to acquire legal ownership of the asset from the Property Trustee

ADVANTAGES of acquiring investment property through a SELF MANAGED SUPER FUND:

  • purchase of property using monies not usually available to pre-retirees
  • wider diversification of assets may now be considered and held by the Self Managed Super Fund
  • greater purchasing power by using only some of the funds in your Self Managed Super Fund as a 20% (minimum) deposit to acquire residential property or a 30% (minimum) deposit for commercial property
  • accelerated wealth accumulation by taking advantage of tax rate concessions:
    • 15% tax rate on rental income for eligible Funds, and
    • NIL capital gains on sale of property if members have commenced drawing a pension from the Fund

What is the basic PROCESS of purchasing an investment property on behalf of a SELF MANAGED SUPER FUND?

  • a Self Managed Super Fund is set up with appropriate power to purchase investment property and to borrow funds
  • a simple Property Trust can be established to acquire an investment property. The Property Trustee purchases the property on behalf of the Self Managed Super Fund
  • a qualified Financial Planner must provide a written certificate that independent financial advice has been given on the appropriateness of your Self Managed Super Fund borrowing money to purchase the investment property
  • the Self Managed Super Fund applies for a “limited recourse” investment loan. All appropriate documentation is held by the lender.
  • the lender confirms that the Self Managed Super Fund has sufficient income, (including rental income, contributions to the Fund by
  • members and earned income from the Fund balance), to service the monthly loan repayments.
  • Self Managed Super FundTrustee signs Loan Contract. Property Trustee signs mortgage documents
  • other security documents, including Trust Deeds, Guarantees and Certificates confirming receipt of appropriate independent advice, must all be held by the lender
  • the Self Managed Super Fund completes the purchase of the investment property
  • after loan settlement, the property is rented out by the Self Managed Super Fund Trustee on normal commercial terms
  • the Self Managed Super Fund has an ownership interest in the property that entitles it to rental income and capital gains from the property
  • once the loan is repaid and the mortgage discharged, the property may be transferred from the Property Trust into into the name of the Self Managed Super Fund

EXAMPLE

$300,000 purchase price for a residential investment unit
$ 60,000 deposit (minimum of 20%) paid by SMSF plus $15,000 for stamp duties. A total of $75,000 is required

$240,000 loan arranged for SMSF to complete the property purchase

  • loan term up to 30 years on “principal & interest” repayment basis
  • adequate loan servicing verified by lender prior to official approval
  • variable interest rate is usually similar to a lender’s current normal Home Loan variable rate
  • clean credit history required for individual Fund members
  • normal loan guarantees, when required by lender, provided by all adult Fund members and associated trusts

Loans to SELF MANAGED SUPER FUND’s are NOT AVAILABLE for the following types of securities:

  • owner occupied residential property
  • vacant land
  • specialised security e.g. retirement village unit
  • specialised title e.g. stratum title, company share
  • property to be developed
  • non residential or commercial properties
  • cash deposits
  • “off the plan” properties
  • properties to be constructed
  • properties located in isolated or unacceptable postcode areas


Contact Melbourne Mortgage Finance
to discuss individual scenarios which may be referred to a lender for consideration and feedback prior to purchase

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