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

What is an Equity Access Loan (or Line of Credit)?

This is a mortgage secured credit facility where an overall credit limit is approved by the lender and may be drawn down at any time for any purpose up to but not exceeding the approved limit.

These loans are usually taken by people who already own a home or have good equity.

For example, if you own a $400,000 property outright, you can usually arrange an Equity Access Loan (EAL) of up to $320,000 or 80% of the property value without arranging mortgage insurance. If you have a $100,000 home loan limit outstanding , your lender will be able to approve a separate Equity Access Loan for a limit of $220,000. Of course, approval will depend on your ability to prove sufficient income to qualify for the loan.

Equity Access Loans can be used in a variety of ways including:

  • Purchasing a home

    This is not common as the interest rate on Equity Access Loans is generally higher than on normal home loans. It is also an “interest only” facility with no built-in structure to reduce the debt long-term.

  • General or consumer purposes

    Interest rates on Equity Access Loans are much lower than personal loans or credit cards. Many borrowers establish an Equity Access Loan for the purchase of general non tax-deductable goods such as household items, travel, clearing other personal debt, purchase of vehicles etc.

  • Investment purposes

    such as paying the 10% deposit on an investment property, or purchasing a property or shares. The Equity Access Loan must have a different account number to your normal home loan account so it can be operated separately for tax reasons.

  • Business purposes

    if permitted by the lender. The Equity Access Loan must have a separate account number for tax reasons.

An Equity Access Loan is an “interest onlyline of credit. As such, regular monthly interest payments are technically not required if your loan balance is below the approved credit limit. It is not recommended that you use an Equity Access Loan facility indefinitely and continue to make no monthly interest payments. Interest payments should be made each month to prevent the loan balance continuing to increase. If your Equity Access Loan is used for personal consumer purposes, you should endeavour to reduce the loan balance whenever possible.

Yes.

Most lenders will allow you to have your Equity Access Loan divided into different sub accounts so that each sub account can be used for a different purpose.
For example, your Equity Access Loan might be divided into three sub accounts:

  • one for personal use,
  • one for investment purposes
  • and one for business purposes.

Each functions separately which will be required by your Accountant for taxation reasons.

Yes.

Equity Access Loans are “come and go” facilities. Any money paid back into your account can be accessed at any time. There are no restrictions on money being paid into an account or being drawn from an account apart from fees some lenders may charge for excess transactions and the need to keep the balance within the agreed credit limit.

Yes.

Many borrowers have an Equity Access Loan on standby to be used only in need. For example, funds can be spent on consumer items such as white goods, house repairs or as a deposit on an investment property. It is not necessary to have an active balance on these type of accounts.

No.

Borrowers are only charged interest on the actual funds drawn. Interest is calculated daily on the active loan balance and interest is charged to the Equity Access Loan account monthly. In order to minimize the interest charged on an account, it is beneficial to reduce the debt whenever possible.

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